New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-08-29
THE GENERAL FiNINcIAL OUTLOOK.

|. The bank statement is generally considered
unfavoiable, because there Is "A decline III the
legal-tender reserve, notwithstanding an IN
crease in deposits. 1t Is proper to observe,
however, that the outflow of legal tenders has
been smaller thus far than Is usual mt tins
season. Last year the banks lost over $1,000
900 during August this year the decrease has
been only SO 1874, 800; the lcgal-tendcr return
of Aug. was $50, 1888, 300, and the re-
turn of last Saturday 500, 900. In 1874,
the period of decline did not commence until
September; in 1878, starting with legal
tender reserve So, 800, 600 less than the banks
held at the end of July this year, the reserve
was reduced $5,3OO,OOO before the end OF
August. But in each of these years there
was considerable decline of deposits
during August in 1875, about S5.OO0,OOO;
in 1874 over S7,000,0OO, and i'll 1873 over
SIS 100000. Five weeks ago the deposits
were 1923, 500, 100, and according to the re-
turn of Saturday last they were $22O,5i2,5Oo.
Thus the proportion OF lcgal-tender reserve to
deposits, which was 2G.6 per cent July %,
has fallen to PSI per cent Aug. ~. The de-
cline is not such as to cause any uncaslness,
If there are no especial reasons for anticpat-
ing this season larger drain than usual upon
the reserve. In 1873 the legal-tender reserve
fell from 1873 per cent at the beginning Of
August TO 1G.1 per cent at the beginning OF
September. In 1871, n year of remarkable
ease and health, the legal-tender reserve was
only 24.4 per cent at the beginning OF Sep
tcmber-somewhat lower than 1t is now.
III. As TO the crop movement, though rates for
transportation are low beyond all precedent,
prices at Chicago and other Western markets
are very low. When No 2 wheat sells at
! 915s cents in Chicago, and No. Milwaukee
! at g63,, it il not reasonable to expect any cx-
traordnary haste on the pant OF farmers to
realize, the less as the Western producers
! have had a succession of good crops and are
believed to be unusually free from debt.
year ago, No. 2 Chicago sold here at 81 30,
and No. 2 Milwaukee at 81 AZ, and the same
| grades are now nearly 40 cents lower. From
! Aug. / TO the end of the year 1875 the re-
ceipts at Western markets were about 3d.
! OOO, 900 bushels and there does not now APP
pear any reason to anticipate larger move
ment this year.
| III. Stock speculation opens earlier and more
| actively this season than last year, because of
the collapse of the coal combll alton. During
| August of last year only about 100000
shares were sold, while the sales last week
were over 100000 shares and for four
weeks ending Aug. 26 the sales were
1884, 900 shares. To this sudden but
perhaps temporary excitement on the Stock
| Exchange may in part be attributed the
comparative increase of bank clcarings, which
have been $l,2O3, S51,023 during the past
four weeks, against 81, 2SS, $50, SOS during the
corresponding weeks last year. In every other
month this year the decline has been much
| greater, and after full allowance for the effect
| of stock transactions, and for the shrink
age Of prices since August, 1875, there
seems to be good reason for believing
that there is moderate increase in
| quantities of products exchanged. Thus far,
also, the railway earnings for August indicate
q much more satisfactory business than was
expected, in view of the very low rates pre-
vaing. marked improvement in quantities
shipped has resulted, and the roads are learn
} ing to transport at lower rates than were for
merry deemed possible with profit The de-
structiOn of the coal combination is another
important step toward lower prices, and lower
cost of production in many branches of manu-
| facture, and it is not improbable that an early
increase in consumption may follow a rcduc-
ton of price. Many establishments, which have
been at the mercy of the anthracite monopoly,
will be encouraged to new effort.
". Important changes In the money market
may perhaps follow the contract for the sale
of 4i2 per cent bonds, and the decision that
such bonds can be employed as basis of cir