New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-05-09
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATTON
The bank statement of Saturday requires |
some explanation, as it reflects the operation |
of several important changes. There is, first, |
the restoration of the National State Bank to
the list, Which adds reported averages of $64G,-
400 to loans, $4,000 to specie, S2O7 300 to |
legal tenders $341, 700 to deposits, and $43,-
800 to circulation. DeGucting these items, the
changes in the other banks since last week
are an increase of 81, 2j2, 900 in loans 2.71S,-
200 in specie, and 50, 79S, 200 in deposits, and |
n decrease of S4,114,600 in legal tenders. and |
S1O6,9O0 in circulation. These considerable |
changes result, first, from the sale of the Ala
bama bonds and the gold paid for them,
amounting to over $6,000,000; second, from
the disbursement of 1882. 900 on interest
account by the Government, the customs re-
ceipts during the week having been only $1,774,-
600; third, from the export of $2,701, 1888
in specie during the week; fourth, from the
loan of three millions effected by the city on
revenue bonds, and other loans effected by
holders of the Alabama bonds, of which n large
part are still in the city; and finally, from the
surrender of nearly 100000 in circulation
by the banks. These changes in part balance
each other, so that net gam OF specie,
amounting to $5,157,000, would not have
been surprising, and it is probable that the av-
erage is somewhat lower in this respect and
in deposits than the actual position at the
close of the week. On the other hand the
decrease in legal tenders arising from the sale
of gold has as yet been cOunterbalanced only
by payment of less than $1,OOO,OOO to Ala
bama claimants, and an increase of the legal
lender store may therefore be expected as the
remaining payments are made. For the pres
ent, however, the reserve is reduced below %
per cent of deposits, and the legal-tendcr re-
serve to only 10 per cent. The position and
aggregate clearings for the week ending May
6 compare thus with the statements OF CORE
spending weeks in former years:
SO nay 20 s@ Nay s @ay e as
I9fff,: ssi$S "a ssEs$$
sn 4gS f9it gs95sSsq 5aSsGc
The surrender of circulation, as we have
seen, amounted to 100000 for the banks in
this city reporting at the end of April, and to
nearly 100000 for the whole country. The
latest statement of the Controller OF the Cur
rency shows the progress of the movement to
Nav [. the amount of bank notes retired and
surrendered at that date since January IA
being 500, 4S9, 583, the amount issued during
the same period, $14,3GS, $50, and the net de-
crease $15,12O,72S. The amount Of legal
tenders on deposit for retirement of circulation
ON the 1st was 80S3, 291, of which, how
ever. Sl2,OS9, $40 were OH deposit when the
act of 1875 was passed. Finally, the legal
tenders retired under that act amounted to
S11.472,12I, so that the real contraction, by
voluntary surrender OF circulation in obedience
TO "the wants of trade" has been $42, 5SG.-
O75. With this official information at hand,
we may add about 100000 for reported sur
render of circulation since the beginning OF
May, making about $43,2S6,OOO in all, from
January Ia, 1875, to date.
For the banks, with legal-tendcr reserves
decidedly lower than is usual at this time of
the year, the main question is how far and
how rapidly this movement VIII continue. AS
throwing some light upon the amount of cur
rency for which there is use, the comparison
of bank cearings is instructive Last week
tbe transactions were 500, 100000 less than
those of the corresponding week last year, a
decline of 10 per cent but this is somewhat
in excess of the average thus far since
January /, which has been about Ia per cent.
That there is considerable shrinkage in the
amount of business transacted appears also
from the decrease of imports, customs re-
ceipts, and exports both of domestic products
and of specie. In imports since July 1, 1875,
the decrease has been about 800, 100000;
in domestic exports. $41,OOO,OOO, and
in exports of specie, $20,OOO,006. The
prolonged stagnatiOn in the stock mar
ket. and the downward tendency of