The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-09-16
The General Financial Outlook,


|. The bank statement is generally consid.
cred unfavorabe, because there is a decline
IN the legal.tender reserve, notwithstanding
an increase In deposits. 1t is proper to OBJ.
serve, however, that the outflow of legal ten
ders has been smaller thus far than is usual
a. this season Last year the banks lost over
5000,0 900 during August; this year the de-
crease has been only $3,394 $40; the legal
tender return of August WAS $50, 1873 30 ),
and the return of last saturday 500, 939 0O0.
In 1874, the period of decline did not com.
mence until September; in 1873, starting
with legal tender reserve $9,5O0000 less than
the banks held at the end of July this year,
the reserve was reduced $50 0,000 before the
end of August. But in each of these years
there was considerable decline Of deposits
during August; in 1915, about $4,000 O00; in
1874 over 100000, and n 1873 over SIS, 0O0,.
600 Five weeks age the deposits were $685.
500, 100, and according to the return of Satur-
day they were $226542 ,900 Thus the pro-
portion of legal.tender reserveto deposits
which was 26.6 per cent July 20, has fallen
to 25l percent August 20. The decline is
not such as to cause any uncasiness, ifthere
are no especial reasons for anticipating this sea
son larger drain than usual upon the reserve
In 1873 the legaltender reserve fell from 1873
per cent at the beginning of August to 161
per cent at the beginning of September. 10
1871, year of remarkable ease and health,
the legaltender reserve was only 244 per cent
at the beginning of eptember-sOmewha
lower than it is now.
ii. AS to the crop movement, though
rates for transportation are low beyond all
precedent, prices at Chicago and other Yves
tern markets are very low. When No 2
wheat sells at 9l58 cents in Chicago and No
. NJ iluauEnp nj vt3. N : q bln IN
expect any extraordinary haste on the part of
farmers to realize the less as the Western
producers have had a succession OF good
crops, and are believed 10 be unusually tree
from debt A year ago No. Chicago sold
here at 81 80, ard No. 2 Milwaukee at $1,43,
and the same grades are now nearly forty
cents lower From August 70 the end Of
the year 1875 the receipts at Western markets
were about 1875, 100000 bushels, and there
does not now appear any reason to anticipate
a larger movement this year.
III. Stock speculations open earlier and
more actively this season than last year, be-
cause Of the collapse of the coal combination
During August of last year only about 100,
600 shares were sold, while the sales last
week were over 100000 shares, and for four
weeks ending August 26 the sales were 9, 1884
| zoo shares. 70 this sudden but perhaps tenn
porary excitement on the stock exchange may
in part be attributed the Imperative increase
of bank clearings, which have been $l,203,
S54, 023 during the past four weeks, against
81 ,2SS, $50 S6S 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 transac-
tons, and for the shrnkage 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 tor August in
dicale much more satisfactory business than
was expected, IN view Of the very low rates
prevailing A marked improvement in guam
titles shipped has resulted, and the roads are
learning to transport at lower rates than were
formerly deemed possible with profit. The
destruction Of the coal combination Is anoth
er important step toward lower prices, and
lower cost of production in many branches
Of manufacture, and it is not improbable that
an early increase in consumption may follow
reduction in price. Many establishments
which have been AT the mercy of the anthra
cite monopoly, will be encouraged to new eff
tort.
". Important changes IN the money mar.
Ket may perhaps follow the contract for the
sale of A = per cent bonds, and the decision
that such bonds can be employed as basis
of circulation by national banks. 1t is too
early, as yet, to judge what effect these trans.
actions may have. The prompt decline in
the price OF five.twenties OF 1865, amounting
already to nearly two per cent within two
weeks, together with the Withdrawal during
last week of $3.50, IN bonds held by the Treas.
ury to secure circulation, indicates that there
may be considerable disposition on the part
of holders of bonds to realize before the fund.
ing process proceeds further Ifthere should
be considerable investment of American
capital in the new A. per cents, changes in
the bank statement more important than
those usually seen at this season ght result.
At present, however, confidence IN the con-
,inued ease OF the money market prevails,
and there is more hopeful feeling In regard
to business prospects for the tall and winter.
.