New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-05
STEADILY NEARING BED RoCK.

STEADILY NEARING BED ROCE.
Although business is dull, there are encOur-
aging signs in the latest bank and Treasury
statements. For the first time since June, the
New York banks report an increase of legal
tenders, and this increase, though only $780,
500. is the more remarkable because at this
time last year, and in 1875, the banks were
losing in currency reserve at the rate of over
81. 600 600 each week. There is a marked
change in the demand from the West which
was still strong at this season last
year, but has already so declined this
year that the return exceeds the out
flow 1t is customary to attribute this to
a decline in the grain movement, but the
explanation, if held sufficient, implies that
there must be a much greater decrease in the
movement than has yet appeared. Grain re-
ceipts at this port during the month of OctO-
Der were 14,515,O 900 bushels. exceeding re-
ceipts during October of last year by 4,49S, 600
bushels, and there was also a gain of $4,000
barrels in receipts of flour. During the latest
weeks reported, the receipts of grain in bushels
at all the Atlantic ports and the shipments
from Buffalo and OswegO, compare with the
movement last year thus:
Receipts at all Ports
Week ending 1877. 1876.
October g9S 4'Ol0553
Shipments from Buffalo and 0srego.
October p 462 I'2Sdio7
october OO-O'Jff I5oo'Iot
Evidence of recent decline in the movement
appears, however, as we look Westward The
shipments from Western ports during the week
ending October 81 were less by 100000
bushels than the shipments of the second week
preceding, and less by 10000 bushels than
the shipments for the corresponding week last
wear. The receipts at Western ports began to
decrease a week earlier, and for the two latest
weeks reported compare thus;
Week ending 1s-. 1876.
October 5,352,3G3
At the West, therefore, the movement has
recently fallen behind that of last season, but
it should be noticed by no means enough to
account for the great change in demand for
currency. The decrease in grain receipts for
the two weeks is only 1,O3S, All bushels the
legal-tender outflow from New-York for the
last two weeks has been only SAY 400, and
last year it was $2,3S6,4OO The cotton
movement is also small, but not enough smaller
than it was at this season last year to make a
used.
The increase in bank circulation in part ex-
plains the difference in demand for legal-ten-
ders. Last week the New-York banks in
creased their circulation $430,S0O and the
circulation of all the National banks increased
1892, 900. From the lowest point, reached
September /, the circulation Of New York
banks has increased $1.773, 800, the MctropOl-
itan Bank adding $264,000 last week, and the
Bank of Commerce 1854 Duringthe last
two weeks, by sending out nearly 81 900, 900 in
new notes, the banks have materially diminished
the drain upon their legal-tender reserve, and
they have as yet obtained less than one
third of the amount for which they have al
ready applied. 1t is a fact of peculiar lmpor-
lance in discussions regarding the cur
rency that, on the very first occasion for any
useful enlargement of circulation, this in
crease promptly occurs, and enables the
banks to strengthen their legal-tender reserve
at the very period when its decline would
otherwise have been rapid. Last year no such
increase in the circulation appeared, because,
loudly as inhationsts clamOred, there was no
legitimate use for a larger circulation This
wear the increased demand is only temporary, as
voluntary retirement Oh ClICuldtlOH W III uOuDI-
less prove before long. No tendency to Increase
appeared until the bank circulation had been
reduced below $316OOO,OOO, and the legal
tenders to $35G,97S, Gj4, and the present de-
mand is only due to the usual Fall require
ment, increased by the unusual magni-
tude of the crops. For all ordinary
uses, no sensible infationist-if such a
person can exist-can deny that we
have even now more currency than the c0un-
try needs. Yet we have in actual use less cur
rcncy by S27, SOC, 900 than we had last year
at this time. 1t follows that all the retire
ment and contraction during the past year
have been merely getting rid of a part of the
surplus circulation Which, while in use, caused
mischief III every branch of trade and indus
try
At last the country has got rid Of the use
less legal-tenders, which were poured forth
from the Treasury regardless of law, in
foolish attempt to check the panic four years
AGO. During these weary years, while the
legal-tender circulation has been very slowly
diminished, because the people were ignorant
and politicians were afraid, the voluntary
surrender of circulation by the banks has been
much larger. The laws of trade have slowly