The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1877-06-28
3e Impending Money Crisis.


The New York Commercial Bulletin,
of the highest authority in matters OF
finance, says: .....-t
From what already appears as to
Secretary Sherman's purposes, it is
very evident that his operations must
Immediately begin to involve with
drawal of gold and legal tenders from
the banks at the joint rate of five mil
lions per month. These Withdrawals
will come mainly, in the first instance,
out Of the banks of this city; the gold
portion, which do doubt will consti-
tnte the bulk, must come entirely out
of our local banks, as almost the only
repositories of coin owned i,y the pub
lie. 1t thus becomes very serious
question - in what condition are the
banks to support this coming drain 7
The last weekly return OF the Associa-
ted Banks showed that they held S55, Z.
600, 900 Of legal tenders aud $I0, 400,
600 of specie, in all $74, 400, 900 OF
lawful money. These reserves were
$1S, 500, goo in excess Of the amount re-
qaired by law; and the exhaustion Of
that surplus Indicates the point at which
this Secretary's operations would begin
to produce panicky effects 1t is to be
kept in mind that about the beginning
Of September the banks Of the inter-.
or begin to draw upon their New York
agents for currency to facilitate the
marketing of the crops. Between the
mid die of September and the close OF
the year, the decrease Of legal tenders
10 the banks from this natural drain
WAS in 1876, $25. 0O0. 600, in 1875, SCI,
600, 600 and in 1874 SIS, 900, 900. With
the prospect of large crops at nigh
prices, the outflow this year ced hardly
be expected to be less than se5, 900, 900,
and may easily exceed that amohn'.
Now, adding to this natural eifiux OF
legal tenders, beginning with Septem-
Der, the Treasury Withdrawals oil gold
and preenbacks ut the rate of IS, 900, :
600 month and beginning with May,
in wb-s condition may we expect TO
6-S the banks about the middle of
next fallf On the verge of panic and
81 the mercy OF the locking-up and
other speculative expedients which
have embarrassed them In by-gone
times. The prospect is certainly one
that demands the most earnest and i'm
mediate attention of the banks and Of
the whole commercial community. We
ara closely aveEging on the crucial
period that is inseparable from any
approach 70. resumption. no matter
how judiciously conducted, but which,
In this case, IL rendered tenfold more
trying than It need be through an H.
legal Contraction Of the lawful money
circulation. II the Secretary Of the
Treasury does not foresee absolute
panic a. the result Of the first ak
months Of his operations. be 10 much
less OF Q dnAncier than he ought 70 be;
e be does not foresee, within the same
psriod, tbs intsrventioa Of Cengsess %
stop his contraction measures his POI
Iitical saescify j. not what II is gener-
ally believed 10 be. Already, the
reckless poissy Of the Secretary has lost
him tbs confdence Of the trusted lead.
ers OF fnapcial opinionain this city;
and, unless he modifes, the dangerous
festursa Of his programme. he viii
soon raise such : general hostility As
will render him p6werless to admins
Ter the sftsirs Of the Treasury. We
make tbs statement sdvisedIy and as
the result Of careful canvass Of the
most competent and Conservative opin-
ion Of this centre which possibly Mr..
sherman may intimately find it neces-
safy 70 respect. sgaz. ssf iEs sIahesl