New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-20
NETWORK DAILY TRIBUNE TUESDAY NOVEMBER 90 1877

Ii ia stated that the bank circulation on Satur-
day was 1919, 1886, a decline of 500, 195
Stree November 10. The bonds deposited for
circulation nevertheless exceeded the bonds
Withdrawn, though but little 1t seems some
what remarkable that a larger amount OF cir
cuation was not issued, in view Of the very
large deposits of bonds for several weeks pre-
vious, and that the banks of this city, which
have applied for two millions more than they
have yet received have obtained so
little new circulation. 1t is possible that
some orders which were forwarded few
weeks ago, in anticipation of unusual pressure
for currency, have been recently counter
manded. Certainly, the demand is by no
means as great as was expected. 1t has fallen
off in n remarkable degree since the large IS
sues of new circulation began, but not, ap-
parently, because those issues were sufficient
to meet the anticipated calls. The statistics OF
grain shipments, of clearings, and OF railway
earnings, all show that there has been nota-
bic decrease in activity Of business since
Congress assembled
The latest dispatches from London show
that the situation there was peculiar. Several
weeks ago, the Bank of England raised its
rate to per cent, hoping thereby to stop the
outflow of specie. But on the ODD OF Octo-
ber the discount houses were compelled to
lower their rates on call to 3i2 per cent, and
the bank was thus deprived of control OF the
market The demand. as was then shown,
was of peculiar character; it was not de-
mand for money. but for bullion and was not
to be checked in the ordinary way, by mere
advance in the bank rate of discount. The
bank is no longer the largest, or even the
principal lender, and can no longer control inc
market by means once found sufficient. AZ
that time. the bullion in the bank was only
goo, 693, $50, having then declined nearly I3,-
100000 since July IL, and the reserve,
though slightly above 100000 the amount
below which it cannot decline without causing
some anxiety, was expected to be further de-
peted by other domestic demands, rs well as
by the outflow of bullion. Since that time, the
bullion in the bank has been diminished by
G513,OO0 during the first week OF November;
it was only c22,293,000 according to last
weeks statement, and on Friday, the very day
after that statement appeared, it was again
reduced by 100000 for shipment to
this city. Dispatches of Saturday in
dicated that the bank had begun to bor-
row in open market on its consols and
other securities, with view to diminish the
supply of loanable funds, and the rate in open
market advanced to 1 per cent. But it is still
doubtful whether these steps will suffice to
check the drain of specie, which was large
last week for Egypt, considerable for France
and the Continent, and, as stated, still una
bated for this country. IF the bank succeeds
is,,1l. 10 ,tntft
raj result may be some transfer Of United
States securities to this side. But England
must have grain and cotton, and IN one form
or another will be obliged to pay balance to
this country, without drawing upon our sup
ply of specie unless the conditions should ma
terially change. At present, though business
is dull here, there seems to be much more APP
prehension of stringency in London than here.