New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-16
TIE BUSINESS SITTA7ION.

The year 1877 starts fairly. The Nev-York
banks for the week ending on Saturday return
an increase of $1,366,600 in specie and
81, 759 700 in legal tenders, against an increase
of S3,Os4,7OO in deposits. The remarkable
proportion of specie held will attract general
attention For a long time the specie reserve
was very small; one year ago it was little
more than One-third of the reserve. But 1t is
now, and for two weeks has been, over half of
the entire reserve, which amounts to 34.29 per
cent of deposits. In tins respect nearly all the
banks are in very healthy condition, for only
six hold a reserve less than the 20 per cent re-
ouired by law and tie Butchers and Drovcrs',
with 23.4 per cent, is the only one holding
less than "a per cent OF deposits. Considering
the legal-tcnder reserve only, III comparison
with that part of deposits which cannot repre-
sent coin held under special understanding,
the situation is less favorable, though improving.
The banks hold, in the aggregate, legal tenders
equivalent to POI per cent of deposits less specie,
and, while this is an improvement OF TO per
cent since the preceding week, it is lot only
a very low ratio but it implies great weakness
in legal tenders in some Of tine banks whose
reserves are mainly in coin. The Bank of
~
reserve amounting to little more than 8 per
cent of deposits, and about IA per cent OF
deposits less specie.
The Clearing house statement for the week
ending Jan. 13 shows clearings of %i06,3GS,-
346, against $447, $50, $50 for the correspond
ing week last year, decline of about per
cent. For the two weeks, embracing only
eleven business days, ending Jan. 13, the cur
rency clearings were about SSH 100000, or
about S74 200. 900 daily, and during the CORE
spending weeks, embracing twelve business days,
in 1876, the clearings were 1888. 600, 900,
or about SIS, 600, 600 daily. The decline, less
than $4,O0O,000, or about 8 per cent, is
smaller than the decline in prices during the
wear 1876, and indicates an increase of traffic
as to quantities.
There is nothing in commercial study more
difficult than to ascertain correctly the average
advance or decline of prices. The tables pub
lished by The journal of Commerce, which are
usually accepted as authority, if the quotations
of each article are considered with reference
to the quantities produced and exchanged, and
the consequent relative importance of that
article in our commerce, indicate u fall of
about 7 per cent since January, 1876. The
price of gold, Dec. 81, 1875, was a
fraction over 113, and its highest price
during the year 1876 was 115. But the
premium has fallen to a lower point
than has ever been reached since 1862;
and it is by 10 means clear that the tendency
toward a further decline can be resisted. The
enormous store of gold in the Ncw-York
hanks. the excess Of exports over imports, the
Weld of nearly $86,O0O,00O of the precious
metals during the year 1876, and the prospect
in REGARD to legislation and financial action in
foreign countries, all combine to deprcss the
price of gold, aud to that extent bring US
nearer specie resumption. 1t is certainly the
more safe to form commercial and industrial
plans with the expectation that the premium
on gold may still decline, than to risk any
thing upon the possibility of its advance.
Railway earnings are not very large, nor is
there any reason to look for much improve
ment. The higher rates recently adopted are
HIGHER only with respect to the extraordinarily
low rates in force during the greater part of
lest year. but are not higher in comparison
with the rates in force in January last, before
the railway war began. IL we observe that
the railways have done what they could to