The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1877-03-15
SOMERSET, OHIO, MARCH 15, 1877.
New York Commercial Chroniele.l
Business Prospects and the Money
Market.

The confirmation by the Senate Of Mr..
Sherman as Secretary Of the Treasury has
been favorably received by the financial
public, especially because Of the assurance
IL gives as TO the continuance OF the Treas
ury policy in regard to specie payments
and 10 the funding Of the debt. Stability,
a. is we'll known, is one Of the most fnnda-
mental conditions Of commercial improve
ment. The certainty, therefore, Of siabili-
.y in the policy Of the country, in the par
ticulars mentioned, is favorable TO that in
dus,rial and mercantile recuperstion which |
has been so long looked for. The evidence,
indeed, Of its probable approach is increas-
ing on all sides, and especially in the mon
ey market.
One Of the most conspicuous OF the new
monetary movements is the outflow of the
deposits and OF Greenbacks from the banks
Of this City. We show in our regular re-
ports elsewhere that this movement, in an
ticipation Of the spring trade, has begun
early, and is unusually active. Last week
the average deposits declined more than
two millions, and the Legal-,enders mil
lion and half. What is important to be
noted il that the returns were made up oD
increasing averages, so that considerable
anxiety il manifested to learn the course Of
the bank movement during the present
week. Hence the Clearinghouse statement
to day is being looked for with rather more
anxiety than usual. If we may judge from
the reports which have been made to us by
some Of the larger and more active banks,
the dram has somewhat diminished, but
with evident promise Of an early renewal.
We may also remark that the demand up
on the banks proceeds from various distant
points. 1t is not local, but general de-
mand. Hence the drain Of Greenbacks is
likely to be longer kept up, and the proba-
bIlity is increased that it may promote
some wholesome changes stimulating to in
dustrial activity. OF course these tendenc-
les are also favorable to an enhanced rate
of interest in the early future. Atpresent,
however. the Money market is extremely
easy, and ths demand for loans is far ex-
ceeded by the available supply of idle cap
ital.
second fact of importance is the re-
ported improvement in the monetary situa-
tion abroad. As has been frequently shown,
the sympathy is so close between our Mon
ey markets of Europe, that an improve
ment Of stagnation here is frequently pro-
duced by the same causes which develop
stagnation or improvement abroad. As
the London Money market of late has ex-
hibited some signs Of returning activity, i,
il not improbable that the Money market
here will be reached by the rising tide ol
activity before long. So great are the mas.
ses of the idle capital awaiting investment
and so urgent is the pressure to lend, that
We may fairly expect soon to observe in
some Of the foreign markets, especially on
the Continent of Europe, the usual conse-
quenees Of such accumulation. One of the
questions now agitating the public mind is
as to the time when the new movement
will begin. Not few persons contend thai
it has already begun. In proof Of their op
inion they point to the similarity between
the recent depression and that which wa;
observed in 1867, after the Overend panic
At that time commerce was prostrated, bu
sines4 was paral yzed, and there was a com
pete cessation OF many of those great cur
rents Of capital by which industrial activi
ty kept up. The Bank of England. for the
first time in its history, lent Money at
per cent. So exceptional was this rate o
discount supposed to be that one of tht
great English quarterly reviews discussed
it in n hopeful, brilliant and elaborate arti
Gle asian extraordinary phenomenon no
likely to.recur. The prediction was not full
filled. The ratio Of 2 per cent, which be
gan in August, 1867, was kept up withou
interruption for 10 months. The limit o
Al per cent was not reached till May, 1866
and the rate fell to % in September ant
October Of that year. So easy was tn
Money market that the average discoun
charged by the Bank Of England through
ont the year 1865 was 81 in 1869 it was 81
in 1870 il was 81. in 1871. q, in 1872, Al
in 1873, Al, in 1874, 81, in 1875, 81, and i
1876, per cent.