New-York tribune., 1878-05-13
dare to pick up such bits of scandal as suit
THE OpER TONS or the SYyDICITE.

bonds for resumption purposes, ana Wouiu
subscribe on Saturday or to-day for $5,OUO,-
600 more. Thus $30,000,OOO ont OF TIE
$50, 600 600 in gold required for resumption
has been secured within one month from the
closing OF the contract between the Sec
retary and the Syndicate. Meanwhile the
rapid accumulation of gold by the. Treas
urv has not yet advanced the premium
rs much az the announcement OF the
contract caused it to decline. Gold sold on
the day before the contract was closed at
1OO5s tO 1908, and on Saturday II soid at
1OOla. This Is in part because, as the ohcial
statement oi May 1 shows, nearly T5.OOo,OJo
had at tiat time been placed OH deposit by
the Government with the First National sank,
10 prcveu, too rapid withdrawal OF specie
from the market. Probably other deposits OF
like nature have since been made. BY thus
employing the power conferred by law, the
Secretary may avoid Withdrawing gold from
the market faster than il Is supplied by the
mines and 10y importation.
As no disturbance has been caused by the
sale oi $30,OO0,000 within one month, none
is to be apprchcnded from the sale of the
500, 600, goo remaining. During the month
OF April the imports of specie at New-Iork
amounted to %5,31S,139, while the exports
were only $3,131 ,254 and since the 1st Of
May the exports have been only $52l, l,458,
while the imports during the four days ending
May were $536,69S and considerable
sum has also been imported during
the past week. As long rs specie
continues to come in faster than it goes out,
with exchange held steadily below the ship
ping point, and bonds going abroad in larger
amount than thoy return TO this country, the
Treasury viii havo no difficulty in accumulat-
ing specie as last as it requires. The reports
of The San francisco Bulletin show that the
amount of gold coming overland To NewYoTk
Is nearly equal TO the entire production Of the
mincs-aboat $500, 900 to S4OOO,000 each
month.
The bank statement Of Saturday shows a loss
OF -. .j52 100 in specie, and a gain OF S2,lG6,-
700 in legal tenders, the reserve being nearly
80 per cent of the deposits. As the specie did
not 20 abroad the exports of both gold and
SILVER having been only $69,15S during the
week, it must have gone mainly into the
Treasury. But the reserve is 80 satisfactory
that the banks have 10 cause for ap-
IS 600, 900 in specie while the Treasury has been
gaining 10y the sale of $2j,0O0, 600 in bonds
for gold At this time last year specie was
going abroad rapidly, $3,l5A0O0 during the
week ending May -, and $l2, 900 during
the month Bat the banks now hold $I.20O,-
600 more specie than they did at this time
last year, ard, though their lcgll-tcndcr re-
serve is smaller, it is Increasing rapidly, and
deposits are also much smaller.
The condition Of foreign trade continues TO
favor resumption. Imports last week were un-
usually large, amounting to SG,iSl,O95, and
yet were smaller by $4,000 than those of
the corresponding week last year. The latest
return of produce exports, on the other hand
was Sc, $685. ,9j7, and was $2,SOO,O00 larger
than the exports of the corresponding
week IN 1877. The official report of the
Produce Exchange shows that the export
clearanccs of grain for the week ending
MAY s were 4,11j,1I2 bushels, and of
provisions the exports still very largely
exceed those OF the same period last year
The cotton exports during the week ending on
Friday were 5f,222 bales, against l2,5l0
bales during the corresponding week last year.
and since September / the increase of ex-
ports. compared with the previous year, has
been 34G.4i0 balcs-n value not far from
$4,000, ,0CO.
1t is thought by some that the rapid accu.
mutation OF gold 10y the Treasury must cause a
great contraction of loans, and has thus pro-
duced many of the failures which have re-
Gently occurred. But the fact is that loans
are rapidly increasing, Notwithstanding the
absorption of specie. and are now larger than
on the 2Oth of April. Since gold is mainly
held upon special deposit. and is not the
reserve upon which ordinary loans are based
contraction of the gold reserve in the banks
has not produced contraction of loans.
The numerous failures are Immediately caused
bv the prospect of repeal of the Bankrupt
Law. If the bill passes the House, rs it has
passed the Senate. only to take effect Sep
trmbrr /, it is probable that the number of
failures will temporarily diminish, but
will greatly increase again III August
For it must be remembered that the repeal
cannot deprive any firm of its assets
or make anybody bankrupt who would other
wise be really solvent. As it stands, the Bank
rupt Act merely enables debtors who are
really msolyent to defy their creditors and
continue business, or to compel compromises
on unjust terms. lnsOlyent firms know that
they can be closed mp after the repeal of the
act, and therefore take advantage of the act
while il lasts. But it Is great mistake to
prolong the period of uncertainty aud stagna-
ton until September.
-
THE BURNING or THE SARDINLfN
The explosion and fire on the Sardinan by