New-York tribune., 1879-05-05
A BUSINESS REVIEW.

ton Of the New-YoTk banks, and the great
strength shown by their statement of Satur-
day, entirely justify the predictions of those
who have believed that the extraordinary
sales of bonds for refUnding purposes would
cause, not stringency but great ease i'll the
money market. The legal-tender reserve in-
creased $4,21G,O00, and amounts to $l9,-
444.5OO; at this time last year the green
back reserve was only $36,435,3OO. Last
year tine specie reserve was $300 300, but
it consisted almost wholly of gold notes,
which the banks held mainly on special de-
posit Now the amount of such notes left III
circulation is very much smaller, and legal
tenders, redeemable in gold on demand, are
held instead SO that the amount OF reserve Ill
gold and gold notes is only $1S.5lG,20O.
Thus the aggregate reserve is larger nov
than it was one year ago, and much larger
part of il is immediately and fully available
| for the proper uses of reserve, ana,
while the increase of loans and de-
DoSitS indicates more active condition OF
| business, the rate of interest remains very
| lOw-on CALL from 2l2 to 3l2 per cent-and
the market is much more easy than Is usual
at this season OF the year. The settlements
any disturbance, though with surprising
rapidity. The fact that over $6O,OOO.OOO OF
the SIX per cent bonds, for which calls have ma
tured in April, and on which interest has ceased.
have not yet been presented for payment,
is an evidence of the great amount Of capital
that was accumulated and idle when resump-
ton was accomplished, as Of the amount
which still seeks employment in good railway
| OF other corporate securities, or in manufac-
lures Low rates of interest, legislation un-
Just to bankers and unusually slender profits
| in mercantile business, are beneficial in one
respect ut least-they tend to prevent an I'M
due determination of unemployed funds to
| banking or commerce.
Great interest is felt in regard to the pros
poets of the coming crops, though it is still
too early to indulge with reason any confident
anticipations. There has been much fear of
serious injury from drought in the Spring
wheat regions but kilograms announced on
Saturday that rains In Minnesota and North
ern Iowa had removed occasion for ap-
prehension on that score. In Califor-
mia the prospect is excellent. and in
| the Winter-wheat regions there have
been no complaints. If the rains prove
sufficient to secure an average yield per acre
of Spring wheat In the Northwest, the whole
crop may be the largest ever produced, as
there is known to have been some increase in
acreage sown and the yield last year was
much below the average in most productive
portions OF Iowa and Minnesota. The London
Economist Of April 10 discusses at length the
comparative cost of wheat growing in England
and in this country, and concludes Q) that
ait does not pay British farmers to grow
wheat at 40s. per quarter"j (2) that In this
country the cost Of moving produce to the
seaboard and the general expenses Of liv-
ing have been cut down to q fraction Of
"their previous figuren and (3) that with
"wheat selling at 40s. per quarter at Liver
spool, the price at New-YOrk il not less
"than 81 per bushel. After deducting 20 cents
for moving from the interior of Kansas or
minnesota to the seaboard. 80 cents is left
"to the grower. This amount of gold is not
exceptionally small. In 1s64l65, the years of
the highest initiation of prices, the average
"ouotation for a bushe Of Milwaukee wheat
"in New-York was about 81 S5 currency.
"Gold averaged almost exactly 200 premium,
$50 that the specie value of bushel OF
"wheat was few cents less than at
present. To some persons in this country,
the position Of The Economist will seem
strange, but tho enormous increase in
the production Of wheat Is proof that
the farmers do not actually find 1t un
profitable to produce even at q lower
price than that now obtained. The reasoning
tends to the belief that the growth Of wheat
in England will steadily diminish, and that
Great Britain will become still more depend
ent upon American agriculture for its supply
of food.
In almost every part Of the country, OK
cepting California and Louisiana, the trans
actions represented by clearinghouse ex-
changes appear to have been larger in April,
1879, than in April, 1873. The increase has
been especially large Of late at Kansas
City, where 1T is about so per cent,
at st. Louis, where it is about 40
per cent, and at Louisville, where it is
above 20 per cent; but the increase,
in comparison with last year, has been
considerable at most of the leading cities.
Apparently the dsorganization OF labor is in
some degree the cause OF n decline at New
Orleans, though much more effective cause
thus far has been tho enormous increase in
tho overland movement of cotton, which
has contributed SO much to the re-
cent surprising increase Of business at
St. Louis. But the iron manufac-
ture at st. Louis Is also reyying, az Is shown
by the fact that 2,299 carloads of iron ore
and 222 OF pig iron were moved In April by
tho Iron Mountain Road, against 1000 car
loads Of ore and only G1 Of iron in April,
1878. The Same business is also revivIns
greatly at Pittsbur9 and in Pennsylvania gan
orally. The record Of the movement Of
anthracite coal indicates the great in
crease OF manufacture, the number of