New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-25
M0NEY IND RESLYESS.

The bank statement OF Saturday showed an
increase of 81, 072, G75 Ill the surplus reserve.
so that the banks report total reserve
S2,479, 225 In excess of the legal require
ment. As respects the condition of the
banks, and their ability to meet the demands
incident to the Fall movement, the statement
Ia encouraging, but the curtaiment of loans
and deposits causes increased apprehension In
speculative circles, where 1t begins to be feared
that the amount Of money loaned on cali
in the street Is likely to be diminished
from time to tlme as the banks require their
funds for the support of commerce and in
dustry. The decrease in loans from the pre-
yious statement was $10,710900, and the
decrease in deposits $12,520,700. A large
decrease in loans might be explained by the
recent shrinkage in the market value OF
stocks; for example, if stocks OF the nominal
value Of 500, 100000 were carried, prior to
the break, on loans directly or indirectly
from the banks, a fall of 10 per cent in the
market price would permit the new holders
to carry the same stocks on loans of only
500, 000, 900. The change has not been as great
as this, however, and a considerable reduction
of loans must be attributed to the direct
calling in of funds by the banks. Besides,
lower prices have induced large purchases by
investors elsewhere, both of Government bonds
and of railroad bonds and stocks, so that the
load of securities to be carried by the money
market here is to some extent lightened.
Though the rates have been rather easier dur
ing the last week, ranging from to z per
cent on call, with prime paper in demand at
TO 6 per cent, it is not unlikely that the
market as to call loans may have several brief
spasms of strlngency during the Fall, until
currency returns from the interior after the
Fall movement.
AS to any serious or prolonged stringency,
of such character as to affect general trade or
industry, there is even less apprehension than
there was a week ago. The announcement
that the Treasury will not ask to have the four
per cent bond accounts closed prior to October
], with the information that only about
SIS 100000 really remains to be paid into
the Treasury on such accounts, while a much
larger sum has yet to be paid out by
the Treasury in redemption of called
bonds, removed such fears of strin-
gency as had been excited by false re-
ports. For the rest, the arrival of about
81, 400, 900 in specie, and the news that over
I,OO
France alone, and that about 100000
more is expected to follow, with kilograms of
continued shipments from London. including
$3.50. 900 on Saturday, have shown that the
vast reserves of idle bullion in Europe are
Immediately at our command. One OF the chief
bullion houses of Paris estimates that the
insufficient crops of France, England and
Germany will make it necessary to buy
800, 900, 600 worth of wheat from this country.
1t is reported from London that American
securities in considerable amount have
been taken for shipment hitler in place of
coin, but the recent decline in United States,
Erie and other securities will tend TO limit
the amount of such sales Ia short, if money
in large amount is needed here, prices of such
American securities as are held abroad will
undoubtedly decline so far as to prevent their
sale by foreign holders.
The specie recently imported has nearly ALI
gone into the Treasury OF the Mint the banks
having gained less than $4,000 in two
weeks, while the coin balance in the Sub
Treasury has increased 80 .401, 49, during
the last week, and $3.50, los in two
weeks As the bullion has been imported
ON private and not on Government account it
has gone into the Treasury on such terms as
to increase, in some form, the supply of loan
able funds in the market, and in fact, legal
tenders amounting to 81, 239, COG were drawn
from the currency in the Treasury last week
The report of averages by the banks, as 1t
might not show their real condition at any
time later than Wednesday, is of no value