New-York tribune., 1879-05-12

OF course, the increase in real strength CT
the reserve is very much greater than would
appear from a mere comparison OF the total
reserve with the deposits, for the gold on hand
formerly Of no avail as money, has now been
remOnetzed.
Tie amount of capital recently displaced
from investment in United States bonds Is
closely estimated in circular just published
by Messrs Fisk 81 Hatch. OF the 100000
600 four per cent bonds taken by
the Bank Of Commerce, only S9,o00,oQ0
remain unsold, and the bonds previously
taken by that and other banks, we learn,
have been substantially all sold. Mes5rs, Fisk
g. II tch state that $50, ,000,00 Of the $l21,-
900, 900 taken by the First National Bank
for itself, Fisk & Hatch, and Others, have
already gone into the hands OF permanent lH-
vestors. Hence there remain Of four per cents
vet uusold only $5O00O,O0O in all. On the
other hand, it j. stated in the circular that
Z" at least $24O,O0O 900 Of the called i've
twenties OF 1867 and 1865 and tcu-fortics
"remain. the proceeds of which are still 10
abe rcinvested.n This statement will seem
startling only 10 those who have not
closely watched the progress OF refunding.
Ii appeared in the last debt statement,
that over $GO,O00,00O of the $3.50 100000
of bonds called in January were still unre-
deemed May /, although interest on them
had ceascd-a fact which plainly indicates
that about that amount Of the proceeds OF
bonds called in January, or about 40 per
cent. was not yet invested when this month
began. Certainly there is every reason to be-
lieve that the proportion of proceeds
IN f,r. h i,.-,.l
called in February, March and April, but il
so. the estimate gwen by Messrs. Fisk & Hatch
is decidedly within the truth. Other facts tend TO
the same conclusion For instance, ont OF S7O,
GSs. 900 of ten-fOrtlcs held on deposit for bank
circulation, November /, we have reason to
believe that the Controller still holds not
far from SAC, 100000, or GO per cent, for
which the banks have yet to purchase and
deposit other bonds before the middle OF
July. Evidently, the price of four per cent
bonds may be expected to advance; and since
May il has advanced in London, although
the price of conSols has again declined q
little. The purchase of $5,OOO,OOO more by
the London and Westminster Bank is but
symptom of a considerable change in British
investments. But after all the four per cent
bonds have been sold there will still remain
at least S1GO,O0O,O0O, the proceeds Of bonds
now called which has yet to find a new
employment.
Many of the railroads are now doing a much
larger business than they have ever done be-
fore. Many Others though their gross earn
ings are not larger than before the panic, are
realizing much larger net earnings because of
the astonishing economy effected in tTanspor-
tatiOn. Moreover, many have been reorgan-
lied, and have thus got rid Of a portion of
their debts or of burdensOme leases or con-
tracts. The demand for the securities Of
such companies is often entirely reasonable,
although it pushes prices higher than ever be-
fore. In some other instances, il is certain
that great roads which have hitherto been uu-
profitable will be rendered largely profit
able by connection with new combinations.
Although many reports of this nature are pre-
mature or fraudulent aud many buyers will
be disappointed, the fact remains that not a
few important properties viii thus be cnor-
mously enhanced in value within a year OF
two, and those who choose successfully will
realize large profits Behind all these uncertain
ties is the great and controlling fact that the
commerce and traffic of the country have
been at the lowest ebb, and that the general
improvement, already commenced since specie
payments were reached, will greatly acccl-
crate the natural progress (which the mere
growth of the country in population and
wealth would insure Taking good times
with bad, the average increase of traffic has
been about 100 per cent IN ten years. But in