New-York tribune., 1879-10-27
1 r.Ek,S rnApE IND EIXlNcG.

this was the character "i ''' l'F'''
averages for lat week, thouHh IL WAS
generally understood that the amount OF re-
serve on hand at the close OF the week N"S
larger than the averages reported. 10 peopio
not well acquainted with the street. IL SCENE"
Incredible that. in the face oi such report,
the markets became decidedly buoyan'' IN"
the rate of interest declined. Greater
ease in the money market was cauS'"'
however. Nv the knowledge that the smallness
of tho rcserve WIS IN part due 10 aitlhcIai
v;thdroaols of money, and in part to the tact
that large payments from the Assay once
which had been expected early i'll the week.
conld not be made until Saturday
The Treasury balances decreased from sat
urday the 18th to Saturday the 23th ohly
S1.115.5S4 50 i'm specie and S1,252, l23 62
in currency. As the banks lost III legal
tenders S2,9iG, 900. according To the state
ment of averages, against gam Oh
Sl.299,O00 in specie, and were undoupt-
edly reporting on rising specie averages
for the week ending October is, 1t is con-
sdered obvious that the reserve actually held
on the 25th must have been larger than the
averages indicated. Moreover. bankers who
have especially good opportunity to judge feel
assured that the outflow of currency TO the in
terror cannot have been nearly as large rs the
comparison of bank averages and Treasury
balances would indicate, namely, over
$4,000, 900; and the conclusion that consld-
cradle sums were temporarily withdrawn to
create strEgcncy and to depress the markets
is further sustained. not only by the
cOuIse OF the money market, but 10y the
strong purchases on account OF ieading
operators which commenced when the markets
had broken. At all times during the week
large operators were supplicA with plenty oi
money to lend at stiff premium. and they
were evidently well prepared to take advantage
of the reaction which the unnaturally rapid
advance in prices had led people TO expect.
I'm gram and other produce. rs well as In stocks,
the reaction was followed by purchases which
carried prices of stocks back nearly or quite
to the point reached before the decline.
The general confidence which exists, not
withstanding the reported condition of the
banks, springs in part from the assurance that
the outflow of currency to the interior viii
cease about this time as Is usual. In 1act'
the banks report that the amounts going out
have been much diminished. But the
high prices of breadstufis and the rapid
advance in the price of cotton which took
place last week, tend 10 accelerate purchases
from the producers, and thus to require the
forwarding of larger sums than are
usually required. The safeguard OF the
market is IN the large reserves of idle
capital in Europe and the rapid Importati0ns
of specie. The receipts of specie last week
were over $3,OOO,0O0, and other large
amounts are known to be on the sea. If the
movement OF specie depended, rs many sup
pose that it does, upon the actual purchase
of breadstuils and other products for foreign
account, the same rapid advance in prices,
which increases the demand for money, would
also d, crease tho supply from abroad by check
ing exports. But the truth Is that money amount
ing to many millions is being transferred
hther for employment, irrespective OF the I'M
mediate trade balances, because the rate OF
interest is mloh higher here than in London.
The recent marked Improvement III English
trade and manufactures will doubtless afford
employment for the surplus capital there be-
fore long, but hitherto there has been excel
lent reason to place funds in New-York, where
the demand has been great and the rate of
interest high, rather than to keep them Idle
III London.
The high price of wheat caused sharp de-
cline in the exports week before last the az
grecate from the Atlantic ports being only
3.549,O99 bushels for the week ending
October %, against over 100000 bush
els a week in September. The move
ment last week was also small, but
considerable demand for export was noticed
after the decline at the end of the week.
The corn movement on the contrary, increased
for the week ending on the 22d nearly
400, 900 bushels, the exports of rye about
10000 bushels, and the exports of peas
6O,OOO bushels. 1t is quite evid mt that the
rise of wheat to 81 81 for No. 2 Red Winter,
on Friday the 17th, was so far in advance of
the demand as to prevent marketing the crop.
and the tall to 81 40 on Friday last was not
unnatural nor to the country disadvantageous.
The volume Of business, exclusive of spccu-
lative transactions, continues very large. The
exchanges at this city last week amounted To
S76I.277.i2S; but sales of 2,672, ,431 shares
of stock show that about one-thrd of the ex-
changes may have originated in those sales
The sales Of wheat. too, amounted to
s.4O2. 900 bushels, or about $12,O0O,O ,OOO
of which much the greater part was Of specu-
latiye character Nevertheless there remain.
after full allowance for speculation. payments
of about $494, 100000 last week which prob
ably sprang from legitimate business, against
similar payments Of about $295, 200, 900
during the corresponding week last year,
nm increase of about 6S per cent. 1t is
not strange that there is CREST hopefulness
and activity in trade when the volume of bust
ness increases so largely, and when several
millions of foreign gold reach this city every
week to supply the demand for money. The
only danger now is that an excessive advance
in prices may cause mischief, and this danger