New-York tribune., 1879-06-09
BUSINESS IND BONDS.

lOngeU StIlke III tne IRON WOrhS aJ IlttsDulS =
has vanished. Important steps have been taken
toward the reconstruction and Strengthening OF
leading railroads which have been in difficulties
Since the panic. and the pooling arrange
ment of the trunk lines has been so extended
that the prospects Of its success are increased
IL is not strange that men IN business hesitate
to place full confidence in the recovery that
has commenced. The marts are full of men
i'll whom past mistakes and failures have bred
chronic sOurness, and who are unable to be-
lieve that prosperity has come to anybody
because il has not come to them. One Of the
shrewdest of merchants once said: 4 never
" trust the judgment of man who has
"failed, not because failure proves that his
Judgment was bad, but because nine times
"Out of ten it makes mind unable
"to judge sOundly thereafter" The ex-
aggerated rule has some basis of fact
Moreover, there have grown up during the
period of destruction set of operators and
writer's who are unfit for a period OF rebuilding
and revival; who cannot yet comprehend that
things do not always tend downward; who
mistake the force of habit for reasoning; and
who think it absurd to believe that times are
really getting better. So long as the influence
of such men fingers, business will not be in
danger of over-confdence, and frequent
presentation of the facts will be needed to
revive a reasonable hopefulness.
Credit is due to Secretary Sherman for ar
resting the sale of certificates in Eastern
cities, and the depletion of reserves has now
ceased. The increase in surplus reserve an
nOunced on Saturday was $940,376, but it is
known that about $6,OO0,0OO IN legal-tenders
went out Of the Treasury into the banks near
the close of the week, the effect of which was
but little seen in the statement of averages.
Instead of an increase of 81 1,031, 400 in legal
tenders, an exact statement of condition on
Saturday would have shown much larger
gain The currency drawn out for pur-
chase of certificates In other places has now
begun to return hlthcr rapidly, and the usual
accumulation of reserve during the Summer
is to be expected. Nor do the shipments of
specie during the week. which amounted to
$27O,87 gold and $903,O92 Al silver, war;
rant apprehension. The shipment of silver is
no more to be regretted than any other ex
ports of merchandise, for the silver, If re-
tanned, does not serve as money. The small
shipment of gold, as the rate of exchange
proves, was not due to the needs of foreign
trade, but either TO a desire Of some operators
to occasion alarm, or to the fact that the
comparative rates Of interest happened
for the moment to favor such step.
In the present condition of foreign trade
nothing can cause important exports of specie
except such heavy importations of American
securities as would quickly push upward their
prices il London, and thus apply natural
check to the movement. The money market
was easy on Friday and Saturday, with pros
pect of greater abundance hereafter.
No important change has occurred in the
bond market, which, though more steady and
stiff awaits the funding of the $40 certf-
Gates. This operation begins to-day, and will
soon show what part Of the reserved four per
cent bonds is to go to banks and holders of
trust funds. The feeling that such impera-
tive demands may have been largely met by
purchases of the certificates tends, for the
moment to check purchases of bonds.
The Controller reports that he now has
49, ,252, $50 in called bonds as security
for circulation, and these must be re-
placed by four per cents not yet pur-
chased, or the circulation of banks failing to
do so must be surrendered. Some of the
banks, in order to frighten holders of four per
cent bonds into selling cheap are threatening
that "A reduction OF 800, 200, 600 in circula-
ton will be made. This it viii be time enough
to believe when tho event occurs. But the
fact that the bank circulation is steadily in
creasing-it gained more than S1,000,000 in
May--shows that if any of the banks see fit to
retire, others TO a larger amount will be eager
to increase their circulation, for the demand
for notes and the opportunity to use circula-
ton with profit are not diminishing, butlncreas-
ing. The amount of called bonds still held
by trustees, officers of courts, and others who
are obliged to keep trust funds in United
States bonds, though not precisely ascertain
able, is known to be large so that no lack
of demand for the four per cents seems
likely TO occasion depression in the markets
before the maturity of calls IN July.
The market for other bonds and stocks has
had reaction, partly because investors have
hoped to get United States bonds at lower
urices partly because of the temporary adj
vance in rates of interest, and partly through
the efforts of operators who have labOred to
depress prices in order to buy more cheaply.
Among buyers of the smaller sort, there has
been not little realizing of profits. The fact
that prices have yielded 50 little, under all
these influences, shows that large purchases
by permanent investors have continued, and
AS to nearly all securities that have real or
supposed vaue, it is observed that large or
ders to buy are quickly brought out by
such yielding in prices as would
have seemed Insignificant year ago.
81 thA M aaf
and South has much improved. Business of
almost every kind continues to increase. The