New-York tribune., 1879-04-07
TIM CorcSE or BUSINESS.

COURAGE of Mr.. Sherman, Secretary OF the
Treasury. within three months and four days
have effected an exchange OF $34S,O79,3 800 III SIX
pcr cent bonds for four per cents, and thus have
saved the people Sc, 96l $50 yearly rail- time.
No man can desire proudcr record. Nothing
that can be said, by admirers or by enylous
detract0rs, can add 10 or diminish ITS Spleh-
dor It is but right to say that intelligent
business men of both parties attribute thc
success of refunding and of resumption IN
glcat degree to the remarkable skill ana api-
ity with which Mr.. Sherman has used the great
powers intrustcd 10 him.
The sudden avalanche of subscriptions on
Friday, by which the last OF the redecmable
SIX per cent bonds was provided for, has not
been entirely unexpected Some weeks ago,
TuE TRIBUNE pointed out the probability That
there might come at any time rush to secure
possession Of the four per cent bonds yet to be
sold against the remaining six per cents.
The current Of subscriptions was checked by the
fear of stiingcncy in the money market at the
time Of settlement for the heavy subscriptions
made in January, but it Is now shown that
the check was but temporary. The Hood WAS
only damned up for a short time. but burst
the dam on Friday, as soon "a il became OBJ
vious that the settlements would be made with
ont any difficulty The new subscriptions Will
have no present effect upon the supply OF
loanable funds, and the payments required
will fall due in July, at the very time when
the plethora Of unemployed funds Is usually
greatest. From this time on the payments
from the Treasury for SIX per cent bonds
redeemed will anticipate and exceed
week by week, the payments 70 the
Treasury for four per cents subscribed
and those who fail to secure the four per
cents as an investment for funds
hitherto invested in skies, viii be holly seek
ing Other good securities. 1t is believed that
more than 500, 100000. heretofore invested
in six per cent bonds has now its warning Of
speedy Displacement withCu having secured
as yet any new employment. The effect will
evidently be Il rapid sale and rising market
for other good securities
The condition of the banks might occasion
some apprehension under different circum-
stances. The surplus reserve was reduced on
Saturday to 81 ,9OO,375-thc lowest point it
has touched for Il long time. II was Sl2G9l,-
coo last year at the corresponding daic' ANA
&q.2O3. 600 in 1871 and @7,OjS,OoO III
1876. and @5,7s3,O0O IN 1875. liu. the
turning point has been reached the drain
for AUril settlements in the country has been
met and the period OF rapid return oi funds
fo this city has been reached without disaster
or painful stIngcncy. LAST year the banks
Gained in surplus reserve over S5,OOO,0OO in
Aprl. and nearly TG,OoO,OoO in 1870. But
il i, probable that the Treasury settle
mcuts VIII largely swell the influx of
available funds. The great point Of strength
in the position of the banks Is that thcir
entire reserve Is now Immediately available,
whereas only the lcgal-tcndcr part Of it has
been available in former years. Nominally
smaller. the surplus OF the banks is
Therefore really larger b. nearly S70J0,0OO
than il was IL 1879, by $4,000, 600
than it was in 1876, and BY %2G,OCO,0OO
than it was last year. THIS difference has
nowerful effect and it is felt on all hands
that any stringency must be very short-lycd,
berause all the rCsOurcos Of the world are now
at our command.
The direction which unemployed capital
NAV take is not yet fully indicated. The active
sueculation in securities of the coal carriers
on Saturday had several excuses, notHith-
standing the very low price Of coal, but one
GOOD reason, namely, the really vigorous re-
y,val in the iron manufacture in al direc-
tjons this industry, 20 long dormant, shows
greater activity, and will undoubtedly cause
greatly increased consumption of anthracite if
,be nroducers do not themselves XIII the layer
of Golden eggs By new combination to force
n,ices upward In time, unQuestionably. the
coal interest must begin to share in the gen
oral improyemcnt OF business. There has been
4 e.. do 1f tl, LII.
Road. of late, than for any other railroad
Louds. because they sell at very low prices for
tbe rate of interest they bear. The report
tbat earnings for the first half of the fiscal
wear amount h 81, 952 900, and that the ratio
of operating expenses 10 earnings has already
been reduced from GS per cent last year to
G2i, pcr cent this year, is deemed proof that
tbe road Will in any event earn more than
enough to pay interest on all Its debts, and It's
urosDccts of better connections aud increased
traffic are such rs to justify strong hopes by those
who have confidence in it's new management.
If is noteworthy that there IS as yet no ap-
rorcp+ diepOsitiOn 10 take bonds Of " COM
"nro,5isingn States or municipalities, how
over low the rates at which they arc offered,
and this is wholesome symptom. The pub
Iic,tion Of an opinion by Mr.. O'Conor in
favor Of the suit against Tennessee railroads,
may well cause bOndholders not 10 permit
that state TO succeed in its stand
"and deliver game There il, however,
less favorable sign IN the disposition
70 speculate largely upon the possibility that
Congress, by an act "Openng the Indian
"Tcuit3ry," may help the railroads which
penetrate It, In one other direction, too.
the signs are unhealthy. There seems to
be a disposition on the part of real
estate owneIs and dealers to rush rentals
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