New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-11

,Decic @lq652 400 at $50 eco 1894 100 so 4oltOO
Legaiender o7b55,loO 5S6l0ioO 5o45o6oO o6.2s0,1Oo
Total res @77 800 600 s76O9i 100
oo25$ 49, 52 zoo 200
Loans lO7 $50, l0J 23S J9j, OOtz3OZ-Ol VV
II will be seen that there has been great
expansion of the business transacted 10y the
banks, while the reserve August was sub
stantIally the same as it was August last
year. But the surplus rapidly declined III
1878. as is usual at this season, from $780,
$50, 025 August 10 to So, 531, 600 October H.
when the return of currency began to have
effect. 1t is obvious that the banks could not
meet a similar drain upon their reserves this
year, without other sources Of supply than
they then possessed. They have other and
very important sources OF supply, however
Specie is no longer merchandise, bat money,
and the vast accumulation OF bullion in the
Bank of England and other European banks
can not only be drawn upon largely in pay
ment for food and other products about to be
exported, but the bullion thus obtained will
become Immediately available to the banks
as money. Already shipments have been made
both from Paris and from London, and there
is less reason than ever before to suppose
that strong resistance will be made by Euro
pean bankers, because the surplus is unprece-
dentedly large. As much as $55,0O0,OOO of
specie could be drawn from the Bank of Eng
land alone, without making its condition in
any respect less strong than it was at the close
of July year ago. Bullion received would
naturally go into the Treasury at once and
legal-tender notes could be taken out IN its
stead. If the demand for money here becomes
considerable, any part OF %5O,OOOOOO can
thus be brought from Europe within a few
days, and IT Is the more likely that the i'm
ports of specie may be large because Europe
now has few United States bonds that can be
sent over in payment.
The other source of supply is the large fund
of unemployed capital represented by called
bonds in the Treasury. On the 1st, bonds
amounting to about $75, 100000 were over
due-with the last quarters interest, which
holders cannot collect until they surrender the
bonds-aud interest on them had ceased The
Treasury has the money to pay these bonds,
with the interest due. and If any part of it is
in the banks it is not included IN their state
ment of net deposits in the weekly report.
Whenever the condition of the money market
is such that holders of called bonds can real
ize good interest by lending their money here,
a Large part of this fund viii be thus en-
ployed. For the overdue bonds represent
funds which have been dislOdged from invest
ment in Government bonds by the prOmptness
of new buyers In January last At that time,
many millions of four per cents were taken
by persons who were not holders of the bonds
to be retired and who withdrew their means
from savings banks or other stores or invest
ments for that purpose. II then became in
evitable that at tho end holders of many
millions of called bonds would fail to get four
per cents, and there is now awaiting them the
great fund of money originally paid in by the
buyers who had not held bonds to be re-
deemed.
The fact that the best bankers are very will
ingly making time loans at low rates of in
tcrest is sufficient evidence that IN their judg-
ment, no especial stringency in the money
market is TO be expected tins Fall. The ex-
cellent promise of the crops continues and
every European mail brings cOntirmatory evil
dence that the demand for American bread
stuffs will he larger than ever. The shipment
of meats from this port has recently been
large also, and it gives no sign Of abating. The
important manufactures are more active than
they have been atany timefOr five years; the iron
and steel mills, especially, are at work upon
orders which insure them employment for the
rest of the year, and not a few establishments
which have been ide-among them the great
Vulcan works of St. LOuis-are about 10 re-
sumo operations. Imports, both of dryeoods
and of general merchandise, have been large
since July ! ; the amount at this port during
the past six weeks has been $50, 724,345
against $32, 217, 446 during the corresponding
weeks last year, and the amount OF drygoods
has been $1O.SOO,471 against $S,240,1 56.
But an increase of exports has also COM
menced, and bids fair TO continue