New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-27
SrnLKLAG CONTRtSE.

many other films loans were made nj = per
cent per day tho Exchange and the Clearing
House were compelled 10 close their doors ana
the banks reported reserves S3,21l,O'3 belo"
file legal roauiromrut. with Il rapid depletion
in progress, only $343O7, 800 in legai-icndeIs
ON hand. and the specie reserve absolutely
useless. That WAS the beginning OF the long
reriod of prosfration and disaster winch has
now been brought to an end 10y the rcs''inp-
ton of specie payments. The week ending
September 20. 1879. saw Il sharp recoy-
cry of S2.5i8. 800 in the loeal-tcnder re-
serves, which are now St2,O29.4OO;
slight increase in the specie reserve o.
S19,942, 900. which is wholly and IN
stantlv available in ease of need an arrival
of over SjOOO.OOO N specie from anroad'
making about S2i,0CO,00O thus received
within five weeks; an easy money market
with loans as low rs 4l2 per cent yearly "a
growing business in all branches, and not a
single failure. Yet the Now-Ncik money
market and the banks of this clty have been
subjected this year TO a snain much more
severe, both in respect 10 the dram upon
their resources ana III respect To the volume
Of legitimate and speculative business 90 be
sustained. than that under which they
broke down in 1873. The aggregate OK
exchanges for seven weeks prior to the
psnic of 1873 was only $3,3lTO5l, Sli,
while the aggregate foI the correspond
ing weeks in 1879 has been %3,j7j.l7i ,jSl,
showing an excess Of sos. 100000 IN
payments made The legal-tcnders III the
banks were reduced during tie same
pcuod in 1913 only Sl3,32l3Oo, while
the loss of legal-tenders by the banks this
wear was SIS, 17f, OGO during the correspond
iug weeks, notwithstanding the fact TINT
the Treasury had in that time paid ont
Sl1.G2LGl5 more currency than it received.
In sholt the ability of the banking system
and the money market 70 resist IN enormous
strain. without any panic or sttingcncS, i- d.
recily attributable to the resumption OF specie
payments bv which the market not only uni-
lies the gold reserve on hand, but j. enabled
10 call upon an the markets OF the world Tor
specie at any moment of need.
The Assay OGce pail ont TO banks lat
week. Tor specie previously deposited
-. $50. 600. aul the currency balance in the
Treasury was reduccd from the 18th to 'ne
Doth gC.73l, 1913. The outflow of currency to
the interior must therefore have been very
large. rs the banks gained only f-31s,JOo I'D
lreal-Jendcr-, and the small payments to the
Treasury ON loan account were made only as
fast rs the money was required for immediate
disbursement i'm the redemption Of bonds
An official announcement by Secretary
sherman confirms the statement made
last week Ivy TIE TRIBUNE, that the
bond transactions are virtually settled
30 far as they can affect this market. On
saturday last only $3,15O,731 renamed to be
Maid in this country, either in called bonds
OF cash, and only 5000, 500 at latest dates
to be paid in London, OF which part has been
naid in called bonds and coupons. The
amount OF called bonds outstanding Is still
| $50 SOC. $50 50 that, after receiving III pay
ment, az account Of the loan, here and IN Lon
BON. the Treasury viii be obliged 20 ply out
, 2O.7Ol,S60 in cash FROM its reserve, FOR
the REDEMPTION of the remaining bonds
! Tho pavmrnts ~ the Treasury viii be closed
! this week, probably altogether in called bonds
ana coupons, but certainly without drawing
from the market Il single dollar in money that
! is not instantly returned in PAYMENT for
| bonds. After that, the only influence OF the
Treasury upon the market viii be one of in
natIon. 10y the release, in redemption of bonds
of $40 600. 900 now locked in its vaults.
Secretary sherman has adopted Il sugge,-
tion made by The TRIBUNE some time ago,
and, instead of formal redemption OF legal
! tenders at other cities than New York, Will
accomplish the same result 10y free use OF his
cold reserve in payments. Nothing else that
he can possibly do will have as much power
to sustain and fortify resumption. OF course
if he pays out S10,000,000 IN gold in a
month, and the people sec fit TO pay III legal
tenders for taxes, il viii come to pass
that the Treasury will get and keep in
$40. 600 900 in legal-tonders, which it would
otherwise have paid out and the people will
| virtually have redeemed that amount of legal
tenders in order to hold $l0,00O,000 in gold.
Rut the result will soon be that the gold and
NOT the legal-tenders will flow into the
| Treasury In payment of taxes, and that point
| will come whenever the amount OF notes ont
standing ia less than the country can advan-
tageously use in place of coin. 1t Is question
able whether that point has not been reached
| already. The amount of gold paid into the
| Sinh Treasury here in exchange for legal-ten-
der notes in August was $1,017,470, and
exceeded the amount of legal-tenders pre-
| scented for redemption in that month,
which was $9SO.21S. Bat during nine
teen days of September the excess was
large; So, 037, 40 in gold was deposited in
exchange for notes, and only $l33,330 in
notes presented for redemption in gold. If
tins fact correctly indicates the relation
between demand and supply of currency,
all the gold that the Treasury can now pay
ont will he speedily returned in payment
of taxes for the receipts of the Government
exceed its payments. During the current
CO Ino h.. ,..fI ia,
for duties here, of which $4,000 was in
1 I,,k q lao, L..