New-York tribune., 1879-05-19
A BUSINESS REVIEW.

The bank statement of Saturday would have
surprised every one by its increase of $10,-
500, 900 in loans, and decrease of $4, ,425, 500
in legal-tenders. had it not been well under
stood that the changes were mainly in the
boO6-accOunts between the depository banks
and the Treasury. For reasons which have
been abundantly explained, and veri-
fed by experience, there is no longer
any fear of real stIiDgency arising
from the dealings of the Treasury with
the banks. In fact, 1t is evident that
the Treasury has been so careful not to dis
turb the markets during April and the early
part of May, when stringency was feared,
that some of the banks have presumed too
much upon its caution. AS soon as the
rapid increase of the surplus reserve had
proved that the banks were in no danger
whatever, the Treasury began to require
dilatOry banks to make good their subscrip-
tons, and the result was a mOmentary pres
sure in the adjustment of accounts among the
banks themselves. But the surplus reserve is
still abundantly large, and there is no reason
to expect any other than an extremely easy
condition of the money market. The
loans have doubtless been much in
creased by the great activity of busi-
ness and speculation. The exchanges last
week amounted to $59S, ,2362 POI, against
$3.50, ,6SS, $50 last year, and the exchanges
for three weeks ending May II have been
81, G,32j, ,597 in 1879. against only 81. 1885,
7S5,917 during the corresponding weeks in
1873. But considerable part of this increase
is due to the fact that during the three weeks
char of
sold in the Exchange, against only 1,749, ,4OS
shares last year. After allowance for trans
actions of this nature, however, the increase
in other exchanges appears to be about SO per
cent, and the greatly increased activity of
business in all branches is evident enough to
impress even the wid-eyed inhatIonists in
Congress.
The controlling fact of the financial position
has been the rapid sale of the four per cent
bonds, of which, after much earnest sOlicita-
ton, Messrs. j. s. Morgan & Co., of London,
obtained $15,000,000 last week. They had
asked for very much larger amount
But the First National and its associates
were not willing to leave the unsup-
pied National banks entirely at the mercy
of foreign dealers. As matters stand, only
'p4O,VOO,UOU VI tut l-l,VOO,OOO ldAtu ny
the First National now remain unsold,
and it is known that there are still on
deposit at Washington more than $780,
100000 of ten-forty bonds, held as Sc
curity for circulation, which the banks
will be compelled to replace by other Govern
ment bonds before July II. Virtually, there
is corner" in four per cent bonds, which
was foreseen and predicted as long ago as
January, when the subscriptions from new
holders exceeded 100000, 900. As the hold
ers Of old bonds were then so slow in making
purchases of four per cents, it was foreseen that
when refunding should be complete there
would be some Institutions and individuals
in absolute need of the new bonds, and yet
unable to obtain them except at such prices
rs might tempt private investors to surrender
their recent purchases. This position has been
reached. The price of four per cent bonds
advances rapidly because recent purchasers
decline to sell, and the amount which banks