The daily gazette., 1880-12-04
THE FINANCIAL OUTLOOK.

The public debt decreased in No
vember $1,000 ,26l, and the cash
balance available remained prac-
tically unchanged. AS a basis for
contemplated legislation, and with
regard to the immediate condition of
the money market, the Treasury
statements this month have unusual
interest. The main facts can be
briefly told. The receipts from GUS
toms, $l3 3,4l5, 900, and from internal
revenue, SO ,425, 900, were larger by
81 100000 than those of November,
1879, and suificed to reduce the prin-
cipal of the Understanding debt
$4, 4,l78,000, while the interest due in
creased about 100000. The re-
markable features arc, first, an in
crease of Sc, ,724,745 in the silver
certificates outstanding, while the
increase in the store Of silver in the
Treasury has been only S549, ,05b.92
second, loss of 50 500 ,055.35 in the
legal tenders held, not covered by
certificates of deposit and third, a
gain of l0,709, ,6S6.64 in the gold re-
serve not covered by gold certifi-
Gates outstanding. These changes
show that legal-tenders have been
drawn from the Treasury in prefer
ence to gold, and that about 6,000,-
600 in gold have actually been de-
posted, directly or indirectly, in
order to get out a like amount in sill
yer certificates. The unusual de-
mand for notes which has existed
throughout the month explains these
phenomena. For many purposes,
the silver certificates take the place
of legal-tenders. The banks have
made practically no increase in their
circulation during the month. But
the Treasury has increased its out
standing note obligations IS, ,S44, ,743.
This supply of additional notes and
the high price of bonds have pre-
vented an expansion of the bank
circulation, even in time peculiar
demand for currency.
This demand for notes, moreover, has
existed Notwithstanding the free supply
Of silver dollars from the Treasury. OF
the standard dollars coined last month,
$4,000 remain in the Treasury and
have been added TO its store of useless
metal. The Treasury now holds $751;
BOG, ,373, in silver coin and bullion, but
only Sol ,S01, 1887 in excess of the silver
notes outstanding. Precisely the place
which the national bank notes ought 10
| fill, because they can fill 1t most safely,
with readiest adaptation TO the various
need of different localities, and will
least danger of the notes staying in clT-
culaton after the need for them has
passed, is now being filled by the silve
notes. Wise and prompt legislation thi'
winter will he needed to prevent ma
teIial contraction during the next sum
mer of that very part OF the circulation
which best serves the local necessities o
regions distant from the great monetar.
| centres.
| The legal-tenders now remaining il
the Treasury, only Sl1, ,124,937 in exces
to meet current demands. Practically
the Treasury is now forced to do bust
ness on gold basis, and to keep mainl.
in gold tue funds for the redemption o
bank notes, as well as other funds. Tn
| disappearance of legal-tender noles con
tinues at surprising rate. While tn
Treasury has lost $2,669,055 during tn
past month, aud the banks of this cit
about $l,C00,000, it does not appear tina
these notes have been added to the re
serves Of the banks in any OF the inter
lor cities. AT Chicago, it is stated, tn
demand for currency is almost imp {
cedented, and the banks, being oblige'
to send out about 81 100000 in singh
day, ship the greater part of 1t in gold
The question as to what has become O
the legal-tenders attracts more ATTENTION
than ever, and no one seems able to OF
fer an entirely satisfactory solution
That very large amounts have beel
boarded is probable, and the eXIraordi
nary volume of business now being don
in almost every parts Of the country re
quires larger amount of notes in con
slant use than ever before. But th
notes do not return to the banks nor E
the monetary centres, as they did i'll foI
mer times.
The Bank of England, at its weekl
meeting yesterday, reported loss of SO
600 900 in bullion for the week. Thi
reduces the reserve of gold coin and bul
hon at that bank to about Sl3O,000,00t
while the United States Treasury hold
in gold coin and bullion Sl51 1,3G2, ,5 10
the largest gold reserve now existin
anywhere. There was report o.
Wednesday that an advance in the rat
OF interest by the Bank of England wa
seriously contemplated. No doubt
must come soon, unless the director
have reached the conclusion that III
action within their power can contro
the outside market for money. Tn
Bank of France also lost about 10000,
900 francs during the past week, bu
four-fifths Of it was in siIver-a circum
stance which strengthens the suspicion
that the bank may soon be compelled t,
suspend specie payments. Its gold re
serve in the main Office must now be r.
duced to little more than S42,000,000.-
Ihese circumstances, with the sharp de
mand for money which, as the Treasury
statements show, still exists in the inter
ior of tnis country, indicate that great
caU.ion is advisable, both in financial
operations during the present montl
and in legislation this winterlon finan.
cial subjects.
. ~, IN, <,Anu,e, nm nnvHH