New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-06
THE STATE oF THE MONEY MARKEE

The report of the banks on Saturday caused
general surprise. Few had expected much
improvement, but scarcely any one had looked
Tor so great loss in reserve. The decrease
of 1864 300 in specie was the most sur
prisIng feature, though it was known that
about 50. 600 900 in gold in excess Of al re-
ceipts, Lad gone out of tie city from the
common deposit OF the banks, and that
81, GS7,3lS had gone INTO the Treasury. The
reported loss about So, 000,000 greater, can
not with reason be explained on the familiar
theory OF "Iisnc averages" for the payments
from the Assl Y Office daring the week were
unusually small. and the QUITO To The lnte-
rior was continuous and large, while the Treas
uy returned only $3.50, 900 more money to the
banks than IT took from them after Deccm-
Der /. The trh is that there has
been and is a strong disposition in the Street
10 uGderIate the demand iOr money from the
chief commercial cities of the West and South.
Sufficient evidence OF this remarkable mis-
anplehension is found in the fact, stated III
| { icig0 jou nails that Applications for large
"amounts of money were mad 10 the
"Chcago banks from New-YOrk borrowers,
and refused The Chicago banks, which
last year this time were able to loan
"Wali Street $4,000 600, cannot now spare a
doarn No wonder a plcatons from here
were refused wncn, a press dispatches show,
money is lending at Chicago at TO
pcr CEN, and even ut that
rate the supply is inadequate. How
1t can be expected that money
can leave an per cent market. to migrate
at some cost 20 per cent market the
would-be borrowers of thiS city perhaps can
explain. AT s.. Louis 4" the demand from
" general mercantile and manufacturing
"sourcc. was quito active" says The HcDHbd-
can. - nd SOM of the largest banks reported
that they had been compelled 10 turn away
| "applicatioas bscGu.c of tine simple lack Of
''moucy. and not because OF any objection to
- the paper. Rates are steady at . per cent
on time and per cent on call" TIL,
again, does not appear to he Il market from
which NeY-Y0rk can expect to draw money.
| At Ncw-Orleans aud Savannah, too, the rate
of exchange shows that money is IN greater
demand than it is here. No reasonable per-
son VII suppose that Naw-YOrk I" manipula-
ton has caused this state of things at all
interior markets.
On the 3Oth of October the Treasury and
specie. and the time had passed az which the
return flow from the interior generally begins
They now hold only $131, S12, 500, and yet
the net imports of gold ut This port since De-
tober 80 have been S9,497.492. In some
way, 40 less than SIG, 1865 i'll gold has
| gone out of this market III five weeks, the
outeo having been largest in the latest week.
| Partial explanation is found in the fact that the
receipts of wheat at Chicago, Milwaukee, St.
| L0uis and Toledo for the week ending Saturday.
| the 4tl., were about 2, 100000 bushels, against
| 1.4S1.263 during the previous week. and the
| receipts of ali grain were about 100000
bushels, against 3,775.540 for the previous
| week. Again. the receipts OF COTTON at the
| cotton ports during the week ending Friday
| were in excess of the large receipts of the cor
responding week last year. To pay producers
| for the cotton moved last week alone would
have required about So, 100000. Many SIM
| liar comparisons might be made, but the most
significant indication OF the volume of busI-
ness throughout the country is found IN the
| cl.arings Of u cities outside New York, which
are about Is per cent in excess OF those of
1879 at the corresponding date, while those
of 1879. the great boom being in progress,
| >
| This fact certainly explains a great increase
! in the demand Tor money, and boarding by
| the well-paid laborers OF the West and South
must account for the rest.
! There would be no lack of money here if it
were not for the towering speculation which
| employs a vast sum at high rates. Last week
sales of stocks amounted to $500. 10000 IN
market value, and the week before to
| S1S5. OOO, 900. The exchanges last week were
again the largest ever known, amounting to
| SI,155, 094,6S3. In grain, too, there has
| been an advance, since early in November, of
| 6 cents a bushe for wheat, cents for corn,
and 5l2 cents for oats, and the sales last
week were 10,054, 900 bushels wheat, and
| 1899. 900 bushels all grain. The sales of
| cotton, also amounted to 1,11S,900 bales,
| worth S65 100000. In all these and other
speculative operations enormous sums are
employed, and the plain truth is that
they have absorbed more money than
| New-York has to spare. When we turn to
other cites, we find everywhere active bust
ness, and vast transactions, which employ all
the money on hand at rates higher than New
| York can afford to pay. The people who have
unempoy money are the farmers aud laborcrs,
but they see fit to keep IT, ana do not send 1t to
! New-York, Chicago, or New-Oreans. The
| dealers in Eastern cities are taking large guam
titles of products, at prices which check exports,
and when they send orders for more, the West
! aud South reply, PAY for 1t, thcn.' But IN
/ order to pay more money must he had; prices
must decline so far that Europe will buy more,
or speculation must moderate 80 that less
money shall be tied up therein.
The report of the banks on Saturday
showed deficiency i'll reserve of $2.46l, SO.