New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-15

l,e force of law. and the serene dignity OF n
COMMUNICATIONS the most ambitious
American would be proud to enjoy, and the
American people would be proud to see'
FIYfNCIAL C0NFIDENCE IND 'ACUViTK
The condition of the money market is very
noculiar. The New-Yorl banks hold reserves
only exceeding by &5O3,250 their legal re-
quircments, and yet money Is unusually easy
for the season, 10 apprehension IS gehefaly
felt. and The banks continue to report cx-
handing loans. Any one operator, VINO may
choose to let one or two millions he idle dur-
| ing this week in his own sale instead OF tue
banks. can almost surely reduce the banks De-
low the legal requirement unless they take
| alarm and contract their loans Sharply; ana
vet the feeling of confidence that supplies OF
| foreign gold viii suffice to meet any
emergency is so great that n weekly state
ment showing reserves decidedly below the
legal requirements might cause no serious APP
prehension. Indeed, nothing short of actual
and sharp contraction Of loans by the banks
or by operators seems likely at present to dis
turb the market seriously. Some loans were
called last week, and there was at one time
belief that the banks had generally deter
mined upon curtailment. But the average re-
port on Saturday showed a further increase oil
1893, 500, and was $324,970, OOO-the largest
amount we believe, ever reported by the
banks of this city. In 1878 the highest
amount Of loans reported was about
! 1898, 900, 000 and in 1872 the maxi
mum was about $297000,OOO Unques-
tionabIy. the position of the banks Is now
| UNNECESSARILY safer than it ever was with
depreciated and irredeemablc legai-tender
basis. The fact that the prudent bankers OF
this city do not shrink from expanding loans,
when the reserve is so little in excess OF
| legal requirements, shows what vast CON
fdence specie payments have supplied and
the moderate rate Of interest which prevails
is evidence that the confidence of the bankers
| is not unfOunded.
As respects supplies Of gold from abroad,
however. it must be said that the monetary
situation here is not entirely free from danger.
The Bank of France, Notwithstanding its new
course. has been gradually losing gold, and its
entire gold reserve on Friday last WAS only
about 567, 500, 900 francs, or S113,59S, 500,
of which only about $l3 100000 was in the
main bank at Paris. The supplies scattered
among the many branches are not easily re-
duced much further with safety. Virtually
the continuation Of gold Payments Ia France
depends upon the slender central reserve OF
| $43, 900, O0O and it Is not strange that The
London Economist significantly suggests, speak
ing Of exchange, that some persons are in
doubt whether bills payable in three months
mt Paris Will be met in gold or IN silver
But the bank has temporarily checked
the outflow to England, and the
consequence is that the demand for
cold from Europe now falls almost wholly
upon the Bank of England. That bank now
holds G26,59I, 399 in coin and bullion, or
about 1892, $4,000 against $l45,OO0OOO
mt the end of July. But it has Ost 81, 100000
or SIS, $50, 600, since October %, and it docs
not seem improbable that the directors may
soon feel compelled to take strong measups
TO arrest the outflow if possible. The discount
rate still remains at 2l2 per cent, though it
was raised November 6, last year, with over
S15O.9lO,O0O in coin and bullion on hand.
Bat the proportion of reserve was then
smaller than it is now, the deposits being
much larger, and latest mail accounts indicate
that money was then abundant and easy in
the outside market.
The banks and the Treasury lost 1898, 400
in specie last week, though $1,36I072 in
gold was received from abroad. This midi
Gates an outflow Of about $1,761,272 in
specie from this city, against $l,76G,9S4 for
the week preceding, and $1I3G7S90 during
the four weeks ending October 30. While
the drain Of gold to the interior seems 70 be
less than half what it averaged weekly in
October. the banks and Treasury together
gained $5OL237 in legal-tenders last week.
| in, larv l-far Il Of
S1,151, 2OG during the previous week. gives
hope that the tide may be turning fayorably.
As there should be no lack OF money
in the interior after the distribution of
very large sums from this city since resump-
ton, and especially within the past year,
it may be reasonably expected that any symp-
toms OF strInsency here will soon bring in
ample supplies. Accordingly, it is reported
that offers are already made 10 loan large
sums here from banks OF interior cities, and
the shipments this way would naturally be
made in legal-teuders rather than gold, as long
as the notes can be commanded. But Il tempo
rary stress of considerable severity might at
any time occur before supplies could be OBJ
tanned, either from abroad or from the in-
terror, and it is generally thought that a more
active money market may exist until the
current of money has begun to set definitely
and steadily toward this city.
The transactions of the banks last week
were unusually large, the exchanges amount
ing to 1896, $40, 45l-a sum never exceeded
since November 2, 1872. except during the
week ending November %, 1879. But there
IS less occasion for apprehension, on account
of the magnitude of exchanges. than there
WAS at this time last year. AT that time sales
of stocks amounted to 3.122, 900 shares in a
single week. while last week they were not
over 1000, 900 shares. Deducting double the
market value of stocks sold, the remaining