New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-01
4 STRINGENT MONEY MARKET

Money was scarce and deaf yesterday. Hlgh
rotrs were maid by some of the best houses IN
the Street L. consequence, the markets were
excited and fey erish, with a tendency toward
lower prices. In the stock market the decline
WAS at times rapid and considerable, though at
intervals remarkable strength was shown, III
view of the s.rngenCy of the money market.
The feeling of confidence was sustained by the
expectation of large disbursements from the
Treasury to day, md if the money market does
not become easier there will be general sur
pIse and disappointment. The disbursements
of the Treasury or interest will be over
81. 900, 900. Some other payments from that
quarter are to be expected, and 100000 Will
be payable on the Erie consols, and cons der
able sums on other mortgages. More than
81 600, 900 is also expected from the Assay
Ofic fer specie recently arrived. These DIS
bursements would naturally cause less strln =
gency in money, at least Tor the time, though
they have been TO some extent anticipated In
loans already made. But it would probably be
unwse to expect continued ease in the money
market until after January l.
II has been commonly believed that the
supply OF loanable funds in this market would
be quickly replenlshed III any case OF need, by
return OF money from the interior. This belief,
justified by all past experience except that OF
last fall has been held by many or the most
capable bankers. Nevertheless facts do not
thus far give that opinion any support. Money
has been lending at a premium in this market
for several days, and it has been perfectly well
known for n much longer period that some pres
sure would be ielt late in November Yet the
4. " N
almost every other city. IL is true the crops
have moved rather tardly this season, because
pI ices were for long time depressed. But 1t
seems probable that other causes have been at
work, this fall and last fall, with which the
financial world has not yet become fully ac-
quainted. It is worth while to consider
whether, with its many aud great advantages,
a metallic currency NAV not be found consider
ably less mobile than one composed wholly OF
paper. The meIe fact that legal-tenders can
be shipped from point TO point at less cost than
gold is not the whole of il there is some nat
ural Discrimination, on the part of bankers and
Others in the interior who have accumulated
cold, to part with it as readily as they would
Iart with legal-tendeT reserves. How lar this
comparative immobity of a metallic currency
may explain the phenomena witnessed last fall
and now, it is yet too early to Judge.
One thng is evident, that the outflow Of
money from this city still continues greater than
the receipts of gold from abroad. This drain
may at any time cease, or moderate but unless
it does, the shipments from Eur, pc will make no
important change, but, like those of late date,
will be virtually loaned before they arrive, to
take the place of money sent into the country.
The speculations il breadstuils and cotton not
only employ money, but check exports and ihe
drain OF money to the interior Is in part eX
planned by the enormous transactions reported
at all other Cities which, for the week ending
on Saturday last were the largest ever known
i'll daily average. The Treasury, too, cannot
esca- e reservinc money from its current re-
ceipts for the payment of maturing bonds and
interest falling due next month Hence, unless
prices yield considerably, and IA liquidation of
sreculatiOns now IN prOgr IS sets fee portion
of tie funds locked up therein, it seems rea-
s0nabIe TO expect that the money market will
not become easy again, for any length of tlme
until after the new year opens. Great activity
in money is not sign of disaster in legitimate
business; indeed, with all such business in n
healthy condition and rapidly increasing, some |
degree of stIingency at this season is to be re.
galded as a natural and desirable result.