New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-03
THE FINANCIAL OUTLOOK.

THE FINANCIAL OCTLOOE.
The public debt decreased in November
S., SOC, 261, and the cash balance available
remained practically unchanged AS 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 customs,
$13415.OOO, and from internal revenue,
$1O,425, 900, were larger by 81, 800, 600 than
those of November 1879, and sufficed to
reduce the principal of the mterest-bearing
debt $4,17S.000, while the interest due in
creased about 100000. The remarkable
features are, first, an increase OF $G,124,745
in the silver certificates outstanding, while the
increase IN the store Of silver i'll the Treasury
has been only 1913, O56 90; second loss of
So $50, O55 80 in the legal-tenders held, not
covered by certificates of deposit; and third,
gain of $1O,7O9, 6S6 Ga in the gold reserve
not covered 10y gold certificates outstanding.
These changes show that legal-tenders have
been drawn from the Treasury in preference
TO gold, and that about $4,000 900 III gold
have actually been deposited, directly or lndl-
rectly, in order TO get ont like amount
i'm silver certificates. The unusual demand Tor
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 It's
outstanding note obligations IS. S44 743. This
supply of additional notes and the high price
of bonds have prevented an expansion of the
L..
demand for currency.
This demand for notes, moreover has existed
Notwithstanding the free supply OF silver dol
lars from the Treasury. OF the standard dol
lars coined last month, %313,0O0 remain i'll
the Treasury and have been added 10 its store
of useless metal The Trea ,ury now holds
S7S, 3O6.373 in silver coin and bullion, but
only SOL sol, 3S7 in excess Of the silver notes
outstanding. Precisely the place which tae
National bank notes ought TO fill, because they
can fill it most safely, with readlest adaptation
to the varying needs OF different localities,
and with least danger of the notes staying III
circulation after the need for them has passed,
is now beng filled by the silver notes. Wise
and prompt legislation this winter Will be
needed to prevent material contraction during
next summer of that very part of the circulation
which best serves the local necessities of
regions distant from the great monetary cen
tres.
The lcgal-tenders now remaining in the
Treasury, only $11 ,124, 937 in excess of GER
tifcates of deposit, are not enough to meet
current demands. Practically, the Treasury is
now forced to do business on a gold basis,
and to keep mainly in gold the funds for the re-
demplion of bank notes ms well as other funds.
The disappearance of lcgal-tender notes con-
tinues at surprising rate While the Treas
ury has lost $2,6G9,055 during the past
month, and the banks of this city about
81 900, 900, it does not appear that these
notes have been added to the reserves of the
banks in any of the interior cities. AT CHI
cago. it is stated, the demand for cur
rency is almost unprecedented, and the
banks, being obliged to send out
about 100000 in single day,
shin the greater part of it in gold The
question as to what has become of the legal
tenders attracts more attention than ever,
and no one seems able to offer an entirely sat
isfactory solution. That very large amounts
have. been boarded is probable, and the ex-
traordinary volume of business now being
done in almost every part OF the country re-
quires larger amount OF notes in constant
use than ever before. But the notes do not
return to the banks nor to the monetary cen
tres, rs they did in former times.
The Bank of England, at its weekly meet
ing yesterday, reported loss oil $3,OOO,OOO
in bullion for the week. This reduces the
reserve of gold com and bullion at that bank TO
about $3.50. 900. 900, while the United States
Treasury holds in gold coin and bullion
$151 .362, 519-the largest gold reserve now
existing anywhere. There was report on
Wednesday that an advance in the rate of
interest by the Bank of England was seri-
ously contemplated. No doubt it must come
soon, unless the directors have reached the
conclusion that no action within their power
can control the outside market for
money. The Bank of France also
lost about 100000 francs during the past
week, but four iiiths of 1t was in sllyer-a cir