New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-22
p1SJyc ppJCES AND CONFIDENCE.


History does not repeat itself. AS yet col
lapse in the markets WAS by some eXpec'eu
last week. partly because a collapse occurred
one year ago, after speculative exei'en'en'
which in some respects resembed that which
now exists, and partly because the surplus
reserves of the banks had been reduced to
about $500, 900, and further reduction was
apprehended But it was explained last Mon
dav that the position of the banks was really
much stronger than it was one year ago, that
there was much less speculation III mcrchah-
disc much larger available reserve OF money
in the country, and much less appre-
henson of any serious or pro'ongeu
strngency IN the loan market. Accordingly
snecnIotion IN stocks and bonds has gone on
with tremendous force, increased activity aud
a general advance in prices have Dreh WIZ
messed in the grain market, and the money
market is still free from embarrassment. MOI
many are rash enough to predict that TINS
state of things will continue without reac-
tion. Int the markets closed on Saturday with
extraordinary confidence as to the immediate
future.
The bank statement contributed greatly TO
tbe hopeful feeling. Many did not look be-
vond the increase of 81 ,43S, 400 in the sur
nlus reserve, which was hardly expected, be-
cause it WAS known that the Treasury had
Withdrawn from the market during the week
S1.475, 919 in gold, that the imports had Oeen
only 81 .461 600 and that the outflow OF
specie to the interior had not ceased 10y 'ne
statements of Saturday the Treasury ana the
banks together appear rs holding $3ol'Il"
more specie and $365,32O less legal tenders
than on the 18th instant, so that their aggre-
oate reserves were practically unchanged, the
snecie imported having been employed IN sat
isfyipr demands from Other clues' Inc
hanks Gained in surplus reserve only because
they had reduced their loans 80, 636'oUO, ana
their depOslts $11, S36.SOO- Tact OF when
several explanations are gwen. Inc tact 'hat
This curtailment of loans has occurred Wlth-
out causing any disturbance and IN connec-
,ion with heavy purchases Of good securities
hv investors. is regarded rs the true eXplana-
,,on hv those who take a confident view OF
the situation. Many millions, previously loaned
through the banks, have been paid or by
sneculators who have realized on their securl-
ties. while a like amount. it IS claimed,
baa beep invested by capitalists who pay for
the securities and take them out OF the mar
tet To whatever extent this has happened,
hofb tbe banks and the market are III safer
condition. though the causes which have
hroucht about the recent rise are IN part re-
moved To the same extent also, the supply
of money available for future loans has di-
minisbed, but il is urged that large amounts
of securities have been bought on foreign ac-
count. so that payment for them will increase
the importations of gold.
10 RrTrlH
rcrortS that the value of breadsiuf's exported
during October was only $25,711, 900, against
e33 O4S. 600 in October, 1879. Since Novem-
Der /, the exports of flour and wheat have
continued, as In October, much smaller than
those of corresponding weeks last year, while
those of corn have continued larger. But
/ 900. 600 bushels of corn does not brng i'll
half "a much money as a like quantity of
wheat, nor does shipment OF 100000
bushels of wheat represent as much money
by about 100000 IA it did last
wear. Imports of merchandise for three
weeks Of November have been S26, $50,
against $23142, SOC Tor the corresponding
weeks last year. while in produce exports thus
far there has been decrease OF $1,200,OO0
Under these circumstances, continued imports
Of specie may depend largely upon foreign
purchases OF American securities The ex-
changes of The banks were very large again
last week but the portion not originating in
stock operations was about $50000,000 less
than during either Of the two weeks preced-
ing. The specie reserves of the great foreign
banks were all reduced last week. and that
of the Bank of England is now lower than it
has been at any time since December, 1873,
though there is no stringency nor change in
The rate of interest.