New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-06-06
FINANCLAL PROSPECTS


The bank statement of Saturday causcd a
great deal of surprise, though no wcll-informcd
person was in the least degree alarmed by It,
The rumor was started that powerful specu-
atOrs were locking mp money, but no one of
ordinary intelligence could be made to believe
such report, at time when the banks wcrc
holding $9,490,250 in excess of legal require
ments, and when money was extremely abund-
ant and easy For similar reasons, it WAS alb
surd to suppose that the statement was ma
npulated' and it was obvious that large
temporary changes in the aggregates Of the
banks might at any time have been produced
by operations connected with the rcfundHg
of Government bonds or with new loans
recently negotiated. 1t seems that shipments
of 81, 600 600 to Boston on account of the
Continental Construction Company, and other
large sums Oh account of Atchison, Topeka and
Santa Fe and Chicago Burlington and Quincy
loans, sufficiently explained the temporary de-
crease of $3,0S2.700 in specie, when taken in
connection with the fact that the Treasury
had drawn about 81 100000 from the banks
during the week ending on "Wednesday. Later
disbursements by the Treasury, amounting TO
$1,1OO,OOO from Wednesday to the end
statement of averages. But the change in
bank reserves is now of no consequence
whatever, since the supply Of money largely
exceeds the demand, and will be greatly in
creased by Treasury disbursements during the
next month. A considerable part of the.
quarters interest to be prepaid on over
$300,OO0,0O0 of five per cent bonds extended
has yet to come out of th9 Treasury, and the
redemption of $4,000, 900 of six per cents July
l will still further increase the supply of
money available.
The great expansion Of loans, with deposits
almost equalling them in amount, is inter
preted as evidence that the banks are placing
what money they can quite freely, in the ex-
pectation that still lower rates Of interest will
prevail later in the season. Some competent
authorities believe that money will be lending at
one per cent on call, before the end of this
month. An immense amount Of money has
come INTO this market, within n few weeks, in
payment for securities recently purchased by
investors in various parts of this country or in
cope, and of many well-known securities it
il ,Ieved that the market is now carrying a
much smaller amount than ut any previous
time for nearly ten years. In place of these.
many new sUOCkb anu DOnub nave Deen Issued,
but the rapidity and eagerness with which
good loans are taken, often as soon "a
they are offered, shows that the supply of
available capital here has by no means,
been exhausted. In fact, it is constantly
replenished by additions from abroad, and. as
long as the prosperity of the country con-
Times. this supply is likely to increase. The
presence of large foreign orders to purchase
at any slight concession in prices, was felt
quite plainly in the stock market to the close
of last week
There are many who believe, however,
that this state Of things will be wholly
changed by war of rates between the rail-
roads. 1t will be observed that Commissioner
Fink and President Jewett, of the Erie, posi-
lively deny that there is any cutting of rates,
or that any notice of disruption of contracts
by Mr.. Vanderbilt has been sent to the Erie,
as was reported on Saturday. Whether the
report in this instance has any foundation or
not, observers of philosophical turn of mind
have noticed as an interesting fact that ru-
mors Of war arc always plenty when certain
speculative friends of Mr.. Vanderbilt, who are
more active than ScrupulOus, happen to be