New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-05


of lhc men charged with these responsible
;,s.
7HE SLW YEiHS WIRKET
The banks of New York closed the Old year
wi.ha less satisfactory statement han had been
expected. The rcpor. of the previous week
wa, encouraging, and yet, it was supposed,
only partially represented the receipts CT gold
from inc Treasury. On Tuesday OF last week
the Treasury bcean the prepay mrnt Of interest
and TIE excess Of IL disbursements over its re-
cci;ds in gold vas @2Gj,OOO trcn Monday s 10
Tuesdays statement, S3,36GG23 from TIES
day. 70 Wednesdays, the interest payments
during the week being Fj,37S,23L In addi-
Gon considerable payments were nude for
gold Il posi- ed at the Assay Olcr, AID for
bonds o. 1850, Of which olly tG,2Ol 600 Ic-
mtiu ufiodcem,d. NofWiti Standing NIL this
SIMPLY OF II oncy, the banks reported an in
crease Of only $ -, 500 in thcil reserves while
their ljuus and deposits both increased over
+5.3pO.OOO. A. was surg '-trd before th-sc
disbursements began thr supply oi money c6-
p,rtrd from interest payments and other
.ruitct piov.d much greater than thr amount
.r'u., Is received in thi. market, Will" the
ty.tld.aUa of funds to meet demand. al -
where Has much greater than w.5 expected In
cou.,Guc.ce decidedly clos, money m::.ct
continued 10 tho cud ol tar week.. and q. times
premiums wrrc paid iof loans eft large amounts.
The general expectation now as that The large
PAYMENTS OF diyIdcnd+ and interest on corporate
and mur.rjp securities. which BEGAN Monday,
viii eivr Immediate rcl'rl. But these pay
M. MS. Ike thosc by the Government, are made
o ., i
tie mc.-u.c of relief from Int operation may
Lr mI,h less ,htu ls cNuertcd. Tie money
raid out rcrr, 10 cIcdiIoi5 who live or keep
their deposits hclc, viii neither 1c taken from
nor nldcl To- tie pres nj 'upP'y, bat merely
Transferred from one bank OF account to another.
But the m.u.y drawn out b; muWc pajtic3
AMI corporations which pay hcr" to be sent to
their CREDITOR. in uthcI part, Of the country, VIII
be- tcmr0rary Withdrawn from the market. il
is III. general impression, too, thai large sums
will now come INTO t." Uakc' from all parts
OF TIE country for lnycstmcnt But prices have
been 80 hish rs ~ cause investors T. h,~ltl'C,
ami Il r. plOhabr that those who wish TO take
securities Tor investment have to a ggcaJ extent
anticipated the January disbursements by their
puichas,.s. 1t will be some time. IN any case,
before returning lunds nom ;hc interior viii
arrive i'm lar.e amounts, No DOUBT much
money will return to tnis market in time hut
The amount may not be 80 great nor the return
50 specify as is generally expected.
The statement Of The Controller Of tine Chr
rcncy shows that the National bank circulation
Outstanding is $3l3,219,913, the increase dur
ins the month OF December having been only
%G5j,2G7. In view OF the urgent demand for
currency since November, this report shows
that the banking syS'"m has temporarily lost
that elasticity aud faculty OF automatic adapta
lion 10 the needs of the country which il for
mcrly pos,cssoh, and which constitute one Of
It's chief cXcr!lcnces. The uncertainty rs to
the action OF Congress IN regard 10 rcimdlng
is the chief cause OF this paralysis. The high
price of tour and louI and half per cent bonds
does not check purchases of other bonds, which
are selling near raI and bear higher late Of
interest, but the proposition Of the Committee
of " avs and Means 10 retire the five and six
pel cent bonds and to require the banks to
deposit only three pei cent bonds hereafter,
without any abatement Of taxes, naturally
carl,cs general hesitation. If the bill should
pass the House IA it comes from the Committee,
there would probably be n surrender of many
millions of circulation within short time there
nftoI. unless there should be good reason to eX
meet that the bill would be stopped in the
Senate. Under these circumstances financial
operations at present are attended with not
little risk sudden and sharp contraction of
the currency, through alarm among the banks
and rapid retirement of their circulation, would
make much mischief. The House ought not to
pass any bill ut ALL unless it can pass safe and
wholesome one.
1t would not be wise to overlook another
cause of possible disturbance in the money
market. Home supplies OF funds ran out some
months ago. The banks have been enabled to
get through the past season only by heavy i'm
portatons of gold. But large part of the gold
imported has been in payment for securities
sent abroad. In effect We have been borrowing
money. Payment may at any time be de-
mandod; foreign investors, seeing that their
stocks or bonds arc selling at prices which
would return them from three to five years. in
terest in two or three months, may conclude to
sell. From October 8 to the end OF last year,
the rise i'll Erie and Jersey Central was over
$12 per share of 800; in Northwestern,
Wabash preferred, and Lackawanna, over
$40; in st. Paul, over $22, and in st.
Joseph preferred, over 1924 in New York. Gen.
trail and Union Pacific, over $25; in Lake