New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-22
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GRdW md GOLD


and financial features of unusual interest. The
rate Of interest mounted above 6 per cent !:
arrivals Of gold from Europe began the
reserve OF the banks fell below "the
dead lne"; and gigantic speculatiOns in do
mestic products apparently eliminated. The
unfavorable change in the condition of tie
President, which occurred early in the week.
had considerable effect upon the markets.
Possibly 1t induced the operators in grain
TO hasten settlement which might other
wise have been deferred o little longer, and
brought about with less excitement
Only the lambs can have believed that
the sudden and violent rise in the prices of
wheat and corn last week was due to legiti-
mate influences only. On Thursday, the tn,
after having advanced steadily and largely,
No. 2 red wheat was selling at 81 80 Sen
TENDER wheat at 81 3I14, and No. corn at
about 80 cents. On Friday, the 18th, after
several days of wild speculative excitement
No. 2 red wheat sold at ST 46, Septembcr
wheat at ST 46l2, and No corn at 70 cents.
When such spasmOdic advance occurs. il
Is generally the work OF a clique who
want to sell, and it was accord
lngiy reported on Saturday that the prin-
cipai cliques operating for an advance in
grain had sold out. The prices dropped on
Saturday to = 1884 for No. red wheat.
$I 10 Tor September, and 70 cents for No. 2
corn. 10 1t right wrong, the prevailing
impression ID that " the lambs have about all
the wheat IN the country; that the great
speculation i'll grain is nearly or quite over.
and THAI prices are likely to settle back before
long TO figures which permit exports. For
several weeks the export movement has been
materially diminished by the rise in prices.
n 10 in,.n a,
that there should be a more free outflow.
vast amount of money has been locked ND in
these speculations, also, which win be quickly
released if they have eliminated
In sympathy with the grain market. other
produce markets have witnessed great specu-
lative excitement. Mess pork advanced from
$40 to Sis IS; lard from LAO to I1.5O
cents, cheese from 10l4 to 1Olo cents cotton
from II to 12ll cents, and coffee from 121t
to 12si cents per pound. But the speculation
IN these products does not threaten to dis
turb commerce, nor does it involve at
present an unusual amount of capital The
grain operations have taken many millions to
the West, which may probably diminish the
amount required from that quarter during the
coming month.
1t was known before the middle of last week
that the bank statement would probably show
that the reserve had fallen below 25 per cent.
of the deposits. We pointed out on Thursday
the fact that $40, 49O,477 had been added to
the Treasury balances during the previous
three weeks, and $3 642, $50 during the week
probably corresponding most closely with the
latest bank averages. OF the latter sum
100000 was received from San Francisco.
and the remainder was taken from the banks.
but Ihc reported loss in reserve was 81, 1885,
800. Hence it is evident that about
$l,G0O,O0O i'll gold and legal tenders must
have gone to the interior during the
week. If tho Treasury had paid out ms
much as it took in, the reserve of the
banks would not have been exhausted. After
Wednesday the Treasury balances increased
only $226, S31 during tho rest of the week
moro than that sum having boon meanwhile
received from San Francisco, so that the
Treasury paid to the banks more than it took
from them during the last half of the week.
If the advance in current rate of interest brings
forward bonds for redemption in large amount.
as it seems TO have done already to some OK.
tent, the money market will receive important
relief. more sure and speedy relief, how
ever, is already felt in the imports of gold
from Europe.
The swift and unerring operation of the
natural laws which govern n sound currency
was beautifully illustrated last week For a
long time the rate OF interest have been low
the market being amply supplied with money.
and since tho first half of May the imports of
gold from all quarters has never been as much
as 100000 in week. Last week the rate
Of interest suddenly mounted to per cent
and the bank reserves ran out. But in tbat
very week camo the first large arrivals of gold
in several months. The receipts of specie were
$S2S,9s6, and this is but the beginning of
shipments made ono or two weeks Ago
when the money market was to all appear-
ance undisturbed. Under tho operation of
natural laws, money not only goes wherever
it is needed after the need appears but it be-
comes tho interest of the shire WIDEST bankers to
anticipate rs far they can needs of the future.
In this case, so accurate was the estimate of
bankers that the reinfOrcements of gold from
Europe began to arrive on the very day that
q premium was first paid for the use of money.
1t is believed that about So, 800 600 more il
already on the sea, destined to this port. The
advance OF the rate of discount by the Bank of
England on Thursday, from 2lo to 3 per cent
did not prevent the withdrawal of s.. 900 600
moro on Friday for shipment on Saturday.
Large sums have also been taken at Paris for
shipment hither, notwithstanding the new re-
stnchons by the Bank of France upon the
issue of NapOleOns.
The Secretary of the Treasury will Doubt
less consider that the great foreign banks NAV
possibly be able, by determined efforts m
prevent as large exports of gold as NAV
be necessary for the prosperity of legiti-
mate business here. 1t is also possible