New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-19
SECRETARY WINDOW AND THE MONEY


IL
The present condition of the money market
calls for the attention of the Secretary of the
Treasury Secretary Window has acted with
rare wisdom thus far. The most brilliant
page in the financial history of the country is
that which records his work and its wonderful
success. The country can trust him not to
neglect any precautions that may be needful
to prevent an interruption of its prosperity
through operations of the Treasury He has
finished the refunding of the five and six per
cent bonds, it is true, but some consequences
OF that splendid operation seem likely to require
lis serious consideration.
The money market has suddenly become
comparatively tight. The banks have prob
ably lost the whole of their surplus reserve.
Yet the outward movement, usual mt this sea-
son, In connection with the marketing of the
crops, has hardly begun. The shipments of
money to the interior have not yet been large
The Treasury has depleted the banks II
has taken in qnite rapidly the money needed
for the redemption of the bonds which ceased
to bear interest August II, and vet
few of those bonds have been presented for
payment, and the disbursements of the Treas
ury fall far below its receipts. Meanwhile the
registered fives on which interest runs until
October l, do not come forward i'm response to
the offer made July l, to redeem them at any
time with accrued interest to date.
Since July 27 the receipts of the Treasury
have exceeded the disbursements every dav.
On that day the Treasury here reported bal
ances of $40, 1893, 906 in gold and $5,O7S,Ol5
in currency--in all $7S,071, 921. Its balances
were on Wednesday $S5,759. 729 in gold and
"a, oO2,669 i'll currency-in all 800, $50 1893.
Thus $40, 490,477 has been taken out Of
VOL y
received by transfer from the mints. The
gains in the Treasury balances have been
S3,645,777 in the week ending Wednesday
the 3d. $5,2Ol $50 in the week ending the
10th, and $3,642,95O in the week ending the
18th. The banks were unprepared for such q
drain, because 1t had been generally believed
that the disbursements for bonds called would
largely exceed the receipts. 1t appears that
the money does not come out of the Treasury
but goes into 1T at an unusual rate Several
millions were taken in for bonds sold, and the
rest has been gathered by unexpectedly large
receipts for duties. 1t is possible that the
drain may continue and the money needed in
commerce may be lacking
Secretary Window has unquestoned power
If he deems it judicious, to check this ex-
haustion of the banks by means of Treasury
collections. He can propose, as he did with
respect to portion of the six per cents, to re-
ceive at once the bonds which become due
October 1. paying interest in full to that date.
The payment would not take from the Treas
ury one cent more than it will be obliged to
pay few weeks hence. But it would restore
to the market, at a time when it seems likely
TO be needed, money already taken from it
for the redemption of bonds. 1t ia not neces-
sary to say that the Secretary will not be in
nv
OF spectators, whether they clamor for or
against a change. But it is proper for him to
consider whether legitimate business of all
kinds, if exposed to some possible disturb
ance In consequence of operations of the
Treasury, may not be sheltered from such dis
turbance without prejudice to public interests.
ANY continued stringency in the money mar
ket at this time would interfere quite ser-
olsly with the movement of the crops and
cause some loss and much embarrassment To
producers.
1t is true that any continued stringency may
he prevented by other means. On Wednesday.
the very day that money began to lend at 6
per cent, over $l,o00,O00 in gold was with
drawn from the Bank of England for shipment
hither, OF which part was shipped in the
Britannia yesterday. Large purchases of Rms.
sian gold have also been made in France for
early shipment to this country. A moderate
pressure In the money market here would
probably suffice to cause large movement of
gold, and would not be hurtful to business
interests. III the Bank of England should de-
cue To raise Its rate, however, with deter
minatlon to arrest the outflow, more than a
moderate and healthy str;ngency here might |
ne necessary In order to overcome the resist |
ance and bring the desired gold. Thus it NAV |
at any time become important to know that, |
IN case OF need, the means that legitimate |
business may require can be obtained.
IL has also been considered probable that
the registered five per cents would come for
ward tor redemption in large amounts. if the !