New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-21
SOME EFFECTS or THE FUNDING BILL

SOME EFFECTS OF THE FONDINr DIN"
One week ago all was confidence AND hope
in business circles. 1t was thought certain
that Congress would finally pass Three ana
n Half Per Cent bill, and insure reiundlng
without risk of failure or danger to business
interests. Very different was the SITUATION Oh
Saturday. The markets were saved from panic
only by the courage and power OF the great
operatOrs bankers were holding hurried meet
ings in alarm and among Intelligent ana con-
seryative men there was wide dlnerence Ol
opinion az to the prospect, some feeling that
a great opportunity for good mad been missed
while others, in more gloomy mood, feared that
serious injury had been done. Beyond doubt,
the first effect of the passage of the Three Per
Cent bill by the Senate was disastrous. The
Improvement of feeling during the latter part
of Saturday was due, first. to information
that the situation might be entirely changed
by the passage of bill relieving the National
banks from taxes on deposits, 80 that the
success of the Three Per Cent bill might be
secured and second, by a growing belief that
unless TINS reinforced, the bill would prove
pracIicaly impotent, so that an extra session
would probably BE- rendered necessary, and n
new and beneficial measure could be obtained.
II was observed on Friday and Saturday
that the markets for important products were
affected rs quickly as the stock market by
the fear Of monetary contraction or disturb
ance. Wheat. corn and oats declined; cotton
was lower and weak; lard fell of 10 cents;
but the change In the prevailing feeling as to
the future of the markets WAS greater than
the change of figures would indicate. In any
serious monetary pressure, the great opera
tors III securities can afford to pay much higher
rates of interest for loans than dealers who arc
CARRYING merchandise. When there is not money
enough to go around, those who can pay most get
supplled, while the rest are forced to drop
their holdings. II the Three Per Cent bill
should cause MS much mischief as was feared
at first, the inevitable effect would be de-
cidedly lower range of prices for wheat COT
ton and provisions, and other plOuucis VI
which the stocks now being carried are large
and heavy losses would fall upon producers
who have not yet sold. There would be
Doetic Justice in bringing home to Western
and Southern people the cost OF outrageous
legislation upon which they have insisted !;
Int all reasonable men will hope that mifOr-
times both for them and for the whole cOun-
FRY may be avoided, and that results may
Justify the more favorable impressions as to
the financial future which were current on
Saturday afternoon.
About $500, 900 Of the four per cents and
800, 900 of the four and half per cents
we're withdrawn from deposit at Washington
last week, while the deposit of skies increased
| 800, 900, and Oi fves 100000. The effect
of deposits on Saturday for withdrawal Of
circulation Is not felt in the Washington
statement of that day. The Treasury, how
ever, reported a coin balance larger by
| 81, $50, 024 than that of February H. with n
decrease of only $253,994 in legal-tenders.
The greater part of this increase in the coin
balance, So, 100 900, was made on Friday and
Saturday, and does not yet appear in the bank
statement. On Saturday the bank averages
| for the previous six days were nearly
| So, 100000 lower for specie than those of the
preceding week, and the surplus reserve, ac-
cording to the averages $3,S07,275, was
| doubtless lower at the end of the week
Money was not tight, even at the close of the
week, but there was much more inquiry than
before for time loans.
| The volume of business transacted last week
was large, Notwithstanding the reported inter-
ruptions of travel aud transportation at many
points At New York the exchanges amounted
to $I,1O5, 600, 900, and this sum was exceeded
| in only one week during the whole history OF
the Clearing House prior to January l, but
the sales of about 100000 shares of stock
last week account for not much less than half
of the aggregate. Nevertheless, the move
ments of produce and the sales of important
articles, as we'll as the record of exchanges,
show that the amount of business done out
side the stock market was unusually large,
and in any other year than this would have
| been without precedent.
i @------------~--z~---a-
| r0r nDreoNpD mr. ,r,,U ~ ,y,<,,,