New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-08
BANRS, BONDS IND BUSTNE,SS

BANKS, BONDS md BUSINESS.
The decrease of 1852, 800 in the reserve
of specie leld by the banks caused some mis-
understanding when the statement Of Saturday
appeared. 1t closely correspondent with the
decrease of $4,435,2OO in deposits, and WAS
| attributed by some to heavy shipments west
ward, Tor use in moving the crops, while Others
attributed it to manipulation for the purpose
OF making money tight But the change in
specie reserve is fully accounted for FIRST. nv
the fact that unusually large customs receipts
raised the specie balance in the Treasury from
81, 993,9O6 July 27 to $77,O16,07S August
8, n gain of $1,O23,072 and second, by the
fact that over 81 ,2OO,00 in gold was shipped
during the week by the principal banks to the
interior. The bank averages, as usual, repre-
sent the condition of the banks about the
middle of each week more nearly than at the
weeks end, and the gain in Treasury balance
was nearly all due to Withdrawals from the
banks, only 100000 having been received at
the Treasury from San Francisco on the I'd and
Sd. The known shipments of gold by the princi-
pal banks must, therefore, have been in part bal
anced by receipts of nearly half million in the
aggregate by the other banks, of which many
show a small increase in specie reserve Five
banks report losses of over 81 900 900 each,
while such banks as the Importers and Trad
cr's, Metropolitan and First National, which are
correspondents of very large numbers of
interior banks, report an increase in specie
reserve. 1t may be inferred that the net out
flow of gold has not yet become large, though
the state of exchange with Chicago indicates
shipments thither.
The payments into the Treasury, therefore,
have been the chief disturbing cause, customs
n,,N%, h..
on the dates named. rs follows:
Total Recrts. Gold. Leg. Tend silver S Certf
July T. 435 81 $4,000 s6l 900 900 SlA45 900
July IA 2,.isO77 $4,000 0lO0O 5000 1Al2Oo
JuY2l. 2,7l324s i,iO2,o0) 10000 5000 l7l3oO
Juy2S. s.2l7I6i 100000 10000 5000 sO0 90
Aug. a. s.3Ol,7oo l,s55.oOo 10000 5000 l.s4socoo
The Treasury paid out money in excess of
its receipts until about the 21st. in rcdemp-
ton of bonds and for their purposes, but since
that time has increased its balance nearly
$G,0O0000, and held nearly 81, 700, 900 more
on Saturday than on Wednesday. Hence the
banks probably held smaller reserves at the
end of the week than their statement of
averages indicated. On Friday next, however,
the coupon five per cents which have not
been extended will become payable, and
interest on them will cease. AS the right
to extend these bonds ceased July 1, and
it was stated by Treasury officials a week
after that date that the aJd0uut of coupon
five per cents not extended was about
$l5, 900, it is presumed that the greater
part of that sum will be quickly disburscd
beginning on Friday. Such Of the registered
fves as have not been extended cal be mad
at any time, with accrued interest to date
But interest on these does not cease until
October /; and so long as the current rate of
interest is less than 5 per cent, few are
likely to be presented, During the entire
month of July, though the same offer was
open, only $4,000 of the registered five per
cents were presented and paid.
In case of any stringency in the market.
such as to raise the current rate of interest
above 5 per cent, the registered bonds not ex-
tended would probably go into the Treasury
in large amounts for Immediate payment.
Only about $4,OOO,OO0 of them are held for
the banks as security for circulation and de-
pOsits AS to the amount to be redeemed, no
late information has been given, but our dis
patches on the 18th VII. gave the official state
ment that doubt remained as to the extension
of only a few thousands at that time, the proof
not being complete that they were forwarded
in due time. The amount of three and one
half per cents then issued was $685. SO 800,
and the debt statement of August 1 shows
Pl dC,OOO, Low Oh UneSe were Tor tho old
six per cents, leaving 1898, 1876, $50 for the
five per cents. If $4,000, 900 of the coupon
flves are to be paid (out of $11S, $3.50, $50 out
standing August y it follows that $25 8S1 400
of the registered fives have not been extended
and remain to be paid whenever presented, with
interest to date. This will doubtless suffice to
prevent any prolonged advance of the current
rate of interest above 8 per cent But it would
also be in the power of the Secretary. if he
should deem it advisable, to announce at any
time that interest would be paid to the ma |
tllrity OF the call, October 1, and such an
would prevent the useless lock- |
ing up of funds in the Treasury during |
August and September.
In view of these facts, it does not now seem !
probable that the money market is likely to he |
seriously disturbed, though speculative influ- /;
encos may at any time make money ON call |
temporarily scarce. The rate of exchange |
toward the importing point, and il |
is believed by many of the most competent
bankers, here and abroad, that imports of gold |
will soon begin. The withdrawal of gold from |
British and German banks for the Italian loan |
is the only important opposing influence. On |
the other hand, the Bank of petarsburc
exports of wheat from Russia |
has been reducing its stock of gold. and is
reported by the correspondent of The london
Economist to have sold 10000. 600 franes |