New-York tribune., 1881-10-04


bursements of the Treasury were expected to
be large enough in September to make the
money market very easy. Secretary WindOm's
offer to pay interest without rebate to October
on called bonds did indeed bring in bonds to
a large amount, but it has left outstanding a
much larger amount than the officials of the
Treasury expected. The receipts of the Gov
ernment have been surprisingly arge-abOut
S19, $50, 900 from custems and $13, 400
from internal revenue. The disbursements for
ordinary purposes and accruing interest have
been only about 500, 1000, 600, so that
$17, 7,4S3, 641 &c has been taken from the cOun-
try to reduce the public debt The disburse-
ments for bonds have been smaller, so that the
Treasury, instead of returning to the market
the large sums withdrawn from il in July and
August, has added over $1O,O0O,000 to its
cash balance. Finally, instead OF buying
bonds, the Secretary of the Treasury has de-
cded to call in %20,O00,O 900 of the three and
half per cents, and to pay only par and accrued
interest for such as may be presented, not eX-
cceding s., 900, 600 each week for the five
weeks ending October %. 1t is generally felt
that this plan affords no assurance that money
already withdrawn from the market unneces-
sarily will be returned to it, in any case of
emergency, because the proposed purchases are
less than the recent weekly excess of revenues
over ordinary expenditures.
On Saturday the Treasury sent out $4,000
checks for interest on the registered four per
cents, amounting to about $5,5O0,O0 and
began payment of about 81, $4,000 more on
the coupon four per cents. Only part of this
money will reach the commercial centres
of the East, however. 1t has been the uniform
experience of recent years that the regular dis
4 - 1 4.
money was required in the interior, have had
much less effect upon Eastern money markets
than was expected. Most of the money paid
goes to holders in other parts of the country,
and the amount received here barely covers the
duties collected for "A day or two. The imports
at this port have been $46, 6,59l, ,7O7 during the
five weeks ending October /, against
$43, 3,430,205 for the same weeks last year,
while the domestic exports for four weeks
ending September 27 were only $32, 7S9, ,467,
against S34, ,63S, ,99l for the corresponding
weeks last year. All these facts Indicate that
the market may meet with less support from
abroad during the month of October, and be
subjected to n greater drain from the Treasury,
than has been anticipated by Secretary Win
dom or by the most sagacious bankers.
1t is impossible, of course, to Judge how far
the speculation i'll grain has affected, or may
yet affect, the New-Yorll money market. 1t is
known that large sums have been sent to
Chicago and other Western cities to pay for or
to carry "'grain purchased. In healthy con-
dition of the markets, the money paid to
Western producers for grain is soon returned
to the money markets, through sales for CON
sumption or export. But this year enormous
stocks have accumulated in the hands of
dealers. The visible supply is larger than it
was at this time last year by about 5000, 900
bushels of wheat, about 7,OO0, 900 bushels of
corn, and about 5000, 900 bushels of oats. 1t
has increased within the past month 5000, 900
bushels of wheat and 100000 bushels of
corn, and declined 100000 bushels of oats,
so that over $l0,Sl0,0OO more money is re-
qulred, with allowance for difference of price,
To carry the stock of grain in the hands of
dealers and misrepresentation was required "A
month ago Since last ycac there has been n
great advance in prices, which involves an in
crease i'll the amount of money required To
carry the whole visible supply. Thus the value
of 20,000,O0O bushels of wheat in sight prior
to the close of September taking the Chicago
prices az the average, was about 500 600 600
last year the value of 1900, 900 bushels i'm
sight was only $14,500,OO0. The value of
21,5OO,O 900 bushels of corn is $l765O. 600;
last year the value of 1900. 900 bushels WAS
about S6,02O,OOO. The value of g. 700 900
bushels OF oats IL about 50, $40, 900; last wear
the value of 100000 bushels was $3.50, 900
Here Is Il difference of nearly $2S, 900 600 in
the amount required TO carry the visible supplv
of these three products.
Imports of gold last week amounted 70
SS29, 800, and $590,0O more arrived on Sat
urday which is not included in the official re-
turn. But there are no reports of large shin
ments from Europe, and il Is not supposed that
the supply OF money from that quarter will be
large until money becomes more stringent here
or the condition of the produce market changes
so that large exports may be made. Since
Secretary Window has now called tb.
$2O, ,000 of three and n half Der cents. and
cannot retrace his steps in that particular. mn
good can be done by protracting through the
month OF October disbursements which. if all
made at once, would release less than the sum
taken from the money market during the past
month. The Government would lose nothing
If he should take advantage of q comparotivo
pressure in the market and offer to take at
once any part remaining OF the $4,000, 900 mt
par and accrued interest. The very heavy loss
or specie by the banks last week showed that
the drain to the interior still continued, and the
reserve was probably lower at the end of the
week than the averages showed D,sburse.
ments for interest and for $1,000, 900 of bonds
which have been taken this week ought to re-
lleVe the banks to some extent but would not
much more than neutralize another weeks drain
IKE that OF last week-$2, ,4O0, 900 to the
treasury, IN spite of the purchase of
$2,0Oo,O0O of bonds, and 81, 100, 900 more to
the interior.