Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-10-18
COMMERCE AND FINANCE

The New York Public reports the bank
cleariDgs of last week as below the cor
responding week last year, but on that week
business "Was not snly al high water mark
for that year, but for any year; there was
advance in prices, acti witty in securities and
wild speculations. The aggregate exchanges
outside New York were 11.9 per cent. less
than for the corresponding week last year;
the loss is mainly at the chief manufActGr-
ing -cities.-A Al New York the amount of ex-
changes was sIo5,e5e, 577 against 1921, 250,-
| $50 for the first week in October last year
The largest decline was ,at Chicago, where
payments last year included those arising IN
grain dealings. At Boston, st, Louis, Balti-
more and San Francisco large declines ap-
pear in comparison with last year; the grain
cities Milwaukee and Peoria also show large
declines. 1t is singular circumstance that
the exchanges al nearly all the msnufsetor-
ing towns continue 10 increase, at several OF
them largely. The aggregate outside
of New York, however, shows
decrease 20 considerable thaIit cannot be re-
garded as entirely consistent with theih
that "basiuess is better than ever" Stm, 1t
may be that the condition of business is
more healthy now, though its volume Is
smaller. The Treasury call for 25,OOO,OOO
in bonds has mortgaged the whole surplus
for two months, and yet has brought very
little money into the market, although three
months interest has been offered and prepaid
upon all bonds surrendered. The disburse-
ments-on these bonds have already been less
f. I'LL hat flsal
Treasury has been again acoumHlatlng
money. II this 90 ou il will be absolutely
necessary 10 secure supplies from some other
source, either by imports of gold or by re-
turns of money recently sent West. The
New York Chronicle says the present Treas
ury arrangements work against the interests
of commerce through the accumulation OF
money in the Treasury that is required for
the current wants of trade, and that
congressional action is necessary to give re-
lief, for the present large payments into the
Treasury cannot be continued without seri- |
ously interfering with the free working Of
the money market. This is the third week OF
the calls for $25,OOO,OOO of extended 6ves,
aud SIS 200, 600 might, therefore, have been |
presented; yet only 3d. DOC, 600 have come in.
The receipts of the government have been at
a rate to astonish even those accustomed TO /
seeing very large figures. In the twelve I
days OF October last year the treasury re-
ceipts were less than $4,000 900; in the cor
responding period of this year they were
over S23, 100000. In this state OF things
transfer to the. depository banks of the
amounts held for bonds not presented, the
calls for which have matured, would be an
uuehjeciionabIe act, but the difficulty is
there is no law authorizing it. Money is in
good supply; railroad earnings continue to
show a decided gain upon The large totals OF
1881, being even in exeass of the increase in
mileage, while business is active and
fairly promising and the continual de-
mand for breadstuffs is good. The
New York Journal of Commence con-
siders the policy Of the Treasury stepping
in to relieve the money market a dangerou:
one. If a government may interfere to
create an easy market it may, in some con-
tingency, use its enormous power 10 create
an artificial stringency. The present arti-
fetal ease may be the worst thing imagins-
bic thing for the country, for no government
can safety tamper With the Laws ct 4ftfsde. 1
Low rates Of money have brought; distress
upon people with fixed incomes, and has
fostered wild and reckless schemes and ven
lures. Etringency is the natural result which
checks these growing evils; year ago 1t
would have checked the imports and in
creased the exports-a wholesome and ben
eficeut action. The comptroller OF the treas
ury proposed plan for providing a basis for
national bank circulation; il is that any out
standing four per cent bonds may be con-
verted into three per cents, having the
same iime for maturity, at 1173 per
cent. That is to say, bank which
owns 100000 of four per cent bonds may
deposit them and receive S117,500 in
three per cent bonds 10 mature in 1907 like
the present fours The bank now receives
on It's bonds $1,000 interest year. After
the conversion it would receive only S3525
interest yer But the loss of $40 will be
made up TO it in twenty-five years by the
payment of a larger capital. The merit of
the plan is taat while il takes in the aggre-
gate no more money out of the Treasury
than would be paid upon the four per cent
bonds, it enables the banks to make use of
the premium which they must now pay 10
obtain bonds.