New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-09-25

MONEY md BUSINESS.
Secretary Folger made the only important
change in the tone of the money market last
week, by issuing call for $25.0OO,OOO OF the
extended fives Although this call does not ma
turc until December %, and is understood TO
he in anticipation of a surplus OF revenue
which does not yet exist in the Treasury, but
is expected to appear within the next ninety
DAYS. the effect upon the market Ovcrbalanced
entirely the unfavorable bank statement, and
caused a feeling of confidence. 1t was be-
lieVcd that the Secretary would next proceed
to offer payment without rebate OF at least a
part Of the called bonds, so that money could
be restored to the market at least as fast as 1t
should be withdrawn by taxation. The Secre-
taIy decided to issue a call. ii is said because
the price Of four and four and one-half per
cent bonds was too high, in his judgment, to
Justify their purchase. Opinions may differ as
to this, but if the Secretary was right IN that
opinion, he had no other course open to him
except to call in bonds, and thus 10 provide
for early disbursements by anticipating pay
ment. lie can hardly offer to prepay
the entire $25,O0O,O00 called without
improperly depicting the reserve held for re-
dempti0n of lcgal-tcndcr notes, but it Is IN ms
power to give notice that IA part OF the called
bonds Will be prepaid at any time. The pro-
cess is an awkward and in many respects
unsatisfactory one, but the market can expect
relief from time to time 10y this method. 50 far
rs il is embarrassed by the excess OF Govern
ment revenues over ordinary expenses OF Gov
eminent
The Treasury took in a large amount Of
money last week, but the reported loss of re-
serves by the banks is still LARGER. Their
specie average declined $lGl1,2OO, while tie
average of specie balances in the Treasury III
creased f5Ge, 73G Notwithstanding a shipment
of 5000, 600 in silver certificates to Washing
ton for cancellation. The banks also reported
a loss of $75l, 400 in lcGal-tcndcr average,
while the average Of currency balances IN the
Treasury increased only %j2437j. The natu-
raj inference is that the banks sent 10 the
interior about $50, 900 in currency, and
$3.50 900 in specie, though the shipments OF
gold reported by the leading banks amounted
to only $4,000. The silver certificates
taken out by the banks amounted to S2,O2 5000,
and the receipts at the Custom House in such
certificates were $2OS2.O0 50 that any ship
ment of these to the interior must have been
from the stock previously on hand. If, as the
reports indicate, the banks sent about one
million to the interior, as respects their ay-
cragcs the amount was probably greater up
to the close of the week, for The course OF
domestic exchanges has been mfavorable h
this city. Even al St. Louis where the large
use of silver certificates has facilitated trans
fers through the Treasury from Ncw-Yorb
when the rate Of exchange did not warrant
shipments, Tie decline III that rate indicates
that money of different kind is now demanded.
As to the Treasury, its balances on Saturday
were about 100000 larger than the average
for the previous six days, so that the banks
were worse of than their statement indicated,
on account Of Treasury operations, by about
tina; sum.
The bank statement caused some surprise
because the reported decrease in deposits WAS
SI,lsf,7OO greater than the decrease IN re-
sources. But this nearly corresponds with SIM
liar discrepancy in the statement of the previous
week, when the reported decrease Of resources
wqs $1.441,7o greater than the decrease in
deposits. Taken together the TWO statements
fairly explain each other with allowance for
the increase OF $500, 900 in circulation, but
they strongly illustrate the Amazing mrca,On
OF the system of reporting averages only. The
decline in loans only 1881 100, was not as
large as had been expected, in view of the
sringcncy Of the market last week, but il
should be remembered that an unusual nun
Der Of loans were called near the close OF Che
week. so that the actual amount both OF loans
and deposits was much less az the close OF
the week than the statement Indicated.
The failure OF a note-brokcr, with rather
large liabilities, was an event which would
have been felt in the street more seriously if
il had not been supposed that Che failure was
due in part to speculation. 1t did not midi
cate any unsoundncss III legitimate trade. IN
deed, nearly all branches of business have
been moderately active, tlIough the movement
in grain and cotton CONTINUES small for the
season. Prices Of cotton have sharply declined,
but the apparent disposition Of tanners not to
sell freely has tended to check the decline and
the movement in grain.
our MIXED TOPULIIION.