New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-10-09
MONEY AND BUSINESS.

Disbursements for October interest, for re-
demption of bonds the call for which matured
on Wednesday, and for other purposes, re-
duced the Treasury and swelled the bank
averages last week and enabled the banks to
make very encouraging statement on Satur-
day. Exclusive of 81 100000 in gold certif-
Gates received from Washington the average
of Treasury specie balances was 81 .034,577
less than for the previous week, and $1S1,OOO
Ill silver certificates had also been cancelled,
so that the banks gained from the Treasury
on average about $l,200,O00 specie, besides
about 81 10000 legal tenders. They report
gain $7S0,000 greater i'll specie, and no
gain in currency. 1t may be inferred that
they lost to the interior about 100000, be-
sides $1,170,000 silver certificates sent West
through the Treasury. But their gain from
the Treasury was nevertheless so large that
they were able to report an increase of
81 ,0l7, 400 in reserve, and contraction OF
81, 447, 400 in deposits made the gain Ill
surplus reserve So, 500, $50. The deficit thus
vanished, and the report showed surplus
above legal requirements. This report was III
n measure unexpected, and gave great cncOur-
agement Rates of interest declined, and late
in the day balances were loaned at 3l2 per
cent. 1t would be well not to overlook the
fact, however, that the Treasury balances
increased very rapidly after Wednesday, and
on Saturday were about $1,000,000 larger
than the average for the previous six days.
I'm other words, the banks must have been
weaker. at least to that extent, than their
statement indicated. The difference was prot
ably considerably greater, because the demand
for about $4,000 more legal tenders from
the Treasury indicated continued shipments to
the interior.
The arrival of a little gold at San Francisco,
and the decline in the rate of sterling ex-
change, give hope that imports of specie are
near at hand. 1t is argued by The Financial
Chronicle that the fall in exchange is largely
due to negotiation of security bills-in effect,
to loans of foreign capital for use in this
country. But the Bank of England did not
raise its rate last Thursday, though it lost
nearly So, 500, 900 in bullion. and it probably
would have done so had there been reason to
believe that any considerable movement of
gold to this country was at hand. The ex-
ports of wheat from this country have be-
come very large, averaging 100000 bushels
q week for the past three weeks from the
seven Atlantic ports, against an average of
100000 bushels last year, but the move
ment Of corn and other grain is much smaller.
Exports of butter and cheese, bacon and hams
and lard, are still much smaller than they
were "a year ago, when the movement was
much restricted by the sharp advance in
prices. Exports of cotton last week were
SO,60S bales, against S0,7 for the CORE
spending week last year, and $4,000 two
years ago. On the other hand, the imports
continue large; last week So, 1S1, 1913 at this
port against SS795S, 1913 last year. The truth
is that the conditions Of foreign trade are as
vet by no means satisfactory though there has
been some improvement, and nothing has yet
been done to cancel the large uniquidated
balance due abroad. We can hardly count
upon II large movement of specie in this direc-
ton while these conditions remain.
The considerable redemption of bonds last
week doubtless prevented monetary pressure
of unusual severity But it probably left few
of the called bonds which the holders will be
in haste to present for redemption. AS has
been shown, the offer to prepay interest Oper-
ates as an inducement to part of the holders
only, and when these have sent in their bonds
the potency of the call, as n means of getting
rid of the Treasury surplus, is practically
exhausted. AS the Treasury has been rapidly
gaining in reserves since last Wednesday, and
the inducement to surrender bonds in order to
realize double interest grows less every day, ii
Is probable that other measures to keep down