New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-13
MONEY md BUSINESS.

The banks have lost large amount of money
during the past week, according to their state
ment not less than $32O3, 400 specie and
Sl,I17, 800 legal tenders. This statement Is
even less susceptible of explanation than the
one of the 4th inst, showing a loss of only
$500, 500 when the Treasury had gained IN aver
age balances over II, 100000. The average of
Treasury balances last week was 800, 7G4,54
gold and $3.50, 53S currency, and the increase
overthe average for the previous week was only
Sl,377,37s gold aud S200,469 currency. The
increase in the Treasury for two weeks, how
ever, accounts for a loss of only So, 100000 by
the banks, whereas their reports show loss of
S1OO, 900 week before last and $4,3OOOOO
last week Apparently at least $l,GOO,OOO
must have gone to the interior otherwise than
through the Treasury, and the returns n ust
have been so cOntrlved that the loss which
had occurred prior to the 4th was in some
mysterious way concealed until the 18th. The
course of exchange at interior cities shows that
there has been large and increasing demand
for money from this point, not especially from
New Orleans, where the rate has recently ad-
vanced, but ut st. Louis and Chicago The
Treasury disbursements for bonds, however,
reduced the balances .$691,272 on Saturday
below the weeks average
1t is q question whether the banks will gain
nearly as much money as is generally expected
through the redemption of 3d. 600, 900 of bonds
after Thursday. When the Treasury began to re-
deem those of the three and One-half per cents
which had not been exchanged for three per
cents. it was suggested that larger proportion
of these "leavingsn would prove to be out of
a. IL bali re
called prlOr to the exchange. This turned out
to be true. Prior to the issue of three per cents
over half of the bonds covered by each call Tor
three and One-hall per cents had been usually
presented for payment within the first week
after opportunity had been offered to get prin
cipal and interest in full. But it is now over
six Weeks since prepayment OF interest was
offered on over SOS 900, 900 of bonds covered
by the / 9th and II 9TH calls, and barely half
of them has been presented for payment in all
that tine. Az most of the three and One-half
per cents held at or in close connection with
monetary centres were exchanged for three per
cents the great proportion of three and one
half per cents remaining must come from scat
tered holders throughout the country not in
connection. with the money market here, and
tardily. But another feature which was
noticed last month is that an unusually large
proportion of the called bonds redeemed here
were for scattered holders in the interior, to
whom the money received WAS Immediately
transmitted. There are indications already
that a considerable part OF the $3,OOO,OOO re-
celyed here for bonds redeemed last week is to
be transmitted in like manner to scattered
owners.
Secretary Folger, therefore, gave less relief to
the money market here than lie probably ex-
pected, by his order to anticipate interest on the
lOSth call. An event occurred last week which
shows how much more economically and surely
the surplus revenue might have been employed
in a different way. A sale of $4,000, 900 of
the four per cent bonds was made privately, ac-
cording to report, by Mr.. Vanderbilt, ut price
per cent below the market. But this opera
ton brought no money into active use. Had
the Treasury been constantly inviting offers to
| sell either class of bonds. these might have
been taken with great advantage to the Gov
| eminent and to the money market. Attempting
| to get rid of his surplus by preparing several
months interest on called. bonds, the Secretary
has now committed himself to pay about
| $27, 900, 900 of called bonds by January 10,
and about $42, 100000 by February 10. Yet
| the shrinking revenues and the heavy expendi-
lures authorized by the last session of Congress
may easily leave him without means to pay
$i0,000,O0O more of the outstanding bonds be-
fore July /, except by depicting his reserve.
Railroad earnings show largo gains at this
time, but it is we'll to remember that tho re-
markable shrinkage of business last fall is, in
part, the real cause. In the tables published,
October earnings are 1877 per cent larger than
those of the same roads III October, 1881, but
the mileage operated is liz per cent greater.
About this time last year great many roads,
being no longer able to report increased earn
ings, suspended their reports, while others re-