Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-09-01
FINANCIAL.

The financial situation in Memphis the
past year has been without precedent in
many particulars. The great plethora OF
money in 1879, $780, and the beginning of
! 1881, toget her with the extreme low rates OF
interest then prevailing, induced many of
our mercantile friends 10 make very large
permanent Investments in manufacturing,
| mining and other interests at home and at a
distance. A combination vi similar iu-
fuences throughout the United States had
10y last September LIST produced quite strin
gent money M rket at all the chief centers
particularly those in the South. Advances
upon expectation OF the growing crop were
continued by our merchants with all the
liberslity that characterised them in former
years, until early in the beginning of the
season under review-even before September,
the first month, had drawn to a close--the
Fl iancial condition had become very close in
Memphis, with much higher rates. and bor-
rowers, 10 their surprise, found negotia-
tions much more difficult to accomplish
and this was the case nearly everywhere.
The shortness OF the cotton crop in the Mem
phis district prevented the usual relief here,
and, TO aggravate the situation, The
failure of the subsistence crops necessitated
the purchasing from distant markets nearly
everything requisite 10 sustain man and
beast during the fall, winter and early
spring, at extremely high prices. As con-
sequence to these circumstances money con-
tinued scarce and stringent during the entire
fall and winter. Even the customary relief
generally produced about the middle of j an
usry by a return flow of money from the in
terror was not realized, and not until toward
the latter part of March, 1892, did the fnan-
cial situation show any great relief. The po-
sition was comparatively an easy one Tor the
succeeding three or four months; still an ex-
animation OF our tabular statement will indi-
cate that deposits in the banks were unusu-
ally light, and loans probably much larger
than at similar period of any former year.
1t is true that from March until July money
was in sufficient abundance to justify an
opinion that the situation was easy, but the
anticipation of a lightness or pressure al
most sure TO come in the early fall induced
our banks, without exception, to put the rate
OF discount firm at eight per cent |
as early as the middle of last Msy-;he |
rates ruling previously having been six TO |
eight per cent, the latter figure most gener- |
ally. This change, under all the circum- |
stances, was regarded as most remark able, as |
we have no knowledge of a former instance |
Of banks raising rates during a spring month. |
Bankers tell us that general anticipation |
Of great stringency in money has generally |
beneficial results, in that it tends TO prevent |
such an event. and often brings relief that |
could not have been hoped for, and the rule /
mas not lalleu Ie operate IL memphis the
past season. They claim that while they
had right to expect much pressure, yet |
here is every reason that our banks are now
N as good condition to meet the demands of 1
he coming season as they were year ago.
They assure us thai while money Is not over
abundant, there is no reason TO believe that
-ates of discount the coming season will ex-
iced eight per cent.
Clearinghouse Report.
We have been favored with reports for the
rear from each one of the five Memphis
,anks, from which we have compi ed the |
,nnrenaies shorun In The foIlnruincr ahlea.