Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-05-18
MEMPHIS APPEAL
THURSDAY, MAY 10, 1882
APPROACH OF MONEY srRIssENCY.


That time of stringency in money is ap-
preaching is considered certain by financial
lists. Such an occurrence, by restricting the
available means of capitalists, cannot be
contemplated without apprehension, for a
deficiency of capital carries with it reduc-
tion Of the fund out of which the laborer is
paid. To leave the laboring class with re-
duced incomes, and often with no income at
all, from loss of employment, means distress,
and distress at this time would be ESPECIALLY
calamitous, as the necessaries of life are now
held at seriously advanced prices. "The adj
vance of prices" says the New York Public,
"during the month of April was unusually
great and rapid" The rise was mostly con-
fined to important articles of food. The cost
of constant Quantities of breadstuffs rose
from SIS 81 to $31 so, which is ZIG
per cent. Meats advanced in price from
S13 go to S16 "a, 1874 per cent. The
average cost of constant quantities for the
five weeks ending May I'd, has been sl44 rs
against 1929 03 for the same period in 1881.
The range of prices in April, 1882, was SIS
per cent. higher than the ante-war specie
level of May 1, 1860, and thirty-three per
cent. above the low water mark level of the
past forty years. The money article in
Mondays New York Herald says: what
dear food is at present doing is visible the
country through in labor troubles, strikes of
unexampled magnitude, cessation of public
works and low growl of discomfort from
the working classes. While such things exist
the much proclaimed prosperity OF the coun-
try seems to be at least dou btful." The
drain OF gold is still going on and seems
likely to add to the existing complications.
The amount of gold exported last week was
1868, 181 making total from anuary 1st, OF
$21 ,oo0, 900, of which $4,2O0,O0O were in
silver. The New York Tribune remarks that
"while opinions differ widely as to the amount
OF gold that is likely to go abroad the fact that
the Bank of England has lost 81 $50 600 IN
I,,,lI; :, : -. SSAs SHOWS marked IN
crease in the demand at that point" OF the
imports and exports the same paper says:
'The changes for three months-Jauuary
LIST to March 31st-are startling. The mer-
chandise movements for the three months
show gain for this year of $50, 424, 948 in
the imports, and loss of S43, 121 1854 in the
$40, $40, 1902. For the three months of 1881
the exports exceeded the imports $73, lbs, 03S;
for the three months of this year the imports
exceed the exports $4lS,264." The apathy
eli Congress respecting the approaching ter
mination of the charters of large proper
lion of our national banks adds another COM
plication to the financial position. Already
ifs affaof N induaa a ar,o,,r A..
banks to surrender circulation. Last week
the withdrawal of bonds held by
them to secure circulation amounted
TO $1,016,300, a large abstraction in
a single week. Charters of banks having
a circulation of $13, 1S6,9l0 expire during
the present year, and in one single day next
February 297 more banks, having circula-
tion of S54,O00,O 900, must wind up. To have
so vast a contraction of the currency arrive,
and an immense sale of bonds at the same
time would so depress the price OF the latter
that prudent banks, in the absence of con-
gressional action, will prefer Withdrawing
their circulation and selling their bonds
while sales can be made without loss. This
proceeding, while a necessary precaution
forced upon the banks, will precipitate the
time at which the effects of contraction will
begin to be felt. The reader has now before
him some of the prominent reasons for the
occurrence of the stripgency that will be
strongly ielt in the fall. Already, however,
the results of the existing state of things are
making themselves felt. In our own city the
six per cent. rate for money at the banks has
been withdrawn, and now the rate is eight
per cent. In this way another obstruction
to prosperity is cast in the way of-ogE-
-fEFmers, IN aidrrT0n 70 All the ills they are
suffering from the drouth of last summer
and the floods of this spring. Those who are
neglecting to legislate upon the question of
renewing the charters of the national banks,
and those who are opposing legislation re-
quired by the existing and approaching
condition of things, are assuming a heavy
responsibility. The inactivity OF the COM
mercial community under this state of things
is one of the strange features of passing
events. The enc set-off against the unfavor-
able influences glanced at above, is the pos
sibility of good harvests, and of a good de-
mand from Europe for our surplus produce.
Should we be favored in those respects the
threatened difficulties will vanish, and pros.
perity still favor us. Should the contrary
be the case, and money stringency stop the
construction of railroads, and put an end to
thousands of new enterprises now in pro-
gress, the result would be fearful, and the !
more 80 that hundreds of thousands of |
immigrants have so largely added to the
extent of our laboring class.