New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-05-01
MONEY And BUSINESS.

and n large increase in bank reserves, but with
exchange at the shipping point, and one ship
ment of S25O,OOO made on Thursday. No ac-
tion by Congress or the Secretary OF the
Treasury during the past week has changed
the situation for better or worse, but 1t Is re-
ported that a call for $11 100000 bonds Will
be made to-day. The money market docs not
stand in any need of further disbursements,
but the surplus revenue still accumulates IN
the Treasury, the imports being large There
is but little sign of an improvement in eX-
| norris and the dulncss in domestic trade ap-
pears to be increasing. But the prospect Tor
new crops has decidedly improved
The bank statement of Saturday was much
more affected by receipts of money from the
interior than by disbursements from the Treas
ury. The latter accounted for an increase OF
only $780, 66 in the specie average of the
banks. nearly ali owing to payments prior to
the ODD not fully reflected in the averages of
that date, but the reported increase of aver
age in the banks was II, $4,000. The ship
mcnt of $3.50 900 gold on Thursday affected
the average but two days, and except for the
| interior movement, the condition Of the banks
must have been stronger at the beginning than
at the end of the week, because the Treasury
payments were mainly made at the close Of
last week, and its operations since that time
have Withdrawn 100000 from the banks
They have also gained 1906 900 in currency
and of this sum very little came from the
Treasury In one point of view it Is satlsfac-
tory to find money returning at last with some
freedom to this centre, but at this time 1t Ill
dicates diminished activity Of trade i'll the in
terror. The exchanges here, after allowance
for the effect of speculation in stocks, are
smaller than at the same date last year.
Nevertheless loans increase and amount to
1910. $3.50, 100 against 1901, 1885, 200 April
so, 1881. Disbursements by the Treasury for
interest and in redemption of called bonds
promise continued ease in the money market,
unless disturbance should arise from the course
of Congress or from large exports of specie.
The state of foreign exchange is such that
money would be drawn from this side III large
amounts if there were much demand for 1t
abroad. But the great foreign banks are
largely increasing their reserves. The Bank
of England now holds Sis, SS6,575 in gold !;
the Bank of France $l7G, S59.65l in gold ;
and the Bank of Germany $l39, 100000 in
god and silver 1t is evident that there is
not employment in Europe for all the money
now available there, and this fact tends to
prevent shipments from this side. Exchange
is no longer kept down by purchases Of
American securities, however, and it is re-
ported that there have been considerable sales
of trunk line stocks on account OF recent I'M
favorable reports as to the earnings on the
Pennsylvania and the Lake Shore. Undoubt
edly, the railways have had season of unusual
decrease III traffic, following nine months of
| l., 4 in, rota lint
crops, with the rest oratiOn OF peace between
the trunk lines, would make their securities
much more attractive to unemployed foreign
capital.
Another week has passed. and, as to present
effect on business, Congress has done no mis-
chief, and no good. The bill extending bank
charters is delayed by the argument that it is
unnecessary, nasmuch as some banks are al
ready recognizing under the old law. But the
truth is that this operation necessarily In
wolves a large temporary contraction OF the
circulating medium, which. however harmless
it may be now, in time of monetary album
dance, would cause much Inconvenience and
possibly serious trouble next fall and
winter. Moreover many OF the banks
will not be able to take this mode
of reorganization on account of the desire
OF portion of the stockholders to escape
from the restraints of the National system
altogether and liquidation in such cases would
involve important disturbance of loans nor is
the country in position to have any reduction
of its banking capital No action has been
taken on revenue bills or the tariff. The rapid
retirement of three and one-half per cents has
raised the price of four per cents from 1883
April to 1918 April "a, though reaction
to 121 followed last week, but it is evident
that bank circulation will be materially con-
tracted from this cause alone unless there is n
change in taxation.
The returns of shipments from Chicago by
rail show that the traffic is now smaller than
il has been since 1880, and that the Grand
Trunk has been getting larger proportion
than any other road except the Fort Wayne.
This gives some support to the rumor that
rates have been cut again by that road, but it
IS claimed, on the contrary, that the increase
~ due to new arrangements with the Erie.
When the whole traffic averages less than
81. 600 tons al week it is difficult to pre-
vent a struggle to secure what there is. Canal
and lake rates opened very low, most of the
shipments from Chicago to Buffalo being at the
rate of pa cents bushel for gran but have
recently advanced, and are now 2ia cents by
lake and to 5i2 cents from Buffalo to New