New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-01-23
FINANCIAL M1TTERS,

FINANCIAL MATTERS.
The railroad negotiations and the collapse of
speculation in France have been the principal
events of the past week. There were 10 i'm
portant local events Immediately affecting the
money market, which was quite easy through
out the week. The banks gained 1869, 400
in reserve, though the excess of Treasury dis
buIScmcnts over receipts was only about
$500 900, and this evidence of decided
movement of money hitherward, after long
continued outflow to the interior. produced u
degree of con- tiencc which the rapid rise III the
rate of exchange did not shake. 1t was argued
that nc furtherimpOrts of gold from Europe were
needed, that exports Of gold would not occur,
and that the advance in exchange was wholly
due to sales of Reading stock and to the de
vices OF Spectator who bought exchange
heavily IN order to create apprehension.
These Impressions, whether correct or not,
were in harmony with the prevailing condition
of the loan market so that no depression in
the prices of stocks could at any time he
attributed to stringcncy in money. Some
Improvement in the export demand for
provisions and breadstuffs was discov
cred, but the cotton movement, which in
creased during the second week of Jan
uary. fell off again last week so greatly
that the shipments were only 6j,743 bales,
against 1875 SAG for the previous week, and
1912 for the corresponding week last year.
II is difficult to judge of the effect of the
railroad negotiations, because no agreement
ms To dilleicntial rates, or other matters likely
to affect the traffic of different cities, has yet
been reached The reported settlement
leaves SO much unscttcd-if all that
has really been decided has also been
made llnown-that no one can guess
how it will work, or what chance it has of
lasting. 1t had little effect upon the stock
market, though not as much as many expected.
An advance of over cents in the price Of
wheat occurred during the week, but it prob
ably was not due to the expectation OF higher
rates for transportation, because the advance
in price at Chicago was at least as great, and
because there was no rise in the price of corn.
Though 1t is announced that the rate from
Chicago to New York is to be - cents per
bushcl on wheat, beginning to-day, in
stead of or cents last week. there
are said to be a large number of uncX-
pred contracts at low rates. under which the
Eastern markets can be supplied for some time
did much to cause the increase in demand for
export. In that case there Is the less reason to
suppose that the increased demand will con-
time.
The condition of the expert trade continues
the least satisfactory feature of the situation.
The imports are large; last week the increase
over the corresponding week last year was
more than 20 per cent, and for three weeks
of january the aggregate value OF imports here
has been $29.3jO000 against So, 100000
last wear. There are some signs that domestic
trade is getting out of joint on account of the
want Of an outlet for surplus products. or for
other reasons Hero and there manufacturing
establishments which were enjoying bright
prospects month or two ago, have lowered
prices, reduced hands or shortened hours, aud
these incidents, though not by any means fire.
qucnt enough to indicate Il beginning
of reaction concur with the records
of exchanges in showing that the intc
rior movement is for the moment less
regular and healthy than it was some time
ago At most of the cities the exchanges still
show large increase in the volume of bust
ness over that Of January last, but at the
principal centres of wholesale trade decline
has appeared since the new year began.
There is much difference of opinion
as to the effect of the financial dis
turbancc in France upon affairs IN
this country. The general collapse Of specu-
lation there, which was apprchcnded and
barely escaped in November, seems to have
begun at last. There are signs of some
uncaSincss in London, and the kilograms of
Saturday do not make it quito clear that any
arrangement will he made by the Bank of
France and other institutions TO prevent the
spreading of disaster. But this country could
hardly be affected materially. unless by
the return of IA large amount of Amer
lean securities. The amount held in
France is considerable, it is true ; enough, if
the disturbance there should become general,
to cause some temporary depression in the
stock market; but forced sales from France
would be likely to be met by the purchases of
capitalists in England and Germany Distrust
of Continental institutions and securities
would be not unlikely, in the end, to induce
larger investments in American securities Of
Solid value.