New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-07-09
MONTY IND BUSINESS.

The sudden decline of over 80, 900, 900 in the
bank reserves caused much remark on Satnr-
day. At first some supposed that heavy pay
ments for duties might have caused the loss OF
reserve. But tho average of Treasury balances
for six days ending Friday, june 30, was
SI23.356,Sl2, and, after deducting $4,000 900
gold certificates added to cash on the 9Th, the
average of balances for the five days ending
July 6 was 1923, 6,177, so that the actual
effect of Treasury operations upon bank drer-
oges must have been to add about $3.50, 900 to
the reserve for last Saturday in comparison
with that OF Saturday preceding. On the Sd
and 9Th the Treasury disbursements tor IN
terest and other purposes were very much
larger than the receipts. AS the loss oil reserve
cannot be attributed, even in part, to the oper-
ations OF the Treasury or the payment OF
duties. and no reason appears for supposing
that forced or deceptive statement of aver
aces WAS made, either June 30 or July z, the
EXPLANATION must he sought in connection with
the remarkable increase of loans during tho
mast three weeks. On the 10th of June the
banks reported 1921, 74S, 100 in loans and Oh
July $32S, G53, 200-an extraordinary amount
for any season of the year. Ii IA quite likely
that a large part OF the money withdrawn from
bnpk has been used in making July payments,
and has not yet returned But it is also proba-
BILE that considerable shipments have been
made to the Interior partly by means of gold
certificates, of which the amount outstanding
has increased nearly 81, 900, 900 during the
past week, ard partly in other forms not
within the cognizancc of express companies.
1t il to be expected that large sums will be
al FIJI he. M Mt N
the crops. The large accumulation of grain
and provisions at the West, in consequence of
recent violent speculation, must have absorbed
a large part of the funds which would other
wise be free for use. At the end of June, for
instance, the visible supply of grain was about
IS. 500 600 bushels, against 100000 one
year ago. The stocks of meats and pork ut
Chicago alone were "a 100000 pounds larger
May 81 than a year ago, and have since in
creased greatly. The receipts of hogs, before
the collapse of McGeoch, had been enormous
for some time. Stocks of irol, raw and manu-
featured have also accumulated largely, and
the stock of cotton ut ports is 100000 bales
larger than it was year ago, the increase ut
Newt Orleans being $4,000, at Galveston and
Mobile $1,000, and at Norfolk 1900, while
the stock ut interior towns is also -, 600 bales
larger than it was year ago. These circrm-
stances will increase the demands that interior
cities make upon New-York when the new
crops egin to move, Another fact is not 10 be
forgotten: the rapid extension of railroads in
new regions where banks are scarce has dis
tributed very large sums that do not readily
return to monetary centres, being needed, in
deed, to carry on the business Of new towns.
The New York banks hold a surplus of
Sc, 644,150, with very large reserves, but it
would not be wise to ignore the probable de-
mands upon them this season. Through the
process of calling bonds to which Secretary
Folger seems disposed to adhere rigidy, funds
cannot be disbursed from the Treasury very
speedily, and it is yet uncertain how much sur
plus he will nave to dsburse in any way under
the new revenue laws. The Bank of England
has increased its coin reserves about $4,000
since May 10. but still holds about $40 100000
less than 1t held last year and $4,000. 900 less
than it held July /, 1881. Ii imports are i'll
creased by the new tariff it will be the more
difficult to draw specie from Europe except
by q sustained advance in the rate of interest
here. All these circumstances indicate that
over-trading. over-confdent ventures and wild
speculation in products or stocks would in
volve no little risk this fall.
A better feeling is observed in trade and
manufactures since the crop prospects became
measurably satisfactory. The prevailing
opinion now comedies closely with the esti-
mates given by Bradstreefs for last week,
namely, that the crop Of winter and spring