Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-06-12
MEMPHIS APPEAL
TUESDAY, JUNE II, 1883,
THE MONETARY AND COMhRKCIAI.
-. 81 GIIUAHInR

THE MONETARY AND COMMEKCIAL
-. ar. SITUATION.
The week ending with the opening Of
June showed more encouraging state Of
things than had been visible in May. At
New York, the Public reports the exchanges
Of the previous year we're exceeded, being,
outside of stocks s45I, 76S, $50 last week
sgainst S424, 100000 the corresponding week
in 1882. Outside Of New York the favorable
indications we're more decided, and a gain Of
four per cent. shows that improvement con.
unues. The depression in May is yielding
TO healthier and livelier movement: still
excessive speculation il not absent. AT
hrmphis exchanges amounted 10 1919. 1856
against 1901 344 in 1882, an Increase of 20 8
per cent. There has been a distinct improve
ment since June set in; the danger il, per-
haps, that its extent may be overesliLnated
The approach Of July, when the new tariff
Will take effect, appears 10 have had consid-
cradle influence; better Udipgs from the
crops is probably a still more substautisI
cause OF the Improvement. The banks
gained only S2l8, 800 in reserve last week, but
increased their loans q ,294 300 This ex.
pansion Of loans during the "between sea-
son" period Of dullness in legitimate bust.
ness Il one OF the evidences of increasing use
oil bank funds in speculative operations. 1t
Is not easy TO zee where the money has been
employed, if mercantile and mauufsc ur ing
operations alone are considered, but il is only
too easy if We consider what demands specu-
lation has made. The United States Tresg-
ury statements for June LIST, show a discoursg-
ing change 10 the character of the reserve.
The ratio Of gold owaed by the Treasury 10
the Liabilities due on demand is now only
3l5 per cent. against 1876 per cent. on the
lst Of April. The Pubic points out that
great change has taken place in the gold and
silver owned. Silver certificates outstand-
ing amount 10 $4,000 less than last month,
while the silver dollars on hand have in
creased S2532,629, and the other silver
S9l3O35. The minis coined 81 $50, 900 OF
the 'pot-lid" dollars, and S1S2 ,629 came in
from circulation; the total amount coined to
date is Sl44, 500, OF which only $50, OO6,.
722 are in circulation. There are four
dollars manufactured for every sinlze one the
public care TO use as money. To keep up
the three useless 10 the one dollar the public
care to circulate, the gold reserve Is reduced;
out Of S19S. 3lO,O45 held, SIS, 59l $40 are now
covered by gold certificates outstanding, 20
ibst the gold owned by the Treasury ia
S5,72l ,l39 less than it was month ago
progress backward. Secretary Folger's un-
wise call for bonds has brought the Treasury
within reach of danger. At any time dis
position to be rid Of silver certificates might
show itself and the redemption of these
through the customhouse would leave the
Treasury with only about $4,000 900 of
mand for called bonds, to banks, and for cur
rent salaries, besides 1926, 100000 to note
holders. The New York Chronicle throws
cold water upon the greedy wheat specu-
lators. 1t says the improved weather both
in this country and in Europe has revolu.
tionized the situation, "and further helped to
make the prospect gloomy for our bread
stuff spectators" 1t is now a patent
fact that a shortage of wheat in
Europe this summer is not among
the probabilities. Accumulalious in the
markets there make it impossible for our
operatives 10 control prices. The condition
OF our foreign trade at the present weuld
probably send gold abroad were it not that
we are so near the period when the move
ment of our new crops will begin. Wall street
and all business interests have felt the inH u
ence of more seasonsble weather and the
improving tone of crop prospects. Railroad
earnings also show very good results and
Indicate large distribution OF merch apdise.
The principal complaint is of the lowness Of
prices, but the feeling in all department ts OF
business is decidedly more cheerful and labor
troubles are subsiding. Money continues to
rule easy at the stock exchanges, with q
supply ssfIioi-Bs to meet dem ands. The
above statements of the New YORK financial
and commercial organs is Of q moro cheerful
turn as to present appearances, but
there is the same extreme reliance
upon good crop TO bring things out right,
or, as some OF the financial press have said,
TO defer the reckoning that must eventually
come. Again we see pseping out among the
more cheerful expressions of this week fears
of what may, in contingency, happen 10
the silver certificates. Suppose that fail
ing harvest or other contingency brought on
little touch of "hard times," with the al.
tendant bankruptcies, want of confidence
and tight money" there would be a univer.
sal expectation that silver would drop TO a
discount, everybody would want to hold a;
little Of it and its certificates as possible
The certificates would be rushed to the cue.
tomheuse to pay tsxes, leaving the national
Treasury bare of gold. This would compe
the payment Of silver at the Treasury, Just al
the time every body was trying TO get clear
of silver. We need not attempt to forecast
the result, but the possibility of The conse-
quences has cast shadow over all our spring
trade,