Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-03-27
MEMPHIS APPEAL
TUESDAY, MARCH 27. 1883
TEE FINANCIAL sIFUArIoa.

The money market in New York and else
where was tight last week, notwiths;and
which the general tenor of the exchanges was
steadily improving, and things have better
look than even under the encouraging aspect
exhibited on the previous week. It is three
months since the payments at New York,
outside Of stock operations, have shown an
Increase in comparison with those of the pre-
yieus year. Outside of New York only
three out of twenty-five cities report de-
crease in their exchanges exceeding half
of one per cent. The evidence is strong that
business is in 3 more healthy condition,
although in some places speculation in pro-
ducts has largely taken the place of specu-
lAtion in stocks. We fad that the better
state OF things anticipated from the adjourn
ment Of ConEress has been realized.
Whether the substantial part of the i'm
Provement will prove lasting, probably de-
ponds mainly upon the amount of specula-
tion. In the tight money market of last
week twelve per cent. was reckoned To be q
fair average rate OF interest, but the stock
market was less depressed than looked for,
bsosuss knowledge that gold had been
sApPed from Europe caused aoticipations of
al early CESSATION Of the stringency, and be.
cause Of assurances from manipul stors that
the string ency was more apparent than real,
aod also because OF hope, which was dis
appointed, that the Secretary OF the Treas
ury would give relief BY anticipating pay
msBis. Evidently the treasury has discoy.
cred that it has NOS much mere money to
--r-.5 .li- ----s--<eSs--- s-Tseo,eeo-oE 49,
ported gold arrived before the end Of the
fiscal week, but it brought no perceptibls re-
lief, which shows that there was a real
scarcity of money. Most OF the
bank resources were drawn out by
the treasury, then came an expansion
OF speculative dealing, and sudden call for
money from the Wes.. Under these circum.
stances for the banks to sustain their re-
serves becomes impossible. The banks,
therefore, showed a vigorous curlaiIment of
loans, which was followed by = sharp con-
traction of deposit liabilities. The proper
ton of reserves on Saturday, the 18th in
slant, was only 2226 per cent, against 26 90
per cent. at the corresponding date in 1882,
1888 in 1881, and 1882 in 1880. The re-
serve now is s6,770,S75 below legal require
ments. These remarks of the New York
Public are supplemented by the Chronicle
saying it would seem probable that with
gains in lawful money, furthrr anticipated
arrivals from Europe, and less going into the
interior, q turn has been reached in the
monetary condition. 1t was the unna-
tural ease of money in the winter
months, produced by the excessive dis
bursenents of the treasury, that has
made the disturbance now. Excessive
disbursements at one period disturb business
by unexpected locking-up of money at an
other. Foreign exchange is now at the low
est points Of the year, both for sterling and
Tor francs; there seems to be hardly any in
quiry from merchants. Trade movements
just now justify low exchanges. Indications
are that the Bureau of Statistics for Febru.
AIRY will show a balance of less than $40, O00,-
900 in our favor. At current rates for ster-
ling there is good profit in bringing Ameri-
can coin over, provided the importers choose
10 take the risk of easier money here on its
arrival. For two or three years past New
York banks have felt that there was not
enough profit in their bank circulation to
cover the risks assumed, and accordingly
they keep out less currency than they are
entitled to. Comptroller Knox's evidence
before the Finance Committee in January
1881, showed clear yet loss to the bank o.
sol year on every $4,000 in circulation il
takes out on three per cent. bond
costing 1O4. Should, as is possible
the three per CENTS be redeemed in thre,
years, 1898 must be marked of every twely.
months. making the annual loss 1921. If The
investment is made where the bank can loar
money at seven to nine per cent, the loss il
much greater in proportion as the Interest
rises. Upon another subject the Chronicl.
expresses the belief that there are no bank
charters terminating until 1884. 1t adds
"On the 25ih day OF February there were
2s7 banks, covering 81, 100000 of capital
and S53,750,000 OF circulation, which ex.
pired and were, We suppose, all extended"