Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-01-21
THE FINANCIAL AND COM ERClAI
CONDITION..

The New York Public of this week saws
that the exchanges for the week, like those
OF the preceding one, were unsatisfactory as
TO the principal Wholesale cities, and ragged
and uncertain as TO minor manufacturing
towns. There is a decrease OF IL per cent.
outside OF New York, and Of 20.4 per cent.
at New York, where exchanges fall below
those of the corresponding week of last year,
being only $500. S07 ,432 against s631 1896, s4S.
The exchange for the week for Memphis was
1886, 475 against $s07, OO3 in 1882. At
New York, outside OF stocks, the exchanges
were 81 ,092, 575,6 62 for the first half Of JAM
uaIy, against 81 ,322, SOC, 927 last year, and
81 ,5S9, sl5, 100 in 1881. Ths accounts TOR the
second week in January are more favorable
at twelve cities, more uniayorabls at
fourteen. aud In The -aegrsaafA nnsat.
islActory. II is evident that trapsac-
tions not arising from speculation
have been altogether smaller this year than
last, not only at New York but at other
cities. Dealings in stock, grain, produce and
oil have been much larger than they were
year ago, yet the aggregate exchanges are
smaller. The money market has been easy,
without any threatened pressure, and but
few look for any disturbance in it this season.
The turn OF domestic exchanges in favor Of
New York has been quite decided, and the
known amount OF money coming is large.
The annual report OF the trust companies
shows how largely these institutions have
Increased in business ana Importance; eight
OF lhese companies have loaned on ollatersls
$79,7Oo,00O, against S17,700,0O0 five yesrs
ago. While these companies have doubled
their resources in five years, their increase
in loans on collateral has been more
than ihreefold-the New York Life
Insurance and Trust Company has about
thirteen times IS much money loaned on
collateral as IL had five years sgo-yet the
increase in aggregate resources has been
only one-half. That $62,OOO,OO0 more is
loaned than was placed on collaterals Eve
years ago must 60 far to explain operations
In the stock market. The fac: stands that
this large sum has been brought from some
quarter TO aid in stock speculation. 1t is a
very significant fact in connection with this
remarkable expansion OF the trust companies,
that the associated banks have made no
similar increase. Their loans from 1877 to
the present show an increase of from twenty
two TO thirty per cent, but the resources of
the trust companies have increased 100 per
cent, aud their loans on collaterals 225
per cent. No explanation can be given Of
this phenomenon that doss not clearly rec
ognize the fact that speculative operations
have increased vastly more than legitimate
business. This fact shows how "fuuresn as
agambling pursuit are overshadowing legili.
mate business. They are a parasite eating
out the euirails OF business; an ana
conda twining about it and gradually
crushing it toward the collapse of panic.
When the next panic arrives, amid the
despair and anguish and suicide that will
accompany it, the story of the effects OF
gambling in futures will come to public
knowledge. Then, perhaps, tardy legisla-
lion will be sought to supply what neither
commercial prudence nor moral principle il
able to provide. Reviewing the subject of
railroad earnings, the Public says that the
roads had less freight to movein 1882 than in
1881, and charged more for moving it. The
indications as to the present condition OF the
railroads are favorable, but railroads cannot
prosper long unless business generally pros
pers, and the indication is that business in
1882 has not been increasing in volume or
activity. Unless more favorable signs sp.
pear, railroads will presently find some
trouble in getting profits upon a mileage
which increased over ten per cent during
the single year 1882