New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-07-28
xvxv.vopK rAIty TRIBUNE, MONDAY, JULY %. 1894

TO Judge how much grain has already
been marketed in this way. When the
pressure of fall work is over, many farmers
will no doubt begin to deliver gram which they
have kindly allowed the spectators to buy III
July. If they have watched the market IA
closely as usual, they have seen reason TO De
lieve that the American supply OF wheat, IN
clrdiny the 50. 600 900 bushels left over from
last year, is largely in excess OF probable de-
mands. 80 that those who hold for high prices
are likely to be disappointed.
One reason Why the demand for money, to be
used in moving the crops, is not as great rs 1T
usually ia at this time, probably is that the
Western banks reduced their New-fork de
pnsi,s largely in May and June, prior to ana
after the panic b. the withdrawal OF deposits
Mt that time. they became prepared h. meet the
earlier demands Of the fall without any dram
mon Ncw-Y York. The dcmond is esscncd, too,
byth fact that the West and South have been
growing richer every year and the multiplIca-
ton Of towns and local banks, and other faeill-
ties for clfcctinR exchanges, Is constantly re-
ducing the amount of actual cash required to
move . given quantity Of products.
The banks of New York gained R2,11h2Oo
more in cash held. according to Saturdays
abatement. and P2.210.Sj0 in surplus reserve
which has now mounted IA $50, 62s, l20-IW
above any point ever reached before a slight
mrrrnac Of loans was reported. and II appears
! that the banks arc not curtnilng nrcoinm0da-
lionn. bat would gladly Increase them " MGR
| chants would offer the aoft Of paper dohitrd'
Such pressure ~ docs exist fchlillA naturally
from cnuscs TO which rHr TmpuNE long ago
called nttcnlon-from the vicious practice 81
borrowing through note brokers, inStend oil
| dealing directly with the banks. Being thus
| enabled, in times of confidence, to borrow
| money with hardly limit a. To amount, ana
| with IA pleasing but fallacOus sense ol lnde-
| pendcncc many traders were tempted To eX-
! pand beyond reason and many, IN their eager
ness to secure trade, sold goods to customers,
| not on negotiable time notes, but on open
accounts When the pinch came, the brokers
we're no longer able to borrow on the paper OF
| many merchants. And when the merchants
went back to the banks, from which they had
| tried to divorce themselves, they were asked 10
| bring forward their negotiable notes. Inc
| banks properly call for indOrscd paper
which represents the actual transactions
of legitimate commerce, and when mer-
chant has 50 conducted his business that ne
| has no such paper to offer, but must have
money, there l. a great deal Of strinGency in ms
immediate ncighb0rhood, though the current
rate for prime commercial paper is still not
over per cent. A good many failures that
have occurred may thus be traced directly to
the practice of borrowing through brokers, in
stead of obtaining regular accommodations
through banks on commercial paper.
A noteworthy feature in the markets last
week was a fall in steel rails to T2S 80. With
pig-iron at $40 p and bar-iron at $l4 so, this
price clearly reflects an overstocked market for
rails, though indications in the other branches
! of tho iron businoss ore reO,rdpd "a favorable