New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-07-14
xuxv.vopK DAILY TRIBUNE, MONDAY, JULY Ia. 1891

tive management have any present disposition
to forcgo that power. If they can continue Ichd-
ing on stuff Of all sorts. and hiring country
banks to send them balances To be loaned ln
that fashion, with unfaltcring confidence tha'
they can draw indefinitely upon the bllls re-
ceivable of safer institutions in any emergency
il is quite likely that they will persist in mode
of banking nj once so cntcrprising and so safe.
II was lust at this point that the recent resort 10
clclring-housc certificates seemed OF dOupuul
wisdom. 1t prevented mischief Tor the mo-
mcnt, true. But it gave new assurance
To the kite-ilying concerns inst thcy c''"
continue to bank on the reserves
and the prudence of others and, unless some
poteut remedy can now be administered 10 cor
rect this evil, the ultimate injury may DC
greater than if the venturcsomc concerns had
been permitted to close in May. The banks
have no b sincSs to support each other by pool
ing resources, if they permit some by their
management to undermine the legitimate DuSl-
ness upon which others depend. II IS to be
hoped that in one way or another. TN" Violent
fluctuations Witnessed tins year in the ilabllllcS
and reserves, and IL the securities or property
plcdccd for many loans will bring aoont
more wholesome concert and mutual restraint
of action on the part Of the banks in times of
expansion, when such concert IS really more
needed than in times of collapse.
The failure of an important dry-goodS house
on Saturday was used with success To cause
alarm. because it WAS said that other honSeS
and one or two banks were affected. mere Is
no more evidence of this as yet than there has
been forthOusands of other demOralHng stories
which proved unfoundcd, but il Is well
enough known that the drygoodS bnSl-
ness has been having a hard time OF IT,.
The marked decline in prices, following
a year Of production based upon altogether
mistaken expeditions ~ to the demand lor
goods has brought more or less trouble both 10
dealers and manufacturers, and the Efforts oI
fine latter to get rid Of surplus stocks by hcaVy
auction sales at low prices have ot course
operated unfayorably to jobjers. The bdhh''
acting with more than usual caution for reasons
already suggested, do not buy paper rs freely
"a those would like who inlugur1t'i the prac-
tcc of relying upon such paper instead OF the
old mode of obtaining loans. 80 curious
do1blc dlsldyantagc arises there is too much
money in the pockets set apart for loans on
collairrlls. 40 to peak. and not enough money
M the IlllitS tNilii lDf l'' " -i'''''''' ''''
ci3l uses. But thi, state Of things is a> much
the fault OF the commercial community rs oi
the banks. and It tends {" correct itself soon.
Favorable crop news from the Northwest
dropped wheat still further early Last week.
and in suite of brisk rally at
the close. August closed at 9Sls cents, while
.Iulv corn was little higher than week be-
fore. and oats about the same for July, hnt
weaker for August The weeks change in pork
was slight advance, aud in lard q small de-
cline, while butter and cheese wcrc both
/ stronger. The cotton market was supported ~
rather unravorlblo reports, and nevertheless
/ closed shade lower than July >, wMlc print
/ cloths. with customary perry rSty, strengthened
a tribe. The adoption Of spcculativc methods
| In ,hc dealing, in print cloths will only add to
/ the cmbarrassmrntS of producers. Cone" ana
| SUGAR both closed tribe lower than on S1tur-
dov of the previous week, and oil about one
cent lower. In the stock market remarkably
weak oD.ning on Monday. after t.c three days
or rest. WAS followed by vigorous pounding ioi
half tho week. some recovery came with the
nomination at Chicago, which different people
explain according u their personal tastes. The
obyion, fact was that at the close of the wcca
the market ~ a WHOLE though lower than at
the close ON Saturday. July ,, was more steady
than might have been expected in view of the
failure and the disturbing reports connected
with it.