New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-03-10
MONEY AND BUSINESS.

The strange condition of business was
curiously illustrated on Friday and Saturday.
About Sc, 5OO,O 900 gold went abroad; business
was intensely dull and money in abundance
was vanly offered at l u per cent year-indeed,
one broker, it is said, having tried in vain
TO get 10 per cent, finally offered to lend
$4,000 flat" The banks reported loss OF
1880, 100 specie and $2095,S 500 currency,
and il was well known that their actual losses
were still greater, because the loss of gold
exported could not have affected the state
ment as much as half its amount, but the
surplus above legal ratio of reserve to deposits
is still SI2.S2O.675. At this date in each Of
the four previous years the reserve has been
near the lowest spring level ranging from about
$GS, 900, 900 in 1851 to about $72, 100000 in
1882. the amount in 1883 being about
500 600 900 and in 1850 abOut S7O,000000,
but it is now over $101, 100000. Last year
the banks were close to their greatest deficit for
the year and were over S5,00O,000 below the
legal ratio of reserves to deposits; this year at
the same date they still hold S12, 500, 675 more
than the legal ratio, and it would take three
weeks of loss as great as that of last week to
bring them down to last years level, as to
surplus, and over four weeks Of losses at the
rate of 81, 900, 900 each week to bring down
the cash to the amount held year ago. Hence
il is not strange that money is abundant and
easy. and the market free from apprehension.
The strange feature is that there is great
abundance without any commercial or specula
tive activity to employ it.
Looking back, however, we find that for three
wears there has been amazing speculative
activity, without warrant i'll corresponding
expansion of legitimate trade. The speculation
naturally burned itself out and Cathe TO grief,
first in one branch and then in another, until at
last there seems to be a healthy fear of attempt
ing to boost prices without substantial
reason in progress of legitimate business. Just
now, Congress has "sat upon legitimate
business by threats of legislation, and so
speculation waits. But Notwithstanding the
inactivity and the scanty demand for money,
the Government mill continues to grind ont
more currency, and the superabundance, which
SO long stimulated unhealthy speculation, still
continues TO increase More silver il added
every week, and now the pond begins to run
over. gold going out and silver and paper re-
naming, of course.
Speculation in stocks last week was so tame
that it needs no comment. The conspicuous
feature was inactivity rather than weakness, fOr
the average price of forty most active securities
was 500 OF at the close on Friday, and
$68 90 at the close on Saturday, against 500
90 at the close of the previous week. So slight
a change in the average Of prices, though there
were considerable changes in some stocks,
shows how purposeless and meanIn glesS the
market was. Yet this same state of things has
its Significance there would be no lack of
savage attacks to break prices, If great pro-
portion of the stocks that have value had not
been gradually absorbed by investors, as some
of the spectators have learned TO their cost.
There is evidence, too, that much the same
cause-a reaction from excessive and disastrous
peculaton-accOunts for the present inactivity
in other markets. Cotton has not changed in
price for "spot," but sales have been very
small, receipts and exports are small, and the
tendency of what little speculation there is