New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-16

ENCOURAGING EVIDENCE AS TO BUSINESS.

EXCHANGES FOR TIN FIRST HALP OF 1885,
The banks like the water-meters. record
what has passed through them and, unlike some water
meters, record correctly. Their disclosures OF the
amount OF business that has teen transacted at different
times always interesting. aud often very surprsing
even TO those who have had most to do with the business
recorded and who supposed that they know most about
It, The exchanges between the banks at the different
cities have for years afforded the best Indication OF
the volume OF business actually transacted although
necessary In observing such returns always to reem-
Der that they record only part Of the actual transactions
Tho reasonable presumption that the part recorded
bears ut oil times nearly constant relation to the entire
amount Of business done is the basis OF the confidence
placed IN these returns Indications Of the volume OF
business. and therefore needs brief explanation
There are about sixty banks IN New-York which
receive day from their customers checks drafts anu
bills, payable ut other banks In this city, Each or these
In has similar payments to make at all the other
banks They facilitate the operation by meeting In
Dge the Clearing House. end there make all the
cxchangesat Now 1t will tie seen that the pay
meLts which Jones, deposition In one OF the banks,
makes Smith, another deposltor In the same bank by
checks payable that bank, form part OF the ex-
changes Hence the portion Of business which thus
escapes being recorded because transacted between the
different customers the bank. IL smallest where
tho banks are numerous and larger where the banks
exchanging are few In number Only rough estimate
Is possible course but the customers OF one bank
sixty happen to DO dealing much with the other
OF that bank with the customers OF other
banks and moro. 1t will happen that ne-sixtieh part
OF their entire business will escape record On this snppo
tion It may by roughly estimated that the portion OF
business which thus escapes In city Ike Is
comparatively insignificant perhaps not more than per
of the payments made by bankabe paper, While the
proportion which would escape In city having only ten
banks exchanging with each other would be larger and
perhaps more than 0ne-tenth.
The exchanges for the first half OF the year 1888 have
lust been reported, and they show considerable
decrease In comparison with the exchanges OF the nrst
half OF 1884 Including New York. this decrease at all
cities been about 81 per cent and outside or
Eew-York about GIG per cent But In Judging Oh thesc
returns always necessary to have In mind the TACT
that prices by their rise fall, affect tho nominal
amount OF transactions materially Thus. II 1000 bales
OF cotton were sold year $50 per bale the effect
that transaction would be just 10 per cent less II 1t had
been made and recorded tho next year when tue price
only Si5 per bale Comparison OF prices during me
past year has been Judged Indicate average decline
OF about per cent II this estimate DO accepted as
correct II follows that the volume Of business measured
the quantities OF products transferred from producer
usumer has been about the same during tine nrst
half Of 1888 during tho first halt OF 1884 For the
difference In Hew-YOrk City, though much larger, Is
accounted for In great the decline In specu
laton stocs In Kran, In provisions cotton, oil ana
other pro ducts.
Tho comparison OF the business OF 1885 with that OF
1884, however Is not in all respects satisfactory IL Is
well known that disturbance OF trade and the pros
tratOn of industry had far more than year ago.
and the decrease had great that then it was
by many believed that tho bottom hal been reached
aud that further shrnkage In prices and In the volume
OF business was not to be expected In the following
table the OF exchanges at each III tho cities
during the first half OF each of tho rast four years Is
shown In mlions thus the amount at NewYork for the
first half Of 1885 was Slls 100000 and for the first
half OF 1882 1t was 800 739 900 0o0 aboat twice as
much. The for Detroit and Omaha In previous
years are at hand and the returns from ST. Joseph
not large in amount, have been irregular.
EXCHANGES FOR FOUR YEARS (sIx cIPHBRs OMITTED.