New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-01-12
MONEY IND BUSINESS.

Another week of general advance in prices
has given hope to those who are looking anx-
iously for Improvement In business. Grain
rose sharply stocks generally improvedj
cotton made q slight advance which was after
ward lost provisions also rose little, but
receded on Saturday to the starting point;
groceries were generally steady, with slight
tendency to weakness in coffee at 9'4 for Rl0,
and in sugar at 4.69 for fair refining; and tea
was more active at 24l4 for March standard
grade. Metals were generally steady with
little more stiffness in copper; coal is still weak
and petroleum declined 1l2 cents. In the dry
goods market there was only moderate activity /;
print-cloths remained steady, but the business
in woollcn goods continued disappointing. This
brief review suggests the fact that the improve
ment as yet has been rather IN speculative
prices than in legitimate trade.
One need not look far for a sufficient cause of
speculative activity. The accumulation of idle
money in the banks is beyond all precedent.
Last week, owing to Treasury disbursements
the reserve suddenly increased $9,7OO,OOO' OF
which $7,300,000 was in specie, so that the
banks now hold almost $135,00O,OOO in cash,
$95.000,000 in specie and $4O,OOO,OOo In
legal tenders, and have $17, 1878 more than
the legally required reserve. The Treasury
lost 81, 900, 900 in geld, for which certificates
were issued, while increasing about $5OO,OOO
its amount of silver In excess of certificates
outstanding. While the Treasury lost only
$500, 900 in legal tenders, tho banks gained
over 50, 400, 900, indicating the receipts from
the interior which natural at this season.
With S135, 900, 900 of unemployed money in
hand for which legitimate trade offers at pres
ent no safe use the banks did not expand their
loans. but report 81, 900 less than the week
before. The tendency at such time, with
money lending at per cent on stock collater-
ais and 4io per cent on commercial paper, is TO
encourage speculation in every direction, and IL
is not surprising that speculative activity APP
pears. both in stocks and in grain. But the
New York banks do not appear to have IN
creased their aggregate of loans so that ii m
creased advances TO spectators have been
made at all, it has been in place of other loans
which were liquidaed ut the close of the year
The operation in grain had color Of reason
in the rumors of probable disturbance in
Europe and in published statements regarding
the decrease in acreage of winter wheat in six
States, said to be so great as to involve de-
crease of 33, 900, 900 bushels in the yield. But
the war in Europe is rs yet visible only to the
eve of speculative faith AS To the decrease IN
Weld il it should occur. it is less than half the
probable surplus from last years crop, which
will remain unconsumed and unsold when the
new crop begins to come forward. Meanwhile
the advance of l3 cents within tho past month
in the price Of wheat has already checked ex-
ports so much rs to affect ocean freights, and
has invited n movement from India, though
the report that a grain fleet for India has been
chartered at London has not been confirmed
Corn has advanced about 4 cents, with the
largest crop ever raised 10 come forward, and
oats have advanced g cents In rs mary weeks,
also with the largest crop on record To be sold.
In the stock market tho prevailing disposition
was 10 forget that high stocks and high grain
rarely 90 together. Northwestern rose as
cents during the week; Union Pacific, cents
Western Union, 27s cents st. Paul, pa cents;
Lackawanna, 2ls, and Burlington and
Quincy 2 cents, though Lake Shore closed
lower and Manhattan also. The improvement
in stocks has more real reason than the rise in
wheat, and would have less reason than 1t has
if it were probable that tho advance in
grain, by which the foreign demand has
been checked, could be maintained
Securities are very low in comparison with the
earning power which they represent IL the
managers please to settle their disputes. Money
is accommodating, and owing to the redemption
of United States bonds, the arrest OF railroad
building and the d1lness in manufactures, must
accumulate in such amounts that purchases OF
good securities can hardly be long deferred If
Congress and Western Legislatures cease their
war against corporations. They do not cease
as yet nor do tho managers make peace, but
the railroads will still remain to share the lar
ger traffic of the future after the Congressional
session and tho wrangles of stock -jobbing
managers have come to an end.