New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-06-01
MONEY IND BUSINESS.

MONEY AND BUSINESS.
The two most striking events In the business
world last week were the break between
Western iron, steel and nail workers and the
emnloyers. and the rise of the unemployed cash
reserve Mt New-York above 1851, 100000
Properly, the two are parts of the same fact
Business Is dull at best. The men demand more
wages than dull business permits employers to
nav. Consequently business becomes more dull
and capital in increasing amount lies idle.
The conflicting statements from Ptts5nrg
and other Western points leave one thing clear,
that very large proportion of the manufact-
urers are thus far united in refusing to con-
tinue work at the rate of wages adopted years
ago. Some Of the firms have consented, and
have signed tho scale, but there comes from
the men themselves the suggestion that this
may be part of the plan to enable the rest to
discontinue for n long time with the least loss.
At all events the manufacturers do not appear
to be surprised or disappointed. BIT the men
are naturally encouraged by remembering that
the fixture of the manufacturers to act together
on at least two other occasions when a strike
had been commenced was speedily followed
by their complete surrender. The workers look
confidently for the same result this year, while
the manufacturers claim that the strike must last
for very long time, unless the men consent to
n reduction of wages. The threatened strike has
for some time affected business unfavoraby
aud its actual occurrence may therefore cause
less injurious change than many expect, though
the non employment of 100000 men cannot
long continue without effect upon other
branches of business.
For the first time the surplus'reserve of the
New York banks rises above $50, 100000. The
loans decline nearly S3,0O0,00O, and are now
$4,000, 900 less than year ago. while the
amount of the deposits is $6l,0OS,OOO larger,
and the cash reserve $53,6OO,OOO larger.
Never before in the history of the banks has
the surplus above legal requirements been one
third as large at this time in the year as It Is
now and just six years ago, May 81, 1879, the
banks reported total reserve of $60,57G,S 500,
whereas the surplus reported on Friday May
20. 1889 was 500, 1855 2J. The deposits at
that date in 1879, soon after specie resump-
ton. were only 1928, 100000; now they are
1851 100000. Perhaps a better conception OF
the magnitude Of tho idle reserve may be
gained by comparing it with the volume OF hnsI-
ness transacted. Last year tie reserve was
lust 3 per cent of the amount OF exchanges Tor
the week ending May 81 this year the reserve
was Is. - per cent of the amount of exchanges.
At New York, the exchanges Tor May nave
been about 3j.7 per cent less than for the same
month last year, when the panic greatly sweled
transactions Outside of New York, however
the decline in the amount of exchanges Tor the
month has been about 5.S per cent lt would
be n mistake TO suppose that the shrinkage in
the volume of business, rs respects quantities
bought and sold. had been great. Com
pArison of prices with allowance for Importance
of articles, shows TALL in the general average
of'7a, per cent since May l, 1854. Thus about
half of the shrinkaRe appears TO be- IN quantities
and about half in the values obtained for prod
ucts. If the money Of all sorts not In the
Treasury one year ago. Sl,3ls,OOO,OOO, was
then fully employed, the shrinkage in business
and in prices must have left about $21O,COO,-
900 of it idle at this time, and it is no wonder
that the accumulation here is Unprecedented
The Treasury has made honorable progress
during the past month toward securing safer
currency. The amount Of silver certificates out
has been reduced over $4,000, 900, and this has
been done without increasing the amount OF
legal tenders and gold certificates outstanding
more than the amount of gold in the Treasury
has increased. In effect, the Treasury owns
81 900, 900 less gold than it did May L, but
has 50 900 600 less legal tender notes 0utstand-
ing. Tho payments of silver certificates at
New York last week were little less than 10
per cent of the customs receipts, and for the
month only 37.S per cent. This progress
actually tends TO remove the distrust which
goes so far to cause stagnation in business.
The speculation in grain had another setback
last week, and June wheat fell cents, May
corn 2 cents, and oats l2 cent Butter and
cheese were also very abundant and low, and
pork. lard and live hogs declined. OIL, copper
and lead were also shade weaker, rs was cot
ton. but sugar was little stronger. The state
of the stock market may best be appreciated
by comparison. One year ago, In the very
worst of the May panic, when everybody
thought stocks absIrdly low, the average price
of sixty was SIS 81. On Saturday, the closing
prces of the same stocks averaged $l4 81.
But there was no panic, for prices have been
near that point so long that holders are accus-
toned to the low quotations. 1t is enough to
say that no measurable progress seems to have
been made last week toward settlement of the
affairs TO which depression is by many mainly
attributed.
II makes one sad at heart to think of poor Malcolm
Hay. the First Assistant Postmaster-General, wan