The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-10-26
THE BUSINESS SITUATION.


In the East the fall weather partakes
80 much OF the warmth OF summer
that the demand for winter goods has
not yet set in, and the consequence is
a decline in transactions as compared
with the corresponding pariod last
year. This, OF course, Is not loss OF
business, only postponement OF the
date OF the winter demand this season.
The cleArings OF last week show de-
cline on the total amount of 5,4 per
cent. leaving out New York, how
ever, the country generally shows a
gain Of 11.8 per cent. as compared
with the corresponding week last
year. OF thirty-two cities reporting,
six show decline from year ago;
Portland, Minneapolis, Providence,
Louisville, New Orleans, and New
York. OF these six cities, New York's
decline from a year ago was liz per
cent, Providence Is, Mime
apolis 1915, and New Orleans
900 per cent. The New York
money market exhibited no special
change, bankers balances ran from A
to s per cent, averaging about 81 per
cent. The Bank Of England advanced
it's rate from 81 to A per cent. to pre-
vent loss Of bullion, and ii has also
put premium upon gold bars, as We
explained last week. This is putting
the rate up when the quietude of
trade would keep II down, This act
ing in opposition to the laws OF trade
aygrava'es the evil OF the situation, but
it has to be done to keep off the worse
evils that would flow from the alarm
that would follow serious loss OF
gold. The immediate consequences OF
the advance was a rise in the open
market rate from q and 3 per cent. to
81 per cent. Circumstances show that
Just now there is heavy buying OF
American stocks on European &C
count. Silver in London went up to
Ash pence an ounce; this makes the
metal in our dollar worth 764 cents.
The New York Chronicle states that
trade accounts rsmain encouraging, a.
"lhereis great rush OF work,pricss and
profits satisfactory and tendiugstrongly
upward. The disposition is to take
an exceedingly favorable view of the
outlook, aud complaints are very
rare" OF course, for this to Iipen into
"eood times," the future must not b.
discouutsd too strongly or a relapse
must follow. High prices are no
sable prices, and they would stimu
late our already la'gs imports, which
would help toward reattion and NOR
depression. There has been SOM
talk about contraction of the c'rcula
ton, but the Treasury officials cisiu
that the money market has beer
benefited by tbs bond calls, that cir
culation is steadily increasing rattle
than diminishing, and that there !
no unnecessary accumulation OF lega
tenders 10 the Treasury, and none the
is undesirable 1t is thought that tn
substitution OF the new silver cerIif
Gates for the national bank notes n
tired viii obviate every diflic atty this
might otherwise arise from that cor
trac ion. The New York Indicate
claims that the : aud 8 per cent. rate
10 Wall street ara purely artificial, an
in proof show that the recent 3 p,
cent. New York City loan for thirt
years was taken at rates averaging [
per cent, and says that at tn
rate the purchasers Of the bonds wi
realize only 2.75 per cent, whiC
shows how cheap money really
European war troubles arouse waite
fllness, but at present are not mut
affecting values. The New Yo,
Tribune regards the recent advance
iron as nominal, and business n
quito as good as some suppose, al
Gays: exports from New York we
considerably less in value last We
than for the week preceding, and
the frat half Of October, instead
the great increase recently recordt
there was decrease nom last year