New-York tribune., 1886-08-13
TIE MONEY M1GKET AND SILTER.

There i no excuse for suIpIsc at the scare
ity of money this fall 1t was predicted
months ago by THE rKIEuNE. when there
was evidence that gold was vanishing from
general u,c. that the supply OF money " ould bc
found not great enough for active business ana
for RAMPANT speculation at the same time. a.
tisnc passed on. and money WAS withdrawn from
circuatIon and ether money from the county.
it was clear enough week 10y week that tim"
was approaching when the supply would bc
found inadequate for the demands of active
spccuatCn and for the usual requirements OF
fail trade. No extraordinary event has occurred
TO accelerate or intensity the pressure The
immediate cndcavcr to hasten the event by
manipulation is obvious. But no manipulation
coulh have caused, and there is no evidence that
any manipulation was employed with intent
TO cansc the state Of things which has icn-
dercd morctary stIirgcncy possible. Ihcic l.
and il likely to he some pressure for money, sim
ply bccaus. a lMgc palt Of the money in the
count.v, namely. most of the gold, has ceased to
bc actively employed, and the bank reserves are
substantially exhausted while the natural bu-i-
ness of the season and an advance in spccula
ton at the same tImc call foI more money IL
legitimate dealers But if legitimate business
il checked 10y lack of money the effect vii!
in the end bc the same as II speculative opera
ton. wore first checked In such times as this
speculation does It's worst, because It's influence
npon the industry and the legitimate busincs.
OF the county is apt to be most machicvous.
To measure the situation precisely, it should
be understood that there j. money enough for
ali the business and industry of the country.
But il, time Of great abundance and chcapncss
OF roncy speculation i'll securities and prod
nets came to employ large part Of it. Opcrat
ors got possession OF glcat blocks Of stocks and
bonds, and great loads of wheat, corn. cotton,
provisions qnd oil, failed to find other people
TO buy from thcan at the dcsi ed prices. and did
not want 10 Let 20 when scarcity OF money wa,
fOrcshadOWcd But there Is money enough all
the same as VIII bc demonstrated whenever
speculation is reduced by season Of zeal prcs-
sue in the loan market. That time has not
vet come, and anay not at present. Ii is quite
possible that the demands OF legitimate bllsi
ness which has not been aS active or promising
of late as it was months ago, may be di
minishcd OF pushed aside by the aidor and force
Of spccula,ion. But sooner or later it viii be
found that there is a great abundance of money
in list. even for the needs OF :. fur larger bus~
ness than is now in progress
There could hardly bc anything morc foolish
than Some of the talk about the effect of bond
calls upon the money market August /, there
were outstanding bonds amounting to $l4O-
OOO. .OOO that could be called, Of which the
Treasury held $113OOO 900 on deposit for
bank circulation or public deposit. Tho re-
dcmptioh OF the bank bonds would not of neccs
siy add dollar to the supply of money in the
market. The Treasury would merely write OIL
so much of H. cash held for general purposes,
and add il 10 the cash /, holds on trust for the
redemption OF bank note. Out oil $4,000, ,OOO
called only - pci cent. or Sl,9O0,CO0, would
lie held by AL OthoI parties cxcep; the Treasury