The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-09-14
TUESDAY, SEPTEMBER IA, 1886.
THE BUSINESS SITUATION.

The to.a's OF the last weeks clear.
inghoute reports show that the amount
of business etill continues to increa:e
as compared with lat year. The en-
tire total reported for the week reached
9.3 per cent. over the corresponding
week.s year ego; excluding New York
the total was 1874 per cent. increase,
The latter figure sustains the encour,
aging views that have been suggested
weekly or-some time. The New Yorl
Indicator reports: "The surplus OF the
banks is 81 100000 less than II was al
that time, and the total cash reserve /,
$7,7000O0 less. The banks have lost
nearly $Sl 100000 in deposits during
the four weeks, while loans were re.
duced only 100000. But there i,
no strirgency in money now, nor |,
there likely to be any. The rate Of
interest las advanced to @ per cent,
although loans are daily made at 8
per cent, or even less. This does no!
indicate stringency, bat simply an in
creased ue Of money" The
London rats for money in the
open market was down 10 u
per cent, while the bank rae
was 81 per cent, q striking difference.
The New York Bulletin quotes Ameri.
can trade dollars buying at 70 cents,
selling at II cents; Mexican dollsr',
buying "a, selling rs; English sover-
eigns buying at "a SO, selling at "a 81;
FIVE francs buying at 92, selling at 90.
Silver is recovering from lis slate depres-
sion. Ga Tuesday the rate ba1 ad-
yanced to 35.16 pence on Wednesday
it quoted 44l pence; on Thursday it
YVES up TO As pence, all per ounce in
the London market, an advance
from AZ to As pence in one month. II
is asked-will silver return to the rate
at which the United States began to
mint IL? AS that rate was 80 pence, it
does not sppear likely that it will. 1t
has not quoted at 60 pence for the last
ten years, and 1t would have ID reach
that to be on q parity with gold in this
country. The Indicator says that as
silver goes up the profit on Indian
wheat imports in Great Britain will
decline, which will bring American
wheat in greater demand, for the low
price OF silver was directly responsible
for the competition Of Indian with
American wheat; and appreciation in
the value Of silver cannot long continue
without very favorab'y affecting our
grain trade. Demand from India Is
the only reason we have ssen assigned
for the advance, with a small supply
on hand, are the reputed causes Of the
advance. The Indicator said on Friday:
EAST Tennessee's new securities were
quoted for the first time yesterday.
The common opened at Is, first
preferred at 6S, and second pre-
ierred at 2ss. They all advanced
during the day, and will very
soon be selling still higher. The East
Tennesses Company is now in a posi-.
ton to make big money. The Ten
nessse Coal and Iron Company will do
as we predicted it would. At the
meeting 10 be held on December Goth
dividend will probably be declared.
When we advised purchasing Of this
stock II sold at Al. Yesterday 1t sold
at So, and is still purchase" The
Bulletin Of Saturday reports: "Mem-
phis and Charleston was strong
throughout, having sold at 3Sa@80s,
against SO bid yesterday. The close
was strong" The indicator looks for
an "iuAation OF our currency through
the issue of snail silver notes. There
is no doubt that this initiation will be
considerable. The Treasury Depart
ment reports that the inquiry for 81
and 81 silver certificates is very large,
and as soon as they can be Issued from
$9O,0O0,000 to $i0,0O0,000 will be put
into circulation almost at once. This,
in our opinion, will not measure the
total issue Of silver certificates In the
coming twelve months. There Is
an opportunity 10 inciea?e the
issue to the extent Of every silver
dollar now coined, or to be coined
for a year TO come, Of which we think
the Treasury Department will take
advantage. BY relieving 500, 100000
Of legal tender notes temporarily Of
their duty as currency, the Treasury
will be able TO get that much silver
into use by proxy, and will have $780,.
Q0n,00Q more Of available funds 10 be
expended for government obligations.
1t Is In this way that imitation may be
made possible. and we shall not be
surprised TO see this policy pursued"
Should these antiCipations prove cor
rect, the markets will be stimulated,
prices unsettled, speculation increased
and the foundation laid for collapse
with a following period of depression.
The Bulletin OF Saturday reported from
local papers steady increase in the
amount of business, with satisfactory
and encouraging outlook at Philadel-
phia, highly favorable reports from
nearly every branch Of business at
Chic,go, no boom, but increasing
trade, with a tendency to higher
prices; Savannah reports a fairly
active trade, the backwardness of cot
ton kept country retailers buying only
for immediate consumption; steady
and quiet at Pittshurg, slight falling
off in the demand for pig iron, with
steady prices, mercantile affairs f,irly
active. NJ Mohila the fall onanS with