The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-02-09
MEMPHIS APPEAL.
THE RusINEss SITUATION.

The New York Post has a table OF
the clearings last week OF thirty cities,
all Of which, except six, show an IN
crea &c over the corresponding time In
1854. This large proportion Of in
crea Sc confirms the previous indica-
Ii ons of improving trade. The total
of the whole exhibits gross increase
of 4s.I per cent. over the previous
v ear, or excluding New York, OF 1871
DER cent. On the gross clearings New
Y ork shows an increase over the pre-
ceding year at the corresponding time
of 55.I per cent, Boston 4i.S, Phila-
.delphia 29.s, Chicago l76, Cincinnati
rs, Louisville 90, Kansas City l7S;
Memphis, however, shows de-
crease Of per cent, and st. Louis
%. Money in New York continued
to be easy at Il to 2 per cent. for call
loans on stocks. Foreign exchange
was dull at the close OF the week, but
firm, sixty days on London 4.s6. In
domestic exchange the New York
BuUetin quotes New Orleans CONNER
cial at 80 cents discount; st. Louis is
quoted at rs cents premium. The
Chicago Bdnkers' Monthly reports that
the strong influence in December oil
expected gold exports almost lost Its
force in January, although there was
then more reason for 1t, and says:
1--WE have made no considerable gain
in our foreign trade since the close Ct
December, and we are all the time get
ting nearer that part Of the year when
the movement Cf the precious meta !
10 mot likely to be outward"
One cause OF the December
sensitivenes5 was suspicion as
to the high price Of stock. AS no
disaster has occurred from that source,
confidence has increased aud a mod
crate export Of gold would now cause
but little disturbance. The reduction
by the Bank Of England rate 70 per
cent discount has decreased theproha-
biity Of gold export All over Europe
there is a liberal supply OF idle money.
'Pntling a, ide the fear of the silver
coinage and we are in exceeding good
shape to bear drain Of gold" is the
opinion q the Bdnkers' Monthly, and II
adds: Funds are finding fairly
printable employment in this coun-
try. There has not been time for
years when both borIo wers and lend
ers were go we'll Satisfied AZ now,
There is a considerable quantity oil
surplus money in New York but even
there, and to a greater extent in other
Iarts OF the country, merchants can
get moderats profit on their transac'
tons when they borrow at current
rates, and the banks are using the
capital in their hands more fully than
last year st this time. Rates in
the West have advanced more
than in the East" Money from the
interior is f)wing to New York, in
creasing the surplus reserve there
loans show little change, owing TO the
season and bad weather. The New
York indicator fears danger OF the
contraction OF the currency from the
two bond calls that have been made
and more that are anticipated, and
says the prospect Of redeemiDg S40,'
100000 more bonds before July Let, Ia
comply with the sinking fund require
ments, adds to the importance Of the
mater. Further the Monthly says;
at is estimated that OF the la,t $l0,'
O00.00 Of 3 per cent. bonds called the
banks held over 5000, 900, which are
deposited 10 secure circulation. Al
this rate the redemption CT 100000.
900 OF bonds during the coming FIVE
months would mean contraction in
circulation to the extent OF $50, 000,'
600. This is moderate estimate
The Louisville Journal. speaking upon
the same subj says; GAS the two
initial calls with which Mr.. Manning
has resumed bond redemptions have
already involved about $l4,0O0,000 o.
circulating money. That amount o.
national bank notes was superimposed
npon the S200OO,00O OF per cents
called in, and ~ ~ have advanced
TO 124, II is probable that a large
percentage Of the $4,000 900 involved
will be surrendered, instead OF beinG
transferred to the 4 per cent. basis.
As the amount Of bonds on the mar
ktt decrt a,es their current value in
cressep, inducing the banks TO realiz:
the premium upon them and avoid
the reduction OF profits caused by
their advance in value. Circulation
that is based not upon property but
upon debt, is liable to these fluctua
tions, and watchfulnees and prudent
management are necessary according
ly. Notwithstanding the era Of de-
preston irom which we hope we are
now emerging, and the privations sui
fered by the working people, Congress
does not appear intent upon trade
legislation, and the bills of that de-
-scription linger mostly under the in
fuence Of mere political considera'
toas.
Enr rnnuww- .,a-n-