New-York tribune., 1886-04-05
MONEY AND BUSINESS.

The money market has passed the point at
which. according TO old custom, any strlngency
in the spring is likely to occur, if at all. If
business were entirely healthy in all respects, a
rapid recovery of reserves aud continued ease
in the money market could safely be predicted
for the coming months Yet there is undeni-
ably feeling of hesitation, which is attributed
by almost everybody to his pet aversion by
some to the strikes, by some to railway wars, by
some to Congressional folly, and by some to the
bad state of foreign trade 1t is not strange
that April l was All Fools Day for those who
expected a sudden uplifting in prices to begin
that day.
The strikes have certainly done mischief, but
the movement of trains has begun again at al
most every point. Difficulties remain, and
bloodshed begins, as usual when a certainty of
defeat makes mcu desperate. But that state OF
the controversy never lasts long, and is always
a bad sign for the strikers a large business
will have to be done in the immediate future
because of months suspension, and the evil
consequences, though undeniably severe, will
be distributed over coming years. 1t is also
true that Congress has done nothing wise, and
threatens to do many things foolish. Legisla-
ton 70 avert the danger of silver coinage Is now
scarcely hoped for, while tariff bill is expected
to be reported this week. But the great vice
of this Congress, its incompetence, is also its
only virtue; if unable to do any good it is also
safe not to do much harm. Disappointed hopes
and empty threats have been pretty well dis
counted by this time, and can hardly account
for any new feeling of apprehension.
The contraction of loans and the outgo of
money from the banks have definite and de-
pressing influence. In two weeks the banks
have reduced their loans by 100000 and
have lost $40, 800, 900 of their reserves. Some
snch NOV ement at this season is natural, and in
itself alarms no one. Every year except one for
a long time the bank reserves have rapidly
risen after about April l. But in 1884 we had
also passed the usual point of danger, and were
expecting the usual recovery, and it did not
come The question is naturally asked whether
the return of money from the interior can be
expected in the usual volume this year, if bus-
ness has expanded as much as the clearings in
dcate, and whether such return as may be real
lied will suffice to overcome the continued out
20 of gold which the condition of foreig trade
renders not improbable. 1t is true that ex-
change has improved of late, but the daily
fluctuations are known to be largely due to
speculative operations. 1t is true that some who
took London exchange as means OF putting
gold out of danger are now realizing, perhaps
because confident that the Secretary of the
Treasury can steer clear Of all peril. 1t is the
fact however, that the merchandise exports for
four weeks have been Ii per cent smaller, and
the imports for five weeks 10 per cent larger,
than for the previous year, and ii at all points
the movement has changed in the same ratio,
imports for March will exceed exports by about
$12,C00,000.
The state of the market for securities does
not invite foreign investments, and the sinking
of the Oregon disclosed that a large amount of
American bonds and stocks were on the way to
this side. Northwestern railroads are lighting
in earnest, and the hope of peace between
transcontnental lines seems to have no better
foundation than ii had last week. Shipments
from Chicago were the smallest in any week for
three years, only 22,910 tons, against 74,472
tons exclusive of the Chicago and Atlantic last
year, decline of 69.2 per cent Yet the aver
age price of stocks advanced last week half a
cent on the dollar the stocks of Northwestern
roads generally rose in spite Of the war of rates,
while the coal stocks generally declined in spite
of the advance in the price of coal, and trunk
line stocks were sold with impressive freedom
in spite of new agreements to maintain or ad-
vance rates. Enormous shipments of grain
from Chicago by lake are reported, and some
thing will depend upon the disposition made of
the grain, in view OF the amount of money tied
up all winter in that way. If it is not offered
for sale at prices which permit exports, the
holders may have to make new loans at an in
convenient time. Last week prices generally