New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-06-18
MONEY AND BVSTNESS.

The relation between politics ana Duslness ID
getting more definite. Not even crop prospects
have so much to do with business calculations as
the nominations which, men reason, may or may
not shape the policy of the Government for the
next four years. Men who count it dangerous TO
look far ahead wonder what this or that man Will
do in this or that market, after the nomination.
Bat men who take longer views realize that all
industry and business may be affected, to an extent
not easily estimated, by the results OF this years
election and 50 by the action of thissweek's con-
vcntion. In other respects the course OF events
during the last week has been favorable Crops
look better; Iowa does not confiscate SO much OF
railroad earnings as was feared, nor have ship
ments of gold and the absorption by the Treasury
prevented gain in the bank reserves
The bank statement is indeed peculiar. IL APP
pears that So, 2S3,35 gold was Withdrawn for
export during the week, and that the Treasury,
notwithstanding its purchase of s21 $4,000 bonds
on Tuesday, actually holds rs much gold and
81 700, 900 more legal tenders and silver at the
close than at the beginning Of the week. besides
adding 500, 600 TO deposits in banks. According
70 -" The Financial Chronicles returns, the money
received from the interior by the banks exceeded
the money shipped thther only by S1,15S,OOO let
the banks report an increase OF S3l 7o,OOo In re-
serves held and an increase of S., 100000 IN de-
posts and of $500, 900 in loans Either OF these
changes under the circumstances needs eXplana-
ton The outward movement Of gold is not sur
brising, because the preliminary statements OF
foreign trade for May, while showing an increase
Of S3,140S3l in exports of principal products IN
dicated that imports exceeded exports OF merchan-
disc for the month by sl2,000,000 or more. For
two weeks of June, imports at New-fork have
shown an increase of 81, 900, 900, or six per cent
over last year, and the exports, from New-fork a
decrease of ST. 92s,O 900, fifteen per cent, though
the imports exceeded the exports of merchandise in
June last by si3,274,514.
But money is abundant and comparatively cheap,
not only here but throughout the country, scarcely
any city complaining of lack The inactivity
in business tends to accumulation OF Idle capital
while political and other uncertainties check the
speculative spirit, which might otherwise employ
the idle sums For the two weeks Of June the
returns Of exchanges indicate volume oil busl-
ness about per cent below that of the past year
Failures are growing more frequent also; al have
been reported for two weeks Of June, against go
last wear: and some of them rather Important,
indicating that the wild speculation and the con-
fidcnt spirit which prevailed some months ago have
left bad results Yet an expansion of S5,50O,0 600
in leans by New.Yorl1 banks in week, when
business is inactive, would naturally suggest the
revival of speculation in some direction.
Railroad earnings for May show an increase OF
5.G6 per cent, while the increase in mileage OF
roads reporting Is 615 per cent. and 1t Is properly
observed that the returns do not include any from
the Burlington, the Rock Island, the Atchison or
Missouri Pacific, or from other roads which arc
supposed to have been seriously affected OF late IN
their traffic But there is feeling OF RELIEF, never
thelcss. because the Iowa Commission did not pro-
mulrate rates as low were at first proposed.
The marvel is that the Commission was led even
for time, to threaten so great reduction when
tho official statements of railroads show that even
tbe strongest of them have been having hard
time Thus the Rock Island received SSS6,OOO less
money during the wear ended March 81 its average
ratio nor ron per mile was reduced from LES cents
70 03 of cent and its freight earnings last year
would have been S3,431, 1876 more than they were
II the rates of 1sS1's2 had been charged In that
wear the company reported surplus OF Sl,ooo,oOO
over first charges and dividends, but for the past
wear deficit Of s47S,247, exclusive OF premiums
ON bonds and proceeds of lands, and yet it was
nroposcd to cut down rates 80 per cent Inc
more moderate change actually ordered seems I'M
reasonable enough, for many roads are not as
strong rs the Rock Island.
Wheat declined 2 1-2 cents last week ana corn
. "a cents, pork was little lower, coffee cent
lower and oil nearly 0 cents lower, but COTTON ad-
vanced an eighth. There is increasing reason 1or
the hope that the improvement III crop prospects
has been greater than the last Government report
represented but the accumulation OF announcer large
unsold surplus ot wheat with HUE foreign NC
mond and a new crop already beginning TO move,
! is n sufficient cause of weakness. The average OF
all prices is a shade lower than IT was week ago.
and in leading branches of manufacture the dis
! roeition In vnit until the uncertainties of Con-
occasional action are removed appears to be IN
creosinc Under existing laws and rulings, the
voollen manufacture fares badly enough, and The
host that manufacture has reason to hope Tor, IRON
This Congress, is that the bad enough Will not Dc
made worse.
| , c.--., oo.,.;oo Commission IL is claimed