New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-28
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MONEY AND BUSINESS.

The depression Of prices still continues. During
the past week about one dollar more has been taken
from the average price of stocks. while the decline
in prices Of staple commodities, though very I'M
equal has been on the whole considerable. The
situation affords curious illustration of the self
defeating tendency Of that connection between the
Treasury Department and the money market which
Secretary Fairchild properly desires to have ter
minated. First there was large expansion of cur
rency, to make things lively. Next, purchases Of
bonds, however necessary they might have been in
a time of commercial pressure, have served no
other purpose at this season than to prevent re-
turn and retirement of part Of the excess of cur
rency previously issued But by emptying into
this market several millions Of money collected all
over the country, money has been made the cheap
est thing in the market and thus exports Of specie
have been stimulated. And now these exports Of
scecie canse depression In the very things which
were made most lively by the expansion Of cur
rency last year. similar vicious circle appears in
the relation between markets. for products and the
&C, on of the Treasury. The Government poured
out money, and made speculation active, and prices
rose without natural reason, and then came de-
crease in exports and large increase in imports ;
considerable debts TO other countries on merchnn-
disc account were created and at length the outgo
Of gold TO settle part of the balance depresses the
prices which were originally lifted by the expan-
sion of currency
During the past week bond buying has not
helped materially. The Secretary has received few
offers within his limits and but little has been
paid for bonds Notwithstanding the outgo of
gold. amounting to several millions, the Treasury
holds 500, 900 more cash than it held a week ago.
without drawing from the deposits in bank. The
increase in reserves of the New-YorS banks about
81, 200 600, reflects the continued return of idle
money from many interior points. and the in-
formation from the West and South indicates that
the market has grown easier at nearly all COM
mercal centres.
While stocks declined average Of 81 per
share most Of the depression was in few secur-
ties in which there were indications Of realizing
both on account of pools and on account Of foreign
operators In the public mind the liquidation in
st. Paul is readily connected with the excessive
railroad building in the Northwest for in the race
for control of new tributary regions the St. Paul
has greatly increased its issue OF securities
Other roads have taken part in the same struggle
and it is not unreasonable that the public begins
TO Judge of the value OF their securities by the
actual condition of the properties. Railroad earn
inqs continue 20 show considerable gains over last
year for the roads which report earliest and sew
eral important companies, including the Pennsyl-
vania, make more satisfactory returns both for
gross and for net earnings, The fact remains,
nevertheless, that the competition with lake routes
and with Canadian lines will take off some part
of the business and profits during this year, while
the shrinkage in the volume Of trade and the
probable decrease in important crops render the
future less encouraging for important railroad lines
than il seemed some months ago
The depression in prices Of commodities has been
quite general during the past week, wheat having
fallen I-a cents for spot, and corn cents. In
lard and dressed hogs the fall was not considerable
and cotton remained unchanged, as did sugar. A