New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-26
THE MONETARY SITUATION

THE MONETARY SITUATION.
The local money market last week responded to
the MANIPULATION made 10 1uftner the ooJeCO
of speculative holders of Government bonds with
The idea that by raising u cry of distress the
Treasury mi sht he induced to pay ~ lot some
$4,000, 000as20, 600, 900 OF per cents OIL whleD
sum 81 900, 600 were offered 10 tne treasury d.
l2O on one day in October, Soo mat Is all thaU
was any factor in making money at the STOCK
Exchange last week loan as high as oaO PEE
cent. neither of which rates IS ihdlcatNe oi up
preaching strngency. One of the largest OF New
York's National banks on Wednesday marked up
its loans in the Street to per cent ana TOOK
particular care to have IL published that on lnur>-
day they should mark the rate per cent, ms
was not without its elect, not only upon DOrroW
ers, but upon all lenders, and borrowers cheefluly
accepted the position without question. Inc aE-
craCe of the business done at the Stock
Exchange however in the last three days
of the week was nearer . than per cent, anu anu
every day there was some .,OOOOOO s5,oVV' w
more offered than was wanted, ana al hte hours
could be obtained at 3al Ter cent. one interest
ing fact however, has been developed by nus
movement to coerce the Treasury IN favor oil a
small interest Mt the expense Of all the other In
teresis If the country. and that is that tie syn
dcate with it, large holdings does not hold All
the bonds available fog Treasury purchase
In the meantime tine TWO banks particularly
enga Scd in aiding the scheme are creating Tor
themselves an unpopuhrty whlch VIII De maze
effective when the autumn business IS over ana
the natural return OF money to the LAST sets IN
We do not say that it is not perfectly legitimate
for speculative well as inv estment holders Of
the Government or anybody else at figures other
than those they choose TO accept But the le,
gitimacy ends when institutions holding National
charter attempt 10 create dstruSt anG distress Tor
the benefit of particular centagc. lie scheme
should fail and the probabilities are that 1t Wal
fail. because III seems likely that from otlRf
sources the Government will tie able TO obtain at
its own generous figures an average OF at least
$500, 900 of bonds per day This would vithdiSW
from the Treasury -, 10000 per week more tlni
its average accumuations and furnish all needul
dpmo fOr
seasoa TO pretend that there have been any
failures for lack of funds is absurd, whethg 1T
is uttered by the agents and allies of the bond
syndicate, by speculative mercantile agencfs or
by speculative news agencies. There never mas
been time when money was more easily OBJ
tainable upon proper securities than now. OI
course the rate depends upon the demand and the
supply. But indiv.du Is or co p ration WITHOUT
collateral cannot now, any more than ut any other
time obtain accommodations, 49,
AS to the talk about the low condition of the
bank reserves, the absurdity of it is shown by
reference to the times before the resumption OF
specie payments. Under the Ma tiOnal Bank law the
banks are and were permitted 10 count gold In
their vaults as portion Of their LEGAL reserve
When gold was ruling from ll5 10 go such gold
was more reserve 10 the banks than would
have been the same quantity OF Hour. IL, Ike
other assets, had to be sold in the market 10 be-
come available for the payment OF bank deposits.
With the exception of one or two banks IN the
city of New-lOrk the gold held by the banks did
not belong to them: it was there either on special
deposit or collateral for . loan. Deductng such
amount of gold from the total reserves, as report
ed during that period the only aud real reserve
| rema ining-g reenbackS-would run as low as ] 81
| 20 per cent and we never would hear word sad
about the low condition OF THE bank reserves
Furthermore since the resumption of specie pay
ments, ten years ago, the law of % per cent has
been ignored both by banks and Treasury officials
| And il is only when stab at confidence Will he
profitable to some one that we ever have heard of
| IL since 10
Here is a sample of the teachings of some of
| our modern ilnanciers Although ~ IS taken from
an evening paper Of last Friday, il reads ms If IL
were dictated by prominent member of the bond
syndicate. 1t is as follows
" The Treasury is gaining money very fast with
the small purchases Of bonds The debit balance
at the Clearing House this morning was over
| 81 2JO, 900, representing that amount Of money
going into the Treasury without any corresponding
release
II is hardly necessary to say TO the intelligent
readers Of The Tribune that Treasury debit at
/. the Clearing House means that the Sub-Ircasury
takes from its own vaults the amount OF the
debit and delivers il to the Clearing House to he
distributed to the credit banks. This, however,
| is not much worse than much Of the stun which
is printed and rehashed upon the financial qucs-
! ton for speculative purposes.
The foreign exchanges weakened all the week
through and finally closed on the basis of
81 80 IS and 81 SO 7-8 respectively for long and
short sterling These figures however, are far re-
moved from those warlanting gold imports.
RAILROAD EARNINGS
The weekly returns of railroad earnings Con-
tinue 10 show progressive improvement. The
| Tribune has printed lHe gross PHfHngS 1Of the
second week in August of ifty-nine companies or
systems which give an aggregate gain on the week
of 1888 of s459.996, or 9.S4 per cent, against
a gain for the preceding week of $50 per cent.
OF the total number, forty-eght, showing gains,
give ~ aggregate gain Of Sj00.I4i, or 1.G4 PER
cent, and eleven Others, showing losses, aggre-
gate loss of S4Ol4s, or s.17 per cent. Only nine
companies as yet have reported for the third
week in August, and they show an aggregate gain
Of 81 6.09S, or 1l.20 per cent, against "a gain of
the same companies for the second week in August
of 32J per cent. OF the total, seven companies
give an aggregate gain OF Sill ,SlS, or 1852 per
cent and two an aggregate loss Of $500, or -.96
per cent The subjOned tables divide the aggre-
gates and differences of the companies, showing
gains and losses
I'd week Aug 1858. 1859 Differences. PerCt.
a. 2f4 81 s4.79i,72l ne sSgO4 IA II %
II compaules....-. 47S,o9i FAC Dec. fOlis 81
Total 30 cos .s4,77s,47i i5.2%5407 Inc si5Dt9s 81
ccwropies s7A5iG $500 Oh, IncGsiii SIS IA -
. COM snses..... 1852 002 1S1,ls2 Dec. $40 2SO
Total. co.'s. s97,lis slojS2lo Inc sio6o's II ~
THE WEEK IN THE STOCK MARKET.