New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-02

Treasury is now covered Dy ltS ueloSi'SSr III va
tionoI hanks. and that therefore the Treasury
CON r,rrhose no more bonds without drawing
nnon rlenosits in National banks, when, as inc
fools saw. will afford relief TO the money mar
zct. lhis idea was first promuis HTar y -. VIC
;. hear representative news agency OF Nall STREE
Until within the last tOrty-cight hours we dd not
suppose that any intelligent person ha9 auop.el
the idea The fact that we nave Ie;irneu ih1u ,lc
bioLn.t officials of the Stock Exchange and Demo-
cratic members of Congress have accepted PAD
for idea issued by an irresponsible ana untfus' !,
,yortnv so-called news agency as matter OF lact
i our only excuse for exposing the greatest l!lu-
80. aLSurdity that ever found its way into print.
Wc toI-c thc liberty of dcductng from to-day 5
Treasury statement sl60O0,0OO from lhe aHou ll
held in it's vaults TO represent the amount vi Pu-
cbosod bonds which have not yet passed through
tho Auditors office and the various processes hec-
cssarv "a cancellation and reduction of It's cash on
hand. .,oo Ann mo In ,.arIts
hold in eycess of outstanding certificates and TO
60 A97 554 deposits in National banks heSe
two sums added together gives to tie Gnted o'ate'
Treasury surplus after dit,d deo blIs some
thing like s5O,OOO,OoO. Now, for the
mnrposes of speculation, it Is Claimed
Thai the Treasury if il purchases any more Doh1s,
must draw upon the bank aepIsUS o, ., ,oarctS
nstnod of the 81 10000, 900 net cash whch IL
holds in its vaults. 4 simple statement OF the
facts * sufficient to dispose of the absurdlues Oh
t%e nronoSition nut forth and dwclt upon by men
LoIdinr offices for which they are incompetent or
are exceptionally dishonest. The Treasury has an
available surplus for the PGrenaSG o. Dan nr'
chase that amount Of bonds, excepting When ue,
hosting banks turn in the bonds when are htil
for security of deposits, without oisIurplh9 l's
derosits in National banks This problem is so
nain and simple that the opposite OF 1t is disgrace
mi and demeanng TO q Stock Exchange ohclal
or any one else who asserts II for any reason, DC
il from speculative lntercU lii lhe Harhco o'
from ignorance OF inc CoulnOhVoo hi@Oiio'' " w
ing business. -. .,.a
There is no occasion for our being eXuberant
over the changes in the money Market on IasO
week The advance in money rates OF the pre-
vious week TO the kgal rate was purely the result
of a combined manipulation What has followed
in the free Offering Of bonds TO the Government
and decline in money rates 10 3af Pcr ctIIO va
iindergartcn Bv mere force of capital GoEerh-
mcnt bonds for twelve months have Deeh hehi dU
from TO 3 per cent above their leellmate Nd. .
rs an investment. The advance in money rates
last week. which came simply from force, was an
evil attended by an inestlmaole pcneht 10 th9 En-
eral situation. IT has dcvcloPed the Iact lhat q
5aG uer cent money market will bring Government
per cents TO the Treasury at its own price, DE IL
1913 or %, and that therefore during TINS year.
with a Treasury surplus stu eX sing OF aDouD
$50 COO 600 and the holders of Governments
realizing thp eyorbjtant price which the Treasury
is willing TO pay for them, the automatic nnahcial
machine is in such perfect working orucr 'hat
anything approaching suhgehcy III HloaeS - n,,
impossibity. All financial institutions during
the week without murmur submitted 10 nltrK-
ing down of their standing call loans 10 PER
cent, and in some instances to 3 IL per cent AZ
the Stock Exchange the balances OF financial IN
situations and OF bankers gradually declined Tor
loans at per cent down TO l-2 per cent, While
time leans at per cent were urgently pressed
upon borrowers, with the result of only limited
business The ease in money here and the stficr
rates in Eondon Occasioned an advance IN me
rates for foreign exchange; so that at the close
business was done upon the basis Of - S3 rs and
s4s7l-2 respectively for long and short sterling.
RAILROAD EARNINGS.
The reported railroad earnings for the thlrd
week Of August are almost phenomenal. nc
Tribune has printed the gross earnings oil hlty-
six companies systems, giving an aggregate
increase Oh the same week Of Sso OF SCO4 $50,
on 1850 per cent. or the total number, forty
seven companies give an increase of SG5O501, or
I5 10 per cent. and nine companies return losses
of S46,46l, or 9.13 PER cent. The subloined
table divides the aggregates and differences Of
the companies showing gains and losses
"a woAk I'm August 1888 1889. Difference. D. e..
a companies 49, si5 g. 9C2 Inc s095S7 1599
companies. 477,462 43l,O2l Dec. 4o4ol J.'3
Dlp