Telegram-herald., 1891-05-31
DENORALIZlD BOTINlS
The Financial Operators Depressed
ana Gloomy.
REVIEW OF TIE MEEK II wiLL-SI.
DiseosrAgins % the k>aiis- - aevsus.s of
CersAis "a the Continent Cemnsae>a
-EsFmers Are AsSarso Gosa
Prices tsr Crop<

NFw YORK May Sp---GiooD haa aRaln
setsled on the financial world. Rulls
are. growing discouraged and the
ranks of the bears are filling up. Good
tinaes may be ahead. bat holders are
growing tired of waiting. II is true.
however, that the present prospects are
that the gold export movement ~ nearly
over. This weeks shipments foot up
e. 600 900. which is much less than the
amount shipped last week OF the week
tefore. 1t seems now 10 be definitely
settled fact that the Bank of England
las reduced its price for American gold
90 76 shllllngs 81 pence. Ii 10 rather a
curious fact that rates for slerling ca
change immediately advanced snti-
Gently TO make un for tins red duclion,
so that the exchange rate still iusfi.ies
the shipment OF gold. The reason As
signed for this j. . scarcity OF CONNER
ciSl balls 80 pronounced that even the
ialght demand still existing on the part
ot importers cannot be met.
French Dot. Reduced.
One Of the mosl important items Of
news of the week was the announce
ment that the French government has
reduced the daty on wheat from
August. 1891, 10 June, lSg2. Other
itenls OF similar nature were the an
nonucemcnt from Paris that the cham
Der OF deputies had passed bill pr0vid-
ing for the storing Of grain IN every
fortified town IN France sufficient Il
feed all citizens for two months Ia case
of war and the announcement that the
municipal council of Berlin has voted
IN favor of suspending the tariff ON
cereals. All these things make more
certain the fact that oar farmers will
receive good prices for the wheat
which they wall export tins SUM
mer. The government is show
ing not exactly weakness, but
tendency 10 resort 20 every pos
sible eJpedlent, which proves the rulers
of the nation hard pressed for re-
sources. The facts that the Secretary
OF the Treasury has contemplated the
extension OF the AZ per cent. bonds, the
issue of SIC. .000, 900 Of silver certificates
against the fractional currency cnd OF
81, 900 900 on account OF selgnlorage on
silver purchased under the act Of July
Ia, 1890, all 20 10 show weakness rather
than strength, because when a govern
ment resorts 90 every device which
human ingenuity can suggest 70 increase
ITS resources, tie barrenness CT these
resources is ali the more plainly shown.
Extraordinary Money Demand.
Bankers report demand for money
throughout the country which IL extra
ordinary for this time oqthe year. The
Souih needs money because 4 i carry
ing large part OF the surplus Of the
great cotton crop OF 1890. The country
az large needs money because general
business is beginning 20 pick up. The
panic Of last fall was followed by Sc
we're contraction OF credits. During the
winter business was so dull that the con
traction Of credit created no disturb
ance. Now the demands Of the coun-
try have increased faster than the con-
fidence of capital. tits true that rates
of exchange OH New York IN Chicago
aud ST. Louis are AT a heavy pre-
MUM, showing movement OF money
in this direction, but TINS money Is COM
ing because IL has 20. Western banks
have drawn on New York until they
have depleted their balances and they
must now make their balances good.
Yesterdays bank statement showed the
customary increase IA surplus reserves.
but the important feature was the de
crease in loans and deposits. These de-
creases have characterized all recent
bank statements. They seem 20 indl-
cate liquidation Of loans which are paid
up out Of the deposits. Bankers state
that these liquidatcns are by the mef-
camille community rather than by the
country banks. The deposit account
has been decreasing faster than tbe
loan account. so that the total deposits
are now less than the loans, showing
that the banks are lending some of
Their capital and knrnlns.