The morning call., 1893-06-22
THE STATE OF. TRADE.

The decline in the exports of cotton and
provisions during the eleven months end
ing May 81. as compared with the eleven
months ending May 81, 1892, has already
been noticed by THE CALL; we now have
the wheat exports for the same period,
which amounted to $S3, 74S, 1888, as against
S14S, 423. GAS during the previous eleven
months. We shipped during the same
period 1886, 1876 barrels of -four, as again st
13,54S,51 in 1892, but as that was a de-
cline from last year Of about 40 cents a
barrel, the shipments of 1929 yielded
about the same money as those of 1912
general review of the commercial con-
dition all over the country indicates dull
ness, without conspicuous signs of COM
ing trouble. The recent decline in the
great staples has led to an increased
foreign demand. Wheat. corn and cotton
are all higher in price; pork is lower. iron
dull and wool depressed. In dry goods a
decline is expected. but has not come.
Considering the season money is tight in
the South and in the grain States, and COL
lections are difficult. The bank failures
in Illinois ana Indiana have had no appre-
ciable results. The bank clearings show a
with last year. The diminution is 81 per
cent in New York, 26 per cent in Chicago.
9 per cent in Boston, 5 per cent in San
Francisco, 1876 in Portland, Or, 80 in Salt
Lake City, $50 in Seattle. II is noticeable
that the clearngs in Los Angeles show an
increase of SO per cent; there is also an in
crease in those of the cities of Texas,
while the decrease in the Kansas cities is
very large.
1t has been reckoned that during the
past twelve months there has been a
shrinkage in the selling value of the
securities dealt in on the New York Stock
Exchange amounting to 100000, 900. A
large proportion of these securities were
of the class called ''industrials." and rep
resented water as well as property. Thus
the shrinkage does not really represent
property wiped out. though for the mo-
ment it appears to do so. We know what
followed the shrinkage in mining shares
in this city in 1889; no property was
wiped out. but people who supposed them
selves rich became poor and many of them
bankrupt, and the momentary effect on the
trade of the city was the same as if so
much actual property had vanished. 1t is
follow in New York. The consumption of
goods will decline, and debtors will find it
more difficult than they have done to meet
their liabilities. 1t will not perhaps prove
wholly disastrous that check should be
set to extravaganza.
1t is in view of the prospect of period
OF reduced consumption that the New
York banks are fortitying themselves by
an issue of Clearing house certificates.
This Is really suspension of specie pay
ments for a limited period. The Clearing
house issues, on a deposit of approved
mercantile paper or securities, line Of
certificates which take the place of money
at the clearings: in other words, the
associated banks redscount the paper OF
any bank which Is temporarily embar-
raised, and the latter pays its debts with
proceeds OF the reGiscounts. When tran
quillity returns, the bank which has taken
out certificates returns them to the Clear
plan has been in use for twenty years. and
it has averted bank failures in periods of
stringency. The resort to 1t at the present
time implies that the New York bankers
d 10 not feel easy about the future.
The event is emphasizing the Eastern de-
mand for the repeal of the Sherman act.
When Congress meets in October, vigor-
GUS effort will be made to secure the repeal
of the act, and it will be as vigorously re.
sisted by the advocates of the double
standard.