Year: 1872




The Fal trade has fairly begun, as any one under
Che necessity Of threading the downtown thorough
fares may eadily have seen during the past week.
The enormous drayage between the mercantile
houses and the various depots and shipping points
has ct times utterly closed many of the streets to
foot passengers. The cold spell of the early por-
tion Of the week seemed to be the signal for busi
ness to commence, and 1t was one that was
promptly obeyed. There being little or no faith in
the continuance of the succeeding warm weather,
its presence has but slightly retarded the activity
OF business.


A NOTICEABLE FEATURE


OF trade this season is greater confidence of buyers.
Doubtless, II the statistics at hand, 1t would
be seen that the number of tradesmen throughout
the country has not increased in the proportion OF
the previous year, the number Of Ill ventures in
1871, as reported by the mercantile agencies, hav-
ing deferred the opening OF new stores. Hence
the older merchants and tradesmen have had less
competition, and are, therefore, under the neces-
sity of laying in larger stocks. It Is, OF course,
question whether our city trade would not have
been larger had the out-oftown trade not been so
conservative this year. But there is the consola-
ti0n that while we catch the natural


ANNUAL EXPANSION


in trade anyhow, shall make less bad debts than
had the Fall distribution OF goods been made to
less solid country trade The reduced cotton pro-
duction of our mills during the past year as pre-
sented in the reports OF the cotton yield for 1s772
down to September y sustain directly the do
mestic branch Of the dry goods trade ana explain
the activity Of that department. especially as dur
ing the past few weeks there has been o general
lowering OF prices to a standard more satisfactory
to buyers. So far this year we have imported
nearly fifty millions more of


FOREIGN MERCHANT


f1v
an excess Of our exports for the same period. But
while exports largely in excess Of last year.
the deficit is, as usual, made up by heavy exporta-
ti0ns Of American government and railway bonds
80 that were balance struck to-day it would show
little or money as Immediately due to settle the
difference against US. Hence the future offers
stability in prices as regards domestic dry goods
and suggests no reasonable ground for any embar-
rassment in the payment for the great and various
amount Of goods brought from abroad
As Q further sequence Of these facts
we find confident feeling among
merchants without the sanguine IDEAS that used to
prevail. Fortunes in year or a few years are not
aimed at or aspired to- Business capital is learn
ing to be content with an annual profit something
near the legal rate for money. 1t is the curious
combination of enterprise and caution that enters
into


THE AVERAGE AMERICAN


OVSlu6HS
ton for "smarness." The small percentage Of
failures, considering the extent OF the country and
the steady drawback Of the shrinkage of the past
seven years or since the close Of the war and the
reaction from paper money innation Is, we might
almost say Indigenous.


To help the situation Just now we have expert
enced an easy working Of the money market that
has greatly surprised even those who are the slow
est to be alarmed at monetary crises sensations.
During the past week money lenders, inclusive Of
the national banks and moneyed institutions, have
endeavored to work the rate on call up to I per
cent, but without success. The best done was to
get 1t on several occasions to per cent. but only
for exceptional transactions the real business Of
the week having been at an average of barely per
cent. Perhaps the real average would be most
correctly stated at


~ PER CENT.


At the same time the banks have lost so much Of
their reserve that they are only about two and
quarter millions ahead Of the legal limit. In pre-
vi0us years the announcement OF so reduced a
surplus would have precpitated stringency. But
on Saturday we ind money closing at per cent
We have already offered In explanation of this
seeming paradox Of easy money and poor banks
the abundance OF private banking capital both do
mestic and foreign, now employed In Wall
street. better reason is to be found,





facilities under the Fifty-four Million act.
Within the past two years. or since the
law went into effect, the national banking capital Of
the West South and Southwest has increased about
t35.0OO,O ,OO0 The increase during the year ending
September /, 1872, has been quite close upon
1900, ,000 That is we shall have to send the
rural districts $20,O 900 less Of money than we
had to send last Fall. This Is the minimum. The
$20,000,000 capital has already taken from US at
least e4oOo,0OO Of greenbacks for reserve and ff-
teen per cent Of the deposits, which the 500 600
has collected around itself 1t is easy to under
stand, therefore, why the banks hold


$18,0O00Oo LESS LEGAL TENDERS
now than they did year ago, and 1t is also as
readily comprehensive that this money once gone
Into circulation and use the districts where it Is
employed we shall not be called upon for 1t again.
Moreover the loss In greenbacks Is only apparent.
as the banks were accustomed to count In their
the several series of three per cents, which
were called In and cancelled during the year as
fast as the new banks were organized. 1t will be
seen, furthermore, that the deposits now are
$So 900 less tnan they were year ago, fact
which strongly confirms our theory Of the present
ease In the money market, as well as encourages
the belief In q comparatively easy money market
the ensuing season. The ty-four Million bill,
an influence for the


DECENTRALIZATION OF CAPITAL,
ought to be highly popular measure with the
most democratic OF our politicians, however differ
ent its political origin. 1t has succeeded already in
checking to great extent the excessive alternate
redundancy and scarcity Of money at this and other
points by causing more uniform distribution of
banking capital and banking facilities over the
country It is moreover Fastening the day of re.
sumption Of specie payments by causing q healthy
contraction of the greenback currency, the excess
OF which Is unquestionaDly the real secret Of our
continued suspension.


THE WEEK


in Wall street was quiet one although there
were some important fluctuations in the various
markets Government bonds were conspicuous for
a decline of about one and q half per cent the