Democratic Sentinel, Volume 14, Number 35, Rensselaer, Jasper County, 26 September 1890 — FINANCIAL OUTLOOK. [ARTICLE]

FINANCIAL OUTLOOK.

A TIGHT MONEY MARKET QUITE GENERAL. Large Speculations in Cereals Ascribed as th- Cause of the Unwonted Stringency—Efforts of the Treasury Department to Ease the Situation. Dun’s weekly review of trade has thia to say: “The last week has fully justified those who gave warning that the money ease, caused by treasury disbursements, could be but temporary. The market here has been tight; with extreme rates paid in some cases. At Boston and Philadelphia monetary pressure also affects business; at Chicago the is somewhat firmer and the demand active; at St. Louis stiff at 7 to 8 per cent; at Kansas City more firm; at Omaha a trifle close, but fairly supplied, at Milwaukee very active and to some extent disturbed by a large lumber failure in the interior; at Detroit the demand is strong at 7 per cent; at Cleveland the tightness is rightly ascribed to the volume of business; at Pittsburg the demand is fair at 6 to 7 per cent and only at New Orleans of the cities reporting is the market ear,ier.

“The immediate fright at New York was about supposed eonrmous demands for payment cf duties if the new tariff should go into effect Oct 1. The fact, as officially reported, is that less than $9,000,000 will pay full duties on all goods in warehouse on which the rates have been increased, but no one supposes that the entire quantity would be taken out, and meanwhile the treasury is now offering to pay out? 20.000,000 for 4X per cents and $23,009,000 more in prepayment of interest on the per cents, if there were no speculative tendency interfering with free movements of crops, commercial bills would soon draw money from abroad, but an unfavorable crop report causes higher prices for staples, and prior to that the exports had been verv light, prices here being too high for foreign markets, “The business failures occurring throughout the country during the last seven days number 193, as compared with 203 the previous week and 199 the week previous to that For the corresponding week of last year the figures were 193.” Washington dispatch: Gen. Nettleton, Assistant Secretary of the Treasury, in response to inquiries has issued the following information: “The Treasury Department to-day, in addition to its regular disbursements, which were unusually heavy, paid out $2,348,539 on account of bond purchases and advance interest as follows: Interest prepaid, $2.06?,00<); redemption of 4 Ks, $335,505, purchase of 4 per cents $750,900. The 4 per cents purchase to-day were accepted at 125. This is the first considerable purchase of 4 per cents for some time, and the price paid is 1 per cent above that hitherto paid under tho circular of July 19. It is thought that there may be an impression among holders of 4 per cent bonds that the government has withdrawn from the market for 4 per cents. TJiis is not the fact, as tho treasurer is ready to take a considerable amount of 4s if they are to be had.

“The inquiry instituted yesterday by the Secretary of the Treasury developed the fact that the total balance of duties due on all imported merchandise in bond at the port of New York on Oct. 1 was only $17,500,000. Only a moderate portion of these goods will be subject to increased duty under the schedule in the new tariff bill. These facts would seem to indicate that anxiety based on this feature of the situation has been largely without foundation. “As a further measure of relief, in so far as the existing stringency can leasonably be said to be due to the inevitable operations of existing Jaws governing the collection and disbursement of the government revenue the Treasury department will not hesitate to apply such effective remedies as the law permits and the situation requires. The Secretary of the Treasury on his return to Washington from New England will be in New York to-morrow and will adopt such a course as shall seem to him timeiy ana calculated to meet the difficulty as it exists.” Cresson (Fa.) dispatch: The President is watching the tone of the money market with a view to meeting any further emergencies. Ho swent nearly two hours yesterday conferring by telegraph with tho Treasury Department. The result was the issuance of oiders by the President to anticipate the inter est on outstanding currency •> per cent bonds to an amount not exceeding $5,000,000; to offer to pay 125 for outstanding 4 per ceia bonds Instead of 124, the rate heretofore offered.