The New York herald., 1863-11-09
FINANCIAL AND COMMERCIAL.

SUNDAY, Nov. 8, 1853.
Throughout last week the money market was
stringent At times, for an hour or 80, there wero
indications Of a relaxation. But they proved uni
fornly deusve and the regular rate for call loans
40 on each Of the preceding five days,
was seven per cent. On each day last week good
houses, In good credit, with good collsterals, ex-
perienccd great difficulty in borrowing at seven
per cent. The cause Of this striagency WAS two
the withdrawal Of money from this
city TO the West for the movement OF the crops,
and for the use Of the insane grain speculation
In which Western men have embarked; and,
secondly the excessive conversions OF curren-
cy during the early days Of last week and
the closing days OF the week previous. The West
has drawn an unusual smount Of currency from |
us-how much we shall be better able TO estimate |
when we see the bank statement to-morrow-and |
viii keep until TIE grain spectators become
satisfied that they Lad better realize. IL IL not
necessary to recapftuate the facts with regard to
the conversions VI currency which took place
about November l. On the lst inst it was re-
ported frcm Philadelphia that over IL. 600 600 had
been subscribed in single day. That this sub
scripticn was mot genuine one--that is to say.
bona fie absorption Of United States bonds
by inVestors--is obvious. Three-sourths or the
whole amonnt were undoubtedly taken on
specsiatien BY government agents and
others, whose object, apart from vfows OF
private gain, may have been to stimulate a gene
raj desire 80 invest in government bonds. IL may
fairly be questioned whether their ardsr for the
public irterc st may aet have tempted these par
ties to cgershoot the mark, sad 70 kill the goose
which laid the golden eggs; for the inevitable
consecience of such teavy conversions Of currency
as were reported was an excessive accumulation
Of currency in tbo Sub-Treasury and corres.
pondng decrease in the banks, Involving a strin-
gort money market and-l pressure of all kinds OF
securities ia cinding 6-40 bonds for sale. fester-
day 500 bon ds were offered the Stock Exc bange
A. "a OFF, per cent below the rate al which
the goveu msnt agents furnish them. II
money con tinues tgh1 these bonds cannot help
coming on the mssSset in large quanttiea, and we
may see hem selling at 95 90. Every broker IN
the STR let and every banker in the country
controls or holds seme of these boneh sldif money
cannot be obtained otherwise tn e. viii be sold
to proc Arc it. IbRs, nsteed Of insu-ing the I'M
nediat sale Of the remaining 1886 oea, 900 Of 500
bonds, az was predicted, the lily operations o
Octob er 81 may really have the aheS, Of checking
convt rsions altoge ther.
IL y TO be hoped, however, u rat VI. money mar
ket will case up during the present week, ln'
then that further sacrifices II government securi
ties may be avoided There, are many reason
for believing that this will bo tie case. Tn
| SUI ,-Treasnry balance has declined from owe
| 81 6o0o 600 on Monday to $?A, ,7o5l74 last ever
| ing. The banks, which ht I'D abeve Sll 900 90
OF. legal tender last Mon day, hold owe
| SEC, 900 ,oOc. Government iss not only recevin
deposit certificates in payne mt Of subscriptions
The $40 bonds, thus relievin g the banks from u
necessity Of keeping Large stock Of currency o
hand bat is anticipating the .matu.ity Of debt CO
tilcates and paying Of all that mature befor
March pext, on presentation Vt Washin. gton.
nslly, the subscriptions 10 $40 bends b ave falle
TO a moderate figure, and there IN son he reaso
to believe that the SPECTATORS who Subscribe
for them heavily week ago will
quite willing to supply tho real sdeman
for them for some days TO come A
that is now required to restore ease
the money market is o resto ration ct con
dence. This is impedcd partly b Ac tinoidity
banks, many of which realize th st their rece
subscription for &35 600 900 Of new legal tender
which were not and are not res aysor deliver
has placed them entirely in the power OF u
Treasury Department, aud partly by the oper'
tions Of speculators in stocks. Who u she effect
the heavy conversions of last wec 10 the hv'
twenty loan was discerned in Wall axset larg
number Of brokers and bank officer went shoI
of stocks, on the very plausible theory tha
n tight money market must .prcduce
panic. Unfortunately for them, they ha
not sufficiently realized the ssreRgth Z
the present holders of railway props vty, or tb
amount OF railway stocks now held as Pernanen
| Investments. When the tight money muhst cam
stocks declined mere fraction, nsteadsoi faliini
10 Is per cent, and the bears found tbsmselve
| largely short on a market which eyinccd IA ma Ike,
| determination ~ rise en the fast opportunity
| These operators, thus canght, have been mancen
| vripg for . day or two In the Cle4-ing House sna
out Oi IT, to proiong the stringency and embarrsa'
| borrowers. How long they can succeed in resisting
| the laws OF trade remains 10 b. seen. III,
| fair presuuption Ia that during Ehc present
week they wlll realize the hopclcssE--s Of thei,
| sruggle. and will permit TIE money i1hich they
| age now holding ol1 OF the market to ~esume its
4 vsction. ir 'hc ordinary coucse Of tradc.
| Cold and exchange were rot very a(tive ias,
ss,E. They closed yesterday a. lt7't 'or gold
| and Ig2L 1923. ior bankers' 1'ill. The volume
! of sJsculaiionin bullion and bul has bees vastly
| reduced VI lale. There J. far Inquirys0f the
latter and large amount oi the iorrcer have be
! taken by a lcaI-lg hoase, appaTeltly ior c4Yor'.
Bot the waning prospects Of tho rebellion have
shaken Ito courage 1f tho bulls, auf there see v
buyers OF either on speculation.
Tho follown table viii LhoT the pr os Of stoths
| at tie close or she past I've weeks
Oei. TO- o.. AZ o. H. ct %. 30, Z
! Mis- ~ os.-'... 81. ~ 61n T 81
seld ....... AL =. 49, hat 5tiE
Paclcc NAil ...... $50 III 90 It 12t
! \ 7. Csgtrsi.... rs i5i ~ isI. i377.
| Eris............. Ios 100 40. lpY.s I0s3.
/ .fio lro.srrod.... lej 100 105s 1888 IW
\ Baoson River. l2sss 4Q4 1gi i3i1i ili.d
] Hagifn4 .. tlf Oh ~ fIfE
! kcaaag ...-.. 132E IA iZ2s I4fE
ticHy2r Csutrsi. I1f 1914 I2fH lls InnA
Met gan Rfuth's svs 4rtt "a q
fHIth. guafalId. i35 II54 fsJ fSI no