The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-06-20
FINANCIAL AND CONNER CIAL
MoSpAY June 1916 p. NJ.

Roth the gold and stock markets were dull and de-
cning to-day The former, under the influence OF the
European news opened at l42k-a decline OF "a from
The closing price Saturday. IL afterwards rose to
l43h but, under vigorous hammering by the bears, II
receded before Ave p NJ to 1898 y, semipanc pre-
yaing at this point 1t then began to react, and at $40
p NJ was steady at 1907.
The advance of ve-twenties in London to 81 on the
9TH inst and the withdrawal OF the bellgerent rights OF
the rebels by England and France as also the rumored
reopening Of Southern ports west Of the Mississippi
To trade rendered the gold market sensitive TO operations
for fall and large amount OF shortn sales made
with considerable effect The fall Is however only tempo
rary and when the bears into the market TO cover
react all the powerfully for the depression
which it has been subjected II both the bears and
bulls were annihated would conduce to the tranquility
of the market The Gold Room Spectators however
they may influence the market temporarily have
no permanent control the price, and specula
ton has its compensations.
There is considerable popular msconcepton to the
influence of speculation upon pr The prices Of things
says John Stuart Mill in his "Political Economy" are
neither much depressed at one time nor so much
raised at another they would be speculative dealers
did not exist Spectators therefore, have highly use
full Office in the economy Of society," and contrary to
opnion the most useful portion of the class are
those who speculate in commodities affected by the vcis
studes of II there were no corn dealers
only would the price of be liable to variations
much extreme than at present, but in deficient
season the necessary supplies might not DO forthcoming
ALL Unless there spectators in breadstufs,
unless default Of these, the farmers became specula
tors the price in of abundance would fall without
any limit check except the waseful consumption that
would invariably follow That any part Of the surplus
year remains to supply the deficiency Of another
Is owing either to farmers who withhold corn from the
market or to dealers who buy when at the cheapest
and lay it up In store Among persons who have not
considered the subject much there is notion that the
gains of spectators often made by causing art
fetal scarcity that they high price by their
purchases and then profit by It, This may be easily
shown be fallacous If dealer makes purchases
speculation and produces rise when there neither
the time afterwards any for rise Of price,
except his proceedings he doubt appears to grow
richer long his purchases continue because he is
holder Of article which quoted at higher and higher
price, but this apparent gain only seems within his reach
long he does not attempt to realize It, As an ind
gidua Spectator cannot gain by rise OF price solely OF
his creating, neither number OF spectators
gain collectively by rise which their operations have
artiacialy produced. Some among their number may
gain by superior Judgment good fortune IN selecting
the time for realizing bu: they make this gain at the
expense OF other spectators who udicous They
IN fact convert their nent the high price pro-
duced by the specuatons Of Others leaving to these the
resulting from the recol It is not to be denied
therefore, that spectators may enrich themselves by
Dher peoples losses but 1t Is by the losses OF other
,peculators and much must have been lost by
pne set Of dealers is gained by another set.
When a speculation in commodity proves profit
,ble to the spectators body, Is because in the
interval between their buying and selling the price
rises from Independent Of them, their only
connection with it consisting in having foreseen It, In
this their purchases make the price begin to rise
sooner than 1t otherwise would do.
This argument applies equally to gold and stocks as
we'll as breadsus provisions and merchandise generally
The market value of any commodity depends on the
demand and suppy-risng tn, demand rises, and
falling the supply rises Another principle Of the
.heory OF value-which Is relative term-s that the
value of thing the quantity Of some other thing
or things which 1t exchanges for Consequently the
values OF all things rise fall simultaneously
general rise, alike with general fall of values Is
therefore impossible every rise Of value supposes a
fall and every fall n rise.
Foreign exchange has been weaker than II at the
close of las: week Bankers sterling at sixty days is
1uoted at 109% 11o, under the impression that ship
pents of cotton will soon be made from the South.
these shipments are. however, likely to provo very
factories will require the greater part Of that at present
l. the Southern country and should it be
exported 1t would only cause us TO re-
import 1t before the next crop finds its way
10 market. There are bear movements in the
Exchange as well as the other markets. and II by
towering the quotations for their bills bankers can
buy mercantile bills on favorable the gain ap
parent.
The stock market dull and somewhat unsettled at
the first board and this feature marked during the
of the day. On the call New York Central Il lower
than at the first board Saturday, Erie y, Hudson
River a. Reading H. Michigan Southern u, Illinois Cen
tal Cleveland and Pittsborg1Z, Northwestern " Rock
Island y, Cumberland u. Government securities were
nrmer. Coupon Gve.twenes advanced y, new issue r.
Ten fortics steady at eGA. At the open board at
one o'clock, the market was fraction lower At the
second regular board there a further decline Erie
closed Ia lower than at the first board New York Cen
lral X, Reading ~ Michigan Southern u, Fort Wayne
TX, Illinois Central y, Cleveland and Plttsburg ~,
Northwestern 4, Rock Island Ia, Cumberland l.
Government securities dull, but steady. Coupon
Owe twenties sold at lO3Il.
At the open board at half past three the market
nucd TO decline in sympathy to some extent, with the
course Of gold. New York Central sold at 9s7s, Erie
75x, Hudson 1O9k, Recalling 95,6, Michigan Southern
s2H Cleveland and Pittsburg 66H, Fort Wayne 95,
Rock Island ok, Cumberland 40
Afterwards on the street. the market remained heavy,
and government securities were u lower the six
per cent bonds
The money market Is easy at4 a5 per cent for call
loans and the for the week indicates Its
plethoric condition The supply Of legal tender notes
has increased than six millions; the deposits
nearly four and half and the loans little more than
half million The specie has been reduced TO the ex
tent OF 81 77e, 743-a very important item at the
present time. The easy condition OF the loan
market is indicated by the fact OF the banks
taking a. eo4 900 in clearing house certificates to-day
This Is part Of nm additional ten millions be issued by
the Sub Treasury Hitherto its limit to this form Of tenn
porary deposit has been fifteen millions but IL is
wcnty five millions These payable presentation,
like tho temporary deposits proper, and carry Ave per
cent interest in currency The Treasury is willing
L.