The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-18

the EmperorI am aot inorncd, although IL is prnbi''e
that no will as his present business IN fars is the ar
rapgcmcnt of n Congress OF sovercisns 10 meet hero
daring the Worlds Exhibcu M
Our Amsterdam Correspondence.
AMSTERDAM Nov. 90 1886.
T5 r,o,,to,;o,, IF United States Sccurie-Hs Ru
an eeya,,,e If Moa mmcdi,ies-Fre7 oenie' Take The
Place Of otto,-I,,, peoa Baate Snpport the Var
for TIE I,aien-7h AMSTERDAM Observation-Disclosures
Tie Frankfort Eyolangc-The rrach rs 81 the CIR
rency--Mr McCulOch I,0p.es Ner Medsnre-1"e
be 'trupt Condi in Of Emypean Governments dc.
Most OF your rrsders arr probably aware that largo
amounts OF United states securities owned by Dach
and German capita sts and that the price OF gold 10 NJ
anxously watched ~ thousands upon this side O. the
Atlantic as b. bills and bears Of Wall street but few
outside banking circles arc likely to know to what
ter, the expectation OF government stocks affects Vie
price Il mos, commoditics used by tho people Of the
United states A Firth belle will, perhaps, be
surprised to hear iha, She goes shopping In Broad
way tho price she viii pay FOR her sims and other
Gnerv dcpcnds 10 o certain extent The supremacy OF
the bulls or bears the European exchanges nor VIII
the palsmonios housewife be less alarmed when she Is
informed that the cause may affect the price OF her
coffee and u may he quite "a bore to New York
dandy 10 be told how foreign capitalists estimate the
financial position Of the country but when he has to pay
his Ca Tor bin he will find il anything but joke TO be
under the contro Of that my scrious power SO many
thousands of mics distant, which, under certain circum
stances has tn power raise or lower the value OF the
ercenbacss Owned by free and Independent citizens
This IS however, of the evils of paper currency
II will no do be interesting your readers TO ha9o
brief account laid before them OF the commercial nlu
ence which have already the financial position
of the United State. and which, arc likely, with the con
traction Of the currency still ino:e 70 make their power
felt In fur Tho price OF for'ign exchange which
affects that of every imported aud Of many domestic
articles l.. aud the last three years. greatly
affected by Tie expectation Of United States securities.
took Tor the time, tho place of cotton and
tobacco and when the rebellion rendered Il impossible
to export Southcr produce TO for imported goods.
those government bearing bonds exported
to restore the baancd II would be useless 10
speculate the effect this business has Ind on the sue
ccssfu termination OF the war; ioue Mt tho possible
consequences OF an expectation Of specie and
proporonate dcprecatoa of the currency mt the COM
menccraent hut much is certain that both
Dutch German capitalists take much credit to them.
selves for having at critical periods como to the assist
ancc OF the United States government and enabled II TO
carry the struggle TO successful issue Commerce is
singular mixture OF principle and self interest and
bankers Of all business most alive to the chances
of The winning side am, therefore, inclined to believe
that their confidence in the restoration Of the Union has
for the abolition OF slavery and the triumph of rcpub
institutions
Before the rebellion there but small amount Of
United States securities in Europe European capital
isis could obtain h ger interest by investing in some
Of tho second European nds and the government
loans wcre fact Of too limited character 20 admit OF
extensive operations with foreign exchanges Th great
expectation OF those securities comm need about the
time that the first rise took place in gold which enabled
foreign purchasers obtain them much below par. It's
effect was soon felt IN price OF gold which suddenly
fell from seventy TO thrtyyc per cent and which
was enormously attributed TO laws passed by Con
gress preventing the deprec alton of the currency
This belief in tho efficacy Of legislation for the regulation
very generally entertained and led, at
subsequent PERIOD to another attempt in that direction
with most disastrous results Then II admitted that
tho first great fall In the price OF gold was not in the
least caused by Mr. Chascs manpulaons, but tho nniu
ra result OF the expectation Of United States securities
H. IL calculated that three hundred millions of these
bonds have In this found purchasers in Europe.
Amsterdam and Frankfort bankers were tho first TO bring
them to market and IL is among them that tho most
extensive operations still take place. Al first the
bisncss was IN the hands OF few. who managed
10 clear profit FIVE and sometimes ten per cent being
the difference in their valne on the New York and Eu-
rorean Exchanges, and some imported from two TO
three millions weekly viii be seen that large fortunes
we're realized by those operations. Gradually, however,
Others entered the ring and reduced the pront to two,
sometimes only to one per cent and in they
actually experienced loss which has been the case with
the ivc.,wcn,ics recently imported As the Amsterdam
and Frankfort Exchanges thus identified with Ameri-
can interests the following brief sketch Of the mode In
which business transacted may not be embarrassing 10
the readers Of the HERALD:-
The Amsterdam Exchange IL open for business from
three 10 I'VE O'Clock daily except Sundays, and 10 daily
attended by about four Thousand men, comprising not
only the bankers but men Of every trade and business
The grocer and shipbrokcr the dry goodsman and build
erin fact every calling with the exception OF the
learned professions is there daily represented and 10
facilitate business every trade has special place as
signed 10 H. that there is not the least dculty in
finding among this mass Of beings any one with whom
you have some business to transact These hxed localities
called hoek'' corner. word which forms part o.
.sKinderhook,r in both OF which tho second is a
modern innovation for the ancen, :. The
10 the left Of the Exchange. and easily distinguished
from the others by the dsordcry proceedings OF the
ss and m eveTy dns class Of Ucss IN
which business IL DONE but the largest s the one in
which American stocks are bought and sold. To
minus the skelah, in which some hundreds Of people
take part and every one tries TO make bis voice heard
above the other Such confusion Of tongues such
pushing ebowing and screaming; such moving TO and
fro tina, unsophiscated bysandcr unintiated In the
mysteries Of stock business would fancy daily inert
ing place for bona ride bulls and bears clad IN human
apparel for the Of phlcgmatic public And
vet amid oil tn clamor the debate operations
executed, millions upon millions changing hands Affect
ing the fortunes ~ all capitalists and the Exchange %
| New York well M Of Bombay There IL scientific
element introduced here in the stock business az yet
unknown 70 the william street sockbrokers which Is
known under the general term of arbtragc and con-
in the art Of selling and buying simultaneously on
the various Exchanges OF Europe. For this purpose
telegraph Offices opened In every European Exchange
| by Of which bankers made iisantaneously
acquainted with every uctuaton In other cit.cs and are
thus enabled TO derive immense profits through Their
correspondents who continually the alert Tor their
rucipals order TO buy or to SELL az the case may ve
traveapt,, will be extended 10 the precincts OF Wall
street. and will OF course, tend 10 equaze the prices ON
tho American and European Exchanges Inc Hock our,
ness OF Amsterdam has this specific feature tnat al
transactions which has the sau,ary eneo o'
keeping ont large crowd Of speculntors with more I'm.