The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-26
FINANCIAL AND COMMERCIAL
SUNDAY, March 25, 1886

SUNDAY, AaiCu Aooo.
The speculation for rise on the stock Exchange and
for fall in the gold ROOM continued active last week,
and the two markets tended in opposite directions, the
former having apparently entirely ceased TO sympathize
with the latter Cold steadily declined from 12o,. on
Monday l2i Saturday, after which it reacted and
closed at 1853 l251-a lower point than had been
reached since August 1863 when 1t dropped to 1875,
after having sold at 100 in the previous December
The depression Saturday partly In consequence
OF erroneous impression that tho iore'sh
loan clause had been rensered in the Morrill, FINANCE o
passed by the House Of Representatives on fry Tue
text of the bill having been telegaphed 10 me "pa
pers in its original form and not as amended by sknS
out the clause in question The bill as u STANDS author
hes the Secretary of the Treasury TO dispose OF any dc
cron Of bonds authorized by the of March g. 1865
eser in United States or elsewhere but this virtually
givesim no moro power to negotiate foreign loan than
he alrey possesses In view OF the misapprehension
referred y and the fact that coin for delivery is
in such acs> borrowing demand that l-l6 8 80 per
cent per day are re for loans tho market
Will be likely to expersnce prompt reaction from the
extreme depression to which 1t has been subjected by
tho powerful "bear' interest at work and which has
resulted in the market being enormously oversod the
difference between the cash and rcgula price, nowith
standing the large floating supply of god goes to prove
1t must not be supposed that this fa in gold ia cause
Tor popular rejoicing or that brings us one day nearer
the resumption of specie payments On the contrary
too rapid aud artificial downward movement Of tho
premium has tendency to postpone the
ultimate return to tho lard money basis by
unsettling values, producing stagnation in trad,
and in1icting disastrous losses upon the com.
mercia community, so indirectly reducing the
receipts of the government and imparng its financial
strength and ability to redeem its legal ondr notes in
CON. Thus far the decline in gold has fortunately re-
suited in very serious commercial disturbance bit 1t
has interrupted trade and inflicted heavy losses upon
importers without any compromising advantage to the
people at large. The fall gold during the last month
has not been in consequence OF any greater confidence
in the national credit than previously entertained
Public opinion had nothing to do with it, but
the Spectators in the gold room had. They
found the market 10 9ded with superintendent amount
o. coin in consequence OF excessive sales by the Sub.
Treasury. While the demand for export was li.ht and
foreign exchange dull and heavy. splendid opporu-
nifty for a huge bear movement discovered, and i'm
medatey tho bulls sold their ''ons gold and
went short" and short nearly every opo.
rator In gold has since rema ned. But for
the government having tempered with the
ket these spectators would not have made
fortunes at the expense OF legitimate traders What tho
country needs nearer approach to stability The gold
vauc Of legal tenders and therefore the steady the
gold market remains on Its gradually decn,n. course
tho better II the government is seller OF gold it
should only be from day to day. in times of real scarcely
upon the presentation OF certificates meet tho de-
mand for customs duties; but under any circumsanc
the sale should be made publicly and with n view to
stendy and not to perub the market Tho daily range
OF gold during the week was as UNDER