Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-01-12
New York Money Market.

NEW YORK, January 3.
Wall street was disturbed to-day by a sharp de-
cline in the stock and gold markets. The stock
market opened heavy, and under the pressure OF
Sales prices declined rapidly, and for about an
hour the market seemed to be on the verge of one
of those ruinous panics with which spectators
were familiariZed by the Honorable Salmon p.
Chase, when Secretary of the Treasury. Since
Friday last, the public mind has been unsettled
by semi-ofieial information, confdentially circu-
lated in the proper quarters in regard to the pol
icy and movements of the Treasury Department.
Contraction and lower prices are the ayowed ends
determined upon by the Secretary, and the know
ledge Of this fact is predsposing holders OF mer-
e1ain tssm anS Mr. aToWed
ton to commence the process of contraction of the
currency daily increasing the number ofsellers,
and at the same time, is decreasing the number of
Those who are operating on small margins are
likely to their surplus disappear, if this goy-
eminent policy is carried out, and after the prop
erty they have been specializing in is sacrificed at
low prices to strong buyers, then the market will
again surge upwards under the influence Of easy
money markets and bank loans. IL is the old
story repeated of the small operators swallowed
up by the rich and influential. Failures are repu-
ted among some of the outside operators and these
the last few days, have created an uneasy feeling
among money lenders, who are making matters
worse by calling in their loans from the weaker
brokers' while at the same moment they are law
ish in offers to lend to the strong and infuen-
tial. Hence the quotations for loans on call
range from five to six per cent, easy to strictly
not so favored houses, find it difficult to borrow
at seven per ceat. The banks, money lenders,
and Treasury Department will do well not to
press matters TO an extremity, because mercan-
tile confidence is feverish and unsettled, and II
panic once gains Roadway in our markets, it will
be impossible to effect sales at any price. and
deadlock throughout the country will be the
natural result To denounce spectators and
SPECULATION may be an effective theme for the
stump orator at a ward meeting, but 1t IS q dan
gerous experiment for high government ofhcial
to try in a country where the lawful money con-
sists of the national credit, coined into paper
promises to pay. The Secretary of the Treasury
is complete master of the future destiny of the
property holders of this country. He can put
prices up or down at his pleasure.
effort and touched 1873 after the gold board adj
iourned. Iii stated that no gold has been sold
by government but whether that Is so or not, Is
known only to those initiated in the confidence of
the Treasury Depart. Everybody seems disposed
20 sell gold short, and Just so long as everybody
wants to SELL and nobody wants to buy except
ing to close q short contract, the price viii de-
cline naturally. When all the shorts begin to toy
and buy the gold they have sold, it is quite posi-
bic that the price may jump up as unpleasantly
high as the recent tumble. The foreign exchange
market is dull and the demand is nominal. The
quotations are: Prime bankers sixty.day sterling
bill 100 net, and other bankers 1881 to lOSts.
Prime commercial, l0S5s TO 10SZ. Francs, prime,
5.lS34 to 5.l7l2, and good commercial 5,2lH to
so.
Government securities are heavy for the gold in
terest bonds, and better for the even-thirtlss.
These changes are the result of the decline in the
price of gold greenbaeks becoming more valuable.
The stock market was on the verge of panic IN
the early part of the day, but was rallied by the
demands from the bears to cover their shorts The
large short interest alone prevented panic, as
the decline seemed to paralyze the bulls, and
forced the weaker holders to sell.