The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-02
FINANCIAL I'D CONNER GAL.

poant touched Afterwards, however, the market
vas attacked inst a it was yesterday afternoon and
: decine 20 1897 was the result, the closing quota
ssuu on the street having been 1901 la0H. Great
activity and considerable excitement attended the
aealings and the operators for fall were.
eoufident In their predictions Of lower
uremium although nothing has occurred to
made gold less valuable than It was month or two
aeo They ere, however at present assisted by
sscssury sales although the government had no coin
% sell when the price was ten per cent higher How
uach coin the Assistant Treasurer has sold within
any given time is not known. but we are informed
9hat he says 1t has not exceeded half million thu
week although the indications to the contrary Nh
van Dyck also says that he has not sold any United
mates bonds recently, but the sudden appearance
n Wan street Of parcels Of the nv0
txenties Of 1857 within the last day or two bear
1ng consecutive numbers and looking a. new as
shey had just been issued has given rise to the sus-
pacion, and In some minds to the conviction, that
tAey are OF recent issue The question, therefore.
arises why gold and bonds should be sold BY the
Treasury at time when It II notorious that strong
e0orts are being made to produce monetary strin-
ecnoy for the purpose OF breaking down prices On
ne Stock Exchange. OF course II the Treasury sells
either It has to withdraw its equivalent In currency
kom circulation. and this only tends TO aggravete
me prevailing artificial stringency. The Assistant
Treasurer has expressed his desires 70 relieve the
pressure upon the banks BY holding back six or
eight millions Of checks upon them until after they
lave made up their quarterly statements, but after
acquiring at all the Wall street banks We ma that
lhey have no certified checks OUTSTANDING that have
been held back and consequently IL to be inferred
Nat n he holds .such checks they have not been
certified, supposing which to be the case an
obvious neglect Of ofncial duty ID suggested. 1t
would be unfair to suppose that this story about the
checks Is q fabrication, but as applied to the Wall
street banks it Is without foundation In fact Never
sAeless it has been used bugbear BY the bears TO
Empress Wall street with sense OF the power which
the subTreasury possesses over the banks and con-
sequently over the money market, whenever II may
choose TO exert It. That the Treasury has acted
during the last week exactly az the bears In
gold, government securities and stocks generally
wished It to do 10 undenable, and Wall street ia
hardly to be blamed for assigning, as 1t docs cor
rspt motives for SO doing. How far Mr.. McCulloch
may be responsible for this we cannot say, but he
owes It to himself as Secretary Of the Treasury to
publish statement Of all hs recent sales OF gold
and bonds together with an explanation Of the
reason why the sales were made at this particular
time, when special causes were In operation to
disturb the money market. There was an active
borrowing demand for coin from the BEARS but ne
supply was superintendent and loans were made
nat and at rates varying from two TO seven per cent
per annum for carrying, and at lie per cent per
1sem The gross clearngs amounted to $3.50 40l 900,
the gold balances to $2,5i5752, and the currency
balances to So, 74o,s67. The steamer Hermann took
out $1,000 IN specie. The fluctuations during
De day were as follows:-
leA M ..14ox 3P. M......... .l4ok
E:20 A. ....... 13sx $3.50. ....... .lSsA 1857
= Money was In active demand all day at seven per
cent ana In some instances this rate was paid In
wOld VIII Nv, nj hprqa of rprc
paid for loans. The artificial character Of the strn-
gency Is well understood and the TACT that CERTAIN
houses have withdrawn their bank balances TO large
amount In greenbacks furnishes proof where
sach ia wanting. Friendly but unprinclpled
tauk officers have conspired In some instances
- aid the bear combination now at work
T by lending on certified checks and greenbacks,
Ont It by no means follows that because bank is
hrgely debtor or creditor az the Clearing House
~ officers have any completely In the matter The
indications that the worst OF the pinch has been
felt and although material change for the better
can be looked for tomorrow 1t Is probable that the
bulls on the stock Exchange viii successfully resist
che pressure during the remainder OF the week,
after which the market viii doubtless re-
sumo its previous easy condition Stocks OF
oil kinds advanced to-day In the face Of the strn
gency, and Erie was especially strong under heavy
purchases, the price having advanced to 49k 40k
ct one time in the afternoon. The dry goods trade
was somewhat depressed by the further decline In
gold, and at the auction sales the attendance was
mther poor, while the bidding lacked spirit. Bust
ness In discounting is almost suspended for the time
Being, owing TO the general state Of the money
market.
At the commencement OF business the railway
share market was dun and heavy ana at the early
session OF the open board New York Central sold at
I26x, Reading sa's and Erie 46. At the nrst regu-
hr board the market was duh but steady, and on
The call Erie closed y higher than at the same time
yesterday, Reading y. Cleveland and Pittsburg u,
Rock Island u, Pacific Mail ~, Tennessee skies ex
coupon, ~ and new issue h while New York Gen.
Aral was J. lower, Fort Wayne IA and Milwaukee
and St. Paul preferred /. Government securi-
Nes were dun at decline OF n q " per cent.
At the open board at one o'clock the market
hccame strong and Erie sold at ASK, New York
Central 1878 and Reading sak. After the
can there was an excited demand for stocks
and at the second regular board the market was
strong, especially for Erie and New York Central.
On the call New York Central closed higher than at
me nrst regular board, Erie 2. Reading ~ Cleveland
and PIttsburg X, Northwestern preferred l, Fort
wayne y, Milwaukee and st. Paul Ireferred III
Pacific Mail TX, and Tennessee skies, new issue, ~
Government securities were strong at an advance Of
sax. Subsequently Erie advanced to 4sx dssX,
and New York Central to 12sx 1857. inthe midst OF
great excitement, but downward reaction followed
Immediately afterwards, and at the open board az q
quarter past three Erie sold at Az; New York Gem
asal, l27H; Reading. s4,l; Fort Wayne, losx; Rock
Inland. 1o2x and Northwestern sssl. During the re.
maipder OF the afternoon the market was frm, and
q six O'Clock it closed strong at the following quota
uons:-New York Central, 1914 LIS; Erie. AsK q
ASK; Reading ~ o OAK; Michigan Southern, sSk Q
s3x; Rock Island, 1o2x q 1927; Northwestern, ssK
. sx; Northwestern preferred, ssN ss5.; Fort
Wayne, 1851 a 1851; Pacific Mali, 1iI,k 0 llih.
y There has been variable but on the whole rising
market for government securities during tue
Aay. Az the hrst call 10 was very weak
md the nve-twenues Of 1861 sold ut losK,
but subsequently an increased investment demand,
stimulated by the decline was experienced and this
frrnnd Tho tia n fauor hlnhnr .a.... aA.as -.