The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-30
FINANCIAL AND COMMERCIAL.

str,ngeucy in the money market, more so than was
contemplated even by the great majority Of those
who looked for activity with the general closing up
az accounts on the part OF business men and the pre-
parst?n OF the banks for the quarterly statement.
The banks to-day close almost to nggardliness
and loaned with stinted hand. The general desire
10 appear as favoaby as possible In the statement
snduces contraction, which is rendered extreme by
the flow OF greenbacks to the South to pay for the
cotton which is coming to the seaport cities in large
quantities. The exchanges with the West are either
at q sandstill or viii soon turn this way, all the
money requisite that direction having been trans
lhitted. The relief from this quarter need
not be countel upon, nor can any nope
be derived from the remittances OF country
banks TO this city to earn the prevailing high rates
OF interest In fact many Of these latter institutions
ore taxing up their balances to use IN making their
quarterly statements. that the loss this way fully
Offsets the receipts from those seeking better interest
Tor Their surplus funds The money crisis OF No
yember last has already demonstrated the fact that
the needs OF the metropolis are too great to be sup
piled from outside lne loose money OF the
country banks when united In one sum makes bur
small item In comparison with the vast amounts
which are employed In the financial circles OF the
metropolis. In the forenoon the market was, OF
course, without much sign. at noon, however, the
pinch was severely felt and considerable consterna-
zion manifested especially as one OF the banks
was reported TO be embarrassed through losses
arising from discountng the paper Of the firm which
lately suspended. 1t is only just to say that this
report was all exaggeration, the bank in ques.
ton having p,oved its soundness at the Clearing
Honse. Doubles it suffered losses. but not OF
an extent to impair its solvency. Extreme rates
were paid on cali loans. The greater number OF
transactions We're at seven per cent in gold. Upon
sp.li nnrrus
sions as high as q quarter of one per cent were
added As high "a half OF per cent per day IN
ferest askel IN some instances-which Is equal
TO $50 per cent per The period OF strngcncy
reached Its climax about two O'Clock. SO many
frightened ut the prospect OF still higher rates
that they largely supplied themselves. The conse-
quence was easier feeling toward three O'Clock,
when balances Offering at seven per cent cur
rency rather than be carried night without in
terest. There were rumors of a blocking up' Of
greenbacAs b. the bears but the comparative
abundance or funds at the close shows that
these stories hal their foundation in the sTrngency
Of the middle Of the day. The bears" nave not COM
menced their attack as yet. They are disposed for
the present, to assist the 'bus' In initiating prices
Their turn will come by and by when figures are at
such height that il will be much more profitable
enterprise TO break the market The fluctuations Of
to-day were the natural effects of tight money ana
the natural reactions Of ascending prices. One fea-
ture OF to-day IS noteworthy -money was bid for
and oEcred like stocks. After banking hours I'M
easiness felt for Tomorrow and borrowers were
around upon the street late five o'clock bidding
for fluids AS high quarter Of one per cent per
day mterest-whlch Is equivalent to about 90 per
cent per annuIn-was bid Tor one sum after that
hour
Gold was without excitement and the transactions
board the market was an exact repetition OF yester
day. The price nuctuated between l34X, the OPEN
ing price, and l35, the highest price. Alter three
O'Clock the market was hammered by the "bears,n
and limited amount was sold at 134ss. The clos
ing quotation at five O'Clock was l34ss 134x. The
carrying rate followed the course OF the money mar
ket, the figures advancing to IA per cent, Is and
3-15 in the period OF greatest stringency. The
gross clearings were only $3s154,000, the gold
balances s2SlS,l96 ana the currency balances
$A59i,727. The steamer Westphaa took ont S3s, 600
In specie.
The government market felt the stringency OF
money, prices ut the noon board being Il to Is OF
from the closing prices OF the previous evening.
Had the speculative investment been larger the
suit might have been panic in this branch of Wall
street business but holders arc In great measure,
purchasers for cash, DESTROYS OF earning the gold in
tercs and their possession not easily weakened.
The market closed firm at the decline with the follow
ing States skies. 1881, registered
10Sz 1895 do. coupon ll4As ll4a& b-20's. regis
tered 1864 100; do COUPON 1882, 110 11osl; do,
1894, 107lS 1914; DO, 1865. 107N 10s do. new,
1856. 10K 11ox; do. 1867 1los< 11o7s; do. 1865,
1Iots 1I11; lo-4o's, registered, 1927 1903; do,
coupon, 1853 1o5h; currency bonds, 30 a 99t4.
The same influence was severely felt in the market
for the border State bonds. North Carolinas were
nr cilox ,f
State authorities to the payment Of the interest.
The near approach OF January without any an
nouncement on this subject creates feeling OF APP
prehension that the State is not ready TO fulfil its
engagements. AT the close the following quota
tons prevaed:-North Carolina skies, ex coupon,
62if s.; do, new, COZ Gi; Tennessee skies, ex
coupon 90 20; do, new, 60 bid virginia skies, ex
coupon 55{ a SO; do new, So 81; Louisiana skies.
old 80 20; do, leyce, 60 81; Missouri skies, 30
q o.
quoted rates.
The stock market presented the contradiction OF
great strength, despite the condition OF the money
market. The 'bulls' made desperate fight all day,
anu prevented a panic which seemed inevitable
about hafpast one O'Clock, when the pinch was
greatest. good deal OF stock was turned for cash,
but the sales numerous enough TO break the
MARKET. Prices yielded under the great pressure,
but recovered easily. Those who are ''long" Of
stocks just now are seemingly determined to pay all
sorts OF interest for carrying the gap to the I'd
OF January rather than let 80 their grasp. The bank
statement viii then have been rendered, and they
calculate upon large advance In prices. The
..bearsu are remarkably quiet and sellers options
are few and far between. II may be that
they are convinced by tie ''bun logic that the
stringency cannot last over this week, and are
consequently afraid to make venture In such
brief periodi At the beginning Of business New
York Central opened in the vicinity Of 1J6x and
rose TO 1919 in the interval after the FIRST regular
board. In the period OF greatest stringency II de-
cned TO 1864 1865, and rose again with the re-
moval OF the pressure In the afternoon. The most
active stock was Onto and Mississippi which ut one
,,,,a uod OF aii< closing finally af the ouotatiou