The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-10
FINANCIAL AND. COMMERCIAL.

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MONDAY, Nov. 90 r. n. 3
Business In Wan street opened this morning under
ne influence Of that sober second thought which
wanting on Saturday and prices for government
securities gold and railway shares showed decline
Of about per cent from those current atthe cose
On Saturday; but subsequently the Treasury ring
vent to work again and frean semi-ou1cial stock
yobbing reports were received from Washing
ton, Mr.. AcCulloch apparently lending hs In
nuence In behalf OF Wall street clique 70
create the impression that the currency VIII
be inflated although he II well aware nat the law
win not permit him to restore dollar Of currency to
circulation that has hitherto been Withdrawn from
H. Such . scandalous abuse Of ofacial position
TO aid speculative operations has before been
known, and after the many other evidences OF Mr..
AcCulloch's completely with STOCKHOLDERS that we
have had it is high rme that the President sus-
pended him and ordered an Investigation into the
afairs Of his department.. It is stated, notwith-
standing oiclal contradictions. that the Treasury
sold eight millions Of fve-twcntes secretly early
IN the present month in order to embarrass the
money market and depress government securities
md other stocks, for the purpose Of enabling the
Treasury ring to buy cheaply, and as late as Friday
list the Associated Press was made the vehicle Tor
semi-offcial despatch from washington OF DIS
eouragng character to the effect that the secretary
had no reserve which he could use Tor any pur-
pose whatever excepting the small remaining sum
sf third Of million. But on Saturday morning
behold the changeI The currency resources
q the Treasury were suddenly magnfed to an ex
tent which roog Wall street by surprise and damaged
those who had sent letters Of inquiry upon the sub
feet to Mr.. McCulloch few days previously and
been informed by him in reply that lie was entirely
without power to relieve the money market and that
the banks were to blame for the strngency, and not
the Treasury, they having extended their loans
on speculative stocks SO far as to be unable
70 afford any relief to the money market.
But the purpose Of the Treasury ring was
served, and they, doubtless. with Mr..
McCulloch chuckled secretly over their triumph. 1t
is needless, however to say that such conduct as
this is fraud upon the public ana gross national
scanial. It is reported that Mr.. McCulloch has in
structed Mr. Van Dyck to reissue ten millions OF the
three per cent certificates recently redeemed; but
this is sIretch Of authority without warrant under
the law. Nevertheless, II we admit 1t to be justin
able as a mere expedent, we fail to see how 1t can
relieve the money market, If relief s necessary, be-
cause these certificates can only be used by the
hanks, and the banks, in order obtain them, win
have TO buy them with currency or Its equivalent.
The stock market was alternately strong ana
heavy during the day, and on the whole feverish.
but 1t Is Inherently weak prices being far above the
ne sole support Of the speculative stocks,
which are selling in most instances at from
double to fourfold their real value. Whether
money is easy stringent, therefore. these
win have to decline heavily and we warn the pub
he against buying them and caution the banks against
lending on them, for they are liable to fall away
~ rapidly AZ Milwaukee and st. Paul, the tumble in
which within few days was equal to
atty per cent. The progress Of dem0raliza-
uon has only been temporarily stayed
by the stock jobhing Treasury canards from Wash
ington and before the present year expires there will
be sad havoc in Wall street. We are entering upon
period OF financial depression like that which Eng
land passed through prior to the resumption Of
specie payments, and prices must gradually tend
to specie values, and the bull clIques that
have been decoyng the public into their for
bong time past will be engulfed In ruin. Money
was IN good supply all day at seven per cent In
currency TO first class borrowers. with excep-
oonal transactions at this rate in gold to weak
borrowers, but the banks RENTING largely to
Me South and Southwest the money market will
naturally work more active as the season advances,
the demands OF the pork crop have not yet been
6elt.
The gold market opened at decline of nearly one
Per cent from the closing price on SATURDAY, and the
auctu atoms were from 1874 to 1885, with the closing
nausactions prior to the adjournment Of the
board at three O'Clock at 1856 against 134I
st the opening. Subsequently the price remained
steady and the latest quotation on the street was 1856
1855. The advance was caused by fresh semi
oncial stockjobbing dispatches from Washington in
the interest OF the Treasury ring These win be per
estved are sucienty vague to commit the Secretary
q the Treasury to nothing while they are threaten
ing enough to influence the markets temporarily,
and they bear on their face evidence Of the Wall
e~oxx, tcht p,raA Cuch
discredltabe efforts to turn the Treasury into
ssockjobbing machine excite the utmost disgust,
and the question is asked, why does the Presi-
cent permit man Ike Mr.. McCulloch TO remain
q the head Of the Department. The supply OF cash
gold was superintendent and loans were made at
rates varying from three to seven per cent for
ing. The Sub-Treasury disbursed $780, $50 in coin
during the day in payment OF interest on the public
debt and received $35o,0o0 for customs duties. The
gross clearings amounted to $14o 600, the gold
balances to $s7o,G6s and the currency balances to
$27s7,ssa The imports OF specie last week ut this
por from foreign ports aggregated $53,s6l, making
total OF s6,4s6, 10 since the 1st Of January.
comparison Of the last weekly statement OF the
associated banks OF this city with that for the
responding week in each of the three previous years
shows the following changes.
Not. 8, Ise!. Nor. I, 1868.
Loans. S2ss,sle,Is5 Inc. xS,Ss2,0l0
Specie. ............... l2elb,s54 me-. 3,o1s,oo.
Circulation. .......... 34,O69g03 Inc. 2s3, 1874
Deposirs ............ 1T $40 500 Dec. 1,es4.165
Legal Tenders b5.540ss3 Dec. s,37s, 673
Nor. 10, 1885, Nor. 7, 1865.
Loans S255,095,2Ss Dec. .$1o. 100, 097
Specie ............. 1S,l45,3g1 Inc. $780,, 450
Circulation .......... 3090s,g40 Inc. 3,3s4,697
Deposits. .......... 22a,3253l7 Dec. 90, ~, 500
legal tenders........ 7I.5l24pS Dec. 2s,345 1888
Nor. IL, 1866. Nor. 7, 1865.
leans $224 00s572 Inc. $32, $50, 6l9
Specie II, 800 20l Inc.. 4,s5l, $40
Circulation ....... 13.e25 2Og Inc. 20, 52s, AS
Deposits. l,i9o, Az lnc.. 1857, 216
Legal lenders........ ss,9l3.ssS Dec. s46,6S1