The New York herald., 1869-03-20
FINANCIAL AND COMMERCIAL.
FsIDAY. March 1e-sP.M.

There Is continued anxiety in financial circles to
dcssrmine TO what extent the activity OF the money
market win progress In the period around the lst OF
April. In the corresponding time last year the
strngency became great that as high as one-quar
ter Of one per cent per day interest was paid on
call loans. But the activity Of the market then was
aggravated by the concurrence OF quarterly bank
statement day q well as by the forcibe removal
OF currency In the night Of the Erie oficials to
New Jersey. Our banks ct the present time
are In very feeble condition so far as their
ability to extend accommodation is concerned, and
from this fact some alarm taken for the state OF
money when the day comes The drain which u ex-
pected ct the beginning OF the new month may not
after all prove a. great as anticipated. 1t should
not be forgotten that the country banks IN getting
themselves into . condition to be prepared at any
time for statement such may be called for under
the new law, have gradually Withdrawn their
balances from the city and that very little currency
b now TO their credit What our banks have ID their
own. The lowness of these country bank ac-
counts Is further shown in the accumulation
OF commercial paper In the market. These
institutions have been steady buyers OF our mercan-
tile paper, the large margin In discount making
1t very profitable But the necessity Of being con-
servattve In their position as regards the Comptroller,
as well as the demand at this season Of the year in
the rural districts among the farmers in preparation
for tho summer crops, prevents them from employing
their funds in the city freely as they have been
accustomed to do. This is perhaps very hopeful
view OF the situation. The sbears" think and
speak Inherently and prophesy slight times"
and Q grand sbreakn in stocks. The market
frequently answers to the influence OF unsub-
stantial as readily to that OF real causes There
was . converted topper once who for long time
after hts reformation felt Inclined to reel at par
ticular hour every day, Just through the force OF
habit. Money has been SO long accustomed to q
spasm at this time OF the year that the fear OF may
bring on quite panic while the crisis would be de-
cidedy aggravated by raid from the ''bears" and
the locking up OF money. To-day the growing
uneasiness Of borrowers was manifested in great
activity during the period up to two O'Clock in the
afternoon gold interest being freely and generally
paid on call loans with pledge Of miscellaneous col
laterals. In the intervening half hour before the
closing Of the banks this activity greatly moderated
and loans were made at seven per cent currency,
with reported exceptions at six. The money comes
from private sources, the banks refusing to give
specie item In the bank statement tomorrow by the
loan Of 600 representing the payments for GUS
toms during the week win be conducive to further
conservatism In the matter OF loans and discounts
The activity OF the money market was reflected In
depression OF governments despite the firmer tone
Of The market In London, where 1928 touched
"a this morning, which figure Is the highest ever
teached there. The din1culty which the foreign
bankers encountered in disposing Of exchange with
drew their support while speculative holders were
compelled to sell In preference to carrying bonds
with the present high rate for money. 's2's
yielded to 119x, and '67's, which sold at ia In
the morning, declined to llsh in the afternoon.
There was rally In prices ct the last government
hno ri Af fhn
In money just at the time Of the session; but this re-
covery was lost again in subsequent street transac-
tons. and the market closed at i've O'Clock with the
following quotations. United States skies, 1881,
registered, 116 1164; do, coupon, 11oh a 116x;
do, fve-tweaties registered, 1l3X 1144; do.,
coupon, 1862, 119 119H; do., 1854, 114x q 115;
DO, 1856, lit 117k; do, new, 1895, 1l3K 113X;
do 1857, 1887 113k; do, 1858, 11sk 11Sx; do,
3en-forties registered 1o5x; do, coupon, 1861 o
ao5k; currency bonds, 1osX 1851.
At the beginning Of business the gold market was
weak, under the temporary operation OF the innu-
ences which depressed the market yesterday arising
out OF the continued advance Of bonds In London.
The price was run down to 1907 In few minutes
after the opening Of the board when the bullsn
gineered decided squeeze" in cash gold, which
was In earnest demand for delivery to fulnl the
short sales Of the previous afternoon. The excite
ment ran very high at this time, and loans, which
opened at nat for borrowing to two per cent
for carrying, were run up through the
fractions l-e4, 1-s2 and S64, until AZ high as
Is was paid before closing hours The price
under this pressure advanced to 1917. Later In
the day loans were made at nat for borrowing to
seven per cent for carrying while the price gradu
ally fell or to 131. Late in the afternoon "scaren
was produced among the "shorts," who began to
cover, running the price up to 131h; while 1-64
was bid for the use Of gold tomorrow. The ina
billty Of the foreign bankers to dispose Of their
bond bs that is at satisfactory figures, as well as
the heavy payments into the Custom House for
imports, renders cash gold quite susceptible OF
sssqueeze.n The range OF price was as folows:-