The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-06-11
FINANCIAL AND, coMMEsc IAL'


dent, funds should not command more than four to
hvo per cent interest in transactions on CALL forms
the feature OF interest in wall street just now and Ii
the secret OF the success which has attended the
heavy demonstration Of the "bears" on the stock
market 1t win be matter for curious "Reminiscences
that the 10th Of June, 1882 In the middle OF the
season at which money IL usually most abundant In
the metropolis, as high as one-quarter of one per
cent interest was paid for the use Of money for one
DAY. This rate was had late in the afternoon.
subsequent to the usual closing OF the banks;
but from the persistent inquiry. which lasted long
after three O'Clock it, evident that many accounts
had not been made up until four O'Clock or even
later than that time This was the extreme and ex-
oeptional ngure but the rates very freely paid were
seven per cent gold, seven per cent currency plus
commissions Of one-sixteenth and one-eghth, and
seven per cent gold plus similar commissions. The
sTunning" for money late IN the afternoon was sug-
gestive OF the frequently witnessed in the
fall and spring periods Of stringency In Wall street.
1t L. only proper to observe in this connection that
lenders were found who. in the confident
belief that the present activity is artificial
and temporary, were willing to make time
loans, and one transaction Of this character
involved the sum Of for which the borrower
contracted to pay six per cent per annum interest
and premium OF one-half per cent-making 1t
equivalent to twelve per cent per amman, the time
OF the loan being thirty days. 1t is difficult to be-
lteve that the stringency arises from other than
speculative influences; but its extent and success
suggests the inquiry whether it Is wholly artificial
The wonderful knowledge Of the "bear" cliques in
foreseeing the disturbance OF the money market is
not the least curious feature of the present sudden
revulsion in the stock market Foreseeing 1t, they
have doubtless assisted and aggravated It, One fact
seems to have escaped general observation viz the
gradual but steady and heavy dIain Of currency
into the Sub-Treasury, where some 500 00O 900 has
accumulated. The increase Is the natural result OF
the present system of gold sales and bond pur-
chases Mr.. Boutwell, sells weekly $4,000 600 OF gold
Tor which, In round figures. he gets $2,7OO,OO He
buys 0O0 900 OF bonds for which he pays ST. o0O
the gain to the Treasury is therefore just $780,
every week. Mr.. Boutwell, In selling s2ooO,0oo OF
gold week, selected the season OF the year In which
experience indicated there would be least danger to
the local finances of this city He sells only million
OF bonds IN the coreative operation II Will be re.
memDered that Secretary Boutwell, was strongly
urged 10 buy million OF three per cents instead
OF the additional million OF bonds. 1t Is now init
mated that he is accommodating fund wherewith to
redeem these three per cents, which are payable on
demand. Hence the increase noticeable In the Sub
Treasury currency balance. Originally the Secretary
OF the Treasury was authorized to redeem these GER
tincates by the issue of an equal amount of green
M McCulloch's experiments with the currency for
bids expansion ana contraction alike. Hence the
redemption Of the three per cents must be made
with money which Is now in circulation. II Secre-
tary Boutwell, is digesting any such scheme secretly
and for the purpose of astonishing the country by
his financial sagacity he Is playing into the
hands OF the gambling cliques OF Wall street,
OF whom he promised to steer clear. What
ever the real source Of the present stringency
In money the banks and other institutions having
funds to loan are deeply scrutnous ofthe colateras
presented to them, and hence contribute to the
activity. The effect Of this state OF affairs was re-
Elected in very excited day in the stock market
where stocks were sold in enormous quantities and
at large concession In prices, those who were I'M
able to borrow upon them being compelled to sell
for cash. The decline was most marked In the in
terval just before the last session OF the board and
was headed by Michigan Southern and>New York
Central, which sold down to 1O2H and 1872 respec-
lively. The yielding IN the rest Of the list
was Of corresponding degree. Reading fell or
TO 90, Northwest to S5X, ST. Paul to 72H,
Ohio to ai1S, Hudson River to 1881 Pittsburg
ok. Pacific Mall was exceptionally strong and
higher. The nrmest Of the railways were Fort
Wayne and Rock Island. From this point there was
o steady r.Nction under purchases by brokers. who
were prominent in the beginning OF the "bear"
attack and by the Shorts" who found 1t an excel
lent opportunity to cover. Marposa preferred was
comparatively steady at Is to IL, under purchases
by the lucky ones who were 'short" oft Curiousy
enough, Erie strong and held its own all day in
the vicinity Of 29x. The following were the closing
prices at the last session OF the Stock Exchange
Canton, OF q 02k; Boston Water Power 10 II;
Cumberland, 50 SO; wells-Fargo Express, SOx
D sox; Adams Express 5S1S; American Express,
3sk 40; United States Express 90 bid; Merchants
Union Express, IA q Is; Pacific Mail, s3A 81;
Western Union Telegraph, 39ys 4oH; New York
Central, 1924 1873; MarIposa. 7; do.
preferred, 161S II; Hudson River 1887
bid; Harlem, 143zs; Reading, o6H o eeX;
Alton and Terre Haute preferred, Sc; Toledo and
Wabash, COX q e9X; do. preferred, SO; Milwaukee
and st. Paul, 7sx TAX; do. preferred, say a s3a;
Hannibal and st. Joseph, 1901 l23; do. preferred
us; Ohio and Mississippi SAX a2H; Fort Wayne
155k 1851; Michigan Central, $50 bd Michigan
Southern 1o2x 102sl; Illinois Central, 142 bid;
Cleveland aud Pittsburg ok ok; Rock Island,
1l7ts bid; Northwestern, 500 se,S; do. preferred,
ok o7k; Delaware and Lackawanna lis bid,
New Jersey Central, 11o9t Ill; Morris and Essex
IS so Chicago and Alton, 1897 155; do. pre-
ferred, 154X bid; Chicago, Columbus and Indiana
Central, ssK Az
The course OF values not included In the active
speculative list at the Stock Exchange was more or
less affected by the action OF the directors Of the
Bank OF England in reducing the rate Of discount
from four and half to four per cent and by the
reports Of fighting in France, to which the weak
tone OF the London stock market seemed to give
color OF truth.
Government bonds were heavy at the opening, in
response TO the more active demand for money, but
the decline was very gradual, amounting to about
one-half per cent during the day. the cheaper price
ct each stage inducing purchases against the Lon
don quotation, which was very steady at sox until
late In the day, when 1t followed the general
OF affairs at London fell TO so and closed sox. The
English market for consols according to late private
kilograms, was weaker by as much as three-quarters
per cent despite the reduction OF the discount rate
and the increase Of specie in the Bank OF England
which would indicate that the troubles in France
were regarded as quite serious The following were
the closing street quotatons;-Unted States SKIES,