The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-07-07
The New Work Money Market.

FTOlR the HeFdtd.
"whnc the markets were generally duh to-day a
great deal of interest manifested in the course
OF the money market, the opening signs OF which
this morning were scrutinized with more than usual
curiosity il was felt that the time had come either
for relaxation OF the stringency which pre-
vailed mn 10 the eye,of the 4th or for general sale
of stocks avoid the accumulation of interest which
this strDgency has entailed. The earliest rate for
money was about sixteenth per cent and the great
volume Of business up to half-past two O'Clock was
done at this rate and at an eighth The demand be-
came more active about o'clock, when as high
quarter was paid for some small amounts, but
the prevailing figures were an eighth and interest
and three-sXteenths. The fact seemed TO satisfy
the street that the money market, despite the heavy
Government purchase OF bonds on Saturday, was
still susceptible OF speculative manipulation. The
schemes and are pursuing the market with reent-
less energy. The cliques In locking up money, nave
resorted to rather profound piece OF strategy ana
street as elsewhere necessity Is the mother OF nven
tOn. The operators OF Jacob Littcs time would rub
their eyes IN bewilderment could they witness tne
devices which are resOrted to in order TO move
the market This latest strategy has arisen out OF
the failure OF the usual process OF lockingup money
through direct deposits and certified checks
The tell-tale figures Of the Clearing House and
the condemnation OF the press have fright
ened the banks so that they cannot be easily
induced TO lend themselves to any locking
up operation. The cliques, therefore, have
been compelled to cast about them for some
other means. Their latest plan is to borrow Govern
ment men bonds and stocks giving green6ack collate
onate to the loss OF interest the money, which by
the terms OF the agreement must be put away out OF
bers of the greenbacks are taken. Hence the same
notes must be returned it, being the law OF such
transactions that the same collateral, and not an
equivalent, must be returned. Such money cannot
be deposited in bank 1t is destroyed for the time
bonds and stocks so borrowed are sold again The
money received is used to borrow more bonds and
stocks and the process is repeated over and over
again. A prompt operator can thus in one day with
hundred thousand dollars buy up ten times that
sum. Meantime, his sales Of bonds and stocks keep
their market weak, and help to the accomplishment
of his final purpose
cal paper but no sales made at other than ex-
trome rates. The best class OF names may be bought
at twelve per cent? and are being offered very freely
at ten per cent There are many who will not sell
at greater discount Than nine per cent, it is true,
but their paper is neglected. The accumulation is
rather greater this summer than usual for the
that previously at this season paper taken In
preference to lending on CALL the market rate OF the
one being much lighter than that of the other.
Now things are entirely reversed, and call loans
absorb general attention and investment.
"Foreign exchange was dun and firm. The lead
ing bankers asked O994@1O91S for sixty day bills and
11OA@110% for sight sterling. In second hands
some blls were sold at 1O9S, which was the quota
ton of bankers The drawers firm in maintains
ing rates, hut between the deferment of specie ship
ments ana the Improvement in bonds abroad, buyers
are disposed to await what they expect will prove a
downward movement.
'HThe market for Government bonds was not only
iavorably affected by the general buOyancy which
so ilusively characterized the market in the morn
ing, but was strengthened by the cable dispatches
from London announcing an advance OF Five-twen-
ties to slG. Bidders offered figures large improve
ment on Saturdays, but holders were 80 encouraged
by the foreign quotation that they asked prices which
gave the list rather irregular look at the close OF
the call. The activity in money, slight reaction in
London the decline in gold, and desire to realize
at the present stage OF the market, occasioned a
yielding OF quarter in 62s and of an eighth 10
quarter per cent in the 67s at the afternoon boards
The continued decline in gold after the boards led to
still weaker feeling In subsequent street tran5ac-
tions, and the market closed with the following
street quotations. which, it will be noticed are about
the same as those on Saturday evening g:-United
States 6s, 1881, registered, 117@11711; do. do
coupon, l1Ih@l1l9S; do, Fye-twentles, regis
tered, 117K@11724; do do, coupon, 1862, l2l9a
Ca1215S; do. do, coupon, 1864, 117ss@1l7at; do
do, coupon, 1865, 11sh@11sN; do. do, Goa
pom, 1868, new, 1l6K@1l62S; do. do, coupon, 1867,
116I, @1163S; do do, coupon, 1885, 116I{ 3all6I;
United States 6s Ten-forties, registered, iO7 4 @iOS
do: do, coupon, 10O@10s1S; currency bonds, 1904
1861.
"The uneasiness at the success of the cliques in
keeping money tight instrumental IN leading to
"a sharp decline in gold. The market was ready to
Opple ever since the strngency reached the aggra-
walton OF quarter and threeeighths per cent per
day for carrying, and was therefore easily started
downward by the advance OF hye-twent!es in London
and the drawing of bills against exported bonds
The extreme range was from 1879 to 1885,"