The New York herald., 1869-06-29
FINANCIAL AND COMMERCIAL

FINANCIAL AND COMMERC ClAt.
MONDAY June 2s--6 p. NJ
4 The money market to-day underwent very sud
den ana an extraordinary change which had the
1nect OF seriously alarming the bodest OF operators
81 the Stock Exchange. During the forenoon anu
turlag Che portion Of the afternoon dt 10 laFpasr
NO O'Clock the rate on cali loans ranged evenly at
per cent currency for the great majority Of loans,
the exceptions being at gold interest for those ac-
Companied by pledges of inferior collaterals or
where the borrowers were not in prime standing.
At quarter to three the scarcity Of money became
suddenly quite noticeable and the interest rate ad
vanced through the intermediate fractions Of 1s2,
lo I, u and sf until II per cent was paid, In order
10 get money with which to make accounts
1000 at bank. This IL at the rate OF 1925
per cent per annum. thunder clap In
: clear sky could not have been more astonishing.
Indeed, those who were not present in the excited
group gathered on the sidewalk in front OF the
Stock Exchange could hardly believe the fact when
told them by others. The demand for money was
SO great and borrowers so unwilling to pay such
extreme rates that many bank accounts were not
made up until four O'Clock, after which hour money
was again being offered at seven per cent, the de-
Cline from the climax descending through the scale
pf dgures in the order in which the ascent had
faken place. In looking for the reason Of such q
Sudden spasm It is evident that the immediate
cause OF the strngency was artificial. The
aspect this morning was most cheerful one
The warm summer weather seemed tine
j0rerunner of the easy market 80 usual
at this season. Borrowers gave themselves
little to making their engagements, espe
caliy the last days Of the previous week
money in the habit OF relaxing to six per cent
b the vicinity OF three O'Clock. They expected to be
similarly favored by postponing their inquiries to-
day, the consequence Of which was very large ac-
oession to the number of borrowers in the interval
lust before the close Of banking hours. Lenders
tbund themselves in powerful minority and put up
their rates accordingly, while to cap the climax a
number of prominent clique firms operating either in
3 general 'bear'' movement or for short
turn SCOOP" as the street technically
designates it. bid up the figures 10 the ex-
tra0rdinary rate OF one-saf Of one per cent
per day. Borrowers had themselves to blame
@or enabling the clIques to ''squeeze'' them The
/ best cf business men, however, might have been
bull IA into most hopeful expectations so calm and
Apyaflled was the surface OF the money market
sering the earlier hours OF the day. The revulsion
Mas onnous ve interests Of the general mercan
tile community as to the specializing fraternity in
Wall street. The fact has been made apparent that
the money market was only convaescent. not recov-
cred alter the Illness produced by Mr.. Boutwes
pontractle gold sales. The patient has had relapse
WutCN HOW tHc puyslCdlo iOi tHS ICui otoeo
! 0f their charge. Mr. Boutwell, meant well,
or coarse but he has not done well. He
has taken over twenty millions OF currency
from circulation at critical time, when the
South. winch had dollar after the war, is daily
drawing upon for currency and retaining it for To-
cal circulation. Mr.. McCuloch in his administration,
contracted the currency over $1oo, 100000. What
with The wear and tear of paper the retirement of
hanks and the positive contraction Of Mr. McCulloch
m~Nl trralt fl,n hoQ hon 0hnn
nearly s2oo,ooo.ooo. II it be said that the strin-
gency OF to-day in our city money market was arti-
qcia the ropy mnst be that our finances should be
80 managed as to place 1t beyond the power OF any
clique or combination to produce such spasms
The government market at the opening steady
and strong but without other feature. The Assist
ant Treasurer is paying the July interest the
registered bonds in checks payable July I. In the
afternoon the activity in money frightened weak
ho;ders. while making larger operators uneasy. The
pressure sell led to decline Of prices, and the
market closed about quarter to q half per cent
lower, Us rolows:-United States skies, 1881,
registered, 1les1 117h; uo do, coupon, 1918. a
lg1x; DO, hve-twenties, registered, Icy a 1l7h;
o. do, coupon, 1862, 1913 l2lA do. do, cou-
pon, 1864, 1l7A q 11sA; do. do, coupon, 1866,
ms. Iis9s; do. do, coupon 1885, new, 1ls,s a
ilp7s; DO. do, coupon, 1867, 1875 1le't; do.
do, coupon. 1858, ifb9s l1s,s; do, ten-fortes,
registered. 1o7& 1os: do. do. coupon, 1881
f0o,.; currency bonds, 100 o 1O6k '-.A
IN Southern securities much interest was mani
fegted in the Tennessees, which rallied in the morn
ing but fell of again and rallied again at the close
Tue new South Carolina bonds have been put upon
~ regular call Of the Stock Exchange The follow
g were ihe nal street prices OF the Southern list:
Tennessee, ex coupon, e21i %; do, new, s1% So;
Virginia ex coupon. So Q so; do new, SO o2tz;
Georgia sixes, 81 So; do. sevens, s5 s6; North
Carolina cX coupon, 59tk JeiS; d0 new, SAX O So;
Missouri SKIES, 61k 92i4; Louisiana skies, 7ah q
~; do evee sixes GIN 6S,S; do. do. eghts SO sS;
Alabama eights, 81 es South Carolina skies. DID,
sSasI; do new, 1867 SO s4 do. do, 1862 T1h a71,S
The Iuterest on the bonds and stocks Of the 6rf.
poration OF the city Of New York due August 1869,
viii be paid on Monday, August 2, by MIR. Peter B.
Swecny. Chamberlain Of the city, at his ONCE lii the
now Court House. The transfer books will be closed
July 8, 1863.
Foreign exchange was firm for sterling and active
for German bills, WHICH were In better request The
market had closed before the activity in money was
operative Much curiosity Is still manifested ss to
Che extent OF the reinvestment Of the July coupons
held abroad but the price Of the dve.twepttes In
london this evenng-sos-is rathef more ehcopr,
aging to those who look for gold shIpments The
range Of rates was as foows:sterlihg, sixty days,
commercial, 1854 1925; good to prime bankers,
1oo1I loegi short sight, llo1 llo,l Paris, sixty
days, 5.2l b.15; short sight, s15 6.12k; Ant
wesp. 3s7S 357s; Switzerland, 5.21X 6.15; Ham
burg 5.2iAa SIS; Amsterdam, 3ex 4oN; Frank
fot aasx 4o%; Bremen IS 1877; Prussian tbAlefs
| 1ox 7lS.
Gold nuctuated between 137x and 1874, the trans
actions at either extreme being exceptional The
feeding evenly balanced to the course which
the premium must take that the speculative interest
II moi large. The strength Of exchange encourages
MN vtol Jtnfs- an