The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-06-30


''The singular and almost inexplIcable strIneency
OF the money market noticed In the transactions OF
yesterday continued to-day, the aggrayation being
hours and extreme rates being more generally paid.
In the earlier part OF the day the rate call ranged
and interest many borrowers st deferrng their en-
gaRements In the belief that relaxation must come
in the afternoon. In this they were doomed to q
most annoying disappointment; for the activity in
creased as O'Clock approached, and three-eighths
demand was far from being satisfied at this the usual
closing hour OF the banks, and borrowers still re-
mained In quest OF funds. The sidewalk market In
front OF the Stock Exchange did stirring business
needy borrowers were stu compelled TO ofIer q
This state OF afrairs is puzzle and mystery to the
street That the immediate cause Of 1t is artificial
exact object? The hand OF the clique in tightening
money was very visible to-day In one transaction
quarter per cent and interest the lender requested
him TO send his collateras around promptly. The
borrower rejUiued Oh never mind about the eecurt-
ties just keep the money over night Don't lend it
TO any body else, and VIII pay you the interest On
acter, the borrower said he was only executing IAN
ORDER The incident tells volume. The large cques
during the last two days have been deliberately Car
rying' money as they would stocks, and by paying
the market rates have Withdrawn enormous sums
from circulation. II will be remembered that at the
last session Of Congress law was passed forbiddng
the making OF loans on money collaterals. This has
prohibited the old iavorte plan Of tying up green
backs The cliques then only lost the interest on
the money which they locked up but for which they
were more than compensated by the turn in stocks.
Now they are forced to the expedient OF Withdraw
rates OF interest in hope OF demoralizng the stock
market. IL was also evident TO day, from the ex-
teDsive OF gold collateral, that the precious
metal had been used to assist their schemes. They
were enabled TO get advances Of large amounts Of
currency upon il, and hence helped the general
aggravation. The injurious effect OF this stringency
is witnessed in the distress which it occasions
in circles having more legitimate need Of money
than the speculators OF Wall street. Commercial
paper is inactive and valueless except at immense
rates of discount-rates which business men are un
willing TO pay The best house In New York desiring
accommodation at this time In Wall street would be
laughed at for Offering their paper less, than nine
TO ten per cent The banks would not help them,
for they are secretly lending their money at high
rates call, while the private bankers can lend
every dollar they possess at SUPERFICIAL interest,"
The Underlying cause of all the arrangement seems
to the contraction OF the currency by the twenty
millions which Mr.. Boutwell, keeps In the Treasury
rs reserve to- enable him to carry out his visionary
notions of redeeming the three per cents. These
obligations, being payable demand, are re-
garded as first mortgage on the resources OF the
Government whereas the ordinary greenbacks are
just much entitled TO primary redemption-more
so perhaps, for the great majority OF them were
issued before the three per cents. This Withdrawal
OF funds from financial centre so sensitive
as New York leaves only small margin OF funds for
ordinary Ina. a alg at y ana Nv mo se
ment. They have so narrowed 1t just now that the
great OF legitimate borrowers are pushed of
compelled to submit to the usurious demands Of
those who fortunate enough to have capital. It
Is only fair to say in completing the record OF the
day, that loan Of $4,000 was made toward 5
O'Clock at threequarters per cent, but was attended
with circumstances which suggested wash and
ought, therefore, not to be quoted.
Governments were dull and weaker, in sympathy
with the more active demand for money, the de-
cline beisg more marked in the 62s, probably
through lower quotation-9018-for nve-twentes in
London