The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-01
FINANCIAL AND CONNER CIAL.

precious metal. The greatest commotion prevailed
In all The markets. and OF one time panic seemed
impending In the stock Exchange. AS 1t was the
day closed on an immense decline in stocks and
feverish feeling all around The incident on which
hinged the excitement In the Gold Room was sud-
den suspension OF the government gold sales. Early
In the day. upon the announcement that no applica-
ton had been made to Secretary Boutwell, to
stop these sales and that there was no reason
for deviation from his programme, gold lost
all the strength which it had gathered from
the rumors of the evening previous ana declined to
1915, at which and 1914 immense number OF
sales were made. At twelve O'CLOCK the proposals
were submitted as usual at the Sub Treasury and
nearly million and a half dollars bid for at prices
ranging from 12063 to 1870. The bids were tele
graphed to Washington, when Secretary Boutwell,
telegraphed back to reject ell below 1872 or course
all the bids of to-day had to be rejected ana Assist
ant Treasurer Folger made the announcement at the
Sub-Treasury. The effect upon the Gold Room was
startling. The "shorts" made rush to cover
under which gold rose to 1913. 1t then fell back
again. but once more advanced and touched at its
highest, 1885, closing finally at l2214, under reac-
tion produced by the news that Mr.. Folger had
asked for instructions from Washington whether he
should offer to sell the gold tomorrow. The rejec
ton OF the bids to-day produced great Indignation
and formal demand was made by one ilrm for the
gold they offered to take, their proposition, as being
the highest, emitting them TO 1t. This action was
based upon the assertion that IN the government adj
vertsement the right to reject was confined to the
proposals for the sale or bonds. OF course
judicial action can force the compliance OF the Trea
sury Department as the United States cannot be
sued AS TO the reason for this sudden determination
OF MI Boutwell, 1t ID suggested that he has yielded TO
the outcry coming from the merchants, who insist
al.1
bankruptcy and general panic. The exporters are
more particularly the class OF business men who
suffer from the present CRISIS and they have been the
most prominent In denouncing the policy OF the
Treasury. As to the importers. they suffer to the
extent that they have already covered their con-
tracts for foreign goods 1t viii be remembered that
the gold corner Of last summer taught the importers
bitter lesson with reference deferring their pay
ments and borrowing gold meantime. In the de-
sire not to be again enIrapped by such speculative
combination many OF the importers have doubtless
been beforehand in buying their gold To these men
the decline in gold is ruinous. But to those
who have bought on long time and have
already marketed all or portion Of
their foreign purchases the decline is the OF
great profit. The agitation and excitement In mer
camille circles have evidently been the occasion OF
the order from Secretary Boutwell, to limit the sales
OF gold to o certain figure. without wishing to take
sides with either OF the speculative parties IN the
Gold Room 1t Is only truth TO state that affairs
In so critical state this morning all over Wall
street that the sale OF the government gold as
advertised would have resulted in general crash.
Such Is the opinion tonight among business men,
and whether the government kept faith not
In the matter the evil which was ayerted.
whether temporarily or permanently, goes
to condone tho fault, II any there were.
The great outcry to-day from the Gold Room came
from those who sold gold which they did not pos
sess, and which they thought to buy at lower prices
under the depressing influences Of the government
sales. II is not certain that taey will not eventually
succeed for the popular feeling all the bear"
side, and the banks are loaded with gold and as
heavy nstalment OF coin interest comes out on the
market at the end OF the month, 1t will not be easy
to fomcnt 'bull" speculation. Some seem to take
exception to the extravaganza OF the "bear' specu
latlOn, and point to the increasing clearances at
the Gold Bank, where to-day there were over
forty millions, as q sign of the overselling
OF the market. But all this will only tend
to make the decline gradual, which Is the
way specie payment must be attained If the business
interests of the country are TO be considered The
sales this morning or 'longn and short gold before
the rejection Of the bids at the SubTreasury were
on an immense scale, and it is thought the clear
ances morrow will be the vicinity Of seventy
i've millions. or course this sum Is small as COM
pared with the clearances just before tho explosion
last September, but as the Gold Bank has been in
renewed operation only eight or nine days, and as
the first clearances were only about five millions
daily it shows the sudden growth OF speculation.
The fact that the government has put the limit Of
100 to It's Sales and the probability that proposals
VIII be invited again within day or two, encour-
aged bears to again sssa the market, and hence
t1nJ
they again hammered the price, occasioning decline
late in the afternoon to 1924. The transactions
toward the close were quite limited in number and
the market became duh and quiet, both sides SEEM
ing to be awaiting further developments before tax.
ing any decided action either way.
Hardly less Interesting was the course OF events In
the stock market. In the forenoon sharp decline
took place In sympathy with tho break in gold and
at midday panic seemed inevitable. The "bull''
cllques took the alarm and the stocks which were
under their special protection also included
the general fall. The order Of Secretary Boutwell,
inIervened to check the decline. and for some time
there was q strong rally. But as gold gave way
again late in the day the stock market
yielded and broke amid great excitement, the
only purchasers seeming to be those who
were buying to cover speculative sales The
greatest decline was in the vanderbilt stocks.
In Northwest the dealings were immense
scale, and, as the cliques we're reported to be
loading, there was fevcrlsh pressure to sell. Curl
Ously enough, Erie made q strong resistance, and.
with Reading, was the most obstinate and unyield-
ing. In the miscellaneous list Pacific Mail broke to
47h. In express shares American held It's own
against the general decline, account OF the deca-
ration Of dividend OF three per cent. The extreme
fluctuations OF the market exhibited further on
In the table or highest and lowest prices. 1t was
ported this evening that the special committee OF
the directors OF Northwest reported in favor OF
a dividend OF four per cent on the common and i've
on the preferred stock.
The money market was easy at Six to seven per
cent up to half-past two O'Clock, when sudden &C.
tivity set in and full seven per cent was had all
around from borrowers ON stock collaterals. The