The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-01-06
FINANCIAL AND COMMERCIAL.

I FINANCIAL AND COMMERCE.
TUESDAY, Jan. 5-6PM
The continued activity IN money is provoking and
ITS cause mystery to Vail street. On the one hand
operators are too impatient for the relaxation ex-
pected with the passage OF the time for the quar-
Berry bank statement and on the other lenders are
disposed to take advantage OF the necessities Of the
hour and keep up the rate. The prevalence Of such
fhgh figures as have ruled the last month has made
Renders anxious to continue them. The more they
lcan exact the more they wish to exact. That the
prevailing rates are too high is no consequence OF
scarcity OF money. Money is not absolutely abun-
dant but 1t is plentiful enough to supply the de-
pand. In fact, there is more money in the metro
polls at the present time than is suf1cient for
ordinary business, but such large quantity is in
Vested In the stock market that the amount left for
pther branches Is reduced by SO much The stock
market is as general thing largely oversold. The
same hundred shares Of stock Is frequently the
very article bought and sold through q dozen
brokers' olces in day. The growing practice Of
Dealing In money In the Long Room has been sud-
peny brought to end by the action OF both boards
IN threatening their members with severe penalties
bhoud they continue IT. The needy borrowers are,
therefore. compelled to once more 60 their rounds
OF the street in pursuit OF funds. There can be little
noubt that the practice prejudicial to business.
- enabled SPECTATORS In greenbacks to keep up the
Pate OF interest by centralzing the demand. 1t Is
human nature to borrow and not to lend. The bor-
kowcrs in such gathering are In the majority. BY
the old system lenders were comparatively IN the
lark to the rates. They were scattered about In
1heir Offices and could not conspre for higher figures
2s they could In o common market. The abolish
nent OF the practice is good thing That money is
rendered stringent by artificial causes there is every
reason to believe No docking up Of greenbacks' Is
implied. The parties who could use this means
Rre disposed to q different policy at the present
time There is only narrow margin between easy
money and tight money. Once let it pass the divid
ing line towards relaxation and the whole market
Becomes easy. The small sums necessary to prevent
Che passage Of this line are in the hands OF "Shy-
Docks" who WELD influence similar to the balance
pr power in political parties They keep up the rate
when the general tendency Is towards decline.
Few Of the banks are concerned In this support OF
Alegal rates. Not openly, OF course. They transact
business through brokers and agents, who lend the
FUNDS OF the bank at the exorbitant rates Of the
street. The attention OF the Sub-Treasurer, Mr.. Van
pyck has been directed to the fact and complaint
will doubtless be laid before the Comptroller OF the
Currency. To-day borrowers generally provided
themselves in the middle Of the day at rates
Banging from seven per cent currency, excep-
donally, to seven per cent coin, and to
peven per cent plus commission Of 1-18 to
p-l6. The consequence was very easy feeling at
the close OF banking hours advantage Of which was
taken In the stock market to send prices to the high
est OF the day. There Ia an alabiding taith among
operators that the worst has gone by and that the
period Of expansion by the banks cannot be longer
delayed, especially as the shipments to the South are
kDn reduced SCALE while remtttances are beginning
% arrive from the West, Chicago having to-day sent
- Ia ~ mn
interest money Of the different trust companies and
6avings banks are also making their appearance
again In bank deposits Commercial paper is little
more active after quarterday and buyers and sellers
are disposed to compromise on rates. Buyers per-
eive that with sudden return Of ease to the money
market they will have less advantage In trans
hcting call loans. the rate for which
may fall to six per cent Mercantile paper
bt the present rates Of 8 to 10K per cent
pners inducements which stimulate inquiry. Coun-
ry paper and the lower grades Of city paper dull
bt very high rates, second hand holders being In
clned to place them the market In their uneasi-
ness as to the stability Of makers and acceptors.
hurry took place In all kinds OF city paper just after
khe recent failures, and accepances were subjected
p good deal Of sitting Investigation has restored
confidence for the great majority Of names, and
commercial brokers report better feeling among
hiscounters.
} The stock market was remarkably strong all day,
Exhibiting the determination Of operators to hold on
nd pay high rates rather than let go on the eve of
the immense imitation which they expect as the re-
ult OF the coming bank expansion. The 'bull" ele-
)ment Is the dominant one in Wall street just now.
rhe only "bears" are those who had to let 60 their
Grasp In consequence OF the stringency IN money
pnd In their chagrin they wish to everybody else
Compelled to do the same. Their strength amounts
n nj IA ms ay ruo
Pnect which goes o very little way in Wall street.
New York Central opened at the closing price OF the
previous evening, 1921, and went up and down the
scale several times between the extremes OF l52K
and 1863. There was some unloading by weak
holders at these figures, but not enough indicate
bhat the clique wer selling. Another report OF In
Junction, the announcement of the election OF Mr..
Hounglove as Speaker OF the Assembly and the
eringency in money were successive depressing In
0uences. At the close the price was steady and
strong. The great mass OF street dealers are per-
kectly distracted about Central and are In perfect
Fever II they buy and in constant alarm II they SELL
THE miscellaneous list again showed Its In
Dependence Of the leading speculative stock
bf the hour and was strong or weak from
Other causes. The feature after Central
Was Fort Wayne, which, under an active IN
hurry, rose at one time TO III. Doubtless another
movement IL foot in this stock, but the indica-
hons are as yet very indefinite. When parties have
takcn sides and shown their hands 1t VIII probably
oppear that the advance II the result Of struggle
n the part OF one the other Of the clques to get
Possession Of another through route between New
York and Chicago. The Fort wayne road II the
western continuation to Chicago Of the New Jersey
Central and Pennsylvania Central Railroads. II may
Do the object Of the New York Central and Erie
kiiques to get control OF It for the purpose Of
preventing rivalry; or, again, the parties to the
movement may b the Pennsylvania Central
Company, which IL growing corporation, emulous
bf the New YORK Central, and which by controlling
hhe New Jersey Central has organised continuous
Route between New York and P1ttsburg. The Oh
borpion Of Fort Wayne would make another Of those
brhrough routcsr to Chicago which seem to be 90