The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-18
T FINANCIAL AND COMMERCIAL.

nuencihg the premium the precious metal. The
excitement In the Gold Room was al times feversh,
ana not only was the crowd great within It's pre-
clncts, but all the speculative eyes OF Wall street
We're directed towards 1t. Gold and stocks have OF
late acted SO sympathetcaly that operations IN the
ia'ter nave been, TO great extent, guided by the
| movements OF the former. The operations of the
Treasury In selling gold have also lent peculiar IN
terest to the gold speculation, and hence as to-day
was on the programme for the sale OF o million
| by the government there was great anxiety 10
| know what policy would be pursued By Mr..
Boutwell,, especially as on the Both uitimo
ne refused TO sell below 122 All the morning there
was an active canvassng OF the subject and as the
houf OF aoon approached the crowd moved from the
Cold Room across into the SuD-Treasury. The price
up TO this time had ranged from 1919 down TO 121
and thence back TO i2s just before twelve O'clock
when report was circulated that Mr.. FoIger had
been Instructed to notify the street that no bids
below i2a would be considered. On the discovery
that this report was untrue gold Tell to 1915 Much
disappointment was also felt when the opening OF
the DDS II was found they for aggregate Of
only s4s2o oo at prices ranging from l21 l215o. Mr.
folger telegraphed the facts to Washington. and
meantime there was most feyefish feeling in the
Gold Room, the ''buils being confident that the
delay In the answer was favorable to their side Of
the mousse Upon the receipt however OF instruc-
tlons 10 accept all the BIDS submitted to-day there
was rush TO sell, and tue price broke TO i2o&, the
lowest OF the year. and the lowest, IN fact, since
September, 1902. Reports were afterwards current
that MIR. Boutwell, had not only ordered the with.
drawa Of the complement of the nlllion offered
to-day but the suspension Of future sales below l22
wherenpon the price reacted to l207s but eyentu.
ally closed At t20G 1908. the first portion of
this repor, s authentic The other was only a
rHtp oish rU of tyn
next sale does not occur until Tuesday, and,
meantime both bulls" and 'bears' are afforded
ample food Tor rejection The action or the Secre-
tary or the Treasury mas met with great deal OF
condemnation Ia commercial circles where business
has been sufficiently duh without the further OBJ
struction OF lower gold The opinion OF Wall street
Is not To be regarded as OF any moment for the
reason that feelings IN that region simply specu
latiye The only Indignation there Is from tile
chagrned gold "bulls" Bu. the effect has been dis
coalaging, IL not dtsheartenng, in the legitimate
business quarters of the city, and many merchant
has gone home tonight all the sadder for the action
OF Mr. Boutwell, The Secretary Of the Treasury
has verS difficult role to play at this crlsis,
and some consideration must DO had for the
perplex,ies Of his position. The radical journals
OF his party, ana the gold .bears OF Wall street ara
bounding HIM on to specie payments, regardless OF
the disasters threatened to our domestic commerce.
On the other baud ne ia earnestly implored to pre-
vent the sharp decline in gold. His acceptance or
the bids to-day looks like the desperate act OF per-
son SO surrounded with perplexity and doubt. The
sales OF gold by the government were originally
suggested when the clsaues We're '.cornering' the
market to the detriment OF the importers. This ne
cessily no longer exists Might not Mr.. Boutwell,
try suspension OF his gold sales FOR the present
ana thus gracefully withdraw rom the embarrass-
ment In which he finds himselfg AT this season.
when we are exporting cotton aud produce. the
government ought not To endeavor to reduce The
profits OF IT. citizens. In sumner when we are i'm
porting such beneficial, but In winter when
gold is naturally heavy, owing TO the competition
Of exports. II would seem pouc to leave the market
TO ITSELF Mr.. Boutwell, does not need currency, for
his balance that line Is large enough to allow him
10 continue the conWen1abe practice Of buying IN
the public debt.
The stock market was sympathetic with the gold
market que the decline was so great as might
have been expected In fact. the decline in gold has
been apparently discounted effect upon stocks
and the comparatively small depreciation OF the
Ialier to-day in tue presence OF fall Of one ana
n half per cent In COLA groves IL. During
the existence OF a nigh premium In gold
fall OF one per cent In the precious metal would
nave put down the active stocks from two TO six
per cent. The average decline to-day was about
one per cent. The clique movement TO gather In
DIVIDENDS and then sell The stocks back to the street
at fun prices, without the dividend which was SO
successfully executed in Northwest, is about to be
repeated IN the OF Lake Shore the directors OF
which road to-day declared a seniaInual dividend
OF four per cent free OF government tax, payable
on the rst of February the books to close January
Is. The stock was the fIrInest III the general
decline, OWING TO the clique support. Reading
heavy under the announcement MADE
formally to the Stock Exchange that the company
win issue the following amount OF bonds convert
ib,e into stock, folsows-si 100000, January,
1870 convertible after issue; $1,000. 900, July. 1870
convertible after issue; si,oooooo, January. 1871.
not convertible Till 1872; 81, 100000. 1871 1872,
required with sixty days notice. not convertible ull
1879. The most marked decline In Erie, which
was panc.struek under heavy sales by prominent
German banker who Is supposed to have been sell
ing for the account Of foreign holders or the stock
Ii fell from rs to Il -. closing analy at -. In the
miscellaneous list Western Union sold down 10 SO
and Pacific Mai TO Asa.
Government bonds were weak at the opening, but
became strong ut the noon board owing to the rise
in gold l22 with the subsequent decline 1907
the whole market broke down. State bonds we're
frmer Tor the feanessees and North Carolnas and
generally steady, their marker being least sensitive
to the effects OF the general decline.
The money market was easy al seven per cent
and without feature Commercial paper was dull
and quiet at nine to twelve per cent for Gnc accept
ances. The market does not reflect the effect OF the
numerous small failures reported yesterday. Foreign
exchange was lower by au eighth per cent FOR steer.
ling ana closed firm at the decline.
The following were the closing prices OF stocks
at the last session OF the Stock EXchangc-4Capron,
~ 500: Cumberland, 2js u: Western Union,
335a 5Ss; Quicksilver, i53s Is; Mariposa. ~ s.;
do preferred 10 16; Pacific Mall. 49, a 10: Boston
Water Power, 1874 AZ; Adams Express, 80 a Cos;
Wells. Fargo Express. 81. Is; United states Elk.
press 90 q SON; New York Central. consolidated.
81 a s7s.; do scrip, 81; Harlem preferred, i3s bid;
Erie "a, 49, do. preferred d3 40; Reading, esss