The New York herald., 1869-03-13
FINANCIAL AND COMMERCIAL.


FINANCIAL AND CONNER ClAL.
>~~~~~~~~~~~~~~~~-~>~~
FRIDAY, March l2-e p. NJ.
Tho demand for our bonds In Europe has been
already large enough to produce important effects in
foreign financial centres. Within the past month
holders OF English consols have been tempted to
part with their home securities, and find in CON-
pairing prices at the London Exchange that when
United States securities ascending consos were
going down. Withla the past week, however, there
was reversal OF movements In these rival invest
ments, consols going up and our bonds descending
The reason lies In the difficulties which attended
the formation Of President Grants Cabinet
A delay in organizing new governments
IN England or any other portion of Europe
Is looked upon as very serious matter,
and foreign capitalists and investors have regarded
the work Of making Cabinet here as a similar pro-
cess. Hence the inaugural Of President Grant, with
its promise to pay the bonds In gold produced very
little eject in appreciatiug bonds abroad, espe
cially as it was Immediately followed by the an
nouncement that the Public Credit bill was failure.
The eager demand which had been originally ex-
cited was Of such character as to threaten drain
upon the specie OF England. and put the balance Of
trade against that country, our bonds being for all
practical purposes, regarded as SO much mer-
chandise to be paid for with gold. Since
the first stages Of this demand there has been
at least S5o,0oOooo Of our bonas sold to Europe.
1t requires very brief arithmecal process to show
that at the end OF theyear England would be largely
our specie debtor. The alarm which this state Of
things produced Is rejected In the meeting Of the
Bank Of England directors to take into considera-
ton proposition to raise the discount rate to higher
figure than three per cent to which 1t was increased
few months ago from two and half per cent, In
consequence OF the increasing activity Of money
produced by the diversion Of large sums to this,
among other countries, in furtherance Of enter
prises which, with the close Of the war and
the prospective election Of General Grant found
greas favor with English capitalists The new Juror
In favor OF our bonds created by the success Of
General Grant and the growing impression abroad
that the United States is able to and viii pay every
dollar Of its Indebtedness has alarmed the banking
community again. Hence the proposition to Increase
the rate OF discounts proceeding which would
arrest and keep at home large amount Of funds
mat would otherwise seek investment In our bonds
or other American securities which pay 80 large
rate OF interest In comparison with home stocks
The hitch In tho formation Of the Cabinet and the de-
feat Of the SchencK bill depressing In their In
nuences upon the market however, and our secu-
rites went down and some were reshpped to this
country just before the meeting Of the directors which
adjourned, as . consequence, without changing the
operate adversely to drain Of specie. To-day the
foreign market began to exhibit the eject OF the set
ytaement OF affairs at washington, and prices here
were correspondingly frmer 62's selling at 120H-
the highest figure they have ever reached. The
home market was firm at The opening on the
strength OF this news, but went higher when the
repassage Of the Schenck bill became known. CTS
sold up to 1884 Late In the day the market for 62's
was weaker and declined to 119H for issues Of that
year, the cable report announcing the London
market s'easier, but giving quotations. while pri-
vate advices were said to state that the foreign
price had fallen back to S2H. The cable dispatches
are still confused and incorrect Thus the Frankfort
despatch distributed to the press by the Western
Union Company, has given the price Of bonds as
SIX for the past three or four days. while private
telegramshave reported quite dinerently-on one day
as many as two per the decline this afternoon
the domestic bonds were less inclined YIELD their
tendency to resist beng due to the rmer feeling In
gold. The intrcacy Of influences at work upon the
market Is thus curiously illustrated. When bonds
abroad went up bonds In the home market went up
and gold went down. When bonds abroad went
down gold went up and the old bonds went down,
while the new bonds inclined to steadness the
nrmness in gold counterbalancinR the yielding
abroad. Tho London Economist OF February 20
says
The nve-twenty United States bonds have now re-
covered the highest price that has been since the
war. The buoyancy IN this market has been due to
three causes, which have favorably Influenced the
opinion OF the public. /. An absorption has been
going on for some time in Germany. the indifference
with which American securities were for long time
regarded on the Continent having been gradually
overcome by the improving prospects reported from
god has been marked by declining OF late but atten-
ton was not generally called TO the act until quite
recently, = m Inc n s 9y ha M ncnencn ZEN
com or its equivalent excepting in cases where the
law authorizing tneir issue specified payment In
-currency,n caused q sudden movement upwards
Yesterday OF TX on large orers buy from the Coz
iinent, followed by good rise to-day.
The reaction occasioned by the uncertainty oi
the London market was productive OF o decline Of
n to per cent in s2's The closing prices at
nve O'Clock this evening were as folows:-United
States skies, 1884, registered, 115k 11o; do, cou-
pom 11e1 116; do, 5-2o's, registered, 113A ia;
do., coupon, 1862 11eK 119x; do, 1884, 115K
ll5x; do, 1886, 1I7A 1l7x; do, new, 1896, I1s1
ll3k; do 1867, 113h llaa; do 1888, 113,s 11a5<;
do. 1o40's registered, 1o4k 1o4J<; do, coupon,
l05k q 105x; currency bonds, 102 102h.
Gold was quite steady to-day, its extreme range
being thrcc-eighths Of one per cent. II opened at
l3lx, settled down to 1s1 on the announcement OF
the improvement in 1ve-twentes abroad, as well as
through continuation OF the impetus Of Secretary
Boutwclls appointment rose TO 1917 on the less
favorable reports from London ana In consequence
of heavy demand to cover short contracts, and
settled finally to l3lx after the passage OF the
schenck bill. The short interest was Indicated by
the hardening Of the lending rate for cash gold from
six to two and half per cent for carrying to nat for
borrowing In the afternoon. The board adjourned
at O'Clock, out OF respect to the memory OF Mr..
Orenvie winthrop, an old and respected broker and
member Of the board. who died abroad very re-
Gently. Transactions were continued after the ad-
journment, which was formal The range or price
was as follows:-
10 A. M............ 131K Up. P.M............. 1a11
AN y. III.