The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-07-12
NRw YoRK MONEY nIARKET.


York money market on Saturday.
From the Herald.
''The problem OF the money market, which 80 eV-
ercsed speculative and commercial circles alike
during the past few weeks, received satisfactory
solution before the close OF business on Saturday
night Wall street wound up the week with feeling
OF relief at the change which was brought about iu
the rate OF interest, and went home with more
contented mind than has been the custom for good
while. At the opening on Tuesday morning (Nonday
being celebrated as the Fourth OF July holiday
there great deal OF apprehenslve curiosity TO
fathom the extent Of the clique movements 70 keep
the market stringent, for 1t thought that, In
obedience to the general law operative at this sea-
son In rendering currency so abundant at New
York, It would require desperate and determined
effort to preserve Its activity. The first signs were
not Of an encouraging character Despite the utter
absence OF any outside demand ana notwtthstand
ing that the drain for the wool crop, for the rem
nant OF the grain crop and to the watering
places had all passed by, the opening rate
on call loans ranged from an eighth TO quarter
per cent. per day. equivalent TO 4690 per cent per
annum. Even the money which had come out of
the Sub-Treasury in payment of the purchases of
bonds made the previous week failed TO give relief,
and the suspicion was generally entertained that il
had found its way into the possession Of the cliques
who were operating upon the market. This state
OF affairs prevailed with little abatement OF aggrava-
tion until Wednesday afternoon, when, upon the an
nOuncement that the Secretory of the Treasury
would purchase three additional millions OF bonds,
there was sudden relaxation to the legal rate-a
movement assisted by the inauguration OF steps for
the prosecution OF those eXactng more than the
limit OF interest fixed by law. 1t may seem curiors
that the efforts OF combination Of Spectators could
be so successful in Tightening up money by the SIM
tuting their capital or within their control; the
amount so at their disposal beng but traction OF
the vast amount of money to be found In the me-
tropos The secret of their success lies in the ex-
ample which they set all who have money to lend.
IL Is human nature, OF course, to desire 10 obtain
the greatest rate OF interest possible These speeu
latOrs, by Withholding their own money and bidding
high premium for what is in the possession OF
others, make an active demand In the first place;
them in the competition for funds to make sure of
settling bank accounts every evening, each stock
broker being particular in return for the accommO-
balance, there is progression in the figure until the
borrowers are compelled to pay eXorbtant rates. 1t
is sort of nducuve process like that in electrical
experiments, where enc large magnet Will induce
magnet be removed, however, and the scattered
pieces lose their magnetism. The relaxation In the
money market in the latter part of the week was
due in great measure TO the efforts OF the District
Attorney in laying before the Grand Jury materials
for their investigation in the question of the infrac
thus lost cohesion and power. On the last day OF
the week the relaxation was noticeable and the bet
ter supply of funds showed that money had been re-
leased to the market through a desire to compete
for the two days interest to Monday, but lenders
in dread of ndulging in transactions at extra
| legal rates. The highest figure paid was gold in
| terest, At 3 O'Clock the lenders at per cent
| found no takers, and large sums were carried
| over unemployed. In the earlier part of the day
slight difference made between the "cash" and
Irregular quotations of the high priced shares, and
| an eighth was had for turing them. Much Of
this easier feeling is also to be attributed to fore
| knowledge of the facts of the bank statement,
which is very favorable one the increase in specie
| being close upon seven millions and the increase in
legal tenders nearly two millions. These gains are
due to the disbursement of the July coin interest
and to purchases OF bonds The increase in deposits
is only three and quarter millions, which is some
| what suspiciously regarded. The contraction OF
loans to the extent of nearly three millions goes To
account for part OF the discrepancy as the do
nestle exchanges are in favor of New York there is
| no reason for the difference, unless money s still
| locked up by the cliques
'The rate for the best double-name acceptances
was from ten to twelve per cent with nothing doing
| below the latter figure. Bankers paper was to be
had at per cent, and preference is given to It. as
the time, sixty days. just cover9the ordinary sum.
| mer period of easiest money.
| Government bonds were unfavorably affected
early in the week by the continued stringency In
money, but the market, after some hesitation was
| strengthened by the Government purchases and
| prices advanced clear two per cent, contrasting
the final sales of Saturday with those at the close OF
| the previous week. The remark applies more
| particularly TO the domestic bonds. The T2's re-
| NAMED steady and strong with the London quota
ton, but the high price at which they held keeps
! them out of the Government purchases. The only
bonds CT this date bought on Thursday registered