The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-06-11
The New York Money Market.


''The extraordinary condition OF the money
ket at this season of the year, when, according to
precedent funds should not command more than
tour to five per cent interest in transactions on
CALL forms the feature Of interest in Wall street just
now, and is the secret of the success which has
attended the heavy demonstration OF the bears
on the stock market 1t will be matter for curious
reminisceuce that the 10th Of June, 1862 in the
middle Of the season in which money Ia usually
most abundant in the metropolis, high as one
quarter Of one per cent. interest was paid
This rate was had late in the ar Afternoon. og
subsequent to the usual closing OF the banks; but
from the persistent inquiry which lasted long after
three O'Clock, II was evident that many accounts hao
not been made up until four O'clock even later
than that time. 4 his was the extreme and excep-
tiUnal figure, but the rates very freely paid were
per cent. gold, seven per cent currency plus
commissions Of One-siNteenth and one-cghth, and
seven per cent. guld plus similar commissions. The
running for money late IN the afternoon was sug-
Ccstve OF the frequently witnessed in the
lal and spring periods of strngency in Wall street
1t is only proper to observe In this connection that
lenders were found who, in the confident belief that
the present activity is artificial and temporary,
willing 10 make time lOans and one transaction of
this character involved the Of $500 000 which
the borrower contracted to pay six per cent. per
aInum interest ana a premium OF one half per cent.
making 1t equivalent 90 twelve per Ct per annum,
the time OF the loan being thirty days. 1t is dicult
believe that the stringenCy arises from other than
speculative influences, but its extent and SUCCESS
suggest the inquiry whether it Is wholly artificial.
The wonderful knowledge of the bear clIoues in
foreseeng the disturbance Of the money market is
not the least curious feature OF the present sudden
revusiOn III the stock market Foreseeing 1t, they
have doubtless assisted and aggravated it. One fact
seems to have escaped general observation, viz, the
gradual but steady aud heavy drain OF currency
INTO the Sub-Treasury, where some s26 600 900 has
accumulated. The increase is the natural result OF
the present system OF gold sales and bond pur-
chases Mr.. Boutwell, sells weekly 81, 600 900 OF gold
fer which, in round figures, he gets 81, 100 OOO He
buys 81 100000 OF bonds, for which he pays ST. 000
The gain to the Treasury is therefore Just 81 500 900
every week. MIR. Boutwell,, in selling 81, 600 600 Of
gold week. selected the season of the year In which
experience Indicated there would be least danger to
the local finances Of this city He sells only one mil
lion OF bonds in the cOreative operation. 1t win be
remembered that Secretary Boutwell, was strongly
urged to buy million of three per cents instead Of
the additional million of bonds 1t is now ntmated
that he is accumulatiug fund wherewith to redeem
these three per cents, which payable on demand
Hence the Increase noticeable in the Sub-Treasury
currency balance. Originally the Secretary OF the
Treasury was authorized to redeem these certid-
Gates by the issue OF an equal amount of green
backs But the law which was passed to restrain
Mr. McCuloch's experiments with the currency for
bids expansion and contraction alike. Hence the
redemption of the three per cents must be made
with money which is now in circulation. II Secre-
tary Boutwell, is dgestng any such scheme secretly
and for the purpose of astoishng the country by his
financial sagacity he Is playing into the hands OF the
gambling clique of Wall street, Of whom he promised
to steer Clear Whatever the real source Of the pre-
| sent stringency in money the banks and other in
stutions having funds to loan are deeply scrutnous
| OF the collaterals presented to them, and hence
| contribute to the activity.
| Government bonds were heavy at the opening in
response to the more active demand for money, but
| the decline was very gradual, amounting to about
one-haf per cent during the day, the cheaper price
| Of each stage inducing purchases against the Lon
| don quotation, which was very steady at sOH until
late in the day, when it followed the general course
OF affairs at London, fell to so, and closed at SOIs
The English market for cOHsols, according to late
private kilograms, weaker by as much as three
quarters per cent, despite the reduction of the dis
count rate and the increase OF specie the Bank of
England, which would indicate that the troubles in
France were regarded quite serious
'"The Government sold one million OF gold TODAY.
follows -S2O0, eco at 1873 92H, $3.50 900 at 18S91E
100000 at 1925, sl50OO0 at 13S31%, $50 900 at
1906 $4,000 at 1912, 100000 at 1885, 100000 at
1898 5000 at 13S 90.
"Foreign exchange was dull in the activity OF
money and was lower for sight sterling, in answer to
the change in the discount rate by the Bank of
England"