The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-05-07
FINANCIAL AND cOMMERC iAL.
THURSDAY, May 6-6P. NJ.

THURSDAY, May 6-oP.M.
The oourse OF gold and government bonds to-day
was reneotive OF a sudden increase by the Bank
of England OF the rate OF discount TO four and half
per cent. This step illustrates in q very pointed
manner the favor with which our securities are re-
ceiyed in Great Britain. The rate OF discount was
raised about month since to four per cent arrest
the speculative demand for them which then existed
not failed TO prevent investment the part OF Eng
fish capitalists even smaller purchasers, 60
whom the consideration OF six per cent inter-
est was tempting In this country, where
money so readily commands large rates Of
nterest-the only exception being in this centre
where they sometimes ructuate as low as four per
cent-gOyernment bonds are investments with
limited portion Of the community In England the
consols, with their Insignificant interests constitute
the hereditary sources of income 10 thousands OF
families. They are unable to compete with our Sc
snrtes when the safety of the latter is guarapteed
The growing peaceful attitude OF this country inter-
naly and toward Its rival nations daiy giving the
requisite guarantee OF governmental stapiiity, WINE
it, increasing commerce insures the payment
OF the interest and principal OF IT'S securities The
action OF the Bank OF England directors was taken
early this morning The first quotations for bonds
from London came at s91s-a decline OF - as COM
pared with last night The fact was not known
here until about TEN O'clock and sales OF gold were
made previous to that hour low 1864. At the
nrst government board the market was fraction
lower i'll response to this decline; but the
holders Of bonds strong houses, and
the advance was beneficial there was
recovery at the noon and afternoon
sessions 10 figures close upon those which prevailed
just before the receipt OF the news The home mar
ket Is so impressed with feeling that the Secretary
Of the Treasury is committed to the policy of cancel
ling portion OF the bonded debt thai it is not easily
disturbed. The lower quotation in London did not
interfere with the demand from the foreign bankers
although the margin for shipment is nearly obliter
ated. The reaction at the close quite percepti
BILE and prices the street at five O'Clock this even
ing we're strong at the following quotations.
United states SKIES, 1884, registered, llsH q
neS; do, coupon, ll94 11e1s; do, fve-twenties.
registered, 113z ll3s4; do. do, coupon 1862 11Sss
Ils2; do. do, coupon, 1864, la. q 114l4; do.
do, coupon, 1865, 1863 1854; do. do, coupon new
1866. ll61 III; do. do, coupon, 1867, 11esI
n65i; do do, coupon 1885, 116ss 1l67s; do, ten
fOrties, registered, 1913 q 107a4; do do, coupon,
los,s 1885; currency bonds, 1861 a 1865.
The money market was quite irregular In the fore
noon. Those of the stock cliques who had not
entered the upward movement were endeavoring TO
influence higher rates, and gold interest paid
some instances. In the afternoon money was abun-
aant per cent and balances az the close OF
banking hours were loaned at six rather than re-
main unemployed over night. Commercial paper
showed slight concession IN rates, which ranged
from seven and half to nine per cent.
Foreign exchange dull and steady for sixty
day bills. Owing to the change IN the rate OF dis
count at the Bank OF England, sight bills were
eighth higher-the difference now being three
quarters per cent between long and short. The fol-
lowing are the misunderstanding sixty days,
commercial, losh 1885; good to prime bankers,
100 IO914; short sight, 1o95{ ITO; Paris, sixty
days, 500 5lel4; short sight, 5.1614 5134;
Antwerp, $40 5.l61s; Switzerland; $40 5.16i4
Hamburg, 35's 35Iz: Amsterdam, 4Ois 4oa.;
Frankfort 4os 4o1l; Bremen. rs 7s2l; Prussian
tAalers, FOX 7lI.
Thedealings in gold were Quite excited, during the
forenoon particularly, in consequence OF the action
1.-THE Bank Of England. The rise touched 1885,, but
thence underwent areacton, resulting in part from
The sales Of government gold and in part sales
of "long' gold by Spectators who had bought at
lever figures when the indications were favorable
TO the present high rates. The range in price
as fOows:-