The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-05-07
The New York Money NIarIxe {.
ErO1ll the Hernld.

'The course OF gold and Government bonds yester-
day was reflective OF sudden increase by the Bank
OF England OF the rate of discount to four and half
per cent This step illustrates In very pointed
manner the favor with which securities are re-
ceved in Great Britain. The rate OF discount was
raised about month since TO four per cent, TO arrest
the speculative demand for them which then existed
but failed to prevent investment the part OF Eng
lish capitalists or even smaller purchasers to
whom the consideration OF six per cent inte-
rest was so tempting. In this country, where
money so readily commands large rates OF Interest
the only exception being In this centre where they
sometimes nuctuate as low as four per cent-GoV-
ernment bonds are investments with limited por-
tlon OF the community In England the consols, with
their insignificant interest," constitute the hereditary
sources OF income to thousands Of families They
ar aIe uhaDe 10 compete Win our securities, Wnen
the safety OF the latter ls guaranteed The
growing peaceful attitude Of this country internally
ana towards It's rival nations is daily giving the
requisite degree or governmental stability while
It's increasing commerce insures the payment OF
the interest and principal Of its securities. The
action Of the Bank OF England directors was taken
early this morning. as the first quotation for bonds
from London came at T9H-a decline OF 5S as COM
pared with last night. The fact was not known here
until about 10 O'Clock, and sales Of gold made
previous to that hour as low as 185&. At the hrst
Government board the market was fraction lower
in response to this decline but as the holders OF bonds
are strong housesand as the advance was beneficial,
there was recovery at the noon and afternoon
sessions to figures close upon those which prevailed
just before the receipt OF the news. The home
market is so impressed with feeling that the Secre-
tary OF the Treasury is committed TO the policy OF
canceling portion Of the bonded debt that 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
obliterated.
'GThe Money market was quite irregular In the
forenoon. Those Of the stock ciques who had nOt
entered the upward movement were endeavOring to
influence higher rates, and gold interest was paid in
some instances. Ii the afternoon money was ahun
dant at seven per cent and balances at the cose ~
banking hours were loaned at six rather than remain
unemployed over night Commercial paper showed
slight concession in rates, which ranged from seven
and half to nine her cent. w"
"Foreign exchange was dull and steady for sixtv
day bills. Owing TO the change in the rate of dis
count at the Bank OF England, sight bills were an
eighth higher-the difference now being three
quarters per cent, between long and short The
following are the quotations STERLING sixty daVs
eSmmerclal good to prime bSnkeTs
lO9e lOga short sight, 1094@110; Paris sixty davs
S9SsSdSa SSSSSa sIgtridgg6 SdS sight s1s@b19; Antwerp
@6SSo;S Amsterdam, ass @40sS Frankfort SoI|1s
~ bremen, 1SS1s4; Prussian thalePs. 76S
81, The dealings in gold were quite excited durinU
ale forenoon particularly in consequences OF the
aetloh asa1 Oh the Bank OF England The rise touched
Ioo5sl Dut lence underwent reaction resuiting in
part from the sales OF Government gold and IN mart
rom, rom sales OF long gold by Spectators who had
pought AT lower figures when the Indication were
favorable 70 the present high rates.