The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-06-29
Fro4n the Herald.


'"rhe money market to-day underwent very
sudden and an extraordinary change, which had the
elect OF seriously alarming the boldest of operators
on the Stock Exchange. During the forenoon ana
during the portion Of the afternoon up to half-past
two o'clock the rate on call loans ranged evenly at
per cent currency for the great majority of loans
the exceptions being at gold interest for those
accompanied by pledges OF inferior colIatey~is, or
Where the borrowers were not in prime standing.
denly quite noticeable and the nteresrate advanced
through the intermediate fractions OF 182 lilo 4,
q, ana "a, until per cent. was paid, in order to get
money with which to make accounts good at bank.
Ihis IS at the rate OF 1927 per cent per annum.
thunder clap IN clear sky could not have been
astonishing. Indeed, those who not present in
the excited group gathered on the sidewalk in front
OF the STOCK Exchange could hardly believe the fact
when told them by Others The demand for money
was so great and borrowers unwilling to pay such
extreme rates that many bank accounts were not
made up until O'clock after which hour money was
again being offered at per cent, the decline from
the climax descending through the scale OF figures
place. In looking for the reason OF such a sudden
spasm, 1t is evident that the immediate OF the
stIlngency was artificial. The aspect yesterday
morning was most cheerful one. The warm sum
mer weather seemed the forerunner Of the easy
kets SO usual at this season. Borrowers gave them
selves little concern as to making their engapements
especially as on the last days Of the previous week
money was IN the habit of relaxing to six per cent
In the vicinity OF O'Clock. They expected to be
similarly favored by postponing their Inquiries to-
day, the consequence of which was a very large
accession to the number of borrowers In the interval
Just before the close OF banking hours. Lenders
found themselves in a powerful minority ana nut
number OF prominent clique firms, operating
either in general bear movement or for a
short turn or scoop, as the street techni-
cally desgnates 1t, bid up the figures to the ex-
traordinaTy rate OF One-half OF one per cent
per day. Borrowers had themselves to blame for
enabling the cliques to Squeeze them. The best OF
business men, however, might have been bulled into
most hopeful expectations, so calm and unruffied
was the surface OF the money market during the
earlier hours OF the day. The revulson is as omnous
to the interests OF the general mercantile commu-
nifty to the speculating fraternity in Wall street
The fact has been made apparent that the money
market was only Convalescent, not recovered after
the illness produced by Mr.. Boutwells contractile
gold sales. The patient has had a relapse
state OF their charge. Mr. Boutwell, meant
well, Of course, hut he has not done well. He
mas taken over twenty millions of currency
from circulation at a critical time, when the South
which had not dollar after the war; is daily draw
ing upon us for currency and retaining t for local
circulation. Mr.. McCuoch, in his administration,
contracted cont the currency over s1Oo,OoO,oo0, What
with the wear and tear of paper, the retirement OF
banks, and the positive contraction of Mr. McCuoch
and Mr.. Boutwell,, the currency has been reduced
nearly $780, 100000. If 1t be said that the strngency
reply must be that finances should be 50 man
aged to place it beyond the power OF any clique or
combination 70 produce such spasms
'Tne government market at the opening was
steady and strong, but without other feature. The
Assistant Treasurer is now paying the July interest
on the registered bonds checks payable July l. In
the afternoon the activity in money frightened weak
holders, while making larger operators uneasy The
pressure to sell led to decline OF prices and the
market closed about quarter TO half per cent.
lower. 7I7-'
''FOregn exchange was firm for sterling and ac.
tive for German bills, which in better request
The market had closed before the activity in money
was operative. Much curiosity is still manifested as
to the extent OF the reinvestmeDt of the TuIv
ties in London this evening-S0 Sis rather more en-
couraging to those who look for gold shipments"