The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-07-12
FINANCIAL AND CONNER lAL.

bNfNSSsnG ftN6 NOiVWGNStH-'
SUNDAY July IL, 1869.
The problem of the money market. which 30 exer-
cised speculative and commercial circles alike dur
n, .he past few weeks, received satisfactory sonl.
ton before the close II business on Saturday, night.
wall street wound up the week with feeling OF
rei'ef al the change which was brought apoa' IN INC
rate oil interest ana went home with more con-
tented nina than has been the custom for good
while. At the opening Tuesday morning (Mon-
day being celebrated Us the Fourth OF July holiday
there was great deal of apprelensiye curiosity to
iathou the extent OF the clique movements TO keep
the market stringent, for 1t was thought that, in
obedience to the general law operative at this sea-
son in rendering currency so abundant at New York,
1t woa,d require desperate and determined effort
10 preserve Its activity. The first signs were not
az an encouraging character. Despite the utter alb
sence OF any outside demand and nOtwithstand-
my thai the dram for the wool crop for the rem
nant OF the grain crop ana to the watering
places had all passed by, the opening rate
Cal! loans ragged from an eighth to quarter
per cent per da, equivalent to 45 80 per cent per
annuni. 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 relei,
and the suspicion generally entertained that IL
who were operating upon the market. This state
OF affairs prevailed with little abatement OF aggrava-
ton until Wednesu az afternoon when, upon the an
nuuIccment that tle secretary Of the Treasury
would purchase JNtee additional millions OF bonds,
there was q sud4ea reaxation to the legal rate-a
movement assls ga by tue Inauguration or steps Tor
the prosecution o. those exacting more than the
limit Of interest iAei by law. 1t may seem curious
that the efforts combination Of spectators could
be 20 successful iii tightening up money by the SIM
pie withdrawal o. locking up OF the money cOnsti-
tutng their ca ia. within their control, the
amount 80 at their aIs osal being but fraction Of
The vast quantity OF money to he found In the me-
tropolls. The secret o. their lies in the ex
ample which they set all who have money to lend.
4, is human naDure OF course, to desire to obtain
the greatest RAE vi interest possible. These specu-
atOrs Ivy withhU ding their own money and bidding
a iligh premium iur what Is In the possession VI
others make an active demand in the first place;
then. in the competition for funds 10 make sure OF
settling bank accounts every evening, each stock
broker being particular in return for the accOnm0da-
ton winch his bank gives him to leave good
balance there Is progression In the figure until the
borrowers are COnpeied to pay exOrbtant rates.
IL sort OF lnductve process like that in electrical
experiments, where one large magnet will induce
magnetism in all adjacent pieces OF metal. Let the
magnet De removed, however, anu tne SCatIereu
pieces lose their magnetism The relaxation In the
money market In the latter part OF the week was
due N great measure to the efforts OF the District
Attorney in laying before the Grand Jury materials
for their investigation in the question OF the nrac-
ton OF the usury laws The ''ring' Of money lend
ers thus lost cohesion and power. On the last day
OF the week the relaxation was most noticeable,
and the better supply OF funds showed that
money had been released to the market through
desire to compete for days. interest to Mon
day, but lenders dread OF indulging In trans
actions ut extra legal rates. The highest figure paid
was gold interest At three O'Clock the lenders at
six per cent found no takers. and large sums were
carried over unemployed In the earlier part OF the
day slight difference was made between the 'cash"
and Irregular" quotations OF the high priced shares
and an eighth was had for turning them. Much Of
easier feeling ID also to be attributed to fore
knowledge OF the facts OF the bank statement.
which 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 disbursements OF the July coin interest
and to purchases Of bonds The increase in deposits
Ia 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, but as the do
mestc exchanges are In favor Of New York there IS
no reason for the difference. unless money Is stu
locked up by the cques. The totals of the last two
atadoa f,lIO