The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-06-18
FINANCIAL AND COMMERCIAL
THURSDAY, June 1T-s p. M.

FINANCIAL AND COMMENOiHI.
THURSDAY June it, p M.
The condition Of the money market continues the
feature of interest In Wall street. and all crcum'
stances arecng it likely TO affect 1t are canvassed
with more than usual curiosity. According 10
Washington telegram the Comptroller oi the Cur
rency has called for statement OF the condition OF
the banks they stood at the close OF business On
Saturday last the 18th INST This ID one step towards
an easter state OF the money MARKET Tor the banks
NAV now il they have the ability, increase their
commodatlons to their customers. The complication
of circumstances surrounding the money market Is
very curious. So stringent money market has
been seldom If ever witnessed. To-day there
was repetition OF the spasms which now seem to
have become It's habit The earliest rate was about
an eighth OF per cent per day-equivalent to
as per cent per annum-but toward the close OF
banking hours 1t had fallen to seven per cent. To-
morrow the Subrreasury will withdraw 81, $1,000 in
return for the government gold sold to-day. The
1'bears" look, consequently, for another severe
pinch. The 'bulls" and "bears" are maintaining a.
very equal contest so far. The former have sus-
tanned the market by the exerOn OF great strength,
although they were unable t0prevent "bear' sor-
tie late this afternoon. The position Of the Secre-
Jary OF the Treasury IN accommodating an excessive
currency balance has been taken advantage of by
blocking up" OF currency has been effected through
some other agency than the banks. Their usual
morning cearances do not indicate the fact, 1t Is
true; but the money is withdrawn In some way. To-
DAY the Sub-Treasury cashed about 5000 900 three
per cent certificates. Those who are familiar with
Wall street local finances will at OIce recog-
nize the Ill character OF this fact The send
ing in Of three per cents by the bankers
Is equivalent to pawnlng one's watch In
private financial strait. 1t is suggestive Of the
de'nter resort to get money. Next week we are
likely to see a relaxation through the purchase by
the government Of sl,62O0OO bonds-W ednesday
being designated by Mr.. Van Dyck for the buying OF
the extra $500 900 to complete the amount of per
cent for the sinking fund. The fiscal year ends June
80 and it is evident that Mr. Boutwell, in experiment
ing with gold and BONDS will pursue his present
policy up to that time. The drain upon the currency
1t is claimed by the ''bears affects only the bulls"
This the season when the merchants are least in
need of money. Hence the few who are incOnve-
nenced put to the necessity of paying large shaves
on their paper must blame The Wall street specula-
tors and not Mr. Boutwell, The fact Is the stock
gamblers foresaw the result Of the Secretarys efforts
to reduce the debt and check the gold spectators.
They have aggravated the activity of money, and
have been assisted by unlocked for demands arising
in the West and elsewhere, small individually. but
frightened money without the stock gamblers, and the
stock gamblers could not have frightened money
without Mr.. Boutwell, The puzzling situation of
affairs is elicitlng very general comment. Accord
ing to an evening contemporary
The receipts at the Sub.Treasury on account OF
transfers from national bank repositories have re-
Gently been quite large, amounting at times to
$1,000000 per day. From extracts from our eX-
changes It VIII be seen that the Secretary OF the
Cincinnati and Boston, and these WITHDRAWALS iali
almost entirely upon the New York banks the de-
pository banks drawing upon their deposits here.
According to the Chicago Tribune the banks of that
city have Withdrawn from New York during this
month So 600, 900 OF currency which Is reported to
have been distributed among the surrounding
country banks for the purchase Of products, es-
peclay wool. Under the circumstances OF these re-
mittances to the West the collection OF money IRON
the repositories and the accumulations upon tile
Treasury sales OF gold and its heavy collections OF
revenue, it Is not difficult to account for the
present stringent condition Of the market. The
banks unanimously report low condition OF re-
which any further drain must necessitate cores
pOnding reduction OF loans with consequent real
izing upon securities or other property dependent
upon bank accommodation. 1t has therefore become
vital question whether the Secretary OF the Urea
sury conlemplates continuing the present policy Of
selling weekly s2000000 OF gold ana buying Dut nall
that amount OF bonds.
From Chicago we learn that the banks there 'alone
had brought out from New York during the last three
weeks nearly $4,000 00) Of curreacy. all or which has
been sent into the country west of u.s. None OF this
has begun to come back yet and probably but little
OF 1t Will back very soon; but the beneficial e
feet on general trade win undoubtedly be expe-
renced soon in the increased purchases of country
merchants"
And the Cincinnati Enquirer says
The market is now working very close. The regu-
lar discount houses are not IN position to discount
much outside paper, and are generally reservlng
their means for those who have claims upon them,
and outside parties experienced considerable dln-
Guilty in negotiating loans number oil the bankers
w N IN.
There has been no material increase in the demand
for loans, but the banks are less able 10 meet It,
Whskey dealers are still the heaviest borrowers
though other branches OF trade well represented
In the list of applicants for favors Between bankers
and depostors 10 per cent are the ruling rates or
interest, but in the open market IL 10 per cent Is
obtained, and on the street x Per cent month was
charged for short accommodations. rms scarcity OF
currency compelled some OF the banks TO sell ex-
change, and considerable amount was forced OIL
on the street. Currency was also ordered out from
New York, and rates for exchange were very irreg-
lar. 1t was received OF deposOrs at one tenth dis
count, but sales were made on the street at Il =
of.
1t by no means follows, in these days of cliques
and combinations, that the stock market reelected
the irregular and spasmodic action OF the money
market unless by contrariety The best prices to-
day were made in the periods of most active inquiry
for funds and the lowest In the period of easiest mo-
ney when the closing OF the banks had left cash'
transactions out Of the question. The business OF
the Stock Exchange was dull as to the amount
transacted but active In the changes III QUOTATIONS.
particularly in the latter portion OF the afternoon.
During the forenoon prices were buoyant and steady,
New York Central rising to 1924, Michigan Southern
to 1864 Rock Island to 1l9. Northwestern 10 s5A,
Northwestern preferred to 9oH and Pacific
Mail to 9lH. This feeling became unsettled,
however, In consequence OF "drop" In New
Jersey Central to lo7, the directors passing the
dividend, according TO report, which was followed
by a "break" in Fort Wayne to 1914. After three
O'Clock despite the free offerings OF money at seven
per cent, the whole market broke down, New York
Central reading to 1867, Michigan southern to 1885,
and Northwestern to s11t, and closed heavy at the
quotations appended to the list Of stock sales.
Governments were quiet dull and without fea-
ture. Prices were steadily in sympathy with
the London quotation, sos soai, and closed
as follows:-Unted States SKIES, $751; regis
tered ll6I n 1lG7.; do, do, coupon. l2tk