The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-06
FINANCIAL AND CONNER GAL.

SUNDAY, Dec. s, 1882.
Tho approaching session OF Congress is likely TO
have as 1t has heretofore had a direct and power
full influence on the speculative movements OF Wall
street. lively market for all the various classes
OF investments dealt In OF the Stock Exchange
the Gold Room and the Government Board may be
looked for as the sequence OF the deliberations
which begin to-morrow-the first Monday OF Decem-
Der. The speculative hosts OF Wall street
have already marshaled their forces and
drawn up their plans. The past week was
busy one with them. owing to the
arrangement and disposition OF the aterials
which they intend to employ operate upon
In the ensuing financial mpaign. The limo OF their
main operations VIII be IN the gold market, and
already they have shown something OF tue policy
which they intend to pursue. Let 1t oe remembered
that the recent sudden ana sharp decline IN gold
was simply speculative movement. 1t will there
fore be easily conceived how . speculative move
ment the other way Is the grand programme OF Wall
street for the immediate future. The persons en-
listed In the new movement are the same
VINO recently argued and prophesied an lmme-
date return to specie payments. The change
OF front on the part Of the new id
vocates OF higher gold may be disguised by an
ingenious s0Dhis,ry, but during the next few
weeks the pubic who have to buy or sell gold In
week or two ago by these same persons they win
readily discover not only the inconsistency Of their
oraces. but the purely speculative, gold-iObbing
character or the would-Oe guides OF financial
opinion The very men who rave talked and
preached specie payments tor the past month will,
between now and New Years, clearly de
mOnstrate the fact that not only Ia more
currency essential TO the welfare Of the ooun-
try, bus that gold ts cheap anywhere
nut
to turn the speculation upward that were used to
direct is downward. In brief, the great oliques OF
Wall street VINO were ',snor" OF gold after the cul-
mnation Of the 'corner" In September succeeded so
far as TO force tho price down to 121H the lowest
since the early days or the war; bus nnding thas
they were exciting q storm Of Indignation from
the whole business portion OF the country that
80 far invoked the intervention OF the Secretary
OF the Treasury as TO lead him to suspend
his gold sales, they Immediately reversed their
tactics, got upon the otner side Of the
market and have come out the most enthusiastic
"buls" The situation ls in fact. the exact counter
part OF the speculative movement last September.
Then the chques were checked by the gold sales Of
the government. Now they have ceased to shear"
the market through fear OF suspension OF these
gold sales. The action OF Secretary Boutwell, last
Tuesday in declining to accept the bids at the SUB
Treasury was the pivotal point on which they have
revolved in getting into position for the inaugural
ton OF the new "bull' movement In the precious
metal. The plan contemplates an exhibition OF the
really weak situation OF the government IN Its ability
TO meet resumption. In the midst OF the recent
shear" movement OF the cliques when the TACT OF
the hundred and odd millions Of gold In the Trea-
sury was skilfuy employed as an argument to
prove the power OF the government TO resume, 1t
was shown in these columns that the specie In the
vaults OF the Treasury the 1st OF January next,
after paying outstanding certificates accrued interest,"
DC. would be less than twenty Millions 6nd attention
called 10 the therefore Ut0pan character of any Con-
gressiona scheme for immediate resumption. How
far the new movement will succeed depends upon
the skill with which 1t 10 managed. All the ammuni.
ton furnished by Q comparison OF the imports
and exports, showing the immense excess OF the
former over the latter, will be actively used
to show the necessity for specie payments. With
reference to the exact relation OF the imports and
exports, there always will be doubt until q statsti-
cal bureau is created to compile all the facts con-
ceIn,ng them. A statement comes occasionally from
Washington. but the imports are very certain to
be given quite fully owing to the CONSTANT OF Gus
tom House inspection, and as the exports are going
out haphazard from every city, town and hamlet on
the coast between ST. Cr0ix and Rio Grande the
OF the the other above the other or the
one cannot DO d nnitely known. The figures Of the
chic. ports OF the country not sufficient index.
They show the imports but not the exports. The
scheme has other details, which it Is unnecessary to
sketch here, but which will be unfolded from day to
day as the movement proceeds. II Congress could
digest and enact some practical plan OF putting an
end to the speculation In gold It would DO doing
Infinite good to the legitimate business interests OF
the country
As might be expected, the changed current Of the
feeling in the Gold Room spread to the stock and
nrtA otaa matt nj
ways move In the same direction. They have done
80 lately. Both have had an immense decline. The
cliques are therefore the better able to start them
upward. The September panic has put tho smaller
operators and those Of the public who comprehend
the mystery OF selling 'short" the bear side Of
thestock market In the government market the
upward turn during the week has been quite sharp.
The money market has been somewhat irregular,
and high rates were exacted Just before the move
ment was begun in order that the cliques might
"squeezen holders out OF their stocks, but at the
close OF the week money was easy at six to seven
per cent according to the nature OF tho collateral.
Tho weekly statement OF the associated banks
submitted on Saturday took the street completely
by SURPRISE owing to the unfavorable feature com.
prised in loss OF over two millions OF legal tenders.
The decrease In this item was all the more unex-
pectod al the operations OF the Treasury In
the matter OF gold sales and bond purchases have
been in favor OF the banks, while the shipments OF
currency to the West were thought to have been
on diminished SCALE Thdbanks started from the
previous week with Q less favorable state OF
affairs than was really exhibited in their statement
then. This fact and larger shipment Of cur
rency than was suspected must sufice to explain
the large decrease. On the other hand, the item
of specie has been increased million OF dollars, 30
that the loss in is only about million and
quarter Moreover, as the deposits and circulation
have fallen or to the extent OF another million the
decrease of the surplus held by the banks Ia trne
over million. The totals Of the last two statements
contrast as follows: