The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-20
FINANCIAL AND COMMERCIAL.

II
SUNDAY, Dec. 10. 1889.
The speculative interest OF the week was largely
concentrated In the gold market, where the course
| OF business was guided BY the movements OF the
Treasury in It's sales OF tho government treasure.
The action OF Secretary Boutwell, at the close of hts
| November programme In refusing 70 sell below la
| to which point gold had suddenly Rrayitated, had
been deemed reasonable index for baslng all ousi-
| ness calculations connected with the premium ON
/ gold. There were but Two sales during the week,
one on Tuesday and the other on Friday. The 0pen
| market price on tho former day ranged from
| 122 upwards, so that no difficulty was had
| In placing the government million ~ and above
| tho limit On Friday however, the market had
drifted to lower quotations. and feverish anxiety
manifested to what policy Mr.. Boutwell, would
pursue inasmnch as the bids would be and were
| below l22. Those who were hoping against hope in
such state Of affairs desired that change would
DO made in his policy. But the bids were accepted
| and gold eventually declined to 12oA. The amount
bid for was than half the amount offered 50 that
II would seem that MI. Boutwell,, in the desperation
OF his position with the merchants the one hand
| demanding more steady price for gold. ana the
radical politicians on the other threatening
him should he obstruct the movement to specie
payments, compromised the matter by accepting
the bids for hall million. Tho people easier
now as to the policy which he may pursue In .ho
! gold sales next week. Due allowances being made
for the embarrassment Of his situation this vital
question he might have shown moro nrmness and
more decision in handling 1t. Either t Is right to
sell gold at the market or Il ID not But the worst
result OF this inconsistency OF Mr. Boutwell, is his loss
Of the control Of the market The spectators are
now independent Of him. His ability TO
cope with the speculative combinations OF
Wall street has been sadly impaired by his
ack OF policy. The gold gamblers have drawn
him along to certain point and there robbed
him of his power to do them harm. 1t makes no
difference to them what his course may be- In the
ensuing gold sales. Their plans cannot now be
comprised by him. The decline In gold since the LIST
Of October been about ten per cent This IL too
sudden to be natural healthy. Action IL always
followed by reaction In Wall street, as everywhere
else. Secretary Boutwell, limited his gold sales to
two millions month last summer, after numerous
sporadic experiments with various amounts just
after he came into ONCE. The result the forma-
tion Of the gold ring and the rise TO 1885, at
time when we were shipping specie to Europe
to pay for imports Towards tho list Of October
be modified his programme and has since sold at the
rate OF ten to twelve millions q month ct = time
when cotton and produce were going TO Europe,
thus making competition against them which has
left 1t almost pro1tless ship the products OF
domestic industries. Next spring 1t will not be
wonderful II millions Of acres lie untitled which
this year have b0rne so abundanty. The far mer
certainly has no incentive to expand while the
policy OF Mr.. Boutwell, cheats him OF the fruits OF
his labor. 1t is time Mr.. Boutwell, showed
more practical knowledge Of tho wants OF
the community. Ills experiments SO far have had
very ne apparent effect In the reduction OF the pre-
MUM gold and doubtless he fancies that foreign
nations Will regard him as great nnaucer because
gold has gone down. But he has purchased his glory
MT fho n n
the country Revertng to the question OF gold Sales
what Mr. Boutwell, needs Is the application OF aiitle
simple common sense Ia so adjusting hts programme
that in summer. when we pay for our imports, gold
shall be cheap, and In winteg wnen we sending
abroad our cotton and produce, gold shall not be
cheaper.
The course OF the various markets during the week
was In close sympathy with gold. The stock cliques
who had unloaded their 'iong" stock the week
previous free sellers for decline and gave the
money market rather tight squeeze to assist their
plans. Government bonds were heavy and weak,
despite the approach of the time for the payment OF
the January interest,", and touched the lowest point
since spring. The State bonds steady. particu.
arly for those which the interest had been regu-
larry paid South Carolinas were the feature OF tho
list and rapidly advanced on the passage
OF q bill in one branch Of tho Legislature
which provides for the payment Of the inter-
after becoming strong with the decline In gold TO
l2o,s r weakened at the close when gold had gone
to l20K. Commercial paper was less affected than
would have been supposed by tho Numerous fai
ures announced during the week, out the note
brokers who possess the statistics reported that the
losses this year have not been great as during the
winter OF $685. and the class OF paper Offering on the
street has not been impugned. The public mind Is
30 sensitive. however. that more notice has been
taken or even the small failures whch have boen
regular occurrence evcry winter.
The weekly bank statement proved quite unfav0ra.
be to the great surprise OF the street. the expecta
ton having been general that under the operations Of
the Treasury In buying bonds to greater extent than
II sold gold the item Of legal tenders would have at
| least shown an increase. On the contrary, how
ever. there is decrease Of over two millions, white
the total loss in about million and three
quarters the item OF specie increasing by the small
amount OF three hundred and nifty thousand dollars.
] Inasmuch as she shipments TO the interior have
been on . reduced scale, If indeed they we're not
| less than the receipts, only one conclusion ls
| left, VIZ. that tho market was arti-
| ideally manipulated in connection with the
| speculative movements Of the week In gold and
| stocks. OF these influences we had convincing
! proof in the stringency OF Monday, Tuesday and
| wednesday last, and the later ease In money was
due to The Treasury disbursements Were 1t not for
the bond purchases the cliques would have made the
| squeeze continuous throughout the week. The item
Of loans shows an increase OF only hundred thou
sand dollars. which is attributable to conservative
feeling the part Of Doth the banks and their Gus
toners, NIL OF whom are desirous OF making as little
business as possible preparatory to winding up
| their books for the year. Tue totals compare with
| last week a. foiiows:--
Dec. IL. Dec Is.
Leans 1852 728 $50 $252 1874, GA
Specie ................. 362 30,068, 005
Circulation ............ 3,l2B,lH 34l02 aO3
Deposits. ............ l82, l1e,T0S 181, ,455
Legal tendcrs.......... 46SS4, 42v "A. 812,2 73
The changes In each item are specifically shown