The New York herald., 1869-02-13
FINANCIAL AND COMMERCIAL
FRIDAY. Feb. Pop. \

FRIDAY. Feb. l2-0 p NJ
fhe sudden appreciation Of our bonds In Euro pc
IL one OF tne most nattering evidences OF improving
Iatn IN our national credit Capital sts IN Europe
nave been slow to invest In United States securities
since the close OF the war; although the termination
OF the struggle shout have been tho signal for their
doing 3d. The obstacles in the way OF peace, the
troubles which outlived the surrender OF the rebel
army and the imperfect nature OF the reconstruction
which was essayed by Congress OF politicians In
stead Of statesmen, gave dsparaglng aspect TO our
national aif.irs. The wealth OF Europe, which was
lying unemployed or only at very low rates Of in
terest could not be tempted here In this un-
certain state Of things But the tide which
was 80 long checked seems to have sud-
denly oycrnowed It's bounds, especially as
the large exports OF cotton and the advent
OF an administration pledged TO peace economy and
retrenchnen practical! proofs Of the real stability
OF the country, whatever the apparent distractions
given 1t by politicians In their wrangings The de-
maad for eur securities seems unbounded Despite
shipments withig the past two weeks, amounting to
at least millions OF dollars the price In London
has gone up 10 Tx. Our foreign bankers were
again in the market to-day, and purchased TO the
extent Of several millions for further shipment.
The eiYecl has been to create great scarcity in
some Of the issues, particularly the 62's and
old cas- which are the favortes abroad.
The market for government bonds was active an6
excited IN syuRathy with this further decided ad-
vance Of lvetwsnties In London. At the first board
tins morning e2's sold at 1l4I, the rest OF the list
being Grm 1t the closing prices OF the previous day.
Az the second board the features were 'G2's, which
rose TO iitss l1tA, and old '65's, which rose
TO il2lk a 1925. At the last board the whole
market was strangly active remarkably so for old
'65's. wnch rose TO 1875 1854 The issues OF '67
4tr
HsiS ii4is. In the afternoon there was falling
on under pressure to sell, but the market at i've
O'Clock closed Arm at the following quotatons-the
highest OF tile day:United States skies, 1881, regis
tered, ll21s il2ts; do, coupon ia 114js; do,
dvctwcntics, registered, 110sS il0A; do, coupon,
1867, lax ll45s; do, 1861. 1l1s q 1l15s; do,
1861. III 1l31s; do, new, 1865, 1l015 110A;
do, 1891, ioss l1oh; do, 1885, ll0sS l1o1S; do,
I040s. registered, 1885 103s.; do, coupon l09A
alosH; currency bonds, 1915 1olA.
The effect OF this advance in London and the ex-
portatlon consequent upon it, has been TO deinoral-
ize foreign exchange. Prime bankers, sixty days,
was sold to-day at 1o9h, ana was quoted from that
figure TO loea. Should this foreign demand continue
1t is not unreasonable to look Tor such depreciation
IN exchange as would turn 1t in favor OF New York.
when Europe would send as gold for our cotton and
bonds. Thus has not happened since the war. II Is
not very likely, however, TO take place now. But
there IL undoubtedly day not very tar distant when
with the completion and operation OF the Pacific
Railway, our city VIII be the metropolis Of the bus
pess world and its financial centre When Europe
communicates with China across the United states
there VIII be reversal OF the course OF ali exchanges
The gold market Is still the field OF o des-
perate contest between the operators for q
rise and the operators for fall in the pre-
cious metal The former, it Is conjectured have
their plans they unfortunate in beginning them
Just op the eve OF the sudden expectation OF bonds
shove referred to, the effect OF which has been to fill
Wall street with bills against which to draw foreign
exchange drafts. The clique who have attempted
this bold scheme display nerve and courage worthy
OF better cause than that OF dcprecating our ma
tlonal currency They have so much at stake that
they cannot withdraw without a terrible pecu-
MARY sacrifice. The tendency OF the market
is downward but they have resolutely resisted every
step which Il has taken IN that direction. With the
immense amount OF gold contributed to the market
by the expectation OF bonds the price this would
have declined several per cent but they have kept IT
hrni--in the Vicinity Of 135. Tney are apparently
In a predicament of very embarrassing character,
but tley reputeG to have genius equal to the
emergency. IN the first place they have suffered the
''shorts' TO largely oversell The market. To-day
loans were made at 10 per cent despite the
amount OF gold which they have withdrawn. But
this is supposed to have been strategy their part
TO induce s.bears'' TO continue their '.short',
sales With this overselling and with
sudden return Of bonds from Europe for
any cause there would be "corner'' IN
gold, which would ruin the "shorsn and enrich the
Clique The explosion Is delayed from day TO day.
but It must come within short time. Tnc gross
clearings to-day were so6 $4,000; the gold balances
$2,o59,s25 and the currency balances S2s79, 30o.
The ranne OF nrices was as fnIlows.-