The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-10-23
COMMERCIAL AND FINANCIAL.
Money and Bonds I'm Hew York.

In the money market, there 10 the re-.
action to extreme ease In rates which
might be naturally expected from late
occurrences. Many Wall street firms
have become disqualified for borrow.
Ing; the exceptionally low prices OF 30.
curllleB and gold have reduced lhe re-
qulrements OF borrowers; and there has
consequently been, within the last two
weeks, q heavy contraction In the loans
Of the banks, while their reserve Of le>
gal tenders and gold has been largely
augmented. The course OF exchange
at the Western cities has turned In
favor Of New York; and although not
80 decidedly as 10 induce remitlances
Of currency In this direction, yet per.
hapB sufficiently TO warrant the expec>
tation that there will be no outflow
OF money from here to that section for
the remainder Of the fall, beyond some
moderate amounts OF the smaller de.
nominations OF notes, when the
Treasury is prepared to distribute
the new issues. Under these con-
ditions, the rate on call loans
has declined to 5aG per cent. Some
moderate amounts OF currency are
being sent 10 the South, principally to
New Orleans; and the remittances to
that section would be still larger were
1t possible 10 get the requisite amount
OF small notes. We have now reach.
ed the period when Cotton is moved
from the Interior to the ports with
especial activity; and II is 10 be ex.
pected that the South will make liberal
demands for money upon New York
within the next few weeks. The exS
tent OF this demand must be the prln~
cipal condition determining the course
OF the money market In the imme.
dlRte future. In our late circulars we
have assigned reasons for anlicipat~
ing that the demand from this source
will be moderate, and we find no reas-
on for modifying the Views then ex.
pressed. Upon the whole, then, the
conditions Of the market appear 10
f0reshadow steady movement In mon.
ey, and the more so as 10 the decision
OF the Secretary OF the Treasury, In
favor OF holding the $50. .000, 600 reserve
OF United States Notes available for the
redemption Of the 8 per cent. CertIli.
Gates, has direct tendency 10 discour~
age speculative attempts 10 'lock up
currency. This general conclusion,
however, must be received with liberal
allowances for what may arise ont Of
the Southwark flow Of currency. Last
year, the New York banks held on OcS
tober 10Th 800, 100000 OF legal tenders,
and on the 7th OF November 81, ZOO, 600,
the loss OF Sl3 900, 900 arising almost en-
tirely from remittanCes TO the South,
On the 9th inst, the banks held S52,.
600, 900 legal tenders, or $7,400,00O less
than at the corresponding period Of last
year. Under these circumstances, the
outflow OF currency 10 the South for
the next few weeks must be watched
with some Interest, not to say solloi.
tude.
United States Bonds, though remark
ably steady through the panic, have
since exhibited an extreme dullness.
The fact that bonds have declined only
3a4 per cent, while stocks have ranged
l0a20 per cent below average prices, has
naturally induced extensive exchanges
Of the former for the latter. The supply
thus brought upon the market has
been taken up, partly by the purchases
OF the Treasury, and partly by speCu.
lative buyers on the suppositIon that
prices would recover the late standard.
Auo AUW ptlCo vi kUIuI uUHefeTt uho
been against any advance In the cur
rency value OF bonds. Usually, at the
beginning OF November, considerable
shipments of Five .Twenties are made
to Europe, 10 provide for demand for
the reInvestment Of the Interest then
payable. The fact, however, that foreign
bankers In this city have recently
sold out their stock indicates that
they do not anticipate any large de-
mand from this source; this expectation
being based apparently upon the fact
that European dealers prefer buying
when gold IL high. Among the domes>
tic dealers there Is a disposition 10 keep
transactions within moderation until
the assembling Of Congress, when the
annual report of the Secretary OF the
Treasury may exercise an important
influence upon the market. This ten
dency Is also encouraged by u growing
feeling that bonds having reached the
present range Of prices, any Improve.
ment In the public credit Ia likely to be
reflected rather in a decline In the gold
premium than In further advance In
the price OF securities; nevertheless
there are Indications, at the moment, OF
speculative movement TO advance
nFiCeA,