The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-06-27
FINANoIiL and GOllSlNNNiA.
WALL STREET
SUNDAY. June 10, 1870.

SUNDAY, June ~, l5tOt
THE WEEK IN WALL STREET.
has demonstrated that even IN speculative circles
where the genius OF modern fnancers has intro
duced the system OF clldues ana rings" with
success hardly excelisi IN political movements,
The best lad plans o mice and men
There was little certainly 1t the pegnning o. the
week co indicate the change 10 come over the mar
ket ere It's close There bad been dull prelnde 70
the break which subsequently ensued fhs 'buuN
ciques. laden with stocks, had been seeking to
revive the public interest but had not dared 10 under
take themselves the risk Of bidding prices up for the
that the street was etharglc and lldlsposed
TO do anything pending the Congr essional agitation
Of ne currency guest!sr, vhI,s u. sSe.sss.- rno
held stocks really 10 sell at the least advance.
Tho break began on Tuesday, when, In the
absence Of leading supporter to certain line OF
stocks, sharp decline took place in Ohio ana MIS-
slssppl, the sales OF which were afterwara discover
cd 70 re lor the account OF broker acting
in the interest OF Edward q. Ketcnum.
THIS broker also held about dye millions
OF gold, the weakness In which conipelled
him 20 fail on his contracts. the whole story
fnen came out and gold and stocks went down to-
getser. The Sudden cu,minaron OF the clique
movement In the precious metal was only the So
quence Of the improved condition OF our foreign
Twas the disregard rather the ignorance or the
general financial situation that led to this result.
The course OF gold has constantly astonished the
''buiis ever since the panic last year. When after
the panic It had settled TO 13o IL gave way TO 100 In
the most surprising way. The bnllsi took
hold OF II again. counting upon reac-
ton, but II ran down to 1Iol.. Here the
Keichnm party look hold ana bid it up
10 lbs, the movement enlisting many OF The out
side operators that the May interest, which
The market In the midst OF it absorbed without
weakening II. Bat here the tide turned again. The
enormous cotton crop OF this year, exceeding that
Of last year by 10000 bales told upon the foreign
exchanges that The export OF specie, which was
lidentiy counted upon to put gold 10 Iao rs. was
but trdng. vle Ketchum party gave up the task,
especially as they found Il would be Impossible 70
resist the eGects OF the thrty-lye millions OF July
interest so soon TO come upon the market Gold
declined 70 III, where 1t seems TO have tempo
rarity TOUCHED bottom under purchases by the
"bears' who had sold for the decline. When this
check TO the decline is Withdrawn. aud the carrying
rate late on Saturday afternoon seemed TO show
that the s'shortr interest was fast closing out It re-
auircs little discernment to forcsec stii further de-
cline before the July interest shall have been alb
sorbed. The present quotation Of gold should not
surprise the public. When the war ended there
were few who thought the suspension OF specie pay
ments would outlast four years. Had not the gold
conspiracy OF last year and the Ketchum ,cnient
OF this nterposei their obstacles gold would at this
time be selling for less than ITO. Five years
have elapsed since the close OF the war. The "buls'
should not be surprised il their
OF resumption be fulfilled ere the close Of another
year.
The decline in the stock market has had dis
hearteniny effect upon the cliques who counted so
confidently OH summer rise III prices. The mar.
ket was dun enough owing to the apprehension OF
what Congress might DO but they cling 10 the expcc-
taton that with the adjournment OF that body they
would be able to revive the activity Of the street and
bring III the public again. Tie cO,tre,enlps
OF the Boyd-Ke,chnm failure has married
their plans. They dare not endeavor 10 sell
out upon sensitive market has
been bequeaihed them by this disaster. To begin
the campaign afresli Is uphill work But 1t Is The
! only alternative to secure themselves.
in the government Lat prices have been lower I'm
currency, but higher In gold. few weeks ago
prices ''crossed.' The present condition Of the
market only verifes our prediction that in the
gradual return 10 specie payments and in the
absence OF compulsory Funding bill governments
will follow the decline la gold by constantly
widening Margin for the reason that even with
resumption Of specie payments such securities will
week the 67's, which are taken as the feature OF
the list were quoted ll3 when gold was Ill. II ex
ceptons be taken 70 this illustration on the ground
that the 87's will soon he ex-coupon, making their
present value only 10, we can refer TO the skies OF
1881, which are quoted 1l7ls. Were II not for the
privilege which the government has Of buying in
65's this year and the 67s 1872 at par in gold
they would range several per cent higher.
The money market at the close was easy at four
per cent on call. Some loans standing over az
Ave per cent but the general rate ON Saturday was
as stated, while the government dealers were gen
orally accommodated at three per cent. This ease
in the OF shipments OF currency the West has
occasoncd considerable surprise. The explanation
| lies IN the reduced volume OF money required to
carry stocks and gold since the decline in prices
Commercial paper was steady for short dates. Buy
of four months paper not disposed to con-
cede better rates Than seven per cent figure which
they look for in the open market before the expira
! ton OF the Time designated.
Foreign exchange was strong and higher ON Sat
uriay and the prime bankers advanced their rates
TO i99h for sixty days. sterling and 1l9h for sight
bills The market was active under purchases by
merchants who thought gold reasonably cheap ut
ILL., while some of the foreign bankers have sold
bonds TO make the slight proht between European
aud domestic price.
THE BANK STATEMENT.
The weekly statement OF the associated banks
shows a loss In reserve OF million and u half of
dollars, including decrease OF about million legal
tenders Tne deposits have fallen OF two and half
millions so that the surplus reserve has decreased
less than q million. The banks have increased their
loans about three hundred thousand dollars IL
would seem, from the statements of The past few
weeks. that the banks have passed the climax Of
their strength OF reserve, and that the slow move
ment which Is now making OF the old grain crop
together with the prospective demand for money In
connection with the new one. viii entail q steady
drain Of Irregular and varying proportions upon
their resofees until the crop movement ceases. The
statement compares with It's predecessor as fol-
lows
JyneN ~ Junt ". CH1Nss,
Loans. $27esso,0A $27s O7.sS7 ncrcase x35s ss3
specie. xssD,Wf 262ES.BJ Decrease. $685.
Circulation 49,. 3307a,6i3 1904 lib Increase. ALAN
Deposits.... 2l9,a32H2 2l7b22hjj Decrease 2,4n2g7
Legal tenders. 6s,1sf3if 5T2fS525 Decrease gJt $50