The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-16
FINANCIAL and COMMERCIAL.

FlXANClAL Ind COMMERCIAL.
s~~>~~~~>~~-~~~~~~~~->~>~~
WALL STREET
"a FRIDAY, July 15--o p. M
/, the important events now transporting In Europe
nave had further interesting rejection In the
course OF values In Wall street to-day illustrating
the close sympathy which exists between the great
nations Of modern times. Although remote from
the scenc OF the Crisis which overhangs Europe Wall
street was almost as deeply interested as London,
Paris or Frankfort In the development OF the drama
IN which France and Prussia playing the princi-
pal roles.
GOLD 118X.
or the immediate erfect Of the formal declaration
OF war between the two countries the advance Of
gold today from 1N TO 1l8E Is the index Of the
change wrought In the financial situation on this
side OF tho Atlantic. The latter point was not
reached without many intermediate fluctuations.
Tho news that war mad been actually declared was
not made known until far In the day, and even then
was dlscredited for the reason that Parls telegram
announced. truthfuly or otherwise, sudden
recovery In rentes. II remains TO be seem
however, whether the existence Of o state OF war
such as we may look for in the immediate future
win continue to advance rhe premium on gold. The
fact has been already discounted In Wall street. for
the carrying rate to-day shows that the SPECTATORS
who have bought In anticipation OF war comprise al.
most al the dealers In the precious metals Tho
Gold Room Is now composed OF harmonious com.
munity OF "bulls." who aro no longer DESTROYS or
buying, but Of selling. The danger OF hold
ing gold In such situation Is only
too evident Tho ostensible reason Of tho advance
h that our nstional securities abroad may be sent
homo. The government market here has declined
not through any depreciation OF the intrinsic value
Of our bonds but because the market price is forced
down by the sudden effort to realize upon them.
Instead OF our bonds having really deprecated they
are really more vaua lie now that French rentes
ana Prussian funds are depressed by the war. The
reaction at no distant day Il Inevitable. long war
In Europe win heghten the value OF our bonds
held abroad by rendering them the only safe In
vestment for the ttmid capital OF the Old World.
Gold on the present news has risen only a few per
cent ana Its further advance will be all the slower
for the reason that its higher price makes ready
market for our exports, especially az breadstuns
abroad are also advancing. The vlgor OF our do.
nestle industries and the financial soundncss OF our
government win yet triumph over tho influences
which for the present are advancing gold beyond ts
reasonable value. The danger Of buying gold is that
IT is impossible to tell how soon these influences viii
cease TO operate and the tide turn sharply around
BREAK IN STOCKS.
The stock market opened with sensitive feeling
after the decline OF the previous day. The specula-
tive mood BY one Of those curious freaks not lnfe
anent IN Wall street. had driired into the belief that
stocks were for salc as gold advanced Hence tho
eyes Of the Long Room were constantly fixed upon
the gold dial, ana values moved counter to the
changes there Indicated. Hence, gold rose stocks
fell, and tho "bulls found 1t impossible until late
In the day, when their efforts met with more sue.
cess to check the movement. The feeling inter-
pretcd In another form was, that as our paper
money declined in value stocks also declined.
The consequence Of this sympathy was O decline
for tho active shares OF from one to four per cent
the market at times being on the verge OF panic.
Toward the close. however, and midway OF the high
est stage OF gold prices rallied and when gold was
at It's best figure stocks were up between one and
two per cent from the lowest point. Whether this
recovery was the covering OF tho "shorts" or le.
climate reaction the future must determine. The
success which has attended the "bearsn who sold In
the face Of the strongly 'bulllsh" aspect which
the market presented few weeks since so elated
them that widespread ''short'' interest had been
formed. AS to the future OF the market the street
Is still greatly divided. The "buls' point to the
fact that In 1906 during the Prusso Austrian war,
stocks first declined ana then suddenly advanced.
The "bears ON the other hand REFER to tho Franco.
Austrian war Of 1859 when the depression IN stocks
carried them down ten TO forty per cent 1t Is true
1859 and that we have volume OF paper money which
is now Immensely larger than then. II was this
fact which prevente IN 1890. repetition OF 1850.
It remains to be seen, however whether, with such
an active money market as must follow q war In
these days. with the industries OF the whole country
aroused to supply Europe with supplies OF all kinds,
serious blow might not be dealt to such securities
as are now coated above their real worth by the
abundance OF money in the Wall street GOLFERS.
MONEY MORE ACTIVE.
The agitation arising on Of the war news pro.
duced some little uneasincss on tho part Of money
lenders, and the rate on call showed tendency to
higher figures. The stock hou1es, as rule paid
i've per cent. and In exceptional Instances six
but the government dealers were freely supplied at
four to five per cent The ta in prices ut the Stock
Exchange has necessitated the frcshening OF mar.
gins, but the activity arising from thi, cause was
overcome by large realizattons, which brought
money lenders on the street In the afternoon.
n. FOREIGN EXCHANGE FIRM.
The foreign exchange market was inactive, owing
to the expected interrupto to some Of the trans
atlantic lines Of steamers. There were quotablc
rates for other than sterling and franc bills which
were firm at the rates previously quoted. In this
connection 1t is impossible to estimate as yet the
shipment Of specie by to-lnorrows steamers. The
German lines had large quantity engaged. but
what disposition VIII be made OF it pending the
present crisis cannot be easily determined. 1t Is
said the amount ready to go Is between ST. 60o 600
and s1,soo,0o0.
GOVERNMENTS STRONG.
Contrasted wlni the sharp decline In stocks and
the advance in gold the government bond list was
strong, prices rcceding only half to three.quartcrs
per cent despite generally bearish feeling and
dread that with the war In Europe there Will be
largo amounts sent home for realization. 1t Is
curious, however, that the sales this account by
the foreign bankers have been made more through
an anticipation that such would be tho result than
from an actual occurrence OF what thoy expected.
Tho actual orders from abroad to sell bonds held
there have been 80 far limited to q trinug
amount The foreign bankers, In their