The New York herald., 1870-09-26
FINANCIAL AND COMMERCIAL.
WALL STREET,


WALL srasrr,
SUNDAY, Sept. 25--6 p. M
The undoubted feature OF the present season is
rhe abundance OF money in financial circles, ana
swhle many are disposed to think It an
anomaly at this period OF the year, aud
rre disposed to argue that It betokens lack of ac-
sivity In the enterprises OF the country we find
shat che reports OF business from nearly every por
zion OF the country are OF the most attering char.
aoter. The real reason OF this ease in
Jnonoy Is the immense cancellation OF the
pubuc debt which has been in progress since last
gear. and which has turned into the market be-
tween ono and two hundred millions OF dollars
that were twelve months ago locked up in govern
ynent bonds. The
GENERAL TgADs or THE CITY
thn past week was very active and the dry goods
merchants In particular found themselves over
l~nemed with buyers from the South and
Southwest. "A stroll any night through
7ha lower part Of the city VIII show
ane principal houses brilliantly lighted and
hosts OF employees getting out and packing the
orders OF the day. Prices of dry goods have been
firm for the reason that stocks not large both on
account OF low water In the Eastern mills and
Fighter supply Of European varieties. The produce
markets were more active and fell into line with the
8anersl markets. after period Of considerable dull
doubtless for the reason that people are
in general dislnclmed 70 lay In large stocks.
tho impression existing that lower prices
must prevail owing TO the fall In gold. Cotton was
active but irregular Prices fell In response the
feavy receipts Of the week--ab0ut Ss 900 Dalesbut
She decline brought In largo orders fr0m Liverpool.
Ihe week, In short, has been almost unexception-
9lly very busy one in every branch Of trade, ana
tne prospect for an active fall has seldom been
bright Moreover, the tact assurance Of the auiho-
rites ut Washington that the money market win be
kept easy, has given confidence and stimulates en-
tsrprisc
TIE MONEY MARKET.
The assurances referred TO have been the pur.
chase far tins month OF nine millions OF bonds
tae Secretary OF the Treasury having exceeded his
advertised programme by three millions. AS the
resources OF The Treasury unlmpalred by these
liberal disbursements the expectation Is indulged in
that he Will Continue 10 buy heavily the balance
Of the season The suggestion is made
and we second Its prOpriety-that he
should alternately buy with gold and
currency. Thus, In place Of selling million of
gold eacn week, causing now Of money into the
Treasury which comes out again the next day or two
In purchase OF bonds 1t Is proposed that he should
buy bonds with the million OF gold. In this way he
would accomplish precisely the same result, but
would prevent the movement OF money into and out
OF the Sub Treasury. In other words. the dsburse.
ment would be continuous and prevent any spas
modic changes In the money market Not
fhat there have been any such irregularities eXpe
rienced as yet. The amount OF gold sold has not
been large enough to overcome the larger disburse-
rnents IN payment for purchased bonds, but the
effect OF the plan suggested would be to steadily re.
inrorce the reserves OF the banks, one day with
gold and the next day with legal tenders.
such policy IN conducting the Treasury
operations would be exceedingly gratifying
TO every financial and commercial interest.
ON call loans the past week the rate has ranged
from i've to six per cent for the bulk OF business
but the exceptions at seven were far outDumbered
10y those at four per cent. At the close per
cent was rather the exception, despite the unfa-
Vorable bank statement, and large balances were
ouered at four. year ago money was worth very
extravagant rates for il was the week OF the great
panic but previous To that event. and as early as
september 10, the rate was per cent currency
10 seven per cent gold. II surprise be expressed
tnat money Is now so easy, when the banks hold
only 5000, 900 In excess Of the legal reserves, it
snould not be forgotten. above stated that a
great deal OF monsy been released the street
by the cancellation OF government bonds while the
unantiry OF private capital transferred the bank.
ing business is SHOWN by the large balances offered
by private houses and by the appearance In the
street Of firms which, ear or 80 ago. were In the
dry goods and other trades. In discounts there Is a
freer movement. and good deal OF business was
done at ia to per cent Tor strictly prime paper.
THE STOCK MARKET.
There was renewed activity In the stock Exchange
and the dealings were on an improved scale. The
activity was due 10 the appearance in the market Of
decided bearish movement the origin OF which
attributed to the quarrel OF parties lately repre-
ad to he harm0ni ions 10 an inward movement.
The stock more particularly assaied was Ohio and
Mississippi and the decline IN this led to lower
prices the general list While the shares spect
ded fell over two per cent, the decline was less
marked in other stocks. Finally the market re-
covered, except for ios which seemed to cut loose
f,om the and strong recuperaIive tendency was
quite perceptble al t.e close, although the quarrel
alluded to had the effect Of ch ecking the speculative
feeling and producing quieter market. At the
same time 1t seemed impossible TO enlist the public
IN "bear', speculation, and the chief operator for
adecline was almost alone in his sales toward the
close In fact the mood OF the street Is 'ouilish"
and a little animation on the part of the cliques In
that direction would he more layorably received
than an effort the other way.
THE GOVERNMENT MAREGr.
The large purchase OF the Treasury induced higher
prices for the government list. but the decline In
GOLD and the large supply OF bonds on the street led
10 decline in prices, despite better quotations in
London. 1t f. evident from the character OF the
market, that holders very desirous OF realizing
at current prices with view to relnvestment in
railway mortgage bonds ana other securities The
market at the close was dun and heavy.
THE GOLD MARKET.
the price OF gold, which had been extremely
steady for several days the beginning of the week
at average Of 1l34, finally broke 10 l12sI under
tie sales of large amounts Of bills of exchange
sought by stock brokers the one hand In further
ins ttcir plans of time loans and sold the other
IN the process or transferring money TO tihs city
from London, where the interest rate is only 2 to
per cent. The rates for foreign exchange were
utterly demoraized, and prime sixty day bills sold
an saturday al az low as 10aA.