The New York herald., 1870-08-22
FINANCIAL and COMMERCIAL.
WALL STREET, |
SUNDAY. August II, 1870. !

tlnued the past week, as In The preceding one TO
turn mainly upon the progress Of the European war.
| In some departments quite q sagnant condition
prevailed owing TO the uncertainties Of the stua-
| tion, rendered peculiarly difficult OF appreciation
because OF the mixed character of the reports
ceiyed OF army operations and the contradictory
| ture OF the dispatches
| IN THE GOLD MARKET,
however, there has been quite fair degree OF excite
| ment, and operations there, mainly Influenced by
the German bankers, have been carried on on
parallel line TO the OF dealings during the
war In this country. From the first OF the Prus.
sian successes the cause OF North Germany
| has apparently become identified, In its
| latlon to the gold premium, with that Of the
North nere and every Prusslan Victory has been
| terpreted as bear influence In gold In the fire.
quent announcement OF these, which arc the more
readily believed, especially by the German bankers,
than the contradictions of the same through French
sources, although published side by side, there has
been from the start an active selling movement In
gold under the influence OF which the premium has
steadily declined closing last evening at 1l4X a
l14, US against III y, the lgure at which 1t opened
In the room last Monday.
This rapid falling or Of the premium very largely
the result OF sales on speculative account the In
creaslng demand for cash gold during the last days
OF the week show, the effect Of yesterdays opera
tions being not yet seen, suggests some thought
whether there has not been over-conddent feel
ing on the part OF the BEARS The theory OF their op
eratlOns involves
TRIPLE HYPOTHEsIs.
The first assumption Is that tue telegraphic
accounts OF Prusslan victories are true;
that the French army Is shattered and de-
moralized beyond hope OF effective reorganization,
and the chances Of any considerable reverse over
taking the German troops now in France undeserv-
Ing OF consideration The second proposition upon
which the theory is founded Is that this successful
movement tends to an early pacifcation, and the
third that such an early peace would reduce the
premium on gold. 1t is scarcely necessary to say
that IN every part Of this hypothetical argument
too much Is taken for granted In the first place
the very fact that the news Of
PRUssIAN VICTORIES
come only through Prussian or pro-Prussan sources
ana evidently aims at sensational effect (such as the
story oil photographng Turcos the field of battle
Tor lnstance exposes it, at all events, the sus-
piclon OF being exaggerated, n not purposely or
| wholly untruthful. Again, while 1t Is not
! proposed to review the reported military
situation here, 1t may not be out OF place
as suggesting caution to those operators who follow
In the wake OF larger dealers without any eX ercse
| oi 'her own Judgment, that even supposing Mar
! shal Bazaine to be apparently cut on from Paris,
",
Its capture Is not so certain. The French generals
have some reputation strategIsts. and this belief
In the utter humiliation OF their great army may be
premature. Further, 1t Is by certain that
the investment, or in fact. capture, OF Paris
| would compel the French to make
| PEACE
| IL their armies remained intact The population of
the country is thirty eight millions, and II driven
to desperation might certainly hold out although the
resources Of the capital we're lost them as means
| OF defence Our civil has some such lessons
| Lastly, suppose peace to be concluded tomorrow
Is IL so certain that the gold premium would decline?
The struggle, short as Its progress has been has
| already produced grave disturbances IN finance
and occasioned heavy losses and expenditure In
both countries. We cannot expect TO escape a
share In the burdens which these must entail upon
all trade. Before the war commenced gold was 49,
and since that time we have exported over
| S200oO,OOO coin. Gold Is now 114A and moving
under the operation of exciting causes Impossible
or clear and calm analysis In which this seems to
| be disregarded. When
| MORE SOBER THOUGHT
directs dealings this loss OF specie is likely to be
more felt. The banks here hold only about the same
amount or can reserve that they did last year
at this time Gold was then at premium OF 1872. 1t
| Is true the country IS more prosperous
| with an increasing cotton crop, and more
acres OF land yielding cereal wealth In
| greater abundance But neither France nor
Prussia will DC the richer FOR their experience OF the
past few weeks and 1t is not likely that they VIII be
better customers for u.s. while can either. and
especially the former from which we import so many
articles OF luxury. afford to sell TO us cheaper IT.
! as has been often said, war in Europe, by
creating market for our productions would benefit
| us, and 80 reduce the price OF gold IL fs surely
illogical to hold the OF that situation as
likely to bring about the same result. Had the war
| not occurred, would gold now be dear at 1852
Should it continue and extend the area OF conflict,
| as a neutral nation, may hope to reap some
! benefit rom
THE INTERRUPTION or INDUSTRIAL PURSUITS
| In the countries Of the Delugerents. with the
! speedy return however, OF the enemies now in the
| field to agriculture and mechanical labors
we cannot hope to gather much profit. The
| interruption was too short. England thus
| far has gained whatever in the way OF
| trade was TO be gained In supplying
the wants OF the cOntending nations. It has so far
brought to MS nothing but doubtful news and dis
! tracing problems. What want to make gold go
down are orders-and 1t is doubtful If by speedy
| turn to peace these VIII be much increased-from
! Europe.
| GOVERNMENTS
| have been duh through the week from the absence
OF mncn disposition 10 speculative operations owing
to the uncertainty Of outside likely to nnu-
| ence prices, but on the whole firm.
| STOCKS.
The stock market was mainly Inactive, the larger
operators being stil enjoying their vacations in the
| country. sharp movement took place Friday
mornlng in the Vanderbilt stocks. which were sold
out bogus report OF Commodore vanderbilt's i'll
ness. but prices recovered upon Its denial The mar.
ket closed firm Saturday night with New York Gen.
! trail consolidated scrip and Lake Shore Us the ea-
| lures.
| THE BANK STATEMENT,
| again exhibits most unfavOrable features in
| further reduction OF reserve. the excess over the
legal requirement at present In the possession OF the
hanks hain0 only xll Oil AGAINST &14 LAO last