The New York herald., 1870-03-14
FINANCIAL And C0MNnRCliL.

SUNDAY, March I3, 1870.
Tho activity In the various departments OF Wal
street preoiptated by the sharp decline In
THE GOLD MARKET.
when the prce originally began,its descent from tho
vicinity Of l2o rev weeks since was not arrested
during last week, although the indcsklons at the
close were favorable 60 steadier II not 1rmer
ruling IN the premium for the immediate Iuture
The ioYest point touched 30 far Is lioi4,
which was followed by IN eyentua. reaction
TO ia. The change in the speculative sent
ment OF the street reflected In this upward turn Is
due TO the Interpretation Of the further progress OF
the Fnndngbill, which Is regarded as likely to meet
with iata opposition In the lower brancn OF Con-
gress where II VIII encounter the antlpaihy OF both
the national bank interest and the Western inna-
tonists. The fact should be borne In MIND, how
ever thst the speculative fraternity OF Wall street
are now harmonious on the bull side OF gold, and
hence allowance must be made for their repre-
sentatlons Of the situation ss affecting gold. une
prominence Is gwen by them 20 the probable
effect OF tho defeat OF the Funding BIZ. 1t
should not be forgotten that the decline In gold
commenced before the Funding bill had made any
essential progress IN the Senate and the effect OF
natural causes outside Of the Congressional action
mad upon that measure. The tone or the foreign
changes indicates that the precious meai il not IN
demand for shipment abroad. On the contrary, the
prospect is lair that before summer we shall import
gold What therefore, is to prevent repetition OF tho
experience OF the market when gold was thought
cheap at 12o and still cheaper at 1l5s A "buiIn
movement just now is purely speculative. Il Is
based upon no foundation likely 70 sustain IL In the
commercial world. The operators who have gone In
to put the price UP againiwi very likely find them
selves again weighted with an nnbuoyant load, lust
as they did at l2o and at ll6. win not be easy to
fr tha IL I'm Out tha sIul ot6a
cess OF the reaction from 1lo4 to ia was due to the
fact that tho outsiders vino had sold gold "shortp
at 1l2 were frightened into covering when the mar
ket went small fraction against them.
THg sToCK MARKET.
Business At the Stock Exchange was duh under
the ndispostiol to deal during the declining ten
dency OF the premium on gold, and the market gen.
orally depressed. The effort to disconnect the two
markets has not been successful as the operators
in stocks have desired for 1T Ia almost impossible to
disabuse tho public mud OF the BELIEF that stocks
must come down with gold the arguments OF the
"Dus" TO the contrary. Notwithstanding. the
stocks which are cliqued were the most sensitive 10
tendency decline and required the persistent DulI-
ing' OF tneu owners 10 keep them from drifting into
panic. In fact, when gold touched 110L, some OF
these combinations showed signs OF attempting to
jump out. But with tho reaction In gold they have
taken fresh courage and disposed to hold on for
better chance OF extricating themselves. Tho
feature in the latest dealings was Northwestern.
winch feu to 709l upon sales to realize induced
by report that the present direction, In
their endcavor TO retain control at tho up.
preaching annual election would authorize the
issue Of four millions Of bonds, convertible nto
stock. This report Is emphaticaily denied
by the officials OF the road and may possibly have
been started to enable one or other or the parties
auNhtt unF nuO nInn
purchase further instaments OF the stock the fact
being obvious from eigns IN the street that the
presidency aud direction OF tins prominent corpora
tion the aim OF several railway magnates desir
ous OF succeeding the late Mr. Keep. The struggle
for this object is therefore likely to render North
west active specially la tle interim TO the elec-
ton.
TIE GOVERNMENT EARKEr.r
The sympathy between gold and outside values
was most iorcibly Illustrated In the governments
market. where prices nuctuated widely and wildly
with every change In the premium. When gold de-
ciined to lloA the sixty-seyens. which were most
actively dealt in sold down to 107x. With the
prospective defeat OF the Funding bill and the reac-
ton in god the quotations al the close exhibited
sharp advance and the market possessed very firm
undertone.
THE MONEY MARKET.
Tho rate on call loans continued to range from
at four to nve per cent. It remains TO be seen
what erect the movement OF currency to the inte
rior, as indicated iu the bank statement below. Will
have upou these figures but the dram cannot
llnuc beyond the middle OF May, and the banks are
fortified By resources having the exponent OF twenty
fve millions excess over the lawful reserve, the
less tmii dealers in stocks rre devoid OF apprehen
sons for q stringent money market. Commercial
paper was neglected, although there is o good sup
ply on the street. Rates are frm at seven to nine
per cent for the cuoace grades OF double name ac-
ceptances. Foreign exchange was dull, and at the
close barely steady on tho basis Of 1854 Tor prime
bankers sixty days sterling.
THE BANK STATEMENT.
The weekly statement OF the associated banks
presents unfayorable features, not so much in the
actual loss of resources during the week as the
suggestion that IN the decrease OF hree-quarters OF
million OF legal tenders Is begun the spring out
now Of currency to the rural districts for the April
settlements and engagements connected with the
farming interests in the approaching summer, the
probability being strongly indicated by this fact
that the BANKS Will be heavy losers OF their
deposits until the middle OF May or until the
causes which occasion tins demand cease To exist.
The total loss In deposits Ii about tlreo ana quar-
ter Millions made up OF the legal tenders referred
TO, ana two and half millions OF specie. With
regard TO tue latter thero are pfOOlematical Ii not
suspicious circumstances. IDasmuch as the gov
crnment dishursed about ELK millions OF coin and
received only two and half millions for customs
during the week the item Of specie should show
different result from the ono presented. Were the
amount large enough, on the one hand, 1t would
suggest the docking up'' Of gold for speculative
purposes--a view OF tho case strengthened by re-
ports or the organization OF gold poosY among the
cotton dealers. Were 1t small enough ON the other
hand 1t would be accounted for by the drain on tho
banks for silver enable hs tradesmen and store
Keepers to resume their socalled specie paymcntsn ~
The last two statements were as follows:A
March b. DGrch H.
Loans s.........,.... S26S, ,634 2i2 $685. LAG, ,6os
Specie. 35,S95 53 $3.50 l35
Circulation. ............ 33,7sJS42 30, 1886 730
Deposits ............ 2l3, 073,34l 2oo, ,s3l, go
Legal tenders. s.......... 53,o65,933 $780,, ,oo4
The changes In each item are In detail as fol-
lows
Decrease IN specie 4, ,4o3 3Jo
Increase III circulation. n......-............ 5l,7g5
Decrease In deposits. 3i2N il6