The New York herald., 1870-02-28
FINANCIAL and COMMERCIAL.


mediate future Of all the markets rho decline TO
| lI5A on Saturday was the result OF heavy pres
sure OF sales beginning when gold made Its drst dip
under 100 The very contrast between the latter
ngure ana that at which gold had been ruling In tho
previous year was the stimulus to heavy purchases
on ali sides In tho expectation among specu.
lat0rs that reaction would ensuo ana
among the importers and the public that
gold at such . proc was cheap. But
unfortunately for such calculations no account was
taken OF other influences at WORK 70 produce DO.
cine Tho fact that with the general prosperity OF
the country the reduction Of tho national debit ana
the enhancement Of American credit in Europe tho
premium was inevitably destined to extinguisnmont
was overlooked With our Immense exports OF
cotton. produce and bonds the demand for gold
became limited to that arising from day 70 DAY for
the payment OF customs or the few millions Of specie
exported since January only few thousand dollars
have been actual shipments OF American coin. The
tables made up each week are delusive In showing
the real extent OF the deportation, for O. New
York Is the great entrepot between Europe ana
the whole American Continent the itom of sucn
shipments Is constantly nlled with tho interchange
OF specie between England and her colonies. France
and Mexico ana Spain and South America. Tho
speculative hope OF reaction has also been steadily
disappointed. During the decline OF the week the
market was SO ,neastic that the few .'bulls" who
had the courage to step In buy for reverse move.
men were either cheated entirely or rewarded with
light profits. The two houses OF Congress played
shuttlecock with resolution about imitation but the
results were very meagre IN staying the downward
tendency. Surprising as II may DO to the most
conservative OF u.s. the fact Is only more and
more evident that the day OF specie pay
ments IL not far distant The most healthy
feature In the decline has been the absence Of specu
lnf.x
OF sales from the "bears" who sell gold which they
have not, but hope 10 buy back at lower price.
sulting from their Intimidation OF holders little i'm
portance could DO attached to tho movement and lit
tie faith invested IN the permanency or the fall But
gold has dropped from natural Causes The props
which held II up we're undermined by the INF uences
OF enhanced national credit and broke from beneath
L. Nothing but speculative influences can now put
gold back again. and the only influence likely at this
time to change the current Is bear" effort to fur
ther depress the price aud thus unnatural
demand for the precious metal. The market IL now
in that state that overseng 1t would produce a
strong reaction and defeat the speculation. The
chances u tue success OF a "buil" movement lie
only in such an oversod condition. The cearances
on Saturday exhibited marked decline from those
ofTrday, suggesting the inference that transactions
were curtailed through cautious apprehension OF
this fact.
RESUMPTION NEXT FOURTH or JULY.
lnaamucn as the natural tendency OF gold is TO
still lower prices would 1t not be we'll on tho part
or Congress to appoint special committee.
with instructions TO investigate tho feasibility
Of resumption on the Fourth OF July next, and thus
put at rest the vexed question before the termination
OF 1907 The reasons that have been operative
against specie payments heretofore are now less
pointed. The great gold smash OF last September
ar ron.
scrvative. The only persons who could suffer a
few importers and u few OF our cotton and produce
merchants. The extinction OF the premium between
now and July would tell less heavily upon the trade
OF the country for the reason that the great bulk OF
our cotton and produce has been shipped. We
should thus strike the happy median line between
the last OF our exports Ia summer and the next In
stalnent OF oursimports In the fall. With gold at
par In the autumn new impetus would be given to
enterprise over the whole country. Capital would
lose It's caution aud labor be IN demand. A thou
SAND and one eng gagemenu winch are now In aboy
ance through the contingencies or decline In gold
would be entered into with promptness and spirit
The nation would resume the acty ty OF the days be-
fore the war. The fear that pricea will
decline with god 10 exaggerated. WITH gold at par
we should have thousand millions OF money TO set
the enterprises OF the whole country In operation
While we are so abundanty supplied with capital
prices cannot yeld so greatly as TO fall back to the
figures OF Old times. Prices have gone up oil over
the world. With us they are three or four times as
great as before the war because we have three or
four times as much money. IL Is the hlstory OF the
world that money becomes cneapet AS countries
grow older
GOLD AND THE STOCK EXCHANGE.
TIE great decline IN gold has had close sympathy
In the courao OF values at the STOCK Exchange, al
though the influences for decline have been coun-
terbalanced III a measure by the ease in money and
the opportunities afforded for carrying the various
securities embraced In the stock lisI Sti tho tone
OF the market has been ieverlsh and nnsettled
and many OF the list have rather sharply de-
clined. The governments market was less
responsive to the weakening influences Of
lower gold, for the that with the advance OF
hye.twenties III Europe there has been a constant
drain upon the market to supply the demand for
shipment The following were Saturday nights
closing prices for the government iist:-United
States currency SKIES, Ill me-; do. SKIES 1881,
registered, ll6A Hex; do. do coupon, llsH
a 1i67d; do. nve.twenties, registered, May
aud November, 1l3I l13,s; do. do 1862, coupon,
do 1I4ss Il4s; do. do, 1864, 90. do, 1l3M ll3H
do DO, 1865, do do 1134 ll3T DO do, registered.
January and July, l12h 1121s; do do, 1885,
coupon do, 1l2A 1l23s do do, 1857 do do, 1l2H
1925; do do, lsas 40. DO, 1928 1l2A; do. ten
lOIueSs Tcgistclcu luots AVStAi uo. Nv, CuuVou,
". liz. ,
The weekly statement OF the associated banks ia
unfavorabe in showing loss OF nearly three mil
lions In reserve, due to the payment OF specie for
duties and the shipment OF greenbacks. but rs the
banks have large surplus over the required legal
reserve they are In o condition to stand such a
dram for long time to come. They are only de-
sccnding the scale up which they mounted so
rapidly ever since the beginning OF winter dulness
In capisal. me last two statements compare FOL.
l0ws:-
Feb. TO- FEB. 20.
Loans ns..............$25 $257, 1921, 1868 t2s3 43j, ,642
Specie. e.................. 81, 38T 35, ,5o4 259
Circulation ............. 336J4,37i 33, $40. 9O5
Deposits ............... 2l21SS,8S2 I'll, 1872, 943
Legal tenders. 65 134.066 53,77I ,S2l
The changes are In detail as foows:-
Increase In loons. 1853 2I4
Decrease In specie ........,............1 ,670 O9s
increase III circulation n.................. I2c53i