The New York herald., 1870-12-09

How Politics Influences the Money Market
Daily Fluctuations and BewiideT mcnt-
Panics and their Means and 6 FOIIy.o


Al the pre- 'ent moment, observes the London
Economist OF November 20, there is nothing to sa
on the money market which u not polltical. Tae
market Is so affected by two causes OF suspense
that almost nothing Is done wlich can be helped.
And IL Is important to observe the difference be-
tween those causes. The war between France and
Germany suspends tho trade OF the Continent even
more than ours, and senas money here for safe
custody, since IN France no one can be sure OF
safety But the Russian diificulty suspcnds our
trade as much as the war. tor 1t is thought that
II there be new war we shall be bellig gorants
In IT, and 1t has no tendency to send money
here. II does not create alarm among anv people
who have money to send still less does IL at all
cause any be lef 10 the particular stability OF Eng
land The new cause or alarm u, therefore, far
worse than that from which we have been suffering
so long, The war between France ana Germany
brought US some good through the midst OF more
eyII; possible quarrel between ourselves aud Rus
81 does us as commercial nation no good In any
way, aud the mere idea OF II does us great harm.
Probably, therefore, the present causes OF disturb
ance Will for some time continue to impede the
money market. The only hopeful feature Is thai In
one respect the two causes c0uatcract each other.
so long france resists as now Russia can have
no hope from Prussia or Count Bismarck. They
have their hands quite full, aud more than full.
already.
For another week, says The 8tttols,st. the stock
markets have been at the mercy alternately OF
gloomy and cheerful moods. Pri les nave been
hastily run up and hastily hung down by the sue
ceSSlOn o. TU,IOfS tlkt uuSWcE ilOlu RuSsh III
reply to Lord Granville Was not conciliatOry, and
then that 1t was all We could wish. AT no time,
however, have stocks been quoted "a Low as they
were aG the hrsT announcement OF the dncaity, anu
IL Is not unlikely that q great many or the purely
fictitious statements pat Into circulation within the
Stock Exchange have been merely devices TO enable
operators 10 get IN and out or stock The eneet OF
what has taken place Is probably TO beSider unde-
cded and easlly-ed persons. Tue hourly nuctaa-
specu,ators simply noundering about nrst try
ing this AMI then that plan TO regain their position
before the account which begins on Monday.
THE FOLLY OF PASiuS.
The London ftndncter remarks that panics are
the golden opportunities OF those great capitalists
who form the back bone OF the power OF the city OF
London. Well supplied with ready money pos
trouble, and backed up by immen.c foreign connec-
lions ana ramitcatlons, these nrms buy up vast
masses OF stock at low prices and sell 1t again when
the public mind has recovered Its balance and Inc
pressure has passed away. The loser Is the weak
Speculative holder-the man who has bought what
he cannot pay for, or who has paid Tor stock by
means or Borrowed money, putting the stock In the
custody OF tie lenders Tne Ial upon the marAet OF
an avalanche OF "pawned" STOCK iS one OF the great.
est causes OF Stock Exchange collapses. TINS is
people are ruined and this Is the clas OF people who
are ruined. The lenders OF money become alarmed
ald wa0tit back again. The margin or "c0yerr by
waich such loans are protected vaDishes with the
descent In the price, and the speculative holder Is
crushed Were there no such borrowings. such
heavy fall In Stock Exchange prices would be lmpos
slbe even with the worst news. Further ilusira.
that ought 10 be printed In letters or gold, and
placarded con picuously In not few places In the
ouy lcadt y0u cannot puy Joy, ditd
fterey sell rltttt vOu cannot detioeT.n