The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-08-05
FINANCIAL and COMMERCIAL.
WALL STRICT.
THURSDAY. August 40 r. NJ

THURSDAY August i--6 r. NJ.
The directors OF the Bank OF England, at their
usual weekly meeting this forenoon, fnrther adj
vanced the rate OF discount, which Is now six per
cent This action OF body OF men who are credited
with ever faithfully discerning the financial pros
pect although generally anticipated IN this country,
mas significance and importance which point
directly to the dread that England IL about 60 be In
VOWED in the war OF empires which seems 70 hang
over che destiny OF all Europe A few weeks since
the rate OF discount was only three per
cent IL at first advanced but q half
per cent, as much through ignorance
or the magnitude OF the war then threatened rs
through desire to prevent financial panic aud TO
bring the money rate gradually to figure which
should protect the interests of the Bank OF England
in the monetary movements TO cnsue upon state OF
hostilities. The latest advance--the doubling OF the
original rateand the prospect OF higher rate next
week. which would not In the least surprise Wall
street, tightening Of The purse strings which de-
note apprehension that the great ''shopkeeper OF
nahons may be drawn into the war. To US
in tins country It Is Significant that Ia
London to-day, despite this change in the
discount rate, our fve-twentles were nrm and
shade higher while English consols were weak and
lower. What IS the inference That The time has
already passed when the first symptoms OF war and
the rush to sell depressed securities below their
intrinsic value, aud that the reaction has set In
which is to assign them their real place above every
European national security dealt in at the London
Stock Exchange. The speculative holders have lost
then bonds aud the capitalists and private investors
now hold them. Had this Intelligence reached us
at any other season than the present, when Wall
street is at the seaside and watering places, the
duiness and inactivity Of the hour would give place
to bucyancy, activity and excitement.
MONEY EASY.
The money market showed further relaxation,
and the transactions call AT rates above five per
cent were purely exceptional. The prevailing rates
on al classes OF colaterais four and five per
cent, the ger government dealers having balances
LETT with them at three per cent
Foreign EXCHANGE was lower although nomlnalv
quoted loois loe7i for sixty DAYS Sterling and llo,s
1908 for sight bills. The present demands OF the
market seem to be fully supplied by the bills drawn
against the recent loan of the Barring Brothers.
GOVERNMENTS STRONG.
The government market was strong but shared
the general duness OF the day. Prices advanCe on
light transactions, and the undertoue of the market
was decidedly nrni. The seadiness OF our securi-
tes in the English market the light offerings to-day
OF the Treasury purchase and the steadncss OF gold
combined TO occasion advance Of a quarter 10
tIicecighths per cent in the active issues. IL
should not be forgotten, however that the foreign
banhers, VINO were heayy purchasers at the recent
low quotations bought simply for brief speculative
turn and not 10: investment Hence, II the present
prices should bring out sales OF the bonds
held it will not be at all surprising.
Indeed, the street may be prepared 10 these
actions; but II the kilograms concerning the London
market state the truth II Ia extremely doubtful
whether speculative sales at these prices VIII prove
a. all profitable. The government Offer TO purchase
ELECTED proposals for the sale OF only sl,195, 200
bonds The market was highest at the close
when the quotations on the street were as
follows:-united States currency skies, flO% III;
DO. 1881. registered 1i3t. ll3is; do do, coupon,
1iSA a l13k: DO. hve-tNenties, registered May
and November. ioil 1l0h; do. do, 1867,
coupon, do, III llI; do do, 1884 do
do, ITO y nos; do do, 1865. do. do. 1i0sS a
Il0ss; do co.. 1865 coupon, January July 1885,
1907; do. DO 1867, do. DO, 1895 le954; do. do
1885, do. do, 1897 lOo1&; do. ten-forties, regis
! tered lo4 a loii4; do do, coupon, 1914 1914.
| GOLD srEADY-l21s. 122.
| The gold macket opened the street al I22 bu,
declined TO l2lef the firm prices for bonds IN
London. AZ soon as the advance in the rate or ais
| count was made known the price recovered to 122.
| but again went of 10 rs when IL found mat
! the higher rate for money In london mad not dc.
| pressed American securities Furthermore, although
| tho specie shipment to-day over million and
half dollars II is doubtful whether the shipments
for the immediate future will be IN proportion 10 the
amounts sent since the Inauguration OF hostiities
Europe. Tile condition OF the foreign exchanges
| against any other presumption The course OF the
I. .t.ss