The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-12
FINANCIAL And COMMERCIAL.
WALL STREET,

Il. ~-..,r' f..st rHIpAY, NOV. Al-or: NIL
On Change to-day therc was an improved tone to
the markets. Wheat was frm On diminished re-
ccipts. with good demand on homo account ana
for export Cotton sympathized with the advance
In gold, and was higher and In demand at the I'm
proveMent
GOLD srRoNG-11oA A 111h.
New York now watches London so closely that
any commotion In the financial situation ct tho lat
ter point is quickly reflected here. Yesterday the
"bulis" in the Gold Room started number OF false
reports and began bidding gold up. They announced
the raising OF the Bank Of England rate Of discount
when that Institution was the gamer Of about
half q million dollars in bullion In the weekly
exhibit Of Thursday morning, ana, therefore, more
likely to lower than advance the rate. They also
ported excitement and depression at the London
Stock Exchange. when the market was really quiet
ana steady. by one OF those curious freaks of
chance which sometimes get spectators out OF ain.
cult!es they only anticipating the truth In the
second rumor above referred to, for the London
Stock Exchange did become excited to-day very
suddenly over report that Austria had formed an
alliance with Franco against Prussia and that an
endless series of political and hostile complications
was looming up In the future Of Europe. The effect
on the funds was decline to o3 for consols while
American fve-twentles fell or to ssA a 80. It Is
barely possible that the report about Austria is
made out Of whole cloth. In the nrst
place, 1t is very improbable. In the next,
the science Of speculation has been brought such
perfection, and Its machinery extended with 80
much elaboration OF detail that 1t Is not impossible
the cques In Wall street have imposed on the credu-
lily Of London by starting Yankee hoax in its very
midst, for the purposes Of furtherng some design
here. 1t will not have been the first time that tho
cliques have worked the London market to effect
movements which should md sympathetic paral.
Northwest preferred and United States fve-twenties
have been operated upon successfully in this way.
1t Ia singular coincidence that just ut the moment
the cliques are 'milkirg Wall street In stocks and
gold VIC should have this innammatory intelligence
from Europe. The pools sold gold short ut ia lis,
and by rendering the cash gold scarce kept the
outsiders from selling 'short.n At the same time
they were buying stocks Now they have covered
their gold and sold their stocks The programme
requires that they should get gold up again and stocks
down, foreseeing they do the inevitable destiny Of
both this winter, when money becomes drug in
the market and gold under the disbursements OF the
Treasury, falls to within few per cent OF par Even
II austria has formed an alliance with France, and
the war is to spread over all Europe, 80 much the
better for this country. Capital will again come
here, and IN such stream as to possibly depress
gold to par. Yesterday morning, after the rupture
OF the armistice negotiations, the Bank OF
England showed gain In bullion. The state
ments for several weeks Immediately preceding
show loss OF specie. What is tSe nferenceG Is 1t
not that with the prolongatlon Of the war the money
of the Continent Is drifting to Londoni The bank
begins to lose specie when peace is mooted and an
armistIce almost agreed upon. The bank gains In
specie when the war is renewed. or the speculative
character Of tho movement in the Gold Room an
estimate may be formed when tho loan market is
observed to be manipulated in tho interest OF the
cques who have commenced to make gold scarce,
that they may have all the selling 10 themselves.
The rate opened at two per cent for carving, but
they bid 1t up to 1-64 1872 for borrowing for to-
morrow The course OF The M IL Il shown in the
table,