The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-19
FINANCIAL and COMMERCIAL.

FINANCIAL and COMMERCIAL.
WALL STREET,
MONDAY. July Is-s r. ~.
The Gold Room to-day the scene OF the great
est excitement witnessed In thar apartment since
the memorable cath OF September, or Black Phi
day." or last year, when the great gold conspiracy
collapsed with the fail Of gold rom ieS to isa.
GOLD NIX TO i2S-
The Gold Room was occupied at an unusually early
hour this morning, and the price, after remaining
comparativeiy steady OF the figures made In the
hotel dealings OF Saturday and sunday evenings.
opened formally &c li7x The strength which u
thus showed induced many OF tho shorts 20 cover.
ana their purchases II up 70 40 by noon. Here
1t transpired that the foreign bankers, who had
been buying at tho same time with the
sherts, were In receipt OF advances from
London that the stock Exchange In that
city was paralyzed by q rumor that Russia had de-
clared In favor or Prussia; that "a Europe w0ul "a
be In blaze OF war; and that our nvetwentie. had
fallen to Sl1s Other kilograms reported that they
had declined to 81 and that ono time they stood nj
the nominal quotation OF 90 . a. The bnliish feel
ing was stimulated. and the short Interest ~ the
same time inundated By the concurrent report rhx
the diminufion OF shipping facilitsss bg shs
suspension OF the French and German lines
Of steamers had led 70 10 sharp IN aa-
vance In ocean freishts that our produce ana cot
ton were virtually blockaAed II our ports. vrsm
100 the price then suddenly advanced 10 rs. amid
the utmost excitement The fluctuations were
SO rapid and the changes so frequent that
the gold telegraph dial was inadequate 20 the task OF
Keeping up with the price, aud the registered quota
tlon was for time half to three quarters per cent
behind the sales as made In the pit Of The room.
Register Melsereau in whose charge the instrument
was undergoing manipulation. was, moreover. com.
PEELED to abandon the duty OF writing the Official
record Of the quotations. and mis- BOOK was tempo
rarily transferred to Secretary Akers whose powers
OF rapid penmanship were taxed TO their utmost In
preserving the written history OF this most recent
memorable epoch in the latest romance OF gold. From
123 there was sudden decline to I2i, ana
later to 1197s, on the denial OF the report
concerning Russia, who was now represen-
ted as having determined ~ remain neutral.
The telegram from London TO this effect contained
the confrmatory intelligence that our bonds had
recovered to s31S and were buoyant Az usual In
such cases reaction set In, which carried the price
back to 1901, between which point ard 100 the
ket fuctuated fevershy until late in the afternoon,
subsequent to five O'Clock, when the German bankers
were again discovered to be buying heavily The ri-
spread that the directors OF the Bank OF England
at an extra session had advanced, certainly would
advance tt was not stated positively which, the
discount rate for money and that In consequence
our bonds closed tonight at s2,s. The brokers.
who had generally left The room and were
at their offices preparing to go home, took
the alarm afresh and ran bacK to the MARKET where
the price at twenty-five minutes to six O'Clock rose
to 122. The large buyers had been supplied, how
ever, and in the desutory dealings at the close the
price receded to 1885, The great rise in gold to-day
has been surprise and great disappointment to
the conservative bankers OF the city. Primarily It
was stimulated by the virtual blockade of our ex-
ports in the present arrangement OF shipping facli-
ties, which has checked the outflow OF commodities
that would have gone and viii certainly 60 yet in
place OF gold, as the most available articles OF
export Again, it Is suspected that the spec
ulators who are operating for rise
in gold ana fall in government bonds
were the authors or abcttors Of the bogus
telegram that Russia had Joined Prussia. Many OF
the foreign bankers, tempted by the prospect Of war
abroad, went short OF the government market and
nave underworld to produce panic in furtnerance
Of their plans. 1t Is curious fact however that in
the present crisis our bonds have been higher in
Europe than In New York, as anybody will ascertain
by ciphering out the price In gold with exchange
added 1t was the sudden reversal In the price and
accompanying buoyancy OF our nve.twenties In
London which drove these spectators to the
desperate resource Of bidding gold up to figures
which frightened the shorts and created
general scramble Until the actual amount OF bonds
to be returned from Europe in this crisis is known
is impossible to attempt to TX the price to which
gold may advance Although the bulls enjoy
triumph at present. day OF reckoning will undoubt-
edly come Just now the friends OF our national
credit are beeagured by the forced sales secu-
rifles In the foreign market where in the excitement
and timidity OF capital everything il turned into
money without regard to intrinsic merit. Were we
in debt to Europe outside Of the nominal indebted.
ness Of our bonds, we should be under the necessity
in this juncture OF making heavy shipments
OF coin. But the exhibit OF the National
Bureau of Statistics shows that the ten months Of
the fiscal year up to May / our exports In gold
values were only the trne Of five millions less than
our imports. In other words, the millions Of bonds
which went to Europe the past year were bought by
Europeans as Investments. They were not shipped
in forced payment OF the balance of trade. Our ex-
ports paid for our imports In estimating there
fore the amount Of bonds likely to be returned to US
the public should remember this important fact
The capitalists and peasants OF Europe who
bought our fve-twentes the past year. when their
home finances were undisturbed. are not likely
TO part with their investments when state
Of war is certain to depress alike English
consols, French rentes and Prussian funds
Let the public, moreover, remember that
the only condition or the future calculated
to enhance gold is the return OF these bonds. This
influence abated or removed the conditions will be
harmonious for decline In gold; for with war In
Europe we shall ship every bushel Of grain and
barrel Of provisions we can spare. Our imports Of
silks, brandies and other manufactures OF France
viii be suspended. England will be the only country
able to sell to US, and OF her goods are annually
buying less and less, for the that East and
South we are building rivals for her Manchester
Birmingham, Leeds, Bradford and Rochedale. Were
not our bonds abroad at this moment so distributed
as to lie partially in the hands of speculative bankers
who are compelled to realize upon them the war In
Europe would be the last impetus we should need in