The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-25

anu UNLOCKED Tor influence Affecting In an important
manner the course OF values in Wall street at o
period OF the year when the various markets have
usually drifted into dulness and quiet. The summer
seasons at the Gold and stock Exchange are not
however, as inactive as they were wont to be- The
radiation Of the telegraph wires all or nearly oil
the important summer resorts has preserved the
communication between the speculative operators
and the street so closely that transactions. while not
as large as In the spring and fall, have been
above the average OF previous summer seasons.
The increase Of telegraphic facilities 10 leading
to annual increase OF business at the Stock Ex-
change during the summer season. Other innu.
ences have assisted the activity this year. but IN the
Stock Exchange the course Of prices, which at the
beginning OF July made q very brilliant beginning
toward sharp upward movement. was suddenly
reversed. Since the imminence Of war between
France ana Prussia prices have steadily fallen aud
the active shares toward the close Of the week
were from i've to ten per cent below the highest OF
the buoyant period In the vicinity OF July /.
Stocks and gold have moved 80 sympathetically
In the early and greater portion OF the time during
which the gold excitement has existed that they are
very naturally regarded together. Whatever the
danger Of speculating for higher gold on the news
from Europe, 1t Ia very evident that the temper OF
the Gold Room is strongly bulsh on the progress OF
the warlike attitude Of Europe Remote contingent
ment ana although it is truth as certain any OF
logic that protracted war In Europe will inure to
our benent and pave the way to specie payments
by givilg US an asoendancy IN the commerce OF
the world the temporary and present feeling Is
that the first battle Will sharply advance the
gold premium. But that the legitimate reaction will
come soon or late is certain, and the spectators
who are then loaded up WITH gold will be subjected
immense losses is equally certain. The only infu
ence to higher gold is the return Of bonds
from Europe anu OF the extent OF that influence In
affecting the premium may be able to Judge
from the premises that Germany Will send US few
for the reason that she is without facilities for send
ing them here while 1t is doubtful even il her ports
were open ana her steamship lines in opera.
ton, whether tho amount would be Of any
Importance, wllen we remember that the Bank
Oh Beri". has agreed to accept our bonds colate
1913 for loans, policy which viii prevent realiza.
ton upon such as are held upon margins or by par
ties anxious for money accommodation. Franz"
1'"' Fly rev Of our bonds, and the capitalists Of
England are too s.rewd not to know the Eo9ndness
OF such securities. TnS government marked ~. "s'e
has been heavily oversold by the foreign bankers
resident among u.s. whose coctemporaneou. pur-
chases of gold have been the main cause OF the "a.
vance la the premium. The rise In gold thus stimu.
lated has apparently disproved the arguments that
foreign war VIII benefit this country, and hence the
mass OF outside spectators have entered the Gold
Room tempted by the hope of greater rise. Hence,
when upon the false report that Russia had joined
Prussia gold ran up to 1888, the outsiders came in
and were saddled with the gold which the foreign
bankers had run up to that price. The outsiders
were consequently heavy losers In the subsequent
decline to 11s1S-a point from which the market
finally reacted to and closed at 100 upon the an
nouncem9nt that on Saturday, at extra meeting
OF the directors of the Bank OF England the discount
rate had been raised to rour-an advance in all OF
one per cent during the week.
The stock market was given q decidedly down
ward plunge by the sharp advapce in gold and failed
to react with the subsequent decline In the latter
While the lowest prices were made on Friday the
decline was simply arrested by heavy purchases to
cover outstanding short contracts and by ventures
on the part OF few who bought for temporary re.
action as well as with the hope that with peace In
Europe the market would suddenly rebound. There
Is little doubt that o sudden settlement OF the
difficulties between France and Prussia would
occasion very sharp and large advance in
the prices Of stocks; but just the outside public
have been shorn Of their strength by the gradual
obliteration Of their margins and those who have
capita! enough TO re.ener the market are deferred
by the prevailing impression that in the activity OF
legitimate business mere such would follow war
In Europe all the idle capital with which stocks are
now noated would be withdrawn from the street.
and the effort to maintain prices would render
money worth anywhere from a haf to five per cent
day to carry stocks. Hence 1t was that despite
the decline in gold from 1885 to l1S1s stocks aid
not go M again. The market has lost It's buoyancy
and capsity for higher prices while war is imminent
In Europe
Government bonds have fallen to the lowest polnt
touched In many years, but their currency price
seems to have touched bottom. The fluctuations
abroad now AFFECT the price Of gold only
The money market was more active, and gold
interest was paid In some transactions during the
week. At the close the rate call had fallen to five
to SIX per cent The previous activity was due to
the fact that lenders rerceving tile high rates paid
for carrying gold, called their loans on stocks and
transferred their money to the use OF the Gold
Room.
THE BANK STATEMENT.
The weekly statement Of the associated banks is
very unfavorablc as compared with lis predecessor
but the banks were already In strong q position
that they wero able TO afford 80 large loss Of re-
serve as exhibited In their report. The decrease in
specie, represented by the foreign shipments the
East week, Is over six ana three-quarier mil
lions and as the increase legal tenders ia only
half million the loss OF reserve is heavy. On the
other hand the deposits have fallen Off less than
four hundred thousand dollars while the circulation
has been increased nearly million. In spite OF this
fact the banks have increased their accommodations
to borrowers and have expanded their loans two ana
three-quarer millions. The item OF circulation Is
simply a correction Of last weeks misstatement,
The statement compares with Its predecessor % fol-
lOws:-
Julp 10. JulV %.
Loans. ........... $3.50, 31S $24e, 00C798
Specie. ............... 4l,13568S 33,358G12
Circulation. ......... 32,027,7S8 32,999, 1871
Deposits. ...... 49,. 234, 1885,, 1865 233S856l3
Legal tenders. ........ 53,46l,341 53,07S,7