The New York herald., 1870-08-29
FINANCIAL AND COMMERCIAL.
WALL STREET,
SUNDAY. August 2s. 1870.


While the volume OK business the past week was
far below the average, and while the markets out
side OF gold were seldom so inactive. the present
inert influences Affecting the financial situation
of more than usual interest 1t IL this singular
trast bStween the gravity or the situation and the
quetness or the street that commands attenion. 1t
shows that Wall street Is like the world at largo. 1t
needs agtators anj leaders to influence
movements based upon the causes which
otherwise lie imperative. Were It not
for the great captains OF finance who sweep into
ana through the street at intervals the operation OF
natural lava would be but prosy matter, and
spectators OF limited capital would seek other fields
for the trial OF their luck Hence il Il that at
season when the watering places have not yet lost
their attraction for the great leading splglts OF
speculation the Wall street markets respond but NJ.
fully, III at ALL to the changes In the OF specu-
latve influences
In such condition OF things It Is easy to under.
stand that speculative transactions have OF late
peeh generally consummated IN tue Gold Room, the
speculative spirit there lnding an opportunity TO
Try us fortunes upon medium OF more shifting
value than elsewhere presented In the vicinity OF tne
Stock Exchange But even In this direction the
venture OF capital has been OF limited amounts; for
the opportunities of rapid movement have been
almost counterbalanced by the risk OF the under
u
ness In the nuctuatlon OF the gold premium
which has put all calculation at defiance. The
earliest sales of gold on Monday were at ll4zs from
which, despite large contracts on the short slde
there was an advance 10 III, at which point the
same short interest was deceived into the belief
that gold was destined to go back among the
"twentles," and further rise to 11s was occasoned
by the covering OF the original short sales.
The legitimate demand ceasng at this figure
there was an eventual relapse to 1l6I. Here
was movement Of between three or four
per cent, the gamers In which were so by pure
chance. The check to speculation produced by 1t
Is reelected 10 the closing dulness OF the gold mar
ket and I'm the dwlndling down OF the clearances
from hundred TO only forty millions daily. The
rise snd fall followed In some measure the changing
aspect OF the warllke situation In Europe; but their
general Inconsistency was betrayed by the tmidity
which followed the alternate reports that pools had
been formed on the one hand to advance and on the
other to depress the price OF gold. The short In.
terest at the beginning OF the week, based upon
expected speedy settlement OF the war by the Prus
Sian conquest OF PARIS, and reflected in high borrow
ing rates for cash gold was inundated into cover
ing by the report OF the organization OF powerful
"bull" clique. "longn interest, tempted by the
same report, found Its hands full OF gold
just at the moment that another report was
circulated OF the formation OF a powerful
"bear" pool. The consequence was a sharp
decline in the price and great loss to the SPECTATORS
VINO were afforded another opportunity for verify
Ing the truth Of the saying that .'Wall street Is
hard place to make money in.'
The question, however, which apsorbs most inter.
est and now constantly exercises the mind OF Wall
street, Is the future Of the money market In the
interval to the cessation OF the fa demand from the
South and West. Attention has been particularly
directed to this matter by the steady decline
in the resources or the banks. whose surplus be-
yond the legal Is confined TO the Of only
ten millions Of dollars, amount which eXperen nee
mas shown Is easily within the reach OF speculative
contraction. But the situation this fall is different
from that for many years. The remembrance of the
events Of last autumn, with its terrible stock
panic. was so deeply impressed upor the street
tnat In contrast to other years the lnterva
since last September has been exceedingly dun. The
oblfterati0n OF the facilities for speculation the
one hand and caution on the other produced a
marked decrease in speculative animation The suf-
ferers by the panic seem TO have remembered only
The terrific decline In prices and have been patiently
waiting for o return Of September that they may
correct the mistake OF last year. Hence while
the bu!issh feeling OF the summer mas been
OF little moment, tne ''bear'' plans for the com
ing fall have been gradually organizing ana
active money is impatlently awaited as The signal
for general movement for lower prices. 1t is the
extensive character Of this feeling which likely
defeat ITSELF 1t is here that we shall find the sou.
ton Of stock movements I'm the approaching season.
The speculative stocks are in the hands Of the
cliques and heavier operators, who bought
In the winter and spring, but have found
no market as yet In which to sell them. very
tive--a stringent-money market would OF course.
embarrass them in their possession OF the load; but
should they, as they have done before exert their
credit and procure time loans at high rates OF ir-
terest they would doubtless dismiss the idea OF
keng their stocks at present and retain them over
the crisis 1t may be that they cannot follow
out 50 fclicltious programme ~ thus Indicated.
The money market was never 80 barren OF pro-
phetc signs as to its this fall But that the
public may make great mistake in operating for u
heavy decline In stock in the interval TO the relaxa-
ton OF money Is very OBVIOUS. The cliques may
turn their extremity into great pital for the
OF outside spectators.
THE BANK STATEMENT,
The weekly statement OF the associated banks
again shows the diminution OF resources resulting
from o steady loss OF legal reserve. Some effort
has been made to decrease tile line OF liabilities
ana n contraction OF q million and lhree-qualters
In loans has taken place. the total decrease in de-
poslts being over three and a half millions. The
specie decrease is about million. and the loss OF
legal tenders nearly million four hundred thou
sand dollars The surplus reserve has been drawn
down over million and half Of dollars, leaving
the banks now with S9,s9l 1873 over the amount re-
quired by law. The statement contrasts with lis
predecessor as folIows:--
august 20. august ~. Changes.
Loans. $275 712,yS2 S27J 8sG,974 Dec 81, 1856 O0S
Specie.... 20, ,733346 1868, 3s4 Dec. I,093,s32
Circulation. 81 s3g, 567 32 sO4, ,9O6 Inc. 65,339
Deposits 80. 2O5 53l, ,3Is POI 966,700 Dec 1864 ,6lS
Legal tenders 50 800, 2S6 4s ,g501l3 Dec. 1893 573
LATEST PRICES OF GOVERNMENTS.
The following the latest street quota
lions for government bonds:-Unted States cur
rency skies, llIk ll2; do, 1851 reg
fatered ia liaiZ. <wdO nan