The New York herald., 1871-09-12
FINANCIAL and COMMERCIAL.
WALL STREET,

accept buyers prices, was moderately active
Cotton was unchanged.
MONEY TWO TO FOUR PER CENT.
Tne money market was unsettled and irregular.
Borrowers on stock collaterals were inclined 10
think the bank statement calculated to induce
activity. and made their engagements early IN the
day. In such tranacons the rates paid successfully
were 81 and 4per cent. Toward the close of bank.
Ing hours the supply proved to be more than enough
to 60 around and balances were finally loaned at 2]i
and per cent Meantime borrowers on govern
ment securities were readily accom- modatcd at q
per cent,
Prime commercial was dun, with rates ranging
from TX per cent.
Foreign exchange was d1ll and demoralized.
The leading bankers reduced their nominal rates
for sixty day sterling to 1885,. and for sight bills to
l09H; but sales OF the former class OF bills were re-
ported at 1857, 'cash."
THE TREASURY AND THE REDEMPTION OF THE FIVE
TwENrIEs.
In explanation OF the policy OF the Treasury De-
partment It Is asserted that the cash subscriptions
TO the new loan have been sufficient, with the aid OF
$200oo,0oO Of Treasury gold TO allow the redemp.
ton Of the hundred millions OF 1928 as pro-
posed In the circular OF September l. This result IL
reached by good deal Of close cypherng on the
stray cash subscriptions made on domestic account
But the fact still stands tnat AIR. Boutwell,, In order
almost empty the vaults Of the Treasury. The ques.
ton is constantly asked, why does not Mr.. Bout
well reveal the terms on which the Syndicate
agreed to manage the new loan for himY 1t would
not be surprising II Mr.. Boutwell, Is sick Of all this
trouble. and would like to undo the Syndicate bus
ness: for he has pledged himself to deplete the
Treasury to carry out his contract with them.
On the other hand, If he endeav-
ors to avoid running down his coin
balance by maintaining the inequality
between his custom receipts and his public Rold
sales he Will make 'corner in the gold market Of
most disastrous severity upon his friends the i'm.
porters, who are contributing their gold SO gcner-
ously to help the redemption Of the 1925 next
December. Even in the most favorable aspect the
Treasury policy Is very crude and confused and tho
whole question at skies and sevens. II Is further
said that as Mr. Boutwell, mas committed himser to
the redemption OF certain issues or the 1ve.twenes
OF 1882 he cannot buy indiscrimnately any
Issues OF that year which may DO now
presented him, as under his contracts
to take the former he cannot run the
risk Of crippling his (already scanty) resources All
Of which makes 1t more agonisng to think that
wne the ls62s were offered plentllully In the open
market to-day at lI2%, or Ia per cent below their
par in gold, Mr.. Boutwell, Is going to pay the full
par In gold for one hundred millions OF them next
December. Mr.. Boutwell, has been very anxious to
reduce expenses By refundng the debt according
to his plans) but between the commissions
to the Syndicate AMI the little item just mentioned
II looks very much as II he was saving ut the spgot
and losing at the bunghOe. In this connection
another question Is pertinent Why does not the
Secretary OF the Treasury consent to receive and
redeem the fve-twenties rs fast as presented, in-
stead OF waiting until December II by doing so he
would save the interest on largo proportion OF the
bonds; for, with the present dear rates for gold
holders would be glad to use the proceeds In the
gold market. This would break the gold 'cOrner"
now threatening and make Mr. Boutwell, popular
with the imp orters. But all this mus, not be- doubt
less because 1t is not compatible with the plans Of
the Syndicate, who are earning eleven per cent In
terest on their 'st0ck' IN the enterprise OF refund
ing the debt, and stand to make OIL enormous profit
by suffering the price Of vetwentics to widen from
gold. as 1t is now doing day after day.
GOLD sTRoSa-1l3H A 1li1l.
The gold market was strong under the manipula.
tlon OF the "bul" clique. who are taking advantage
of the embarasments CT the Secretary OF the Treas
ury In fact the "bullsn believe themselves inde-
pendent now OF any future threats OF Mr. Boutwell,.
To redeem the 1ve-twenties in December he must al
low the present excessive drain Of gold the Treas
ury from custom duties 10 go on uninterrupted lie
has barely forty millions OF coin In his vaults. II he at
tempts To relieve the gold market and sell to the
tent Of his customs he gives no relief
He simply leaves things as they are.
II he sells moro he leaves himself without resources
to redeem the ve-twenties. But far he Is selling
only 0ne.half OF what he receives the market must
therefore become utterly bare OF gold before the
November interest IS dlsbursed, when the 1rst oasis
in this aurerous desert will be reached The Clique
advanced the price from lI32s to l14H, and kept
the 'short" interest alive by relaxing rates for
cash gold. The course OF the market Is shown In
ha fah