The New York herald., 1871-12-15
FINANCIAL and COMMERCIAL.


The scarcity OF commercial bills, arising out OF the
lighter shipments Of cot on has enabled the leading
bankers to advance the rates Of bills ON London,
which were higher. to the extent OF y per cent,
although apparently unchanged In the case OF sight
bills, which, owing TO
THE BANK OF ENGLAND
rate OF discount being reduced to 8 per cent, are
now only y higher than sixty-day bills. The fol-
lowing were the quotations OF the market at the
close OF business this eventng:-Sterling, sixty
days commercial, 1887 1osX; do., good to prime
bankers, 100 1osH short sight, 10ox 10o7S
Paris, sixty days. 5.3SX 5343<; short sight, $50
$685.; Prussian thalers, Tx 72H; Antwerp. 6.2sX
Q 5.SA; Switzerland, b.27I q 6.22H; Hamburg, S5A
q s6h; Amsterdam. 4OK 4ozl; Frankfort 40z.
Az; Bremen, 7s5s a 70.
MONEY STRINGENT
The money market was active at seven per cent
which rate was paid alternately In currency ana
coin during the usual hours for making engage.
ments. Toward three O'Clock the demand increased.
and borrowers began paying small commission In
addition to legal interest. Still later there was
rush for funds to settle bank accounts, which
then half an hour late and the last comers had to
pay as high as one.elghth per cent for the desired
accommodation. The strngency was all the more
remarkable for the fact that about TWO and a half
millions OF currency, supposed to have been with
held designediy from circulation, was restored
through the
BANK OF NORTH AMERICA.
which was debtor at the Clearing House this morn.
Ing Tor good part Of that sum- The explanation
hes doubtless In the continued withdrawal OF loans
By the broadway Bank to meet the payment OF city
revenue bonds falling due tomorrow. There was,
furthermore. general movement towards cOnser-
vatsm on the part OF the banks In view Of the ap-
D0intnent OF another bank examiner In place OF
.No~a
accepted by Mr.. Hurlburd, the Comptroller Of the
Currency. The impression exists that o good MaHJ
banks are lenders on such valuable collaterals as
Portage Canal bonds, and that closer inspection OF
these institutions will reveal possibly. the presence
Of even more OF Mr.. Calendars favorite invest
ment Under these circumstances, with
A NEW BANK EXAMINER :, & 4 Is 5
ready to slit their condition thoroughly the banks
are beginning 10 SET their houses In order anent his
coming, and as pre- iminary thereto they are cur
failing their loans boarding greenbacks and f0rtiy-
ing their reserve as much possible 1t will be
membered that we called attention to the fagrant
violation last october Of the 25 per cent law and
demanded the enforcement OF the penalty incurred
by the guilty banks Who shall say that the freedom
then granted The banks to break this salutary and
necessary law 80 far permission to do so was con-
veyed In the
and the head OF tho financial bureau OF the gov
ernment, has not been the cause OF the demoralza-
tion which has produced the many failures this
weeki The banks ran below their reserve IN plain
violation OF the most important section OF the Ma
tiona Banking law; but Mr.. Boutwell, and MIR. Hurl-
burd and Mr. Calendar said nothing The banks
not being reproved in this instance have, many OF
them, been Indifferent About observing the law
strictly since; hence such results as the ocean
Bank and other failures. The HERALD also drew
attention to the
EXPANDED CONDITION OF THE BANKS
last summer, weakness on their part which aggra.
waited the effects on the Stock Exchange Of the
panic produced by tho Chicago fire. Forgetful Of
the lessoa then taught them they are now nearly
back to the enormous line Of loans prevailing at
that tme with this disadvantage, that their surplus
reserve Is now only I'VE millions and money scarce,
while then their surplus averaged about ten mil
lions and money was abundant Last Saturday
the bank loans amounted to nearly two
hundred and ninety-1ve millions. II our
warning OF last summer was o timely one. how
much more does 1t behoove the banks now to
prepare themselves against contingencies The
agitation was intensified to- day by what seemed
purely speculative scheme to cause a run on the
banks, and certain brokers commenced by refusing
to receive checks on the
BANK OF THE COMMONWEALTH
even when certified. This compelled other brokers
to ask greenbacEs from the bank, which enjoyed
the honor OF mall "run, but paid every demand
fast as pres ented and without the least hesta-
tion. Its ability to DO 90 being procured according
to certain uncharitabe rumors, by tho aid OF other
banks and BY forcing borrowers 10 take up colate-
rails on which the bank had made demand loans.
Comptroller Huburd. who was to leave for Washing
ton tonight stated In conversation to-day with the
koe,sy &ho
the remaining banks were all right-an opinion on
feeling In the public mind.
THE LOCKING UP, CONSPIRACY.
THIS afternoon subpGnas were served on num-
Der OF brokers citing them to appear before tho
Grand Jury and District Attorney TO give testimony
as to the charges Of conspiracy to lock up green.
backs. The matter Is farce. The proceedings are
Instituted by the 'buls," who are fighting the
"pears." simply for their private benefit and with
out reference to the public. the "bears' intend to
retort Dy preferring charges against the "buls" Of
trying TO make money easy and swindling the COM
munity by selling them innated stocks. One line Of
action is just as virtuous as the other Doubtless
the District Attorney viii the matter IN It's true
light and let the speculators light 1t out as ne did
last summer. when invited to help the ''bearsn In
the Gold Room.
Prime paper was quoted o 10 per cent discount.
THE GOVERNMENT GOLD SALE.
The Assistant Treasurer received bids for 445l0o00
gold, at 10s.50 1Oo.3s. The million was awarded at
10o 2sK q loo8S
The sub-Treasury paid out 900 gold for re-
deemed bonds Of '62, making total disbursement
on this account to date OF $19, $780, 600.
GOLD STEADY-109k 109K.
The gold market was steady, ana. on the whole.
hrmer. considering that the Prince OF Wales was
better, and that the Bank OF England reduced the
rate Of discount 10 per cent; but the speculative
feeling was not active, and Is IN doubt as to the
policy to pursue, gold being low to sell and dear to
buy If specie payment is coming. The course Of
the market Is shown In the table,
10 A. M........... 109X lP. M............. 100H
10:06 A. M......... 109H 1Al p. M........... 109X
IL A. M........... 100H 2P. M.............. 10oK
~ M.............. l09X r. M............ 100x
1l:2f p. No.. 1lQiL 4 p 1nQX