The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-12

SUNDAY, June IL, l61l.B
TRADE OF THE CITY-THE RISE IN COTTON.
For the season good trade Is doing In most COM
mercial departments OF the city, although the prom
nent feature OF the week has been the further sharp
rise In cotton, for which the HERALD prepared It's
readers few months since, when It quoted the
Southern press on the subject OF prospective re-
duced area OF cotton culture for 1S7l-o. The up
ward movement In prices was arrested midway OF
the week by the relatively higher situation Of the
New York market as compared with Liverpool
which would have allowed the return OF cotton
from Europe but there was little disposition on the
part OF holders to realize and when eventually Liv-
erpool caught up with New YORK the market recov-
cred It's rmness. 1t to be pretty well settled
that the next crop will not be over three millions
Of bales. This reduction and restriction OF the
crop the deliberate intention and purpose or the
Southern planters. They were ADVISED to 1t by many
OF their politicians and papers, and have acted upon
the advice. SO suicidal policy IS equaled only by
the secession ordinances which the South passed In
1s6o-8l. The short-sgnted wisdom OF diminishing
the crop, with view to enhancing It's price, shows
sad ignorance OF the most elementary principles of
political economy. Should the Southern States go
through commercial crisis In 1872 and ne visited
by az "hard tmes' as existed In the period embrace
ing the after end OF the war and the first year OF
peace. they Will have their own folly to blame for
their transgression OF one OF the great laws or COM
meyce. The South was on tile way to eXtingulsh
cotton culture everywhere except within her own
borders and nonopolize tile production for the
whole world. This opportunity has been deferred by
o policy rs blind as that which blochaded her
ports from the markets OF the world. The dry goods
trade has peen afTected more III price than in
volume Of business by the advance in cotton. The
mass OF buyers disposed to wait the actual ad-
vent of the next crop before rskng the chances Of
buying at present prices and hence the temptation
to speculate against o further advance Is almost
wholly checked.
THE MONEY MARKET
The money market as compared with that OF the
preceding week. showed faint increase in activity,
attributed to the demand for money among the
wool growers. The only change, however, was q
slight increase in the number OF transactions at four
per cent among the stock brokers, three per cent
being the average and general rate for the great
majority OF call loans. Prime commercial paper
was scarce the offerings having been absorbed
earlier In the season, and was quoted AZ a 9 per
cent discount.
Foreign exchange declined, as result OF the
more active demand for cash gold In speculative
TRANSACTIONS, and, once down, failed to rally when
cash gold became easier. The first class bankers
ask 1i0s for sixty day sterling, and nos, for sight
bills.
THE GOLD MARKET.
The gold market was alternately weak and strong,
according as the ''bu Clique kept or lost control
OF 1t. Early In the week, when the first squeeze"
frightened many Of tue shorts into covering"
portion Of the Clique, through timidlty or through
characterization as to the effect to be produced by
the government sale OF gold went out of their gold,
and the clique operations not only were embarrassed
but threatened 10 go into chaos. On Friday aud
Saturday however, new deal was had. The scat
tered Clements OF the combination were,
1t is said, got together again, the
gold put into pool and ''bcard OF directors ~
appointed TO give central management to the
"bulr' movement Tor the future and control 1t until
the speculation should result In profit to the va
rlous shareholders" in this freshest aud most
unique enterprise in the way OF JOINT stock COM
pany. On Saturday the market opened quiet. with
sales alternately aL 112H ana li2>4, especially as
cash gold was better supply and cost consldera-
ton carrying. Afterwards the rate became nat
for borrowing and gold advanced to MA which
was the quotation at the formal closing OF The
Boaru. Subsequent TO banking hours squeeze"
on Monday was threatened and borrowers paid
la. lie, 332 and u for the use OF gold until Tues
day morning, the closing rates being 5.32 bid for a
small LOT and u for half million. Hereupon gold
advanced to H. a ana closed at ive O'Clock Lax
III 9-ie. Tie extreme fluctuations daily In the price
CT gold during the week were as follows