The New York herald., 1871-01-02
FINANCIAL And COMMERCIAL.
WALL STREET, |
SUSpAY, Jan. /, 1871. !

WALL STREET, !
SUNDAY, Jan. j, loTl
THE GENERAL TRADE or THE CITY
during the past week was characterized by the
usual inactivity In the dry goods business inci.
dental to the season, and by u fiuctuatng ann I'M
settled movement In departments which are inde-
pendent OF that consideration. The cotton
market was on tho whole heavy, despite Q
still further falling on In the receipts at
the several ports and a telegram from Liver
pool that the estimates and supposed stock In
hand at that port had been found on Investigation
to be far IN excess OF the actual amount. II IL,
therefore, not easy TO account for the decline In
price. The transactions were large, however. ON
foreign orders, which led to free shpmcnts but the
domestic demand was curtaed by the stoppage OF
many OF the Eastern mills. kilograms from
Boston state that the various companies
have declared as high dividends as paid for
the previous six msnths ending July /, and that
the business Of the latter half OF 1870 was more
prosperous than In the earlier portion OF the year.
In the wheat and nour market trade has been quite
active, both on foreign and domestic purchases, and
prices, in face OF liberal receipts from the West,
have advanced The holiday season has kept the
up town trade brisk, and there Is no complaint from
that section OF the city.
IN WALL STREET
there was larger volume of business than usual at
active the impression was general that the inter.
mrtent stringency was only ARTIFICIAL and therefore
temporary. Hence extensive investment orders
have been received and the brokers have made
heavy purchases of stocks, which were all paid for
and taken out of the street. The schedule OF
Low PRICES,
which the sharp attack OF the .bearsr brought
about, has challenged the attention of capitalists
generally and confident ana cheerful feeling
"A N the hnrtu In .ha
the spring. AS TO
various and contradictory theories are still main
taineu. That the spectators for decline are not en-
trey done with the stock market is only too evident
but different opinions are entertained as to their
powers of continuing to render money stringent
The banks and other corporations began some
days since to call in money IN order to pay
dividends and semi-annua interest, and 1t was this
movement that enabled the "bearsr to produce a
stringency which made money so scarce that rates
as high as One-quarer per cent per day IN addition
TO seven per cent per annum were paid during the
week by stock houses. Tie sum embraced In
these dividends ia computed at many mil
lions, and as the money Will find its
way back to the banks only slowly the expectation
OF immediate relaxation after New Years should not
be too sanguiney indulged in. The savings insntu-
lions hold on deposit immense amounts, which may
W Caieu ior ~ any moment now tnat dep0St0rS
have secured the semi annual interest. 1t is gen.
era rule with these corporations 10 withhold the
interest for at least twenty days. but TO be ready to
pay the principal on demand. This will form one
reason for contraction--a legitimate .qock-
ing up OF money for q considerable
period after Tuesday next. Last year the
stringency in money continued until about the mid.
die OF January. Meanwhile the banks which VIII be
reinforced by heavy disbursements OF coin from the
Treasury, may If so literally disposed enlarge their
loans to their customers In manner which will
checkmate any artificial manipulation OF
the money market. They now hold ten
millions In excess OF the legal reserve
ana could accommodate the street suddenly
to the extent OF twice that amount, while rher
ability to expand will steadily increase from day to
day. Our bank officials. therefore, have il In their
power to defeat any repetition Of the locking up OF
money practsed during the last month. Merchants
and others whose operations are preIudiced by the
clique movements in Wall street should remember
this fact and give their patronage only to such
institutions as snow disposition to take the part OF
legitimate business against the speculative scnemers
Of Wall street.
GOVERNMENT BONDS
The week developed healthy activity in The mar.
ket for government bonds, the price OF which stea-
Oily improved until at the close there was a sudden
ana sharp advance 1t remains to De seen what
VIII be the effect OF Secretary Boutwellis plea OF
poverty, despite his large Treasury balances and his
Indirect intimation that he Will not increase
the average OF his purchases. The issues
OF January and July will look SO cheap
when ex-coupons. after Tuesday, that reasonable
expectation OF steady prices Is indulged in espe.
cially as the abundance OF capital at this centre
during the balance of the winter Will naturally
seek SO inviting securities for temporary invest |
Inent
THE STOCK MARKET
quarrel among the operators for decline and !
the Influences mentioned m preceding paragraph
led to q complete reversal In the movement at
the Stock Exchange where prices improved
from one tc four per cent The speculative feeling
was also around In the face OF tight money for the
reason that the advance from day to day left large
profit even after deducting the highest interest |
charge exacted for carrying stocks, and the feeling
was encouraged by belief that the dissenting or |
disloyal members OF the "bear" pool had secretly |
commenced covering their short sales.
THE BANK STATEMENT
The weekly statement of the associated banks is |
favorable, and shows further gain In the net reserve
OF over $S00.000 The preparation OF the banks for
the payment OF dividends Is shown in contraction
OF loans 10 the extent OF about ST. while tho
shipments OF currency to the West and the locking
up operations Of the ciiques at the Stock Exchange
are reflected In loss OF about 00o 600 in legal ten
ders and deposits The savtlg item has been the
specie, which, under the disbursements of the gov
ernment in redeemng the five per cents Of 1871 and
preparing the January interest the public debt,
increased nearly $2500,00O. The statement con-
trasts with Its predecessor as foows:-
Dec "a Dec. 81. Changes.
Loans. 1904 81, 129 $685. 4l74ls Dec 81 39371l
Specie...... ls,S39,756 20, SAG Inc. 2 439 900
Circulation. 80, lS2,9S3 81 153,5I4 Dec. 90 4G9
Deposits 1885, 74S7 754 1SS, ,223 995 Dec, 62i 759
4 90 n iand A u s.,EQ nnr l,nol