The New York herald., 1871-01-09
FINANCIAL and COMMERCIAL.
WALL STREET,
SUNDAY. Jan. s, 1871.

WALL STREET.
SUNDAY. Jan. $, 1871.
THE GENERAL TRADE OF THE CITY
during the past week was characterized by the
general dulness usual at this season. but In many
departments trade was better than anticipated even
by the most sanguine merchants. In beginning the
new year there is healthy cautiousness observable
which Will do great deal toward correcting any
hazardous experiments and will place the opera
tions OF 1871 on sure foundation. Meantime the
ciamor for reduction OF the taxes and for change
In the governmental financial policy must pc heard
by the present Congress. Any measure OF re-
lief will prove doubly benencal, for the reason
that AZ all our merchants are placing their
business on such q footing as to be prepared
for q continuance of the old state OF affairs, the
change asked VIII, II granted find them capable OF
fresh and vigorous efforts in their respective enter
prIses. The great drain upon the profits OF busl-
ness 0ccasloned by the insatiate desire OF the gov
ernment to prepay its obligations has rendered the
trade OF 1870 comparatively Improbable. England
has a larger debt than the United States. yet her
credit and her ability to raise fresh loans should she
need money for any sudden emergency, are unim-
paired, despite the fact that there Is no immense
annual reduction OF her national debt. It
seems to be the impression with the United
States Treasury officials that in order to place the
country In position to undertake any new war we
should nrst be free OF DEBT They act upon tho
theory that we are liable to get into war at any
moment. Even allowing the soundness OF the
policy that I'm time OF peace we should prepare for
war; does not occur to the administration OF the
national Treasury that the means to that end best
secured by promoting the wealth and prosperity OF
the peoples Our merchants should hold mass
meeting and make an emphatic demonstration in
favor OF reduction OF the annual taxes to such an
tn cbQ naf cnffir fnrfh fhp
minimum expenses OF the government and the re-
demption OF one per cent yearly or the national
DEBT
IN WALL STREET
the markets were unsettled and Irregular but
toward the close exhibited more steadiness.
AT the stock Exchange the operators for decline
persevered In their movement for lower prices The
advent OF period when an easy money market may
be reasonably counted upon mad much to do with
checking their plans, and while strong individual
buyers were dealers the situation encouraged re
vval or interest the part OF the heavier clique
spectators and inauced the formation OF fresh
movements on the bull side. The lines are
as yet In chaotic state, but the ele-
ments are slowly knitting together again, and
the spring campaign bids fair to be active one,
particularly II the 'bears hold out IN their specu
lation. The course or prices was, under these Cir
cumstances vascillating and the market feverish
Taking the general range Of prices we find, how
ever. large advance upon tile lowest prices In De-
cember, when, anticipated, the spectators for
a decline struck ''hardDan." Northwest common
was then 87; Northwest preferred, 79T Lake Shore,
90h; New York Central 89N New York Central
Scrip, S37s; Rock Island, 102H Reading, 964; ONO
and Mississippi, 26H, .and Wabash, AK. The
only exception to the reaction Is st. Paul, which
maintained its downward course from special
circumstances Of inherent weakness, arising out Of
the passage of cash dividend, the issue OF q scrip
dividend and the proposed issue Of new stock The
decline OF the market to the points above enume-
rated was the result of purely speculative move
ment brilliant ana daring 1t is rue for its failure
would have cost its authors enormous losses, II not
Occasioned their bankruptcy. They had the good
luck OF taking hold when there was pause in the
public mind, and when capital cautious against
the contingencies OF u stringent money market In
fact they had to produce an extraordinary arti-
fetal tightness In money in order to overcome the
obstinacy OF the stock market Having re-
duced prices to figures which from their
relative cheapness attract capitalists generally we
find gradually rising market, disguised as its
features may be from day to day by The alternate
weakness and strength with which the cliques
clothe 1t in order to enable them to anticipate the
purchases OF the public.
The government bond market was strong and
higher, with buoyant tone at the close. The State
bonds were unsettled and weak owing TO a default
in the payment OF the coin interest the Alabama
railroad eight per cents, but shared in the general
reaction towards the close OF the week.
The money market steadily relaxed from gold
interest at the beginning to six per at three
O'Clock on Saturday.
THE BANK STATEMENT.
The weekly statement OF the associated banks Is
extremely favorable, and shows some extraordinary
changes. The payment Of coin interest by the gov
ernment and by numerous state and railway corpo
raons Is reflected In an increase OF over five and
half millions Of specie, while the return OF legal
tenders to the banks by the Wall street ciques and
the purchase OF government bonds by the Treasury
Department have 0ccasoned rise Of three and
three-quarter millions In the legal tender
average. The fow of money to this GEN.
tire from the rural districts which usually
commences at this season, an increase Of two NIL
lions in loans and the above items OF specie and
legal tenders swell the deposits Of the banks by an
increase OF nearly fourteen millions of dollars.
The statement compares with its predecessor as
Dec. 81. Jan7.
Loans. ............... $263,417,4lS S265. .57S, 027
Specie. ................ 2O,02S,S46 26,35S, l9l
circulation. .......... 32,l53,04 az, ll4,7B
Deposits ............. 1SS, 223995 202, ,03S, S25
Legal tenders. 45,2l5, 1853 d9,031, ,410
The changes during the week are In detail as
follows:
Increase In loans. So 160 900
Decrease In circulation. Observation-Disclosures. 33, 1896
Increase IN deposits. 1854, $50