The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-24
NEW YORK HERALD, MONDAY. JULY "a 1871
FINANCIAL and COMMERCIAL.
WALL STREET, I
SUNDAY. July 70, 1871. !

WALL STREET.
SUNDAY, July 70, 1871. I
TIE WEEK IN WALL STREET.
The week has been attended with large volume
of business and Interesting features than usual
tn midsummer the principal holders Of stocks
were under the necessity Of succumbing to the popu-
lar i'm preston that prices were too nigh and allow.
ing hem to approach something like compromise
of the extreme views of both sellers and buyers.
The consequent decline has taken In some
cases wide range; but even this decline
might perhaps, have been deferred until later In
the year had not the fall in the Northwest shares
started the movement. The decline once begun
was kept from becoming rapid by the prompt cover
Ing OF the "bears," who, never at ease In market
where stocks are so much IN the hands Of cliques
and pools were content with small profits, and also
by considerable purchases on the part Of inves-
tors, who, IN time of so abundant m0neS,
are impressed with the advantages OF the
divldendpaying stocks. The decline was arrested
on Friday for many Of the list and on Saturday for
the remainder. The two or three hours OF the dnal
business on Saturday were seemingly devoted to
buying. and at the actual close Of business on that
day firm and rather buoyant tone had been given
the market Whether this was the result Of Q gen.
eral effort on the part Of the struggling short inter-
est to settle and close their contracts or whether 1t
was the beginning Of a more important re-
action, the immediate future win develop;
for the feelings OF the street have been
30 thoroughly aroused BY the course Of the
market during the week that the next few days will
decide whether, as claimed, tho back OF the specu
latlon for . rise has been broken, or whether the
clques have vitality enough to revive the sppette
for speculation. The public have seldom escaped 30
successfully from the schemes Of the cliques Their
withdrawal when prices were at their climax q
mr. n mr. al Y We 70 QOO an
The great losers by the declining market OF the
period stated have been the ciques themselves who
to bolster prices particularly after the Rock Island
collapse, were compelled to sustain the market BY
enormous purchases at high figures. Fortunately
the puolic were the sellers when tho cliques were
buyers. The alarm communicated by the Rock
Island disaster caused general sale OF stocks by
outsiders The Out-ot-town orders TO sell were,
never 80 plentiful. The consequence has been the
accumulation in this city Of an unusually large pro.
portion Of the active shares the capital
stocks Of several Western railways are almost en-
trey collected together In Wall street at the present
time. the question is WIN these stocks be distrl-
buted readily at higher prices to the country again
In view of the very evident reaction of Saturday
afternoon the inquiry Is just now quite pertinenr.
Perhaps even the decline In the Northwest shares
above referred TO would have had less influence IN
leading decline in the rest of the market had not
general attention been directed to the extraordinary
expansion OF the banks, whose loans have reached
the largest figures in several years II not In their
history. without increase In the business Of the
city to warrant 1t the increase has been S25 900
In excess OF the average-an indirect evidence BY
The way Of the large amount Of country stock brought
into the city for realization under the temptation Of
high prices. While the banks are In this position 1t
Ia doubtful If anything like healthful demand for
ufn IN avcffa for fhA flotn ia
will always think that contraction must follow
such expansion and that even the dividendpaying
shares will undergo q shrnkage with the general
market. There has been, 1t Is true great deal Of
buying by investment seekers during the past week,
but close observation of the legitimate business
OF the stock Exchange win show that It has been
confined almost exclusively TO the railway bonds
and like primary liens on the property OF these cor
pora.tons. ~.
In gold the market has also been O falling one,
and the figure 111A was reached on Saturday, as
against 1l2X on Monday. The occasion Of the de-
cline was marked falling on in the specie ship
ments and heavier tone 10 the foreign exchanges.
In government bonds prices have been In the main
steady. despite the yielding in the gold premium,
aud on Saturday sharp advance occurred In the
'long" skies. The State bonds have been dull and
irregular.
Money was easy. Borrowers on governments were
aoundantIy supplied at two per cent and on stocks
at three per cent. The only change In this branch
OF the street was the sudden stienlng Of the dis
count rates to a per cent FOR paper running
longer than sixty days. for reasons which those who
familiar with the course Of the money market In
the fall months viii readily understand. e., 81
THE BANK STATEMENT. -.g .f,. t.Ti
The bank statement s favorable, showing as 1t
does some effort at reducing the expansion IN the
item Of loans, which has led to q decrease In de.
posits and corresponding decrease Of liabilities
The specie export Of the week has taken away from
the banks In the way Of reserve almost all that they
gained by increase in legal tenders, but the de-
crease In liabilities coupled with the gain In green
backs, has enabled the banks 10 contribute nearly
the surplus which they hold in excess of
the amountrequlred by law. The reserve now on
hand Is $40, 035 095 more than twenty per cent
OF their liabilities The statement compares with Its
predecessor as fOllows:-- ., e. ...,
Loans. $50. 342 233 $aoo,0es 72A peo
Circuiaticn. so.ss9OSi eO,s7l, 1856 Dec. s775
Deposits. ,294 256,736,o63 Dec. 1,7e7, 231
Leg. tend'rs 70,674S7o 72,4l9.67o inc.. ,7e4
aP CLOSING PRICES OF GOVERNMENTS. a-1l
Tho following were the closing prices Of govern
ment ponds on Saturday evening:-United States cur
rency sixes 113X ia; do, 1881, registered, 116K
115@; DO. do coupon, 116X 116X; DO. nve-twenties
registered, May and November, 11sx l1SX; do
do, 1862, coupon, do, 114x 114x; DO. DO, 1854,
DO. do, 118x 1l3X; do. do, 1885, DO. do, 1lSX
ia; DO. do registered, January and July, 1l2H
112X; do. do, 1896, coupon do, l12K . 1l2x; do.
Al 1aRT IN 40 11QX n 112xx. do d. 1aAa do.