The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-01-23
FINANCIAL and COMMERCIAL.
WALL STREET, I
YNrt Az vAs. IN 1888

WALL STREET.
SUNDAY, JAM ~, 1871.
THE GENERAL TRADE OF THE CITY
during the past week was characterized by con-
siderable speculative activity in the branches OF
business which have to do more particularly with
exportabc merchandise the current low prices OF
which have invited speculative demand against q
possible reaction In the spring months. Otherwise
the md-wInter dulness prevailed IN general trade.
IN WALL STREET
the chief events Of the week have been the relaxa
ton In money and the buoyancy and advance In
prices at the Stock Exchange. The early course Of
the money market sgnalized by ACTIVITY, II not
stringency. under the sudden withdrawal Of about
six millions Of legal tenders from circulation by
the locking up process And for brief period loans
on call commanded 1-32 1-16 per cent in addition
Is. the lpIl legal rate. The movement Of money to
this centre from the rural districts was large,
however, that the gap thus made was soon filled
and at the close money was easy at six per cent
with exceptional transactions on prime securities at
i've per cent. t4.
The stock market promptly responded to this
altered situation Of the money market and strong
bullish feeling developed, which led to sharp
improvement In all the leading railway and mlscel-
laneous shares. In fact the speculation for
by the knowledge that large short
interest existed in connection with the locking up Of
greenbacks The rise IN the principal daily favorltes
was about Q 8 per cent; but in two In.
stances-Union Pacific and Hannibal and 81. 10.
seph-it reached 10 per cent while in the preferred
shares Of the latter road the advance upon the low
est price OF the week all OF II per cent The high.
est prices Of the rise made about noon OF Satur-
day. but after that time reaction ensued both upon
the unfayorab.e statement of the banks and upon
''break" In Reading, attributed to the failure of
weak operator, who had ordered the purchase OF
heavy instalment Of the stock to carry which he
had not taken care to provide sufflcient capital.
The street was temporarily disconnected by this
affair." and the market was unsettled and lower In
oil directions; but toward the close steader feel.
ing ensued and much Of the decline Of the afternoon
was recovered.
ancy OF the week, but prices were conservative in
their improvement, which ranged from y u per
per cent.
The gold market was conspicuous rather by irs
lack OF feature than by any noteworthy changes 1t
was perhaps, the steadiest week in gold since the
termination Of the war, tho extreme nuctuation
being confined to one-quarter OF one per cent.
THE BANK STATEMENT.
The weekly statement Of the associated banks is
unfavorable. the chief features being decrease of
over 100000 in legal tenders and loss Of nearly
half million iu specie. The decrease In legal ten
ders is accounted for by the immense withdrawn OF
greenbacks by the cliques in endeavorng to render
the money market stringent-the amount thus
taken awav being greater than the receipts OF legal
tenders from the country banks. The heavy
payments Of the week for customs du-
ties and the specie shipments to Europe
account readily for the falling or in specie. The
deposits are also down $1,7Oo. 900, but there has
been only moderate increase in loans. The sur.
plus reserve Is decreased about $685. Altogether
the changes are not important, and the statement
contrasted with the efforts OF SPECTATORS at the
Stock Exchange to produce ON uniavorable
EXHIBIT has the merit OF showing negatively con.
tnued strong position the part OF the banks who
stll hold the large sum OF nearly ST. 600 in ex-
cess OF the reserve required by law In other words
they possess the power OF enlargng their loans to the
public to the extent Of about 0oo ooo and stil
remain possessed Of more than the legal reserve of
greenbacks and specie with which to meet their liza.
bilities on any sudden emergency. The statement
contrasts with its predecessor as folows:-