The New York herald., 1871-08-23

ing day. "cashr transaction REQUIRES the delivery
to be made the same day. Hence out OF the many
millions transacted In stocks ana gold daily only
very small amount Is consummated the same day,
the brokers being allowed the interval TO the next
day TO adjust their accounts and arrange to
Jake or procure the stocks or gold so bought
or sold. Hence the expression cash gold
which seems redundant in view OF the fact
that gold, with the majority OF mankind, is "very
hard cash" itself-is employed to designate gold de-
liverable TO the buyer the day he buys 1t. When
the merchant or speculator borrows gold-the for
mer In carrying over q transaction either through
stress OF circumstances, frequently occurs with
the exporting merchant through hope OF greater
profit in his dealings and the latter to make his de-
liveres OF gold sold for decnehe Is compelled TO
procure 1t from those who are, the street terms IT,
'long" OF gold. Usually when gold is plentiful the
borrower Is paid consideration for doing SO; but
Just now strong clique in the market have got
possession OF large amount OF the coin, and bor-
rowers are at their mercy. To-day the mar
ket was so completely IN the power Of the
clique that they easily squeezed the borrowers
and forced them to pay as high as one per cent for
the use OF gold until tomorrow. In other words,
persons having need Of gold to pay customs and de.
Ginning to buy It, or having already paid their
toms with borrowed gold, were compelled to pay at
the rate OF 81 In currency for the OF each one
hundred dollars OF gold until tomorrow. Nor was
relief to be afforded by buying gold, for while the
indicator marked 1l21S as the price OF gold, mean.
ing thereby such gold was deliverable next day,
gold for present use was worth premium on It's
dial quotation equivalent to the rate In the loan
market.
THE GOVERNMENT GOLD SALE ANTICIPATED.
For some days past the merchants have com.
planned to Secretary Boutwell, OF this situation Of
AFFAIRS the strngency IN cash gold being gradually
Increased from day 10 day. The telegraphc an
nouncement to him of the extravagant rates ex-
acted to-day, which at the lowest were 6-84
per cent, equivalent TO 25 per cent per
annum, appears to have induced his inter-
ference for at late hour Assistant Treasurer Hill.
mouse suddenly notified the street and posted
bulletin in the Rotunda to the effect that he
would receive offers tomorrow "wednesday
for the two millions Of gold advertised previously
be sold Thursday, the tenders or 1ve-twenties
being invited as usual at the same time. The an
nOuncement created little effect In the Gold Room,
where the price remained l12H, the extremes Of the
day having been 1921 and 1928, the clique being
content with lending their gold and making no
demonstration on the premium. After the cOse
OF banking hours lilo q q per cent was paid for
the use OF gold tomorrow, showing belief on the
part OF the borrowers that Mr.. BOutwes sale
would not break the "corner." In fact, it remains
polite one to take under the circumstances. The
merchant who borrows gold in place Of closing
transaction at the market ;he OF specu
latOn, and If 'shOrt" OF gold, has no more right to
ask Mr. Boutwell, to come to his relief than has
merchant who Is "long' OF gold in anticipation OF
rise the right to complain of the usual weekly sales
OF gold by the Treasury Department.. There are,
doubtless, cases where the exporter, between the
time Of an "order and the certfcatlon OF his bills
OF ladlng, Is under the necessity OF borrowing
gold; but the "short" interest so created would be
trivial and never important enough to excite the
speculative appetite OF "buli" clique. Mr.. Bout
well, by changing the day OF his gold sale, init
mates his willingness to help OF the parties to
the current speculation in the Gold Room, and
should the clique have made their arrangements TO
bid for and absorb the s., 100000 OF gold he intends
selling tomorrow they could make the merchants
pay double the rates squeezed" out OF them to-
day. The precedent Of the government gold
sale in 1869, when the Flsk.G0uld con-
spiracy was demolished, Is no reason for the
present interference because at that time the price
OF gold was fctitiously advanced by the conspira-
tors to the detriment and arrangement OF business
in general Gold Is on It's way TO par just as GER
tainly days roll over the history OF the coun-
try in lis present prosperous career but its descent
will be checked by these mercantile transactions
which give 1t an artificial scarcity. Great evils
sometimes correc: each other. The spectators in
the Gold Room Will check that unhealthy tendency
toward speculation in mercantile circles, which, If
encouraged, Will be the bane OF business.
The rate paid for The use Of gold to-day was
eaualled on the 18th OF October, 1865, when 1t was
one per cent and exceeded October 8. 1885, when 1t
reached two per cent. The course of the market Is
shown in the tablet
10 A. .M.............ll2x 1P M. .1122
l0:3OA. .M...........ll23s 2P. ..uZn
II A. ...........1 .1l2H r NJ. ............ .ll2S
m