The New York herald., 1871-10-06
FINANCIAL and COMMERCIAL.

FINlNCIAL And COMMERCIAL.
| WALL STREET, |
THURSDAY, Oct I'D p. n.
On 'Change to-day wheat was duh and lower In
earlier dealings, but became strong later IN the
day, in sympathy Win the rise in gold. Cotton re-
! tanned the strength which the market assumed late
on Wednesday afternoon, and was firm at the
| ad vance.
MONEY FIVE TO SEVEN PER CENT.
Money was in better demand during the usual
hours for the making OF loans, and borrowers on
stock collaterals PAID six snd seven per
cent, q tendency towards nrmness at the
latter figure being quite perceptlple about
two O'Clock. Half an hour later q sudden
supply was furnished BY the government disburse
ments for the bonds bought the previous day. and
the rate closed easy again at six per cent Borrow
ers on government colarera;s were readily accom-
modated at six per cent and the larger dealers had
balances left with them at five per cent.
Prime commercial paper was without essential
change, and quoted at not lower than seven per
cent discount
FOREIGN EXCHANGE LOWER.
The interest IN foreign exchange was again dis
concerted by the active demand for gold in the de-
liveries OF the Geld Room to-day. and the
leading drawers lowered their rates One.quarter
per cent, while sales out OF second hands
took place at still larger concession.
The quotations At the close or business
were as fcllows:-Sterling, sixty days, commercial,
1os 10sH; good to prime bankers 1oSI a 1oSH;
short sight, 1o9I lO95s; Paris sixty days. 533A
5.2sA; short sight, 6271S 6.25; kElwerp $40 526;
Switzerland, 5.2sA 5.233l; Hamburg 35H 35X;
Amsterdam, 4Oa 40X; Frankfort, 4os4 q 4; Bre-
men, 70 7S1s; Prussian thaers Tx q 72A
THE GOVERNMENT SALE OF GOLD.
The oner Of the government to sell two millions OF
gold elected proposals for total OF $7,27e,OO0 at
prices ranging from 113.01 to 11400H. The compe-
titl0n at the highest figures was so close that the
government succeeded in placing one million at
1140OK, and the other million at ia the former
was disposed OF one bidder ana the latter In two
lots-one OF $905,0oO and the other OF $1,000.
GOLD STEADY AND ACTIvE-113Z A 114A.
The gold market opened weak in consequence of
the unchanged rate OF the Bank Of England, which
would be advanced, it was thought at the meeting
OF the directors this morning. The earliest re-
was steady advance to l14H, the market strength
ening with the large proposals for the government
gold at noon, but being checked by apprehensions
OF an extra sale. The award OF only two millions
started fresh movement, and 114I was
touched. Here the specie report Of the
Bank OF England was received, experimenting
the first report Of no change in the discount rate,
and as decrease Of fs76, 900 bullion was reported,
the Gold Room became considerably excited, the
market rising rapidly to 1141. A relapse to 114K
ensued; but q fresh sensation was soon produced by
rumor that the European Syndicate were IN trou-
BILE about the disposition OF the loan, and that
Assistant Secretary Richardson had telegrapned
over the cable not to send any more OF the bonds.
The price again went up to 114sl, but closed finally
at 1l4X. The decline OF the past few days led
to the formation OF large short interest.
and the sharp reaction in tho market
has been startling surprise to many
who deemed the upward movement culminated.
In the rise to-day the chief buyers were the mer-
chants, the syndicate ano the foreign bankers--the
Old 'bu" clique, who sold out from 1862 down to
1 being interested only TO the extent OF such gold
as they were able TO catch IN the upward turn. The
oversold condition Of the market has brought about
. natural ''corner' IN cash gold, which was worth
to-day as much as 1892 for one days use. Indeed
the situation In the gold market has undergone
singular and radical change. The importers are now
largely possessed OF gold, and the purely specula-
tive interest Is on the 'bear' side. It
seems that the importers, tired OF paying
the extravagant rates exacted for the daily use OF
gold covered their shorts" !" and thus made mar
ket for the "bur' clique In the Gold Room. The
latter not satisfied with the pr0nt OF the upward
movement determined to naugurate "Dear''
movement; and as the importers at the same time
became converted to the theory OF higher god-12o
being the general expectaton-the clique sold
'.short.n and the importers bought, thus entirely
reversing their relative position In the mar
ket as compared with the situation o few
weeks or month ago. The importers
are now getting back from the clique the interest
for the use OF gold which was squeezed from them
last August and September. The syndicate too,
who were on the 'bear are also disposed to get
the other side OF the market. and doubtless would
do SO II they could close their snort interest and
begin without loss. Truly. the events OF the hour
IN this department of Wall street are remarkable.
Tney verify our prediction IN Wednesdays money
article that 'the moves on the checkerboard in the
Gold Room the next few daysn would be worth
watching. The fluctuations Of the day are shown
In the tablet
10 A. M.......... 113M 2:I0 II. M.. .....114k