The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-20
FINANCIAL LE6 COMMERCIAL.
WALL srRKEH
TUESDAY. Sept l9-6 =. NJ.

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TUESDAY. Sept le-o p NJ
On ohrnke to-day wheat was quiet and nrm.
The cotton market was heavy and lower.
MONEY THREE TO SEVEN PER CENT
The money ma1pt was more active, with gen.
eral advance In the rates OF interest. The banks
early In the day marked up their loans on stock
coliaterals to I'VE per cent and this rate being
readily accepted later IN the day paid six
and seven per cent currency, and In some instances,
seven per cent gold. This last mentioned rate Is
equivalent TO fully eight per cent currency. Before
this activity was precipitaied many OF the best
kpown stock houses had obtained Their money at as
low as four per On the other hand, lenders on
government securities were fully content with four
per cent and many OF the leading dealers in gov
eminent bonds had balances left with them at three
per cent There were however, no transactions
below three per cent The activity. while attributed
On great part to speculative manipulation In
connection with operations In the Stock Exchange,
was due chiefly TO the calling OF loans the agents
OF two OF the Canadian banks, who, experimenting
trouble from the interference Of the District
Attorney Oh the ground OF alleged usurous charges
for the use OF gold, withdrew their gold from circu-
aation and were at the same time compelled 10 call
sheir currency from Its employment with the stock
brokers. The disturbance Of loans incidental to
Shis double transaction readily explains the sudden
turn in the interest toward the close Of banking
heurs.
Prime commercial paper was naturally less sala-
Die, but the nominal rates were without essential
change.
Foreign exchange utterly demoraized by o
renewal Of the squeeze" ID cash gold, and prime
sixty-day sterling bills sold at as low as los for
''casn" although this is hardly fair rate quote.
The market nucIuated with the gold loan market,
and rates were lower BY just the proportion that
che rates In the latter were above the dividing line
iaUf '.nat.u
GOLD sTRoNa-ll4,< A ll5.
|, The clique In the gold market pressed their ad.
vantage over the short interest by advancing the
price from 1l4sI TO ll6 and exacting terms for the
use Of cash gold ranging from 1892 70 " per cent.
In other words, brokers desiring gold for deliveries
to-day had to pay 50 a7l to $50 for the use OF eacn
$4,000 gold borrowed for that object, the accommO.
dalton lasting, Of course only until tomorrow.
The same rates werc furthermore eXacted indi-
recty by the less questionable process Of selling the
gold for 'cash" q u per cent above
the market and buying 1t back regular at the
market These transactions do not appear in our
table below which is o transcript Of the Official re-
cord OF the Board, wherein c0gnzance ID taken only
OF 'regular'' sales, or sales contaminated the day
following the transaction. In fact, the reputed
agents OF the clique were careful 10 use this plan
almost exclusively; but majority OF the business
OF the day done In the ordinary manner.
only that lenders who were more cautious, in view
Of the threats of legal proceedings the score Of
usury, made their loans in Whispers and in many
instances solicited confidential treatment by the
borrower, the promise OF which was ratified by an
occasional shaking OF hands. The Interpolation Of
these incidents In the usually matter-of.fact routine
OF the Gold Room was touch Of human nature
which, i 1t did not make the 'bulls'' and 'bears''
akin, enlvened the drama in gold The price Of gold
had been steadily maintained for some time in the
early part OF the afternoon at ll45s u.s. but toward
three O'Clock 1t was rumored that the Secretary OF
the Treasury had decided make bis COL sale TO-
morrow, simultaneously with his bond purchase,
and as the amount TO be disposed of was likely to
be enlarged indefinitely there sudden reaction
70 ll4x. Inquiry at the Sub.Treasury elected the
statement that as yet no orders had been received
70 change the programme, but the information was
substituted that Mr. Boutwell, was expected In
town and at the sue-Treasury during the course OF
WEDNESDAY forenoon. On this gold again advanced
90 1l4 l6-la The course Of the market Ia shown In
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