The New York herald., 1871-01-16
FINANCIAL and COMMERCIAL.
WALL STREET,
JNDAY. Jan. Is, 1871,


THE GENERAL TRADE OF THE CITY
curing the past week was, considering the season.
large ana fairly active. Business men anticipated
an almost stagnant market after the holidays
especially as 80 much had been said about retrench
meDt and economy and the necessity OF preparing
for lower prices. The fact the population or the
country is increasing so fast and the new enter
prises and occupations OF the people are
30 numerous that 1t seems impossible that
business can stand still or be checked
BY fear OF q decline in prices. The Immediate
wants OF 80 VAST a country force constant con-
sumption of goods, without regard to the future Of
prices, and hence the channels OF trade are never
Idle. The wholesale dry goods merchants expe-
rienced this fact In steady demand from their Gus
toners, not for heavy important lots 1t Is true
but for an amount suflcient In the aggregate
to be called good. The exporters were favored
by freer orders from Europe and reduction
In freights, which led to the shipment OF
heavy conslgnments of cotton wheat and provisions
The question Of peace war in Europe while Just
as far from settlement earlier IN the winter, en-
ters into the matter OF exports In curious way.
The war so far has drained the produce markets Of
Europe and hence we find an active inquiry for our
breadstufrs. On the other hand, the approaching
London Conference seems to stimulate the cotton
manufacturing interest in England, and cotton is In
better demand. Thus the two markets which useu
to nuctuate in opposite direct1ons-the one going
down as the other went up, ana rfce cersd-are now
working together In harmonious strength.
M THE MONEY MARKET.
The stringency in money incidental to the close OF
the year when accounts are closed books settled
and dividends prepared has given place to an
easier state OF the market, and, during the week,
while six to seven per cent were the prevailing
raues on call some balances left with the gov
ernment dealers at as low as five per cent. On
Saturday there was more activity, and six per
cent was the lowest rate. but the interruption to
the declining tendency of rates was attributed to
the speculative manipulation OF operators at the
Stock Exchange desirous OF buying stocks at lower
prices. Last month such stratagem had the as.
sstance Of the natural activity arising from causes
above enumerated; but it remains to be seen whe-
thsr the attempt If persisted In succeed in face
OF the continued now OF money to the city at this
season. One Of the best signs OF the times is the
better inquiry for commercial paper which is quite
readily taken at 7h sper cent for prime names.
THE BANK STATEMENT.
The weekly statement OF the associated banks ia
again favorable but while the items OF specie and
legal tenders show q further large increase-over
1000, ,000-the gain In surplus reserve Is only
81 OOo for the reason that The immense deposits
Of the week, amounting TO over $l1,0 900, have
been composed IN great part OF national bank notes.
which swell the liabilities but add nothing TO the re-
serve. Still the addition Is enough to give the banks
large capacity for expanding their accommodation
to borrowers, and we find accordingly, liberal in
crease in the item Of loans. The amount now held
by the banks in excess Of the reserve required by
law is The statement contrasts with its
f.tIx