The New York herald., 1871-09-16
FlNANvlAL And COMMERCIAL.

FlNANullL And COMMERCIAL.
WALL STREET,
FRIDAY, Sept. 15-8 p. NJ.
On Change to-day wheat was unfavorably afYected
by reaction In the Liverpool market, and was
lower and unsettled Cotton was steady.
MONEY IRREGULAR.
The money market was more active in the earlier
hours Of business, and borrowers stock col
laterals freely paid per cent; but the supply be.
came abundant in the afternoon, and the closing
transactions were at 81 and per cent
Commercial paper is quoted IN per cent dis
count tor the several grades coming under the head
OF PRIME
ADVANCE IN FOREIGN EXCHANGE.
The relaxation In the rates for cash gold occa.
stoned sharp recovery from the depression In
foreign eXchage, and rates advanced fully one
quarter per cent The following the quotations
at the close OF misunderstanding, sixty days, COM
mercial, 1OS 1OsA; good to prime bankers, 1881
1OSX; short sight, 1857 109H; Paris. sixty days,
$50 5.26H; short sight, 5.25 523a4; Antwerp,
$50 5.23A; Switzerland, $50 b2394; Hamburg.
351S 35A; Amsterdam, 4o11 q 407s; Frankfort, Al
Az; Bremen, 77s. 7S1s; Prussian thalers, 72
72N.
THE GRAND JURY AND THE GOLD CLIQUE.
The business men of the country who are in the
habit OF conducting their business on q legitimate
basis will be glad 10 learn that Judge Bedford and
the District Attorney Of this city have deemed 1t
proper to make the charges of alleged conspiracy
and usury in Wall street proper subject for the
special consideration Of the Grand jury whose salu
tary interference year or ago in on emergency
OF much annoyance, II not scandal, in the money
market must still be remembered. The gifted
young magistrate has by his action test
fed his zeal for the welfare Of the business
community, and we trust he VIII direct the
powers OF justice with Draconlan severity
against both sides Of the speculative contest which
has for its field the gold market more especially
The money market In general is of course not the
subject OF his judicial acion for the rates OF inter-
est In Wall street lar below the standard which
the law says must not be overstepped, although 1t
may be indirectly contemplated, In view Of rumors
OF q conspiracy to lock up legal tenders Under
these circumstances the revival Of the usury ques-
tlon will serve to intmldate any movement OF such
O character. The agitation, however, will doubt
less throw light on practice the Legality
OF which has been In great deal OF doubt. Refer
ence is had to the exaction Of nigh charges for the
use OF gold in the daily deliveries Of the gold
brokers' Custom, since the suspension of specie pay
ments, has made these charges matter OF course
In the transactions of the Gold Room, and they
have hardly been regarded and certainly have never
been deliberately designated as usury. Gold is so
much mere commodity IN the eyes Of the Gold
Room that considerations ranging from per cent
to 7.3o per cent have been paid for its use for day
at time without thought Of usury- In th,o
the borrowers surrender the currency equivalent as
collateral for the gold loaned them and pay
the lender his terms while asking interest on the
currency. Now, when the consideration asked for
the use or gold exceeds seven per cent has the
lender been guilty Of usurya Considering the posi-
ton OF gold as q marketable commodity in this
country it might at first that he has not. But
gold, while not in active circulation, is money In the
eyes Of the law, and the Usury act has been vo-
lated. An impartial enforcement OF this act will
tend, therefore, to break up Of the evils Of the
gold market by lessenlng the profits OF speculation
In 1t.
THE "BULLs' AND "BEARsn IN GOLD.
1t is here at this point that the interference Of
the law and tho Grand Jury should cease. Usury
repressed, the other evils OF the market will
destroy each other. 1t is secret that the charges
Of conspiracy have been made by parties who are
Interested in a decline In gold much as are the
conspirators IN its rise. To be interested In de.
cline In gold as the whole country is means
different thing from being interested in that
direction as Wall street goes. In the latter
place 1t means that SPECTATORS, whether
merchants or bankers, have sold gold not in
their possession but which they borrow to
deliver to the buyer and expect to replace
at some future day when gold goes down. The
merchant VINO imports goods and pays for them
with borrowed gold becomes at once speculator
and ought not to complain If other spectators
gold up to make money out OF him. Ae intended to
make money by its fall. He gambled on the chances
that the market would go down. II is these specu.
latinR merchants who have joined In the hue and
cry OF conspiracy. Had they not borrowed gold
there could have been basis for the organization
Of such conspiracy Suppose the wheat and cot
ton merchants should set up O complaint that
the "bears' In gold were getting up con-
splracy to run gold down and make them
, lose money on their goods, they would
have as much right on their side as the
others; more in fact, for while the importers are
draining the country OF specie all the time the ex-
porters are bringing back gold. In such dispute
the latter ought to have as much sympathy as the
former The secret OF the present charge OF con-
spiracy lies, indeed with organization OF specu-
lators who are ''shorr of gold. The leading firm
In the Syndicate are openly charged with having
sold ten to twenty millions of gold on the antici
pated decline they expected would follow the plac-
Ing OF the $500, 900 OF the loan. Mr.. Bout
well being their best friend, now that they
have relieved HIM of the odium or failure, was
cajoled into selling four millions OF gold on
Thursday In order to tumble the price Of gold
to allow them to get out Of their present pre-
dicament. The gold market swallowed the four
millions, to their utter astonshment and kept on
rising. IL such an enormous sale could not break
the ranks OF the "bull" clique what was to become
OF the 'bears ~ The charge OF conspiracy was
Shouted, like the cry OF Poce" by one prize fighter
when about to be worsted by another. The despera.
tion OF the game Is rurtner shown In paragraph
going the rounds Of the papers, telegraphed from
London, that the steamers leaving for New YORK
ON Thursday oil took out specie. Doubtless
this information, accepted innocently 10y the
agent OF the Associated Press, was given
by the branch OF the Syndicate in Europe.
Its object is to help the attack OF the ''bearsn on
gold. Why was 1t not telegraphed on the day the
vessels sailed instead OF on the next dayS Why
was not the amount Of gold stated9 Every steamer
brings q little specie nearly every trip. The Syn
dicate Intended to create the impression that there
was now Of specie from Europe to America when.