The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-08-14
FINANCIAL and COMMERCIAL.
WALL STREET.
SUNDAY, August IL, 1871. !

during the past Week Was fairly satisfactory,
the reduction In railway freights slim
ulating buying movement from the
West. In dry goods there is considerable
business doing among jobbers, and the general
tone OF the market is firm, with disposition 10
higher prices when the smaller purchasers come IN.
Collections are reported as being much easier,
owing 10 initial receipts from the crops The bread
stufTs markets assisted by the frmness OF the gold
premium and more freight room, show large
export demand with medium receipts
THE PRINCIPAL EVENT OF THE WEEK
In financial circles was Secretary Boutwels new
departure In reference the balance OF the i've per
cent funding loan, whereby ts further negotiation
was placed in the hands OF syndicate composed OF
leading bankers In Europe and mere presided over
by Jay Cooke Co. The particulars Of the arrange.
ment entered into between tho Secretary and the
syndicate have been 80 recently set forth In this
column as not to need recapitulation. The plan
seems to meet with the general approval OF pr0mt-
nent financial men; but as they are mostly parties
In interest and would not be likely TO cricse with
severity that plan to which they mad given their adj
hesion, their opinion cannot be regarded as final.
It remains to be seen what the result will be With
the public as upOn the success Of this preliminary
effort at popuarzing the new funding loan, in the
attempt to fOat the sI3o, 100000 now subscribed
for by the bankers, will depend whether or
not Mi. Boutwell, will have their cooperation
In disposing of the remaining Az and per
cent bonds. Although differing In details the
present plan is repetition In effect OF that which
Secretary Chase formerly adopted, and is but an
other instance of history repeating itself. When Mr.
Boutwells distinguished predecessor had solved
the problem Of how to obtain money to carry on
the war against secession, by determining to issue
bonds, he was met at first with one still DIM
| cult-viz, how to get rid Of such bonds This he
effected, after q short trial Of his own ability, by
calling to hts cOunsels and assistance the business
men OF the country, and through their cooperation
and the aid or the press always ready to give sup
port and encouragement to practical ana practic-
! able measures he achieved the great financial
| victory which, not second to that OF the army,
secured the triumph OF the Union cause. When Mr..
Boutwell,, essaying similar experiment under even
! more favorable conditions and OF less magnitude,
with all the prestige Of Mr. Ohases success to assist
! him, introduced the first instalment OF his
| new loan, it was early eeen that 1t could
not but result in failure unless some
broader conception OF the work on hand dawned
upon the Sc cretarys mind. His initial movements
puerile, msdirected, partisan, 1t might be said
checked whatever Of enthusiasm the hope OF chang
ing the heavy burden of debt under which the coun
try labored into q cheaper obligation without dam
age to the national credit might have evoked, and
the great funding scheme which had promised such
grand results fell dat. In tue present new departure
Of the Secretary there is evidence Of better COM
prehensiOn on mis- part OF the extent and character
OF the labor Congress has imposed tpon him In It's
passage Of the Funding bill. Happily 1t has been
early entered upon. and there Is every reason thus
far to suppose judiclousy. In the measure Of sue.
cess which the future may show can this only be de-
termined. The HERALD has never doubted the
ability OF this country to fund Its debt at even
lower rate OF interest than any the Secretary is en-
nOWered offer. n faIluro GhOuld result in tho
present Instance 1t can only be through mismanage
ment. In this connection comes the consideration
Of the probable influence Of so important an event
upon the general markets. And this 1t is difficult
yet to determine. Leading bankers assert that
NO DISTURBANCE NEED RE APPREHENDED,
the character OF the negotiation in respect
TO Its details being such as to prevent
any undue pressure IN any one direction The
plan proposed IL simple and would seem to meet
this requlrement-providing for constant and unn-
terrupted circulation Of the gold and currency EN-.
ployed In the work of funding, whllo at the same
time offering additional inducements to subscrp-
lions. Thus the national banks are under the law,
and by the designation of the Secretary, allowed to
become depositares for all moneys belonging to the
United States except receipts from customs. The
Secretary has agreed that all national tanks fur
nshing subscriptions In coin shall be designated as
such depositares, subject to the conditions provided
of deposlting bonds IN Washington security for
the government deposits. IT Is understood that all
money subscribed for the new loan shall be placed
In the banks SO designated, subject to the order or
the Secretary. This would appear, as was said
above. to meet all the requirements of the case the
banks and other designated deposltaues having
the use OF the money for the accOmmodn-
ton Of their customers and their own profit
until such time as the Secretary may
call upon them. And perhaps 1t may, inasnluch as
ROutwall Oindpe1 cO-On N
effort to prevent any unusual disturbance. But III
order this end 1t will be necessary that the
public should know in advance what the Secretarys
purpose is In the matter OF calling IN these deposits.
The depositarles must know, otherwise there would
be this arrangement OF the money market-an
abundance OF money on call at nominal rates and
great scarcity on time with extremely high rates.
But there Is much in this that must wait the teach
Ing OF time. 1t Is not improbable that
AMERICAN RAILWAY SECURITIES
may obtain largely increased favor abroad in view
of this conversion, as they mostly offer very supe
ror ATTRACTIONS to the foreign mind In the way OF
interest, and are many OF them Of undoubted secu.
rity. or these q number might be mentioned which
are already held largely in England. Germany and
Holland. and any sudden transfer OF capital from
the fve-twenries into them would very seriously
disarrange the plans Of the government and the
syndicate. That European capital has for some
time past been seeking investment here OF that
kind there is abundant evidence, and with that
strange speculative turn which induces Engllshmcn
to invest in such out of the-way securities Turk
ish debentures, Peruvian loans and Egyptian
loans, virgin fields Of enterprise in the
United States never heard OF 10 the Stock
Exchange IN Wall street are being worked
at the present time by European capital Whether
OF not Mr.. Boutwell's plans prove O success, one
thing Is certain-that after the he has been our
great advertising agent; and whether with q view
to take up our governments or not foreign capital
lists appear to have their eyes turned towards u.s.
scanning with wonderful ken our great undoveloped
resources.
THE GOLD MARKET
during the past week has been more than usually
excited. the report OF the negotiation OF the balance
of the five per cent loan having started sharp