The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-29
FINANvIsh And COMNSRoIiL.
WALL STREET,
SUNDAY. May 20, 1871.

SUNDAY. May 70, 1871.
rHE GENERAL TRADE OF THE CITY
during the past week has been quite active In ex-
portable goods and the dealings in cotton, more
especially have been at advancing prices, result
OF the generally accepted belief that the South will
not grow SO large crop in 1S7l-72 as during
1S70-7I Naturally enough, after the great decline
In the price OF the staple the past two years. there
is less temptation to enter on widespread specu-
la,ive cultivation, and should the yield OF ls71-72
show reaction in the quantity produced 1t will not
nave been unexpected. The dry goods trade ia on
It's oars.
THE MONEY MARKET.
The supply OF money has seldom been as great as
just now, and 1t seems to be high tide In this re-
spect the world over London is glutted as much as
New York, and the statement is made that the Bank
OF England holds more bullion on deposit than ever
before recorded In Its history. The average rate on
call loans during the week three per cent, and
numerous transactions occurred OF as low as two
per cent These figures apply, OF course. to the
transient lending OF money, but discounts show Q
corresponding relaxation, prime paper being
easily negotiable at about five per cent
close analysis OF the current Of the market
shows little more activity toward the close,
and the fact has suggested as an explanation that
the stock cliques are quietly buying large amounts
OF stock In the desperate hope of inducing large
"corners" III the diversion produced by which they
calculate upon unloading their stocks during the
summer and before the fall shall subject them to the
dangers Of active money. OF course, with such an
abundance OF money here. In London ana at the
chief centres generally tho degree OF activity to be
looked for next fall Is a very debatable point.
Foreign exchange was alternately weak and
strong although In It's recuperation 1t did
not get back to Its starting quotations. The
decline was prepared by the better supply
OF double eagles and precpitated by heavy
sales against the negotiation In London
Of portion Of a new loan offered by the Pnlade.
pha and Reading Railroad Company. The limitation
OF the supply from this source led to reaction later
in the week, the market closing only steady, how
ever, on the basis OF 11o4 1lO's for prime bankers
sixty. day sterling and ll0% 1los for sight bllls
The STOCK MARKET.
The stock market had the appearance OF great
dulness but strict observation would show large
dealings In the chief speculative favorites. At the
same time there seemed to be an entire abandon.
ment OF one set OF stocks for another, and hence
sort Of seesaw IN prices occurred the set gong
down as the other went up. New York Central,
Erie, ohio and Mississippi, Pittsburg Union
Pacific, Northwestern ana Western Union Telegraph
slowly receded, while Rock Island, Reading wa
bash. Lake Shore, Harlem and Pacific Mail were
steadily pushed to the highest figures Of the season.
With the whole world glutted with money, and
with, In one particular case, the prospect OF an
overwhelming food Of 1t in the month Of July, SUBJ
sequent to the disbursement Of the July dividends,
which estimated at not less than sixty seventy
millions ID Of dollars, the power OF the cques
the market Is undisputcd. Were 1t not that prices
are already up to the full average quotations and at
such prices that further advance would be In most
cases purely speculative the immediate future Of
the stock market would afford the most seductive
temptations 10 those who operate for rise. The
question: however, Is In the hands Of the cliques,
and while the reaction must inevitably come few
months hence or within the year, the inducement to
catch what there may yet exist In the way Of rise
may revive the cdcoethes speculandt OF the numer
Gus throng who watch the daily fluctuations OF the
stock market. AS an outlet to this abundance OF
money 1t is noteworthy that the transactions In first
class railway ponds are steadily on the increase,
while not little interest has been shown in the
better known Southern State bonds.
THE GOLD MARKET
Gold sympathized directly with the course Of the
foreign exchanges, declining from liz to 111S,
acting to 1l14 and closing 1111 111ss. The market
was extremely dull and most OF the time what Is
known as brokers' market The extreme nuctua-
lions daily in the price Of gold during the week