The New York herald., 1872-10-08


the plan adopted and pursued gives the banks the
full benefit both Of the five millions OF gold ana OF
the currency dsbursed In purchase OF the i've mil
lions OF nvetwenties In other words, the capacity
OF the banks to accommodate borrowers Is enlarged
to the extent OF nearly forty millions Of dollars the
addition OF over ten millions to their legal reserve
enabling them to give credit on their books to
nearly four times the latter amount. OF course,
every broker and speculator who read the papers
this morning came Tying down to the street, and
THE OPENING OF THE BOARDS
witnessed scenes 0funusual excitement. The 'bear,
clique whose good luck seems not to have entirely
abandoned them happened to have largely closed
their short interest In the stock market toward the
close OF last week. so that the first baoon-like rise
OF prices this forenoon caused them less loss than
1t would had they not taken time so promptly by
the forelock when their spies brought word last
week OF the coup d'etat preparing at washington.
AS for their interest in the gold market that too,
Is believed to have been greatly diminished, the
rise to 115A on Thursday last having been feint
under which they sold pretty nearly all their hold
ings of the precious metal. Still there were
"BEARs' ENOUGH
among the outsiders and these luckless specu-
lators nerv0usly ordered the covering or their
'short" contracts the purchases for their account
causing rapid upward turn In the very first half
honr Of business. Indeed new level OF prices was
established from the beginning OF business, almost
everything starting or about half per cent over
the closing figures OF Saturday afternoon. The ad-
vance brought out Sales and many conservative
people were found at the same time who began to
condemn the interference Of the government as
very ill-advsed and as sure to bring about reaction
against Its well-meant purpose, as did the pardon
OF Yerkes against
THE CHANCES OF HARTRANFT
Indeed, the unfarness Of the government In aiding
one side or the other OF the spectators Obscured
the honest intentions OF Mr. Boutwell, In coming to
the relief Of the merchants and business of the
city, especially as 1t was known that the step taken
to-day was advised by clique Of men operating for
rise in stocks and a fall In gold, to whom Its
adoption must have been known on Saturday when
they bought stocks and sold gold to an extent
which could have been predicated only upon Ger.
tain foreknowedge of the operations Of the Treas:
ury Department to-day. 1t will have been
A MISTAKEN POLICY
should the wilful interference Of Mr.. Boutwell, in
behalf Of set Of spectators inure the cause OF
the administration between this date and Novem-
Der g. AS for Pennsylvania, 1t Is too late to enter
the canvass there unless with the first flush Of Its
apparent breaking up Of the monetary stringency
In Wall street. The reaction from 1t later on will
be more or less, according rs the result shall justify
it with the public generally. Should easy money
come Of 1t, which many doubt, the relief will cause
forgetfulness Of the stringency and
THE PUBLIC WILL CONDEMN
in their ease and leisure what they thought per-
fecty proper In their time of hardship and distress
On the other hand, should money pursue the tenor
of its way and continue stringent the administra-
ton would be laughed at for their puny efforts to
sway with few millions Of dollars the course Of
tho onA vsoiIIi ~
tute the capital Of the enormous enterprise and in
dustry energetcaly active at this season of the
year. So far as the money market was concerned
to-day there was little abatement Of the distress,
although we must make allowance for the fact that
only six hundred thousand dollars Of
THE TEN MILLIONS
found Its way into the street this afternoon in time
to help the money market. The fair test OF the dis
bursement will be had tomorrow, or ought to be.
The rate on call opened at per cent, gold, equva-
lent to about per cent per annum the first lend
ers being parties who anticipated too enthuslas-
ticaly the effect OF the Treasury operation. From
this figure there was q gradual advance to q per
cent and interest," equivalent to So per cent per
nun, which was the rate at three O'Clock. In the
later dealings there was a relaxation to 1872 per
cent, the fair average Of the days business having
been 1-16 per cent, equivalent to
| 22h PER CENT PER ANNUM.
There was at the same time more active inquiry
for mercantile paper, but the best names were not
negotiable at better than l per cent month dis
count With the help Afforded to the banks to-
day there is however, strong probability that
good deal Of paper can be placed at bank which
has been seeking negotiation in the street, that
the mercantile interest Is likely to experience
much needed relief both up town and down town.
The results OF the Treasury coup detat are also
seen in remarkable advance in the foreign ex.
| changes consequent upon the fall in gold and the
belief that the gold clique have been broken up.
The
| RISE IN STERLING
| for the day has been Y per cent-viz., from 1917.
to los for prime sixty day and 1885 TO 1o93s for
sight bills on London, where the money market is
furthermore, reported quito active, with anticipa
tions Of a further advance on the Bank Of England
rate on Thursday next sooner. The following
were the closing quotations Of foreign exchange =
Sterling, sixty days, commercial, 1917 a 1919
DO good to prime bankers, 1919 ios; do, short
sight, 1o94 lO9%; Paris, sixty days, 5.36a a
5.33si do, short sight, 5.2SA 6.2s1s Prussian
tnalers, 7oh M; Antwerp, 5.32h 5.26l4; switz-
erland 5.3l14 a 5.20sa; Hamburg, 351s a5$; Am
sterdam, o91s 4014; Frankfort, 4oA all; Bremen,
| o4 OAK.
THE GOLD MARKET
opened at a fun decline Of one per cent from the
last price OF Saturday, and wavered between 112zs
and 1875 until the Treasury award was fully an
nounced, when there ensued further decline to
1928, with reaction at the close to ll2I. The
large clearances below show the heavy transac-
tions OF Saturday, when the administration
clique" were selling on private advlces of Mr..
Boutwell's intentions The course OF the market is
i shown In the table,
10 A. M. ........... 1l3 :36 P. M.......... 112A
l0:0l A. M........ ll2X 2P. M. M.............. 112T
10 :04 A. M......... 11SH 3P. .M............ ll22S
II A. M............. 113h $3.50 T. M......... 1l2M
~ ........... 113H 3:40 r. M.......... 112Z
IL 10 y. NJ. 1134 $3.50 p. M......... l125s
| 1P M............. l13 p. M..ll2L a ll25.