The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-22
FINANCIAL and COMMERCIAL.
WALL STREET,

| II UAlVUAAn ln1vO VVuAuAOAtUAAn e
| WALL STREET. !
SUNDAY. Jan. q. 1874
The week In trade circles has been devoid OF I'M
| portant general feature, although In the leading
speciality of cotton there are signs of an active
speculation during the spring. based on belief In
the inequality OF the remainder Of the present crop
| to supply the demand hence TO the fall months.
| New York Is still considerably higher than Liver
pool. the market showing an advance Of 70. q 10.
q pound during the week, and holding the improve.
ment firmly. The wheat trade has been slow
| and prices heavy. In other departments sellers
have resisted any concession upon prices. which
have been strong, but without important variation.
Taxation In the money market. ana are not so
troubled about carrying stocks, even when largely
supplied. which they are not in most instances.
IN WALL STREET
there has been an animated commencement OF the
| spring speculation, and the market on the Stock
| Exchange has shown sudden ana large accession
| OF buyers, whose purchases, while taking In
neavy line OF the leading active stocks, have
| embraced an unusually large proportion OF
railroad bonds Indeed, the investment interest has
seldom displayed so much capacity for buying, ana
, the dealings In
RAILROAD BONDS
| since the beginning OF the new year argue the
growing wealth OF the community. good deal OF
the inquiry represents the renvestment OF money
taken out Of government bonds; but outside OF this
proportion there has been enough to demonstrate
the wider possession OF money among the people. It
Is season Of the year, too when thousands OF
merchants and capitalists have various idle
balances which they invest in these scouri.
ties. owing to the prompt conversion such
bonds are capable OF when the money is
ron radC or acfv drtft NJ hual
ness In the metropolis is to concentration at Two
seasons OF the year-vz., spring aud fall The
gradual development Of this tendency leaves q
great deal OF idle capital unemployed In the inter-
walls between these seasons and as the best rate
for such money during the broken time 1t may be
lent Is not more than four per cent the conyen-
tional figure Of Wall street on call depositsl the
inducement to invest temporarily IN railroad bonds
many OF which bearing seven per cent may be
bought at all the way from ninety per cent to par Is
readily understood. This accumulation of idle
capital is rejected In the easier situation Of
TIE MONEY MARKET,
which, early in the week, under the sudden demand
created by the enlarged speculation IN stocks,
was active OF per cent with that rate paid some.
times In gold ana sometimes with q small cOmis-
son. but gradually relaxed to car per cent al.
though after accounts had been made there were
on same days exceptional dealings at as low as
per cent. There was also q better demand for mer.
camille paper which the banks were dscounting
more readily. Prime names out Of bank were
wanted at per cent and buyers
WERE In many instances content with 7
per cent Foreign exchange was dull
and steady, the anticipation OF 1rmer rates In
necton with the new year remittances being disap.
pointed by a continued good supply of bills drawn
against recent important negotiations IN Europe OF
American railway and other corporate loans.
THE STOCK MARKET
was strong and buoyant High as were the prices
at which tae new tide OF speculation commenced
1t did not fail 10 exert the inevitable eject when
buyers plentiful than sellers. The relative
situation OF speculative stock seems to be left out
OF consideration when this influence arises. The
"bcars'' may preach ana prove the imitation OF
prices. But II o speculative favorite already well
up the scale, IL suddenly besleged under current
impression that 1T must 60 higher" arguments
OF little avnn to turn It the other way. It Is
only when speculation has run Its course and the
last bear" has covered that tine holders all become
sellers, In place Of buyers, and the most inflated
fancy Will have tho greatest tumble. The
outside interest thus developed during the
week was freely supplied with stocks by
the professional operators, and reaction
on Friday attested temporary excess Of
sellers over buyers But the decline thus inaugu-
rated was the beginning OF later upward move.
ment, the current OF which was strong enough 10
overcome even the influence Of the latest savings
bank failure. The professionals have sometimes
failed to gauge the capacity Of the outside specula
ton, and tile resistance to the decline Of Friday
seemed to convince many Of them that by taking
back their stocks they would get higher prices
for them. Ali Of which Is preparing the 81 ock mar
ket for an eventual crash that Will 60 on the record
with such historical events as the Morse panic OF
1864, the Lake shore panic OF 1859 and the Chicago
panic OF 1871.
THE GOLD MARKET
nuctuation Of u per cent was the extreme Of
the gold market for the week-viz., between 10sZ
and lo94-the closing quotation being 1o9X q 1O9K.
The merchants are buying great deal OF gold for
customs payments-a satisfactory explanation OF the
frmer tone Of the market, even II the suspicion did
not exist that "buil'' clique had been quietly
formed early in the month to operate for the profits
OF the usual summer advance In the pr eciOus
metal.
GOVERNMENT BONDS
The government list was strong on the prospect
Of delay, If not defeat OF the proposed negotiation
OF six hundred millions more OF the new loan. The
extraordinary frequency OF savings bank failures
has also revived the investment demand, and the
dealings over the counter were quite o feature at
the close Of the week.
THE SOUTHERN STATE BONDS.
The Southern list was irregular, but In the
main strong, the chief feature being o rise
OF nearly per cent n the new
South Carolinas, followed by . reaction OF
about TWO per cent The Missouris were feverlsh,
but strong, and the Tennessees firm at an improve.
ment OF ~ per cent. The advance In the South
Caroln.is was Occasioned by movement on the
OF recent buyers OF the bonds to have the
State authorities repudIate dlty per cent OF the
debt-a course winch would enable these parties to
double the CaDital they have invested. NafuralIv
such Step is strenuousy opposed by the Ord