The New York herald., 1872-12-13
FINANCIAL and COMMERCIAL.
A Still Further Relaxation in
the Money Market.
The Closing Dealings at 6
az Per Cent.
EXPLANATION OF THE RECENT STRINCENCY.
Locking UP Operations of the Pa
cific Mail Pool.
Reduction Of the Bank of England
Rate to 5 Per Cent.
GOLD DECLINES TO I2 Ia.
Sharp Advance in American Secu-
rites in London.
An Active Speculation at the
Stock Exchange.
A General Rise in Prices, with a
Break at the Close.
THE PACIFIC MAIL POOL DESPERATE.
The Lackawanna and Panama
An Active Speculation at the
Stock Exchange.
A General Rise in Prices, with a
Break at the Close.
THE PACIFIC MAIL POOL DESPERATE.
The Lackawanna and Panama
Dividends.
WALL STREET,

WALL STREET, |
THURSDAY, Dec. 12-6 P. M.
On 'Change to-day cotton was in good demand
and holders were enabled to establish an advance
of fully &c. per pound for lots onthe "spot" Flour
continued dull and heavy without being quotably
lower. Wheat was also heavy and lower to sell to
any extent. Corn was again 1rmer, but quiet.
THE FOREIGN MARKET.
The most important intelligence from the other
side to-day is the announcement through the cable
,of the reduction OF the Bank of England rate OF
discount to per cent as against per cent, the
previous figure, the alteration being followed by
the report OF gain Of bullion in the bank for the
week to the extent of f45o,oOO, or about two and
quarter million dollars in our money. The
LONDON STOCK EXCHANGE
became buoyant, especially for United States
bonds, which advanced u u per cent, the new
1ves participating in the rise to the extent OF y
per cent, while Erles advanced Z per cent. Con-
soils were steadier, improving only per cent, but,
As heretofore explained, the speculation and in
vestment dealings In consols are assuming mod
crate tone In view Of the competing attractions Of
other securities now in the London market. The
Paris Bourse was buoyant Also and French rentes
advanced 122 centimes-viz., from $3.50 to 5472
In London the French loan was quoted at an ad
vance in the premium to 2k per cent
THE FINANCES IN CONGRESS.
The House OF Representatives took prompt action
this afternoon on the bill authorizing the conver-
sion OF United States registered into coupon bonds
at the will OF the holder and passed 1t by large
majority. Secretary Boutwell, had an audience OF
the Ways and Means Committee on the subject OF
extra commissions for the negotiation OF the new
loan, and was instrumental in inducing the CON-
inittee to adjourn their session to permit the re-
ceipt OF opinions the subject from leading bank.
ers and fnanciers
MONEY EASIER.
The money market was active early in the day.
and the rate on call ranged as high as 1-32 in ad
dtion to per cent But, after two O'Clock, there
was sudden relaxation, and loans were made ar
as low as per cent the quotation closing per
cent. The Pacific Mail pool have been locking up
money again. but, as will be seen by the result this
afternoon. Intellectually. They are reported to
have withdrawn more greenbacks to-day, and
hope to precipitate excessive stringency to-mor
row. when their efforts will be helped by the pay
ments for the government gold sold by the
Treasury to-day. Commercial paper was quoted
10 IL per cent discount for prime names.
FOREIGN EXCHANGE LOWER.
The reduction in the Bank of England rate of dis
count caused a lowering in the rates for foreign
exchange. 1t is true that sixty-day bills advanced,
but the real rate is always the sight rate and the
money is worth less for sixty days than it was
when the Bank or England rate was higher. The
following shows the new standard Of rates :-Ster-
ling, sixty days, commercial, 1881 1ossl; do,
good to prime bankers, 1857 100; do short sight,
110k l10k; Paris, sixty days, 5.32a 5.271a; do,
short sight, 5.23X 5.22a; Prussian thalers, 71k
o 1X; Antwerp, $50 o 5.25; Switzerland, $50
q 5.25; Hamburg, OAK o5k; Amsterdam, 391
40z; Frankfort, 4Os. Il; Bremen, 94a< a 95h.
GOLD DOwN-112z A 1924.
The inherent weakness OF the gold market was
Immediately demonstrated by the news OF the re-
duction OF the Bank Of England rate, which caused
decline from 1924 to 1924, despite frantic effort
on the part Of the clique to bolster the market by
effort TO stiren the rates for the OF gold and
make the cash coin scarce for delivery. A good
deal Of long gold came upon the market, and one
operator was unable to comply with his contract
and was sold out under the rule. Parties lending
on gold should be careful to exact larger margins
than heretofore, as the price is liable to sudden
decline OF Eve per cent any moment the clique get
IN TROUBLE.
The banks, insurance companies and outside
money lenders should not advance more than los,
at least, upon pledge OF gold collateral. There
Is law to prevent the lending OF money on green.
backs. Congress ought to Immediately amend this
law or enact another, so as to provide that money
shall not be loaned on pledge Of gold or silver or
specie colaterals or their equivalent Treasury
tincates. Mr.. Merriam, the active Representative
from New York, who has introduced the sensible
measure for the repeal OF the usury law, should
give this subject his early attention The sub
Treasury paid out $45,0OO on account OF interest
and $4,000 on account OF redeemed nve-twenties.
The steamer for Germany took out $4,000 in sill
ver The
COURSE OF THE MARKgT
Is shown In the following record Of the principal