The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-09-23
The Extremes Of the Money Market
225 and 2 IL Per Cent.
Closing Quotation 2 l-2 a
8 Per Cent.
Gold Opens at lis "a, Advances to liz is, De-
clines to ll2 l-9 and Closes at liz SIS.
SATURDAYS BANK STATEMENT
WALL STREET,


WALL STREET,
SUNDAY, Sept. %, 1872. J
The week In commercial circles was active, and |
che Fail trade continues to progress with satisfac-
ton to the mercantile interest. 1t is thought that
In some departments notably dry goods the dis
tribution this season will be greater than ever |
heretofore recorded. The spasmodc movement OF |
the gold and money markets hindered but did not |
check the export movement OF domestic produce, |
the outgo for the week having been nearly quarter
OF million dollars In excess OF the previous week.
The warmer weather toward the close OF the week
retarded the uptown trade, and retailers are dis
posed to complain Of dulness. The first north wind
will doubtless put them in good humor again.
THE WEEK IN WALL STREET.
1t is not often that SO many exciting events have
been crowded within the brief space Of week as
during the one just closed. Money was "locked
mp" gold was squeezed" and Erie was :" cor
neredn in grand triple encounter Of speculative
combinations. The beginning Of the excitement
was In Erie, which was suddenly "cornered" and
made worth O half per cent day on Its par
value for use in speculative deliveries. This
operation was conducted by "the Germans"
as the street briefly designates the foreign
brokers and bankers doing business along
the line of Exchange place running eastward from
the corner Of Broad street. The parties most con-
spicuously 'short'' Of Erie were Messrs Smith &
Gould, q copartnership with o weakness for specu-
lative sales Of this stock which has been many
times conspicuous in the history of the street. Now
the Germans" were at the same time 'short" OF
gold. Naturally, there was
"A Row'
at once. The Erie clique event for" the
Germans" through the gold Market the latter
went for the clique by q fresh squeeze
In Erie, and the confusion was worse
COMPOUNDED by the quiet guerilla operations
OF the venerable Daniel Drew, who slyly bought
lot Of Erie and helped tighten the "corner' on his
friends 'Henry" and "Jay." This interference
brought in new disposition OF the artillery Of the
Contending parties the clique suddenly turning
their attention to the money market, which they
frightened with merciless squeeze with view to
compelling the Germans and Mr.. Drew to let 60
their hold Of Erie the latter gentleman being. in
their opinion most likely to readily succumb to this
strategy because Of his heavy holdings OF Wabash,
Canton and Quicksilver, which he could not afford
to throw into panic for the sake Of carrying out
his designs in Erie. The "thick OF the battlen was
On Tuesday, on which day the following results at
tended the
CULMINAT1oN OF THE CONTEST
Money was made so scarce that the stock brokers
had to pay as high as - per cent for the of bal
ances until next day, at the rate of 225 per cent
per annumi
Gold was locked up to such an extent that the
Importers and the speculative sellers of 1t were
compelled to pay as much as IL per cent for its
use In their deliveries at the Clearing House and
at bank the same afternoon. Equivalent to about
$50 per cent per annumii
Erie was cornered SO successfully as to command
2h per cent for its use in completing deliveries.
That il, the holder OF a hundred shares was given
the currency value Of the stock free of interest," as
-
other words Erie for the day. earned o dividend
equivalent to about LOO per centIl
There has been worse corner in Erie 1t is true,
and money has loaned at even higher rates, while
gold has been worth as much as two per cent a
day, but o combination OF three such 'corners,n
each OF such extraordinary stringency, is an cpl
sode that has not its parallel In the history OF Wall
street. And
THE SEQUENCE
OF It all IL not the less curious and interesting
The purchase Of few millions of bonds by the
Treasury and the release Of the corresponding
Tency was the wedge that entered and finally
1oosened and broke the "cornersn The clique
Bought to continue the struggle by locking up
greenbacks, but were suddenly checkmated
BY two Of the city banks, whose officers
boldly assumed the right to refuse payment
OF certified checks when they believed the legal
tenders were to be diverted to legitimate pur-
POSeb. IIub COURSE WAS euuOTSeu 80 generally Dy
the banking community and so unanimously by the
merchants and business men that the clique gave
mp, vanquished, covered their contracts in stocks
sold gold and placed themselves, 1t is thought in
q position to proft by rise In the stock market,
the which had by the way, stood the brunt Of their
assault with nrmness not often witnessed. The
question OF the right OF the banks 20 refuse such
payment win be decided by law suit, and mean
time the Bank Of Commerce has prepared a
form Of certifcation reading, "Good through the
Clearing House." which has been used once or
twice within the past few days and will be reserved
Tor any transaction indicative OF q "locking-upn
conspiracy. On Saturday the markets had settled
back to something like their ordinary quiet. Gold
declined to 113K, money closed at az per cent
and stocks advanced per cent. Governments
reached the climax Of their reaction on Friday and
fell back again On Saturday. Foreign exchange
was weak and prime sixty-day sterling closed at
107ka figure which absolutely forbids specie ship.
ments.
LATEST PRICES OF GOVERNMENTS.
The following were the closing quotations OF gov
eminent bonds Saturday afternoon limited states
currency skies, liz 1925 do do, 1884, registered
1l3x ia; do do, coupon, lis q l15z; do, FIVE
twentes, registered, May and November, ia
1l4k; do. do, 1862 coupon, do, ia a nay; do.
do, 1884, do. do, ia 114X; do. do, 1865, do.
do, HAY ll4x; do. do, 1867, registered January
and July, 1917 1lS5I; do do, 1865 coupon, do,
llsh ll3h; do. do, 1867 do. do, 1135I 1131 do
oo 1885, do do, 11SK 1lal; do, ten-fortles, regis
Tered, lo7X los; do. do, coupon, 1o7x 1os; do.
ives, OF 1881, registered, llox Ill; do. do do.
coupon, l1ox Ill.
TEE COURSE OF THE GOLD MARKET
Ine extreme fluctuations daily In the price OF
gold during the week were as follows-
49,. Highest Lotcest.
onuay. '''''''''''''''''''''''... ll3M 113X
Suesuay; .'''''''"'''''.'''''.'' lHl 113X
NNe0neGQaY. l4A