The New York herald., 1872-07-22
The Gold Pool and the Progress Of
Their Speculation.
The Gold Premium, the Foreign
Exchanges and the Exports.
The Pacific Mail Company to Run Three
Steamers a Month.
SATURDAYS BANK STATEMENT.
WALL STREET,

The dry goods trade continues duli, ana the mer-
chants report fewer buyers in town than usual at
this season. The downtown markets are as
general thing dull. good deal has been doing,
comparatively, in breadstufs. with the tone OF the
market frmer, taking the average OF the weeks
business. Cotton has been heavy, even with light
receipts at the ports and prices have declined con-
siderably In financial circles the more important
feature Of the week has been the great
RELAXATION IN MONEY,
which is about as abundant as Wall street has ever
known 1t. The accumulation at this centre Of the
idle money of the rural districts has effected
steady decline In the rate call to az per cent. at
which figure money continued to be offered at the
close OF banking hours Saturday afternoon. 1t Is
possible that tomorrow and Tuesday may witness
slight hardening in the rate again, but If the
perence OF previous weeks be
CRITERION
then we may look to money lending at per
cent before the ensuing Saturday night. Indeed,
the competition OF capital seeking employment on
call must have that result II no sudden contingency
occur to disturb the present tendency Of the money
market. Persons of bilious temperament, as
well those who have some individual wrongs
charged up against the paper money imitation Of
the country and Its attendant sharp enhancement
OF gold In the earlier days Of the war, never
aught but
RUIN AND BANKRUPTCY
as threatening the whole country every moment
Yet money Is abundant at Q o 8 per cent, and be-
comes 80 every year at this time regularly as the
tides rise and fall. There is something Of the un-
fathomable in our whole American life. We are ex-
travagant spendthrifts: we import hundred mil
lions annually more than we export; we paper the
country from one end to the other with treasury
and bank notes. government bonds railroad
bonds and all sorts Of securities. Yet we jog
along In
HAPPY, PROSPEROUS
way paying of hundred millions of the national
debt year; adding twenty-five per cent to the
wages Of labor (which are already several times as
much as in Europe) and enjoy our full modicum Of
the pleasures Of life. The bilious man tells us that
the day Of reckoning will come be 1t never 80 long
postponed, and that the revulsion will be Oil the
more terrible for the delay. The immunity which
we enjoy at present from financial trouble is due IN
great measure to the national bank system, or
rather that portion Of 1t which protects the note
holder from loss. We can never of course, defend
THE INJUSTICE
which allows these banks O premium Of six per
cent. on their banking business; but the
note-holder is so amply protected by the
deposit of bonds at washington as collateral
for the redemption Of circulation that no
panic can ever seize upon the public las
things stand at present) regarding the paper
money In their pockets. Thus we are likely never
to have general bank smashing before we return
to specie payments, for there can be no deprecia.
tl0n Of the currency, unless such as may occur by
an advance in gold. and that Is invisible to most
men. Indeed,
THE PARADOX
is Just now presented of the notes OF broken banks
being better than those of sound ones as any one
will see by reference to our advertising columns
this Sunday morning, wherein q certain firm In
Philadelphia OFFER a premium Of four per cent for
such paper. It is true the notes are wanted in
this case to start new bank in some locality
where the quota of bank circulation is already
filed up, but the fact stands nevertheless that
'bad" money is worth more than ''good" money.
These considerations have good deal to do with
encouraging popular confidence In our
FINANCIAL STABILITY.
With the low rates on call there was hardly cor
responding relaxation In time engagements, and 1t
Is dinicult TO negotiate ordinary commercial paper
tbetter than per cent discount, although really
prime names pass at 9. Prime bankers acceptances,
running sixty days, are quoted 8 per cent, but
there is very little Of this kind Of paper in the
market, The foreign exchanges have been, curously
enough, only steady upon the advance OF half per
cent In the Bank Of England discount rate the past
week-an influence which, so far as r.a
THE GOLD MARKET
is concerned was equally imperative in stnening
the premium. The gold clique worked the price up
to 114A In anticipation OF the raising OF the bank
rate, but found 1t impossible to hold the market
and sell upon It after the cable announced the
advanced rate and gold fell back to 1141G, recover
ing to l14k. Indeed the market has given fresh
evidence Of the fact that gold is merchandise as
well money, and the III fortune OF the gold clique
was due to the undue enhancement OF the precious
metal. 1t happened that cotton was getting weak
as gold was getting strong, and this circumstance,
as well as the simple advance in gold allowed
freer
EXPORT OF MERCHANDISE,
as cheaper to send to Europe than gold Hence the
alterations in the tone of the foreign exchanges,
and the hesitation and nuctuation In the specie
gagements during the week. The gold pool can
hope for success one thing onlyviz, the "squeez.
ng' OF such "sh0rt interest az exists In the mar
ket-and the extent OF this In represented very
variously. A good deal of 1t has been frightened
into covering, and as much more is protected by
time loans ofgold, for which extravagant consider
ations have been paid.
have been quietly strong, advancing gradually
from day to day, with here and there q sporadic
speculation for one two per cent, but otherwise
no important changes. Pacific Mail touched 7sx
ON saturday. when was discovered that
the company had decided to resume their
three trips monthly, beginning with the 10th Of
August wabash is said to be down for Q struggle
between the Lake shore and the Canada Southern
people, although It was generally understood that
Daniel Drew and his friends In the latter enter
prise held q majority Of the capital Erie nuctu-
ated, az usuai, but when near e-7
THE "rIFTIEs"
| slwaya enlisted buyers enough TO become strong
ana turn around. good many people who diner
|! IN opinion with Mr.. Drew regard 80 'shard farev