The New York herald., 1872-10-04
FINANCIAL and COMMERCIAL.
The Financial Situation as Affected by
Political Developments.
The Georgia Election and Its
Suggestions.
ADECLINE in THE STOCK MARKET
Advance Of the Bank Of England
Rate of Discount.
GOLD UP TO 115 IA.
Normal Influences Intensified
by Clique Interference.
TIE MONEY MARKET STRINGENT.
The Inconsistent Relations Of Gold and the
Foreign Exchanges.
Why the Bank of England Raises
the Discount Rate.
Food for Financial Philosophic
Thought.
TIE MONEY MARKET STRINGENT
The Inconsistent Relations Of Gold and the
Foreign Exchanges.
Why the Bank Of England Raises
the Discount Rate.
Food for Financial Philosophic
Thought.
WALL STREET,


THURSDAY, Oct. &c p. M.
On 'Change to-day cotton was in good demand
md an &c. per pound better. Flour remained
steady, while wheat and corn were rather easier,
but not quotaby lower.
Operations and business in the Wall street mar.
kets were guided from the outset by the sudden
news that
THE BANK OF ENGLAND
directors at their weekly meeting this forenoon
had raised the minimum OF the discount rate a
further onehalf per cent to 6 per cent. This
action was explained in part by subsequent
cable despatch stating that the bullion Of the bank
had undergone further decrease for the week Of
Nver half q million pounds The raising OF the rate
OF discount is regarded as an anticipation and
preparation against the further export OF specie
from England, particularly In the direction Of the
United States, our imports large as they have
been not having kept pace with the
TRANSFER OF FOREIGN CAPITAL
60 this country both in the banking business
directly and through the negotiation Of American
railway loans. The intelligence had at first little
effect on gold, the market for which, while con-
trolled by the clique operating, was inherently
weak under its tendency to sympathize with the
low rates for foreign exchange. The early effect in
foreign exchange was to cause little frmer feel
ing IN sight bills but otherwise quotations re.
mained as before-viz., 1878 Tor
PRIME STERLING,
sixty days, and 1855 for sight bills, with discount
90 large buyers Of q O 4 per cent. Subsequently,
when the gold clique renewed their operations in
Che gold loan market and caused q per cent
TO be bid for the use of gold tomorrow, exchange
broke down and was to be had at as low as Io7
for sixty-day and 1851 for sight bills Of prime
drawers. These rates are pretty near the point
which will allow Of bringing specie from the other
bide The effect OF the advance Of the Bank Of Eng
land discount rate upon
THE LONDON MARKET
Svas to depress cOnsOls and 1ve-twenties q y per
cent, but the latter recovered and the 67's ad-
vanced to higher prices than before, closing at o2s,
against 92IS yesterday the lowest quotation after
che alteration of the bank rate having been 92 The
bueyancy Of American securities seems, therefore,
D direct challenge to the movement of the bank to
repress the outflow OF money from London.
MONEY STRINGENT.
The money market was stringent as a conse-
Nuence Of the persistent locking-up operations Of
the "bearn cliques at the Stock Exchange whose
plans are aided by the confessed poverty OF the
city banks. The government money was Of little
avail against them, for they contrved to absorb 1t
almost as fast as it came from the Sub.Treasury.
The rate on call advanced from I-32 early In the
DAY to
oNE-EIGHTH AND INTEREST
at three o'clock, and closed at per cent gold,
at quarter past three O'Clock, the last loans being
made by parties who got their money from the
Treasury at a late hour.
THE EQUIVALENTS
OF the rates just specified are II per cent for the
opening 81 per cent for the highest and per cent
for the closing transactions OF the day. Very natur
ally, there was nothing doing in mercantile paper,
and quotations are only nominal.
THE GOVERNMENT SALE OF GOLD.
The offer OF the government to sell million gold
elected bids for total Of s4,303o0 at prices rang
ing irom 1880 to HAST. The clique brokers bid
for So 900 at 1l4.57 and awarded half that
amount at their price. The restriction OF the sale
90 q single million was not generally anticipated
after the extra purchase OF vetwenties yesterday,
and the announcement caused an
ADVANCE IN GOLD TO 115h,
the lowest price having been 114i4, the rise
being helped by the direct buying OF the clique,
who held their control OF the market to the last
moment and closed the sales at the highest point
Of the day. AS previously mentioned they caused
the ''shorts' to cover quite freely by putting up
the rate for cash gold tomorrow to per cent, thus
checking at the close the tendency to a decline
resulting from the buoyancy OF our bonds In Lon.
don this evening. The
COURSE OF THE MARKET
b shown in the following table or the principal
prices OF the day