The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-08-17
The Dry Goods Imports for the
Week Six Millions.
Daniel Drew Alleged to Have Bought Three
Millions Of Gold for "a Flyer"
GOVERNMENTS HIGHER AND STRONG.
Traffic of the Ohio and Mississippi
Railroad.
WALL STREET,


FRIDAY, August 1916 p. M.
On Change to-day -four was heavy and the
lower grades decidedly weak. Wheat was about
steady. The cotton market was quiet. with firm
undertone. In the Wall street markets the chief
incidents Of the day were
sPAsM IN MONEY
consequent upon q manipulation OF the market In
connection with the speculation in the Stock Ex-
change and rally in gold to 1152S, with moderate
frmness toward the close at 115jH. The demand for
money and the dealings therein were OF the usual
stereotyped character until after two O'Clock when
some excited parties, who were either rashy hasty
or concerned in 'Iaundry" operation, bid the rate
up from az 8 per cent until some borrowers, who
were afraid they would not get their balances OF a
paid as high as six per cent rather than take the
chances Of waiting, as was natural in 80 sudden an
alteration Of the rate.
REACTION
set In almost Immediately, and toward the hour Of
three O'Clock the rate went or to az per cent
again, but closed without any definite quotation be.
tween 2h and ~ per cent, the activity having been
30 short-ived and accounts being SO promptly made
up that there was In reality no tangible market at
the usual hour for the closing of the banks. The
incident served to divide attention with the rain
storm as topic Of discussion, and
THE EXPLANATION
was generally conceded to lie in the Vaccinations
of the gold pool who are credited with being
"short" OF stocks to an extent which renders them
occasionally desperate in their efforts to sway the
market. From the Gold Room came q
story that the Montreal banks had ordered
home lot Of gold now loaned out in this city, the
domestic inquiry for funds being suddenly acceler.
ated by the initiation Of the policy Of
CONTRACTION
fostered by recent legislation Of the Dominion Par
lament. Be this as 1t may, and we shall learn more
about It In q day or two by the workings of the
gold market, 1t failed to alarm the money market,
the cash which Montreal could withdraw from us
being mere trine as compared with the millions
on deposit here from every quarter Of the United.
States. A better reason could have been manufac.
tured out of the circular Of the
COMPTROLLER OF THE CURRENCY,
which was given at length in our Washington tele.
grams this morning, and caused no little uneasi-
ness am ong some Of the banking officials of the
city, who. in working on slight reserve, have fre-
quenty had to depend upon the device OF counting
as specie checks for gold drawn upon other banks.
The telegram, through O want OF perspicuity, re-
sulting from the doubtless incorrect posi-
ton Of punctuation mark, makes 1t only
probable that these checks cannot be
counted as specie in the usual statements
made up as required by law, and the official copy
is awaited in order to determine the point Mean
time 1t Is most probable that Mr.. Knox means to
require the banks to omit this counting Of
CHECKS AS SPECIE
and limit the composition of the specie item to
coin, bars and Treasury gold notes. q modification
Of the manner and matter Of the bank statements
to which no person reasonably object and which
might be extended to the informal weekly averages
reported by the banks of our local Clearing House
every Saturday afternoon. Prime commercial
paper quoted at about per cent and what little
is doing Is on that basis.
FOREIGN EXCHANGE UNSETTLED.
The foreign exchanges were unsettled, and on
the whole weak and lower. The early dealings
were at a decline Of u per cent on previous rates,
the foreign bankers making general con.
cession in view Of greater plenty of
bankers bills made against some recent large ship
ments OF United States skies of 1884, The offerings
being absorbed on the basis Of 1881 and 1O9Js, the
nominal figures to which the leading houses low
cred their rates, and the weekly return of
THE IMPORTS or DRY GOODS
r eaching the very heavy amount OF 100000 (in-
Guiding the excess of Withdrawals over the goods
warehoused), the drawers suddenly changed their
views OF the market and restored quotations
to the opening rates. The Custom House return
shows the amount Of goods entered at the port
during the past week to have been So ,036, and
the amount marketed $4,000, $50. These several
facts readily explain the facility with which the
pool erected an
ADVANCE IN GOLD FROM lis TO 1159s,
their operations being helped by slight reaction
Ia the 62's, which came eighth lower rs COM
pared with yesterday, although this influence was
more moral than real, as other issues were firm,
but with less influence, owing to the leadership
assumed by the 1925 in the lists OF quotations by the
cable. The clique were astonished more than any
body else by the lucky turn OF events, and quietly
congratulated each other the sudden reinforce
ment thus given their side of the gold speculation,
the 'bull' element Of which was gradually losing
and partisans in view of the low rates Of
foreign exchange Just at this uncture, too, came
report, and 1t Is as true as such things usually
are In the street, that
DANIEL DREW
had bought three millions from 115 upward, basing
his operation on an early knowledge OF the Custom
House report Of the dry goods pnorS for the past