The New York herald., 1872-10-14
THE MERCHANT VS.. THE STOCK BROKER.
Finance and Trade as Affected by the Three
Chief Events Of the Week.
The Treasury Disbursement Of Ten Millions,
the Pennsylvania Election and the
Raising Of the Bank of
England Rate.
saturdays BANK STATEMENT.
WALL STREET,


The course OF the various markets during the
past week has been anected in quite an important
degree by the operations Of the Treasury the result
OF the State election in Penn sylvana and the ad-
vance on Thursday Of the Bank OF England rate Of
discount to six per cent, the highest minimum In
over two years. The relief given
THE MONEY MARKET
by the disbursement Of five millions of legal tenders
and Eve millions Of gold from the United States
Treasury on Monday, however doubtful for day
or two, proved at last to be substantial, and the
rate on call, after some coquetting with the old
extravagant figures to which it had grown accus-
toned during the reign OF the tight-money
clique relapsed to per cent loans
being made some days toward the close
Of business at as low as two per cent. Indeed,
the quotation after half-past two O'Clock on
Saturday was q 3per cent, the bulk Of the days
business having been at six per cent. In some
quarters there Is disposition to suspect these low
rates as "too much OF a good thing" especially as
they contrast so strongly with the recent strin-
gency; but 1T should not be forgotten that money
before the clique touched 1t was working pretty
comfortably, considering the time or year, SO that
1t is only natural that there should be q sudden
gravtation to low rates wnen the market is re-
'ieved by the ten millions OF the government and
the two or
THREE MILLIONS OF THE CLIQUE
There would be more cause for rejoicing, how
ever, did the relief extend to wider circle Of
people than the stock brokers and their customers
and include the merchants who are compelled TO
be borrowers on their notes OF hand. It is true
the banks have helped great many OF the mer-
chants having regular dealings with them by use OF
the money disbursed by the government, and there
has been pretty free movement in paper at bank
at 7per cent, but there is very numerous class of
prime mercantile houses whose necessities send
them to the street, and who are greatly dependent
upon the customers OF the note brokers. For
prime paper done In this way there has been q re.
taxation TO 10 IL per cent and more willingness
10 buy on the part OF the regular traders but the
fact stands, nevertheless, that business men are
paying too much when they submit to
sHAvEs OF TEN PER CENT.
However, this matter may soon right ITSELF Let
the impression once be well founded that money is
likely to be easy the rest of the year. and that it
win be drug as usual in the Spring and Summer,
and there will be more disposition to take this
kind Of paper, especially the virtual settlement
OF the Presidential question by the result in Penn
sylvania has quickened business all over the city
and driven or that languor and indifference which
would have been the inseparabie condition OF
another month of doubt, with the prospect OF many
months OF further waiting to learn what would
have been the financial policy Of the candidate and
Overslaugleu
On Tuesday last. There are millions who believe
that Mr.. Greeleys administration, should the fates
grant him one, would not be less conservative OF
the business interests OF the country than General
GRANTS; but now the Presidential question is de-
cided-at least SO Wall street believes and bets,
and SO think the thousands OF merchants who have
been waiting. The change since Wednesday morn.
ing last has been like the work OF magic. The dry
goods trade sprang into life once more; confident
feeling pervades the money market; stocks have
risen several per cent, and real estate is firmer
and all because men may make reasonable calcula-
tions OF the future OF everything for
THE NEXT FOUR YEARS.
And this view further suggests that the forth
coming Winter and Spring are to see a revival of
speculation ut the Stock Exchange unparalleled
since the palmy days OF the Spring of 1862 when
the Grant administration began to pay or the
national debt at the rate OF hundred millions per
annum, and equal perhaps to the great nnation OF
earlier years OF the current paper money decade.
One important matter should not be lost sight OF
notwithstanding the unfavorable action OF the Bank
OF Engand-viz., the now OF foreign capital to this
country which will be resumed with greater vol
nme when the hustle and confusion OF Presiden-
tial election are over. 1t is significant that our
bonds in London jumped mp when the news from
Pennsylvania was known and that the bank put up
the rate the following day. Last year at this time
the managers raised the rate to 5 per cent and
kept 1t there for several weeks after the rate
In the open market had fallen to 3k
per cent. In London money was quoted
the past week at fluctuations ranging from to Az
and then to 5 a 5X per cent. while the Bank rate
was per cent. Still, it must be admitted the for.
eign money market may remain active the rest OF
the year, for 1t has many for doing SO; but
ihe new year viii bring with 1t the release from the
nf hn ivaln nf
about a hundred million OF dollars and doubtless
naugurate SO easy condition Of the finances
abroad that 1t would not be surprising to witness
spectacle Of
WORLDWIDE SPECULATION
and innation In the coming year OF grace 1873. The
Aigns at home here all point to IT, while the settle
ment Of the Alabama claims and the entente cor
fiidie between the three Emperors OF Europe are
international testimony to the same effect, Our
foreign trade Is fortunately helped by the
precautionary measures OF the Bank OF Eng.
iand and foreign exchange has advanced
10 such point that the exporting mer.
chants can forward their stocks as rapidly as
they find freight room. One reason OF the south
ward movement or money the past week was the
heavy movement OF cotton to this city for ship.
ment to Europe. Gold was highest on Tuesday,
when the ''bears' In the precious metal became
alarmed at reports thar Hartranft was falling be-
hind and was likely to be defeated, and sold at
il3s, but fell next day to l12z, rallied to 1895 on
Thursday, aud closed Saturday at 1927. The fol-
lowing table shows the extreme fluctuations daily
IN the price OF gold during the week.
highest. Losrest.
nohuay. .......................... 1l3is II21
.y,ntssuay..... ................... 1855 1l2A
~ wr,Sums.suay..... ......s............... ll3ts Il2A
s,mnas a""s ''''''.'.'............. lib lI2S
Sr,"ay ..'.,...........".......... 113iS 1I2n
'a'uuay'' .'.....s.............. 1l2M 1l2Z
INC last sales ON Saturday were AZ 1IoI and tho