The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-05-27
SpecIlations as to the Drift of
Foreign Capital.
Is the Financial Millennium
at Hand?
The Depreciation Of Money as Indicated
In the Rise In Wheat.
The Enhancement Of Values by the Ad-
vance in the Price of Labor.
WALL STREET,


WALL STREET,
SUNDAY May 20, 1872.
A freer movement on the canals has been fol-
bowed by some reaction In the wheat and hour
market but without materially reducing quota
tt0ns, the scarcity of the supply at the Atlantic sea-
board being too manifest to induce holders to yield
- buyers. The prospect OF unusually light
receipts OF cotton the rest OF the season
sQstains the cotton market. In trade gen.
orally business is hardly satisfactory. 1t can
not be said to drag but calculations have
been disappointed. The dry goods trade has been
unfavorably affected by the fckleness Of the sea-
son, summer having followed winter and been fol-
lowed In turn by spring weather, to the unsettlng
81 domestic plans for dress ana costume. At the
close on Saturday several failures in the cotton
trade were reported, the parties having been oper-
Ating, doubtless for decline in the market or be-
Ing what Ia technically known as "bears' In the
business. -
i THE SUPPLEMENTAL TREATY
having been ratified on Saturday evening in pro-
ionged session OF the Senate, the agony is over so
Ar as Wall street is concerned, and the ensuing
week is likely to witness general reorganization
Of clique tactics In view Of what has been done to-
ward all abatement Of the last cause OF dispute be-
tween England and America II will be very
curious to study what the immediate effect upon
stock values will be, and to trace how far the faith
01 the community and OF spectators IN higher
prices will have been revived by the event OF Satur-
day night. Had not the bearish interest been
largely closed out earlier In the month and during
she excitement following the recent elimination of
the excitement in Pacific Mail we should be in
Cllned to look on
MONDAY MORNING
Sor general rush to cover speculative con-
AZ 1t liz, the interest the
too uncomfortable to lead to any violent move
ment OF this character; so that a rising market,
should such be the effect OF the news OF
Saturday nights ratification of the treaty,
would represent the popular and speculative
convection that the future OF prices must
be In the upward direction under the initiating
influence Of further and renewed Influx OF Eng
Hsh and foreign capital 1t is true that good deal
Of this influence has been already discounted;
but as the elements OF the problem are
Gnknown and uncertain quantities., the discount
ing may have been both premature and over-cal-
culated In other words, with all the DESIGNATING
Of the restoration OF good feeling between the two
countries, the plethora OF money in Europe and
che thousand and opportunities for its success
ful employment here may prove the
IRON FILINGS AND MAGNET
or great conjunction of the two matchmaking
conditions The fact seems to be forgotten that
steamship lines (ride the achievement Of
the Adriatic) between England and America
London and New York are as near to each
other were New York and Washington not a
third Of century ago. The transfer OF capital from
Europe Is encouraged by capital ITSELF for it does
good to what goes and to that which remains be-
hind. When the conditions Of a more equal dstr-
button are fulfilled as between the two countries
We shall look for a cessation OF the how; butt as
must be evident, the wider knowledge OF each
other and the constantly increasing intercourse OF
both will steadily defer the period OF such equaza-
ton until the level here Is equal to the level the
other side. The 'discountng'' Of the effect on our
stock market OF the final adoption OF the supple
mental Treaty has been ovcrdone by as much the
capital OF Europe capable OF transfer to the New
World N under-estimated in the general mind.
THE MONEY MARKET
has offered no new feature, and with the growing
reserve Of the banks promises no immediate dis
turbapce the large contraction in loans during the
past week as an indication OF caution to the con-
trary Notwithstanding With all the undoubted in
nation prevailing on the Stock Exchange, and the
consequent large absorption OF money for specula-
tive uses the supply 10 the stockholders closed
abundant ut six per cent and 10 the government
dealers at five or six per cent. The merchants who,
In carrying heavy lines OF goods, are forced to ask
renewal Of their paper, find accommodation pretty
easily at 10 per cent, the quotation for really
prime names being a s per cent.
Foreign exchange left Off at 1oa5s for prime sixty
DAY bills and HOY for sight sterling.
THE GOLD MARKET
mas been characterized by duer speculation
owing to the confoundng OF the theories of the
street by the opposing influences of the pros
pectve passage Of the Supplemental Treaty and
Ahe heavy depletion OF specie, the 1.boys generally
giving IL up" preferring the quicker and less
anxious medium OF stock values. The future holds
no more curious problem, however, than the pros
Pectve course of gold the rest Of the summer
months under the conflicting influences OF the
ratification of the Washington supplement Treaty.
the taperng down of the cotton and wheat SUPPLY.
the revival OF American railway loans In Euro,e
and the dozen other matters bearing upon the
question.
NEW DEPARTURE.
Indeed, with the cost OF production of domestic
articles enhanced 20 per cent, the trade aSd labor
strikes, and the cost OF living enhanced by the great
rise in wheat and nour, the question whether
we are not on the eve OF grand imitation in all di
rections Adam Smith tells us that, taking one
year with another for long series OF years, the
price OF wbeator corn, as they call 1t on the other
side-is the best index OF the value OF things. A
rise, therefore, OF three or four dollars the
past few months In the price OF
barrel OF -four Is very significant fact, and seems
to demonstrate that for some curious reason money
mas greatly fallen In value during the same period,
anu therefore has lost much Of its purchasing
power. The rise In real estate in some portions OF
The city has been simply enormous Look at the
recent sales OF Fifth avenue lots for as much two
Ut three thousand dollars lineal foot OF
frontage The depreciation OF money has
hot been In Its paper representative alone.
Det IA all that is known as money whether 1t
pe god or silver, bank notes or Treasury notes.
great financial questions and problems are in