The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-05
STARTLING RUM0R FROM WASHINGTON.
Reported Adoption Of o Resolution Sane
tiOning the Issue Of Forty-four
Million Greenbacks.
A Further Decline in Foreign Exchange
and the Reasons Thereof.
GOLD FEvERISH, CLOSING AT 115.
WALL STREET,

TUESDAY, March 4-6P. MI
On 'Change to-day cotton was in better demand,
but the market was easy. Flour, wheat and corn
were slightly better, although quiet.
THE EXPORTS OF THE WEEK.
The total exports Of domestic merchandise from
the port Of New York to foreign ports during the
week ending March 4, 1873, were Of the currency
value OF IS, 252, 90S
THE FOREIGN MARKET.
The London quotations were steady and frmer
for consos and United States bonds, the latter
selling at yesterdays asking prices. Erie opened
with dip Of per cent to 50s<, but recovered
during the forenoon and closed at an advance to
b1&-equivalent to about 64H IN our currency
The new French loan was quoted at ga 90 per
cent premium. French rentes in Paris advanced
to $3.50. The indications from London point to
reduction of the Bank OF England rate OF discount
on Thursday.
MONEY STRINGENT.
The money market continued stringent under
renewal of operations on the part OF the clique,
and the rate on call, which opened at lie, adj
vanced to n and interest. The effort to keep up
the "squeeze was only partially successful, how
ever, the rate receded again early in the after
noon and declined to per cent coin by as early
as halfpast two O'Clock. In the subsequent deal
ings before the close of banking hours a reaction
to lie ensued and the closing dealings were at
1872 and interest. Commercial paper was neglected
and nominal
FURTHER FALL IN FOREIGN EXCHANGE.
The foreign exchange market was exceedingly
weak, under the offering Of bills drawn on London
against the recent negotiation there of two
millions of the bonds of the California and oregon
division Of the Central Pacific Railroad, and the
leading drawers Of sterling dropped their rates
further quarter per cent to 1854 and 1925 for sixty
day and sight bills respectively. The decline was
attributed also to the stringency In money and
the needs Of the stock brokers' but the suspicion
has lately gained ground that
THE FOREIGN BANKERS
have encouraged the belief that the bills recently
sold so freely were borrowed against pledges of
stock colaterals while the fact was that the high
rate for money in the United States was attracting
to this country large amounts OF foreign capital to
transfer which as probably as possible the impress
sion was allowed to prevail that the exchange was
being made in the shape OF loans to the STOCK
brokers. 1t is not denied that good deal Of ex-
change was drawn on this last account, but the
amount marketed the past month or two has been
greatly more than could have been needed for the
wants OF stock speculation. With
MONEY IN LONDON
worth only a 2K per cent and 10 20 per cent in
this market on ample security it is easy TO under
stand why capital should cross the ocean. The
unnatural rather unreasonable drain OF money
to the West which we experienced during January
and February concealed the presence OF this for
eign capital among us until recently or since
the drain to the West has ceased. Hence
the prevalent weakness in and lower
rates for sterling exchange. To-day sales
were made OF prime sixty-day bills at as low as
1OS, and more were to be had at the same figure.
The following shows the range Of the revised quo
tations :-Sterling, sixty days commercial, 1919
1917; do, good to prime bankers, 1919 1854
do, short sight, 1857 1895; Paris, sixty days.
6.3l4 52ex do, short sight, 5.212s 52l4 Prus-
sian thalers II 71h; Antwerp, $50 625; swift
zerland, $50 6.25; Hamburg, 9411 951s; Amster-
dam, 39x 40H; Frankfort, 401a 4O2s Bremen,
e4h a 95h.
GOLD UNsETTLED-114% 115ls.
The gold market opened weak and declined to
114A, in sympathy with the downward tendency
OF the foreign exchanges, but was rallied by the
clique to ll51s late in the day, in pursuance Of the
policy Of forcing the "shorts' to cover by advanc-
ing the quotation in q thin market, their opera
tions being helped by rumor IRON Washington
that the House OF Represen tatives, before adjourn
ing, had authorized resolution sanctioning the
reissue by the Treasury OF any part OF the
S44,000,0o0 OF !egaltender reserve. The course OF
the market is shown in the table -