The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-14
The Stingency in Money, and the Rem
edy, National and Local.
Free Banking and the Abolition
of the Usury Laws.
The Speculation in Gold Thriving
on Opposition.
SATURDAYS BANK STATEMENT.
Reinforcement Of the Reserves Deli
cheney Reduced to 100000.

WALL STREET, l
SUNDAY, April IL, 1873.
me week in Wall street has witnessed con-
einuatioD OF the remarkable contest between
BORROWERS AND LENDERS
Of money. and wide and frequent fluctuations IN the
rates paid and exacted for its use from day To day.
The scarcity OF funds daring the past month has
excited the utmost surprise at thes mystery OF
where all the money has gone to. Indeed the
dinlcuty IN getting at money from day TO day has
provoked the speculation whether, In the reaction
from the paper money issues Of the war, we have
not reached the stage at which money
has begun to be more valuable than prop
erty; and we might be induced TO be-
gin TO think seriously about such an
AccRETIoN OF THE CURRENCY
did we not know that within the next sixty days
money, or Its paper representative, VIII be drug
IN the market, and be worth as a source Of
revenue, less than three per cent British consol.
The rise in gold ana the exceeding stringency In
money, are both ndlces OF something radically
wrong In our monetary system which need
remedial action in Congress. Both are more or
less the result OF artificial manipulation OF the
markets but then such individual or Clique control
ought not to be possible The remedy Of
A FREE BANKING LAW,
with a provision requiring the country banks to
keep redeeming agent at New York, would 90
far to give the currency system elasticity which
Is now sadly deficient, and which would prevent
the enormous deportation OF money from New
York in the Spring and Fall and excessive redun-
dancy OF IL in the idle months OF Summer The re-
peal OF the usury laws the State of New York,
at least for the metropolitan strict, as a sup
plement to the passage Of free banking law in
Congress. would defeat the efforts OF combinations
10 derange the money market. AS matters have
been the past few weeks money, as possession or
Investment, has paid larger proportional dividends
than anything on the share list
THE RATE CALL,
AS the Wall street expression goes for transactions
In money from day TO day, has ranged all the way
from TO 365 per cent per annum. on Thursday it
was thought great hardship TO have to pay x per
cent for money until Saturday, but on Saturday
borrowers had to pay as high as y per cent for
money until Monday. The singular feature OF the
business is, furthermore, the sctuaton in single
day, which has often been from one OF these ex-
tremes to the other. That Is, money was to be had
1t some period nearly every day at per cent, or
per cent gold, although before or after loans
were made at the
MOST EXTRAvAGANT TERMS
OF the present crisis. The persstency with which
money lenders succeeded in keeping up rates,
Notwithstanding the steady and abundant influx OF
currency from the interior, has been paraleled by
the success of the gold clique in maintaining their
operations against the lighter importations OF
foreign goods the lowness Of the foreign exchanges
and other important influences adverse to their
plans, not the least among the last mentioned be-
ing the revival OF the foreign demand for American
government and railroad bonds. With all this the
market seemed pliable as could be in their
hands. They opened 1t at 119h, sold until they de-
pressed II TO l117s and then bought until they
raised it on Saturday to 119h. Usually these
OPERATIONS IN GOLD
would have been attended with less success be-
cause OF the outlet any rise would give to domestic
exports. But now the clique mark up gold with
comparative impunity, because they know that the
prevalent stringency in money prevents the ex-
porters from placing their bills OF exchange at
equable rates, seeming paradox lying in the fact
that scarce money, which should depress gold ac-
tually helps its artificial advancement. The spec.
ulation at the Stock Exchange has been more con
servative under the restraint of tight money, but
the fluctuations in prices have been comparatively
narrow. From about Tuesday, when the lowest
prices were made to Thursday there was general
rise and no little buoyancy the eve Of the Good
Friday holiday, but the recurrent excessive strin-
gency Of Saturday almost undd the improvements
The rise In gold carried up government bonds to
the highest figures they have in several years.
the '67's, for instance, touching 1le and the skies
Of '8I l21.
LATEST PRICES OF GOVERNMENTS.
The following were the closing prices OF
government bonds Saturday evening"
United States currency skies, 113h a ia;
do. d. 1884, registered. 1l7a4 a lis; do. do. do.
coupon, 1908 12oa4 do. fve-twenties, registered
May and November 49, 113L do. do. 1862,
coupon, do. l74 lis; do. do, 1864. do. do, 1l72s
11SH do. do, 1865, do. do, 1191s 100; 1867,
registered, January and July, 116h a 116I; do. do
1865 coupon, do, 1l7l4 MY; do do, 1856 do.
DO, 119x 1193.; do. do, 1868, do. do, 1171S a
117x; do ten-iorties, registered, 1l114 ll2; do.
do, coupon, 1929 49, do. 1ves Of 1881 regis
tered, l15 no. do do. do coupon, 1154 ll6.
THE COURSE or TIE GOLD MARKET.
The extreme fluctuations daily in the price OF
gold during the week were lollows:-
H,gheSt. Lo,rest
MOnuay .......................... Iva ISL
Iuesday OBSERVATION-DISCLOSURES. 1883 lis
Wednesday. ACKNOWLEDGEMENTS. llS11 117Z
THURSDAY .....-................... llo5a llI8
1Iluay ...................-.. luoou fIiudy HoHuaN
saturday .......................... 1895 1lo3a
The last sales saturday were at 1884, the quota
tions closing at 11sss 11sI.
SOUTHERN SECURITIES.
The week was an unusually dull one in the