Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1873-08-16

lhe toliowlng interesting extracts !
from the monthly letter Of the banking
house of Henry CleNs & Co., No. S2 |
Wall St., n. Y, shows the condition
of the gold market and explains the
cause its present condition, and also
gives full information as to the state of
the money market in New York which
of course governs the matter in the
whole country.
The gold market is, at present, in
an entirely unnatural position. A
large portion of the supply is in the
hands of a clique, who bought at, per-
haps, fully two per cent. above the
present price. In order TO make a
market upon which to sell this load,
large amount has been shipped TO
Europe and much Of the exchange,
received against the export, is still
held by the clique, so as to prevent a
break down in the rates of sterling.
By means of this sort, it is sought to
hold the premium at about its pr sent
figure, or to elicit speculative sales,
and thereby work up "corner." The
clique occupy this position, perhaps,
rather by misfortune than from design
the obvious tendency, of nearly every
influence regulating the premium, be-
ing towards lower quotations 1T is,
nevertheless, possible that, by this
sort of artificial manipulation, the pre-
MUM may be kept some time above
its natural level.
The money market still presents an
aspect of extreme case. Legal Ten
ders have been steadily flowing in
from other points, and the Associated
Banks now hold $4S, 300 900 against
$53 400, 900 at the same time of last
year. The iuaux, however, has reach
ed its climax, and the future move
ment will be rather towards a decline
than an increase. The specie line Of
the Banks stands at $4,000, 900, OIL
$4,O00.000 higher than year ago,
The aggregate reserve ranges within
half a million of the amount held q
year ago; but as the liabilities are
100000 lower than then, the re-
serve is relatively stronger than al
this period of 1872. To this extent
we are more tavorably situated ir
prospect of the Fall demand for mon
cy than last year. We have, it is trne
less a. cunt of Legal Tenders tc
spare, which is decided disadvantage
to the West, and indirectly to us also
but we have more specie, and it ap
pears to be the policy eff the Secretary
of the Treasury to keep the marke
well supplied with gold, while ths
probability is that onr exports Of spe
Gle, for the rest of the year, will b,
quite light, so that this portion of tn,
reserves is likely to be we'll sustained
Another consideration, favoring thu
prospect of our escaping repetition
Of the extreme stringency experienced
last Fall, is found in the fact that mer
of business have so shaped their ar
rangements for the Fall trade, as to 81
dependent, as little as possible, upc.
, the money market. The London
r money market, also, is working int
a condition of settled ease; which, i
, not disturbed by unforeseen causes
will prove to be an important elemen
, in our favor; for experience has prov
2 ed that, in times of stringency here
the relief received from that source
in various ways, amounts to a very
important mitigation. While, there
fore, there is nothing to admit of tn
: Lope of a really easy Fall money mar
: ket, and while we may scarcely expec
condition Of comparative ease, We
there does seem to be good ground fo
. expecting that we shall witness no sucl
excessive and protracted stringen",
| as brought us last year, and even thi
, Spring, to the very verge of serious
panic. Considering the, mischievou
nature of the banking restrictions, un
: der which the money market now op
crates, it is something to be permittet
f to indulge this vecy moderate degre
/ of hope.
-, United States Bonds are very firm
and remarkably scarce. There Is
ready demand for any or all issues 10
y the European market; but bonds ar,
: IN such limited supply that few opel
ations are made on foreign account
}, he high price Of gold and Exchange
: and the frmness Of Uo4&3 i. me lor
: don market, naturally te-1@ :. enhanc
| prices here.