The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-27
Extraordinary Advance in Government
Bond Quotations.
FUTURE OF THE MONEY MARKET
An Unfavorablc Bank Statement and a
Worse One in Store.
The Drain of Gold Into the Custom
House and to Europe.
WALL STREET.

The Wall street markets have emerged from their
long dulness, and Che week just closed has wit
messed quite active movement IN Stocks gold and
government bonds. The impetus given the
SPECULATION AT THE STOCK EXCHANGE
has been derived from the action OF Congress in
ratying the policy OF the Secretary Of the Treasury
In employing the Syndicate plan of rounding the
national debt and the subsequent action OF Mr..
Boutwell, himself In awarding the remainder OF the
new i've per cent loan to the two rival Syndicates.
At the same time the impression got abroad that
q the money market was in no way likely to be dis
4 turbed in its easy working until well into the
Spring. an impression which proved not altogether
correct, as subsequent events demonstrated The
two influences went together, however, and in
duced revival of operations on the part of
THE PROFESSIONAL CLASS
Of spectators, the unanimity OF whose efforts in
advancing prices was striking illustration of the
harmony with which clique operators generally
See and float with the tide of the market. So sud-
den and general was the revival Of interest in the
share list and SO confident the anticipation OF
higher prices that the ridtculed January rise
proved verify at last. The transactions at the
Stock Exchange during the week, and particularly
Dn Friday, when the climax was reached were on
very large scale, and hold forth promise to the
brokers OF an active business the rest OF the sea-
son. The leading feature, because Of its popularity
and wider distribution as an investment and
SPECULATIVE FAvoRITE
with so many people, was New York Central, which
ut 1861 serves as an index Of the surge which
prices underwent In the upheaval Of the week.
The advancing career of the list was checked by
heavy realixations on Friday and by more active
turn in the money market. The latter, after early
steadiness at per cent developed scarcity If
not stringency late on Friday afternoon, when the
relaxed on Saturday to the nominal quotation OF
sa per cent. The indications all favor
THE CHANCES
Df full per cent money market for q few weeks
10 come, and the necessities of Wall street may
compel the payment of q small daily commission
In addition to that rate, until the accumulation OF
legal tenders In the banks shall outweigh the loss
Of resources through the continued heavy exports
Of specie and drain OF coin into the Custom House
In connection with the current extravagant I'm
portation of foreign goods, which for the past two
weeks have reached the enormous amount OF
nearly twenty-five millions Of dollars The banks in
Saturdays statement do not reveal their real con-
dition.
THE LOSS OF SPECIE
alone by export and for customs has been more
than the five millions they rep art surplus. In
fact, the system OF averages puts the banks week
reliable exhibit of their condition they stand to-
day. The drain Of gold out Of the market has
enabled the clique in the Gold Room TO defy the
depressing influence Of the revival of Syndicate
operations for the refunding Of the hve-twenties
and to advance the price of gold from 112I to
.il4L-the last sales Saturday being at 113<, and
the quotation closing at 113a1 113zi. The specu-
.tation was furthermore only
TEMPORARILY CHECKED
10y the lowering OF the Bank OF England rate OF
discount to per cent This last influence, how
ever, is an insidious one, and will be felt more
rsensiby as soon as the fact becomes evident that
the Bank Of England rate is likely to remain down,
because OF the stimulation that will be given to
Investments in American securities The great
feature OF the week, however, was the extraordi-
nary advance in government bonds, the new fves
rising ~ per cent and closing at their par in gold.
The Secretary Of the Treasury announces that the
interest on the new fves due February ] will be
paid on and alter tomorrow QMonday), without
rebate.
THE ADVANCE IN GOVERNMENTS.
The eject upon the government list OF the re.
vival Of the Syndicate plan of refunding the debt
Is shown in the following comparison of closing
prices on the first day and on the last day OF the
week -