The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-30
FINANCIAL and COMMERCIAL.
The Situation at Home and
Abroad.
STOCKS STRONG n.
A Bull Movement Indicated by
Present Prices.
MONEY HAIR ENIN G..
Reports ffOm the West Their Probable
Influence on New York.
THE RESERVE OF $44,OOO,OOO.
What the Secretary Can Do to
Relieve Pressure.
RAILROAD BONDS FIRM.
THE RESERVE OF $44,OOO,O0O.
What the Secretary Can Do to
Relieve Pressure.
RAILROAD BONDS FIRM.
Mystery Among the Gold Operators-The Ups
and Downs Of Speculation.
WALL STREET,
FRIDAY. August 20-6 p. M

WALL STREET.
FRIDAY, August 29-8 P. NJ.
On 'Change to-day "spot" cotton was less active
and steady, while for forward delivery the market
was moderately active at shade easier prices.
Flour, under fair export demand, was rather
'frmer. For wheat the market was excited, and
large business was consummated at decidedly
higher prices. Corn was in good request at i'm
proved prices.
THE FOREIGN MARKET
to-day affords no suggestive points beyond the ad-
vance In Erie to 49h, which, acting upon this mar
ket, gave to it temporary strength, with reaction
that will be hereafter noted. The movement
abroad is attributed to reports from this side con-
corning the possibility Of dividend on the CON-
mon stock. 1t is already published ana believed
there that dividend will be made on the preferred
stock. but 1t is fair to assume that the condition Of
the company is not well understood by other than
an exceptional few who are in daily communication
with their American agents. Consols are reported
steady at 92x 92A for money and 921 s2X for
account United STATES bonds Of 1867 are quoted at
s5x, ten-forties at 9OH and new flves at Ok. In
Frankfort fve-twenties were OK for the issue of
1862. French rentes stand at $3.50. with consid-
cradle activity in that market. In Amsterdam the
prices were as folowsNUnion Pacific first mort
gage, 90; Union Pacific stock %; Northwestern
preferred 7OX st. Paul preferred, 81 Erie shares,
SIX.
THE APPROACHING srRINGEECY.
The situation in the West is by no means calcu-
lated to alleviate that which exists here. have
already shown that purely natural influences have
been slowly generating, the end Of which Will be
stringent money market. This view is now veri-
fed by advices from chicago, which state that the
banks Of that city, last week, sent out upwards Of
$4,ooo,o00 Of currency which was distributed
through the Northwest, while during the present
week the shipments have been at the rate OF
$500,00O per day. Currency Is therefore scarce,
notwithstanding the large shipments from New
York, and the stock on hand so small as actually to
depress exchange on New York, which, on
the Goth inst. was reported unstable for
currency. though quoted pominally at
from lilo to Of one per cent discount.
THE EXPERIENCE OF CHICAGO
is doubtless that Of st. Louis and CINCINNATI, and
when the tide reaches New York with its full force
we shall doubtless find that the most cautious OF
hnanolers has not trimmed his sails moment too
early in anticipating the tightness which seems
inevitable. What course Secretary Richardson may
be called upon to pursue Is by no means definite.
Even conceding his right to issue part or the
whole OF the so called "reserve" Of $44 900 900 OF
legal tenders the question next arising Is, How Is
this money to be put out What is to be the naOdus
operondjp There are but two methods The
Secretary must either
PURCHASE BONDS
or distribute his greenbacks through the payment
OF Treasury drafts. Government cannot well pur
chase bonds because there are none on the market
at the legal price, the Secretary being limited to
par in gold. He cannot loan legal tenders to the
banks on any class OF security they may proner.
He must, therefore, either resort to the somewhat
questionable plan pursued by him last October or
suspend mis- sales Of geld, and thereby allow his
currency balances to be so far reduced as to enable
him to pay his current expenses in greenbacks.
But the issue Of any additional legal tenders will
stimulate the price Of gold and United States
bonds probably to even higher figures than those
which are now described as representing fictitious
values and deplored as tending to demoralize
trade.
THE RATES FOR MONEY
about the same as last quoted. Call loans were
made at 6 per cent, with reduction toward the
close to per cent. The offerings were abundant
for all business purposes. Mercantile paper, with
short dates, was disposed of at per cent and
long dates are held at O 10 per cent. Foreign
exchanges were weak and lower, actual business
being done at 107x 1917 for prime sixty days
sterling and 1881 1851 for sight. This weak.
ness was doubtless due to the strength OF gold
and the onering Of bills against purchases OF Erie
on London account. .
The import entries Of dry goods at the port of
New York for the week amount in coin valuation
TO s. S62, 116 the general merchandise being esti-
mated at $5,50o,00O, making an aggregate OF
Ss362,11e The amount thrown upon the market
was $3,2e2,s7s
GOLD FLUCTuATNG-115% 115h.
The gold market to-day was subject to whims,
and not few operators were frank to confess that
they were dazed by the evidences OF the shrewd
and curious combinations with which they had to
contend FIRST, IL appeared that the 1900 900 OF
gold bought yesterday at the government sale at
115.4O by somebody outside Of the "pool" was this
morning sold to the latter for 1874 Then the price
assembled to 1857 115x 115X, and the loaning
rate advanced to 1872 Of per cent per diem BY this
coup men became confused. stroke ofstrategy was
interpreted as weakness. The death struggle was
predicted, and, as If to add force to the thought,
prices began to descend going from 1867 to 1l5H
l15H and finally to the lowest price OF the day.
When noses were subsequently counted, however,
victims confessed themselves by the score, and the
command OF the situation was accorded where 1t
belongs. 1t Is estimated that the chief operators
IN gold hold about $780, O0o 0oo at an average OF say
115. Should the price drop to ITO they will lose
about $150000o 1t is not an intricate arithmetica
question whether so small loss against such large
chances as are presented by controlling innuence
over the gold, stock and money markets can be
safely rtsked The rates paid for carrying TO-DAY
were g. O. sh, A. 2, and per cent. and 2, and l.sa
to nat for borrowing.
The fluctuations Of gold were as foows:-
1880 A. M.......... Iisk III ?. 49,. r5x