The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-24
PROSPECT FOR TEE FUTURE.
The Firmness Of the Stock Market and the
Reason Of It's Speculative Support.
The Gold Pool and Their Eela-
tons to the Market.
The Syndicate and the Rounding of
the Public Debt.
WALL STREET,

SUNDAY, Feb. %, 1871
The week in Wall street. which was brought to
q close on Friday evening. 30 far as business was
concerned, by the occurrence OF the anniversary
OF Washington's Birthday on saturday, was devoid
OF important features so far as
SPECULATION
went, but was remarkable for further activity in
the money market, the rates on call having ranged
as high as q q 3-18 per cent day. equivalent In
less technical terms to as 90 per cent per annum.
CuriOusy enough. the very last business day, FRI
day, saw remarkable relaxation to as low as
per cent per annum, In explanation Of which 1t Is
said that the brokers who had been previously act
ing IN concert for the purpose Of securing eXtrava
CANT terms for the use of the money, which they
had in turn borrowed from certain banks and
bankers. failed to make their usual arrangements
for
CONTROLLING THE MARKET,
and in their haste to employ the money during the
three days to Monday We'd with each other in lend
ing 1t during the closing hour Of business, and SO
broke the rate to q simply nominal figure. The
revelation thus made OF some OF the causes Of the
current monetary strIngency should not be taken
to indicate that the scarcity Is entirely artificial.
The action OF the clique OF brokers who thus con.
spired to make money out Of the scarcity of money
could not have been successful had not the con.
dition OF the market been such to give them the
power Of debating
THE RATES FOR MONEY.
The amount they controlled, as lever to operate
upon the market was probably not more than two
or three millions, but it was sufficient in the close
working OF money, to give them the power of FIX
ing what rates they should get from borrowers
who came to them late in the day for the where.
withal to ''make upn their bank accounts,
The unusual scarcity OF money in this city for the
unrt 1,ov 20
the banks, whose reserves as shown by their last
which, according to the extent OF their liabilities,
they should have on hand in order to
COMPLY WITH TIE LAW.
In their defence 1t Is alleged that the deficiency is
confined TO the State banks, which are not amena-
bic to the laws regulating the national banks. Be
this 1t may and the excess in the latter nsttu-
tons Is nothing to boast OF, the fact remains that
the banks were never poorer in their history than
they now are. Even with the Immense strain Of
the Chicago fire panic upon their resources their
reserves did not fall to SO low line as they now
stand at. When we look for the causes Of
THE SCARCITY OF MONEY
Outside the depredations OF the gueras whose
operations have been noted above), we find 1t due
to stoppage this year OF the usual annual renux
from the West. Indeed, money has been going to
and st. Louis-in q steady stream for several
weeks instead Of coming this way, as was the Gus
tomary thing heretofore. The Chicago money
market has been relieved by liberal receipts of
money from this city, but are told the effect has
been to expedite the
MOVEMENT OF GRAIN
in this direction and to send money into the in
terror. When, then, are VIC to get the money
again At st. Louis, which is growing rapidly
into an important moneyed centre, exchange on
New York Is at discount of TX per cent We can,
therefore, look for no immediate return OF money
from that source. Meantime, that wonderful city,
Boston, which, on its destruction by IRE, implored
the Secretary Of the Treasury not TO issue green
backs lest imitation should enhance the cost OF re-
building itself, is now helping our money market
by buying free.y the better grades Of our
MERCANTILE PAPER,
thus afording relief to class OF the community
who constantly deserve 1t and who are suffering
the most from the present poverty Of the banks.
Is remarkable fact that in face OF the persistent
and excessive stringency OF the money market
stocks during the week were mostly lrm and
closed at more or less improvement in prices. In
explanation Of this we must fall back upon the
theory that the speculative element of the street
has argued that the situation of the money market
was more likely to improve than grow worse, and
that as the darkest hour is just before the dawn"
THE CHANCES
were that money was to become easier. Yet this
calculation has been disappointed the past
week, for the bank statement has not only
shown a further impairment Of legal reserve,
but money has been less accessible. AS far
as the outsiders and public have been concerned
the stringency In money has worked Its normal
effect and has deferred speculation. The "orders"
at the Stock Exchange from day to day we're never
so exclusively of clique origin as at present. and
the great American public were seldom 30 slightly
Interested. Money makes more things than the
mare 20. without an abundance OF 1t the brokers
may continue to look for dull times.
THE GOLD MARKET,
after an early "spurt" to 114X, dropped to 1l41s
under heavy sales by the clique, who were making
a "turn- to realize the profits Of their movement
to counsels as to future operations,
the extraordinary ease Of money In London induc-
ing sober second thought as to the wisdom Of
following the speculation too rashly. The extreme
fluctuations daily in the price Of gold during the
week were as follOws:-
highest. LONGEST.
Monday ll4H ll4h
Tuesday NEUTRALITY-SUSPICIOUS.. 1li1s Hay
...................... liza ll4h
THURSDAY ..... ............'..... l!ses u41s
Friday ACKNOWLEDGEMENTS. 114ss 114h
Saturday ............... Washington's Birthday
The last sales Friday we're at 114,S and the clos