The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-05-08

Since January $751; 233 444 $72 $780, 423 $94 ,S25
THE GOVERNMENT PURCHASE OF BONDS.
The proposals to sell Gvc-twenties to the govern
ment were twelve in number, the amount ten
aered being $1,3514oO, at prices ranging lex cou-
pony from 1l5.49 to 1l6.4a. The half million was
sbtained at 1850 1852. Tomorrow the gov
eminent win sell 1900, 900 gold.
THE FOREIGN MARKET.
The chief item in the cable report is the an.
nouncement that the directors OF the Bank OF
England saw ft, in O special session this noon, to
raise the minimum of the discount rate to AN per
cent, as against per cent, the Immediately pre-
viOus rate. The effect in London was to cause
DEPRESSION IN CoNsoLs
Of u per cent, but otherwise the market was
steady. Our bonds were firm throughout the day.
In fact the '67's, which we're tribe lower before
the alteration Of the bank rate, recovered and
closed strong. Erie shares were x u lower.
The new French loan was heavy and declined to
per cent premium, while rentes IN Paris were about
steady. u
MONEY EASY.
The money market was easy, and perhaps, rather
more SO than during the earlier days week. the
rate on call ranging from down to per cent and
ei0sing at per cent The belief In its continued
ease has induced further and active inquiry for
mercantile paper, which, to hardly too strong
expression, is quite the rage with
seeking to use their funds for the next sixty days
10 SIX months. 1t may seem strange that so much
capital should suddenly seek this channel Of in
vestment when there are SO many dividend paying
stocks and Understanding railroad bonds OF I'M
doubted reliability capable Of aGording nearly as
large returns. The explanation is that the
buyer OF the stock or bond runs the risk OF a de-
probation OF the principal in the interval to the
time when he wants his money again, while
MERCANTILE PAPER
Is certain to be redeemed at par. The security OF
she railroad bond for long investment Is not
doubted. But the buyer who wants to sell it out
Ut the end Of three or six months may be COM
PEELED to take one, two or even five per cent less
than he gave for ia depreciation which would
Offset the interest earned in the meantime. But
the merchants note, amply endorsed, and bought
1t q 10 per cent discount, is, in the ordinary
course Of human events, sure OF being taken up at
par at the time of maturity. The outstanding
extra greenpacks have been reduced $l54,0OO since
yesterday.
DECLINE IN FOREIGN EXCHANGE.
One Of the remarkable incidents OF the day was
the decline in foreign exchange, Notwithstanding
the action Of the Bank OF England at least as far
- sterling and francs were concerned the CONT
mental rates being firm. The reading drawers low
cred sight sterling u per cent and sixty
6ay bills 4 per cent, widening the differ
ence between the two classes OF bills to one per
cent. The reduction is due to the abundance OF
commercial bills drawn against the heavy produce
exports OF the past week. The following are the
quotations as revised :-Sterling, sixty days, CON-
mercial, 1o7s< 1885: do, good TO prime bankers,
1854 1Osh; do, short sight, 1O9L a l0eH; Paris,
sixty days, 53lA 5.255s; do, short sight, o.2lA
b.20x; Prussian thalers TX NIX; Antwerp,
kSe 5.25; Switzerland, $50 5.25; Hamburg,
PAX 951s; Amsterdam, 3s5S a 4o1s; Frankfort,
i0H Az; Bremen, 94zI 95x.
GOLD HIGHER-117A A 117k
The gold market opened only steady, and the
6rst sales were at decline rom 1I7I to 1l7l.
The action of the Bank Of England being an
bounced soon after there was rally and rise to
i17H, the comparatively small advance being due
10 the simultaneous weakness or foreign exchange
and to the fact furthermore that the raising OF the
Rank OF England rate not only had been dis
counted, but was regarded precautionary, in view
sf the action OF the Continental banks rather than
IN Immediately necessary expedient. The course
of the market is shown in the tabe.-