The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-06-13
FINANCIAL AND COMMERCIAL.
A STRONG FOREIGN MARKET
n -.
Decrease in the Bank Of Eng
land Rate.
The Influence on American
Securities.
A FLUCTUATING STOCK MARKET.
GOLD A TRIrLE WEAKER.
MO N T. Y ABUNDANT.
A Large Decrease of Bullion in the
Bank Of France.
WALL STREET,

On 'Change to-day cotton was excited and de-
cidediy higher, both Tor ''spotr and "mture.u
Flour remained dull and irregular, tending down.
ward. Wheat was in light request and lower.
Corn was also slow OF sale and easy.
THE FOREIGN MARKET.
AS was intimated in the HERALD OF yesterday
might be the case, sundry favorable causes have
combined to reduce the rate OF discount OF the
Bank OF England to per cent. Chief among these
is doubtless the irmness OF the security
market, and an increase for tho week Of
f421 900 in bullion f241 600 received to-day.
The scarcity OF gold is evidently the fucrum OF
these frequent bank movements. The world is bare
Oft at tile present moment, and no country feels
its need more than England. Its discount rate
has recently been raised and depressed with
barometrcal precision and every money centre in
Christendom has learned TO sympathize with the
tchange. AS the Economist frankly states. the pur-
pose OF the advance was to draw gold and the
hope was that it would be drawn from the United
States. Such. however was not the effect. The
writer in the paper referred to goes on to say,
under date OF May 81 =
As we have often shown the attractive power OF
high interest depends not on what the Bank OF
money can make. Continental banker will not
send money hither, and will not delay taking
money from hence, except he is able to obtain an
unusual rate OF interest on it. II the market
rate OF interest follows the Bank OF England rate
JHc IOTclHucT CAL ODChlu his pTOut. lie can
employ his money in the discount OF good bills
az hlgn rate, and this Is all which he requires.
But 4 t ne market rate does not follow the rise
and the effect OF the move for the time is delayed.
No doubt certain rates OF deposit are fixed in &C
and ialI with it. But there IS no permanency IN
these rates; they rise to-day and fall tomorrow.
in the purchase OF a three months bill
and considerable time; but by placing
money on deposit he gains nothing OF the sort
rule that the attractive power Of the rise in the
bank rate depends entirely on the degree in which
that rise is followed by the market rate. On this
occasion 1t has not been closely followed. Bills
were long discounted at to 5l4, and SO lately as
Tuesday were discounted at 5k, while six months
bills were discounted at rates between Az and o.
Now the rate Of the outer market is rising towards
ina that Of the bank but IT. Is only Just reaching it,
come into action, and therefore its effect has not
been Immediate
The above, combined with other favorable
causes, have naturally brought about the decline
reported to day. There has been an influx from
the interior OF Great Britain, and slight return
from the Continent incidental to the recent rise in
exchanges at Frankfort and Paris. Frankfort adj
vices show that United States bonds OF 1852 were
weak at 95Z. The decrease for the week in the
bullion OF the Bank of France has been 54 900 900
francs In Paris rentes were easier, at 56. Soc
In London the closing quotations for consols
were 92k for money, 92H for account; $50
bonds OF 1855 (old), s27s; 500 bonds Of 1885,.
94X; 1910 bonds, $3.50; new fves, s9s5;
and Erie 49h. The rate for money on government
securities at the Stock Exchange was l per cent
lower than the bank rate The rate for three
months bills In open market is 4 per cent below
the bank rate. The new French loan has declined
y per cent and Is now a Ga per cent premium.
Tomorrow is the settling day at the Stock Ex-
change.
THE MONEY MARKET.
Money continues easy, closing at a per cent and
without change in the previously recorded rates
for prime commercial paper. The requirements Of
borrowers were not as great in consequence OF
the shrinkage OF values, and there was very
little enthusiasm In the market generally.
Exchange was steady at the following prices:-
good to prime bankers, 1857 a 1os1S; do. short
sight, Ito 1l0L; Paris, 60 days. 5.2Sa a 5.245s;
do, short sight, 521h 5.197S Prusslan thalers
IT'S 72%; Antwerp, 5.2s4 5.2lA; Switzerland
h2614 5.21h; Hamburg 951s 96l6 Amsterdam,
39I 40X; Frankfort, 407s a ~; Bremen,
95h 96T
RAILROAD BONDS.
The market to-day, while not unusually active,
showed steady prices, with marked increase in
exceptional cases. Michigan Southern second
mortgage sold at 90; do. sinking fund.- 1o4 Union
Pacific first mortgage bonds S7b do. land grants,
II; do. income tens, 63h Chicago, Rock Island
and Pacific, 1861; New Jersey Southern first mort
gage TAN; Burlington, Cedar Rapids and Min.
nesota first mortgage sevens, IS. The following
are the bids as amended at the CALI
New York Cen IS 49, glh Toll Wab LIST M ex,. oS'4