The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-05-12
TIE Vienna Panic and the
Effect in Wall Street.
The Circumstances Attending the Further
Advance of the Bank of Eng
land Rate Of Discount
INCONSISTENT RESULTS IN GOLD
Decline Of Foreign Importations and Increase
Of Domestic Expectations.
Saturdays Bank Statement-The Surplus
Reserve Over Four and Half Millions.

Reserve Over Four and q Half Millions.
WALL STREET.
SUNDAY, May IL, 1879. +
The week In Wall street has been pretty much
like tame drama which winds up with an
attractive
TABLEAU.
Five days were devoted to an ordinary business
with moderate fluctuations, while the sixth and
last day furnished the tableau in the shape OF q
decline in stocks and a sharp rise in gold. Midway
Of the week the attention Of the gold market had
been drawn to a closer observance of the foreign
market by the advance of the Bank of England
rate OF discount Al per cent, but the response
In the gold premium was Of quite moderate eX-
tent, the disposition to advance being combated
by the weakness OF the foreign exchanges, which
had declined with the offerings of commercial bills
drawn against
EXPORTS
for the week. ranging TO the unprecedented height
ofover s750o,oo0. At the same time that the convic
hon was felt that the advance was in se-deience
against the higher discount rates IN Germany 1t
was believed that the London money market was
In reality easy. Furthermore, the concurrent loss
OF $500, 900 in the Bank of England bullion report
which attended,, or rather preceded the raising OF
the discount rate. was referred to preparation
on the part OF the government TO meet the pay
Went OF the $16,OO0,00O
ALABAMA INDEMNITY.
AS it was, gold, which had advanced from 1853 to
l17A under resumption OF operations on the part
OF the clique (whose luck in being helped by unex-
pected contingencies has been remarked more than
once the past six months, moved but slowly fur
ther onequarter per cent to 117k, and by the next
day or SO, had lost even this advance. With Sat
urday morning, however. the situation changed
like magic. panic in Vienna, another rise in the
Bank OF England rate and 'thunder all around the
sky" Of Europe started gold up to 1881, and par
alyZed once more the
CoNvALEscENT
stock 'bulls," who had begun to congratulate
themselves that, with easy money and nourshing
bank statements, "the Spring rsen was at hand
But the long chapter Of accidents already replete
with the story OF tight money, defalcations and
bankruptcies, was destined to have continuation
IN the record OF the accidents just narrated. The
'bears" in gold and the .bulls" in gold gave it
up" as conundrum beyond their capacity for
solution. Wall street is always the greatest riddle
to those who endeavor to solve it by the exercise
Of the greatest intelligence. The weather, SO
PRovERBIALLY PICKLE
and unreliable, has been In the past ten years re-
duced to comparative subsection by the scientists
Of meteorology. But the future OF the Wall street
values positive as we know must be the laws
which govern them, is year after year growing to
be more and more inscrutable. Let us
take one simple illustration A. year ago
AZ this time gold was selling at about
ia. According to popular ideas and financial
philosophy the premium on gold Is due solely to
the necessity OF gold as means Of paying for
foreign goods. Yet we find that since January l.
IN interval long enough to allow for reaction
from the excessive Importation OF the previous
year-we have imported a trine less than we
did last year. viz s163 222 IL against sl63 s2l
In 1872, while the exports have been nearly
s22,ooo,oo more That is in the first four months
81 the year, we have brought - .. s~-->-
EUROPE IN OUR DEBT
ut least s20,000,O00 by actual trade operations.
Now, the United States never gets into debt with
Europe for anything but merchandise. We never
Invest in foreign railroad bonds or loans. All that
sort of thing Is the other way and in our favor.
Could we get at the exact facts 1t could be shown,
doubtless, that within the past four months, be-
tween the excess OF exports already referred to
and the negotiation Of American railroad bonds in
Europe, we have made credit OF at least $50 900
on the other side. Yet gold was l1sA on May IL,
1873, against ll44 on May II, 1872. During all this
Winter foreign exchange has been at a discount of
Aa3 per cent. In fact, it was only on Saturday
that sight sterling, under the impetus OF the news
from Vienna and London, crossed the line of par
Q0e,1.
~, GOVERNMENT BONDS.
The government list was strong, with the easier
condition of the money market, the sudden rise in
gold on Saturday advancing quotations to the
highest of the week and, in fact, to the
highest recorded in several years, as Will be
seen by an inspection OF the following, which
were the best and closing figures OF Satur-
day limited States currency skies, 1l5'4 1l6;
do. skies, 1881, registered, 1lsk 1ISA; do do,
coupon, 1917 1873; do. lve-twenties registered,
May and November, 116 a 1l6A; do do, 1862, cou-
pom, do, 116 q 116A; do. do, 1864, do. do, 1l6
llGA; do. do 1865, do do, 117ls 1174 do, 1867,
registered, January and July, 1854 1ls1; do do,
1865 coupon, do, 1851 1885 do. do, 1867, do.
dO 1904 1905 do. d. 1865. do. do, 11S1s 11S4;
do. ten-forties, registered, 11ls liz; do do,
coupon, 113s4 ia; do. fves of 1881, registered,
I14]a bid; do. do do, coupon, lis l154.
THE COURSE THE GOLD MARKET.
The extreme fluctuations daily in the price OF
gold during the week were as follows:-
highest. Lo,cest
Monday NEUTRALITY-SUSPICIOUS.. 1l7A 1l6ss
TUESDAY .................. liza III