The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-01
THE FOREIGN MARKET

The London quotations came steady for consols,
out lower for United states bonds the latter being
adversely afected in the foreign market by the rise
In the gold premium. The street rate for money IN
London was reported to be ~ ~ per cent, the
bank minimum being per cent. The new French
loan was steady. Erie shares were weak and de-
clined to 5lA.
"LoCK.UP'' OF MONEY.
The long prevalent scarcity in the money market
eliminated to-day in spasm OF stringency which
viii doubtless form conspicuous incident In the
history Of Wall street. The rate CALL after open
ing at the "l-16 and interest" to which the street
had grown accustomed the pas. few weeks, ad-
vanced during banking hours to u per cent day,
and in the interval after three O'Clock, to as high
as x per cent q day in addition to per cent per
annum. In other words, borrowers of money paid
Tor its use over night at the rate Of
$50 PER CENT PER ANNUMI
This was no exceptional or rare rate. It was paid
for 1ooo,o 900 by one very prominent banking house
In Nassau street and for numerous lots OF one
hundred dollars down to five thousand dollars,
the same rate being bid as late as ten
minutes four O'Clock to which time, OF course,
number OF bank accounts had to remain open.
The explanation OF this extraordinary stringency
lies In artificial manipulation OF the market, the
success of which was insured in o great degree by
the
SUDDEN CALLING IN OF LOANS
by the Broadway Bank to meet April disburse-
ments on city Indebtedness. The parties locking
up the money borrowed right and LETT all the FORE
noon and during a greater portion OF the
afternoon, and did their work SO wildly
that they were unable to procure COL
laterals enough to pledge against all the money
they engaged, large sums going over unemployed,
but standing subject to their call, the money
itself being its own collateral and the lender get
ting the ''share" for it's use much as II 1t had
gone out on certified check. II remains to be seen
whether this sort OF business is not within the
scope Of the regulations OF the Stock Exchange
which forbid
FICTITIOUS TRANSACTIONS"
of any kind. At least the Governing Committee
ought to investigate the matter and pronounce
upon its legality. 1t is not intended in this In
stance to throw any discredit the lenders, all OF
whom were, doubtless, the victims Of the "Shy-
locks" who locked up money through their I'M
whiting agency. The game may not be repeated
with their consent, but 1t was successful to-day,
and that is enough to point our moral. In this
connection, as showing the extent OF the con-
spracy to damage the money market, we have
the following Geographic correspondence, which
/. explains itself
NEW Yoax, March %, 1873
Jcns jar KNOX, Comptroller Of the Currency Washing
We notice you have called 800 national banks to
make good their within thirty What is the
'''''' : "'s'eS'' ''''' answer FISK II HATCH.
TREASURY DEPARTMENT, WASHINGTON, March 20, lS7a
FISK 4 HATcu, New York city
The despatch to which YOU refer s unauthorized and
untrue. JOHN JAY KNOX
Comptroller OF the Currency.
At such time, IL is hardly necessary to say
mercantile paper was altogether nominal. For
reasons which suggest themselves the foreign ex.
changes were demoralized, and sales OF prime
sixtyday sterling were reported at u, when the
quotations at the desk had been already lowered to
1os and 1851 for prime sixty-day and sight bills.
THE RAILROAD BONDS.
The railroad bonds were rather less flrm. but on
the whole steady. The following were the bids at
the regular call as amended byprices In subsequent
,dealuUs.-