The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-31
The Course OF the Money Market and
a Theory in Explanation of Its
Protracted Stringency.
GUINNESS Ar THE STOCK EXCHANGE
Success of the Speculation in
the Gold Market.
SATURDAYS BANK STATEMENT
The Banks Again Below the Legal Limit
OF Reserve.
WALL STREET,

WALL STREET, I
SUNDAY, March 30, 1873.
Another week Of dulness at the Stock Exchange
has been the corOllary OF the continued
SCARCITY OF MONEY,
the latter fact being q problem which has taxed
the wit OF Wall street In further but still unsatis-
factory endeavors to give it solution. The ex-
porience OF the street. as we have had occasion to
show recently, is unanimously concurrent in char
acterizing the past six or seven months as the
most stringent in the history Of the money mar
Aet for great number OF years. Every one at all
familiar with the course OF money must remember
the great relaxation which used to succeed the
nrst week OF January in each year, the rate on
call declining to 8 per cent in February ana
March, TO be followed by spasm OF more or less
activity IN the few weeks around April /, which in
turn gave way to the
RELAXATION AND EASE
OF the Summer season. But this year all prece-
dents OF this nature have been set at naught as
guides to the business man. Money has been al
most AZ stringent since New Years as it was in the
Fan. We have had an occasional dip to per cent
and even to such nominal figures as a 3 per cent,
on Saturday afternoon. or upon days when the
ease was phenomenal; but these swallows brought
no Summer, and Wall street has gone on from day
interest," with that complacency which is said to be
achieved by the we-reguiated eel after an acade-
mic course Of faying The stringency is such that
It reaches even
THE SOURCE OF MONEY
itself, the Treasury Department whose controlling
ofical has found himself compelled to create two
or three millions Of greenbacks in order to make
the mare go; and yet the Treasury itself is respOn
mble for much OF the difficulty attending the opera
tiOn OF the money market for it was Mr.. Boutwell,
who was the great advocate OF the law which can
celled the three per cents Offset to the crea-
tiOn OF fifty -four millions ofnew national banking
capital The result has been the destruction of
0ftyfOur millions of and the contraction of
about ten millions Of greenbacks. to be held as the
reserve against this ffty-four milllons-in other
words the
LIABILITIES OF THE NATIONAL BANKS
have been increased ffty-four millions OF dollars,
while their reserves have been decreased about
stxty1Our millions. During the past week the rate
on call attained the extreme OF 1882 per cent,
equivalent to about 35 per cent per annum, the
strngency being severest toward the close, as if
the banks were losing money in connection with
the transmission of money to the interior for the
April settlements. One cons0atOry view OF the
situation allows the belief however that with the
cessation of this somewhat local drain Of money
the worst has been passed, for the exchanges at
the West are in our favor, and money is finding It's
way here again. Indeed, the opinion prevails that
in future the experience OF the money market will
be excessive scarcity half the year and exceed
ing abundance the other nall, as a consequence OF
THE LARGER oUTGO
m the Fall and Winter and the heavier refux in
Spring and Summer of the enlarged and now vast
volume OF the National Bank currency Instead of
the more equitable distribution of the current as
heretofore, we shall henceforth have Bay of
Fundy rise and fan annually in the tide of the
money market. Very naturally the market for
commercial paper remains under existing circum-
stances almost nominal fer merchants as
class will not pay extravagant ''shaves" while
buyers find ready employment for their money on
call. How the merchants do in this strait is
matter which has puzzled more than few OF the
philosophers OF Wall street.
THE GOLD MARKET
was strong, and the price advanced to III under
the pressure OF q series Of influences more less
genuine in their nature, the more important OF
them being the advance OF the Bank of England
rate OF discount on Wednesday last, under circum-
stances which le6 tQ.he belief that the Directors
OF the Bank looked for some sort OF crisis in the
English money market. The rate OF exchange on
Europe rose in this juncture, but again receded,
not been further stimulated by the enormous i'm
ports OF the week. which reached total of nearly
fourteen million dollars.
ANOTHER FEATURE
OF the week was the extraordinary rise in govern
ment bonds, which commenced in London as early
as Monday and prevailed here TO the close, the
movement abroad which was checked by the action
OF the Bank OF England being accelerated here by
the rise IN gold. The speculation in railway and
miscellaneous shares has peen unusually tame and
the fluctuations in prices have not been Of impcr-
tant extent outside of st. Paul, Harlem, Panama
and Pacific Mail.
CoUPoNs DIVIDENDS, ETC.
The April interest on the first mortgage bonds OF
the Chicago and Canada Southern Railroad Will he
paid on and after Tuesday next at the Union Trust
Company.
The receiver Of the Bowling Green Savings Bank
announces . dividend OF 10 per cent, payable to
the ascertained creditors OF the Bank on demand.
The second mortgage bonds of the Jerersonville,
Madison and Indianapolis Railroad, maturing at the
Bank OF America New York, will be paid in full at
maturity, or holders may exchange for FIRST mort
gage sinking fund bonds on terms which will be
found given in detail in our advertising columns.
Attention 10 directed to the advertisement Of the
Comptroller, asking proposals for 100000 New
York city stock.
LATEST PRICES OF GOVERNMENTS.
The following were the closing prices Satur
day evening LOT government bonds:-United
States currency SKIES, 1I4x 1l4zs; do. do, 1881,
registered 117M a 11ss do. do. do, coupon, 12O'4
1907; do five-twenties, registered, May and No.
vember, 117,4 1l7s; do. do, 1862, coupon, do
1l7% NIX; do do, 1854, DO. do, 117i4 1172; do
do, 1896, do. do. 1885, a 11s1s; do. do, regis
tered, January and july 1865 a 116zs do. do,
1865, coupon, do, 1I6x 1162s do. do, 1867 do.
DO, ISL 11sis do. do, 1858, do do, 1176 117l;
'io. ten-iorties, registered, l12 1l2.; do. do,
coupon, 1927 a1I2%; do. fves Of 1881, registered,
115>s 1882 do. do do, coupon, 1862 ll5A.
THE COURSE OF THE GOLD MARKET