The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-27

ING March %, ana since the beginning OF tne
year compare as folows:-
For the week.. sss'slls:.ls7 slso,sss s,ssSoss
Prev reported. 4s.as1,44s 45.s17,2a2 5s,76e'6e2
Since JAM L.. s54 5l4, $3.50 $4s,ss7 $3.50 $5sO20,eo0
THE TREASURY PURCHASE OF BONDS.
Tho proposals to sell fve-twenties to the govern
ment were thirteen in NUMBER reaching total
Of ST. 200 at prices ranging from 11429 to 1875
The purchase, which was confined to the adver-
tised half million, was made at 114.29 114.6o
THE FOREIGN MARKET.
The London quotations all came lower in conse.
auence of sudden advance in the1Bank OF England
rateOf discount, which, at an extra or special meet
ing Of the directors to-day, raised from 81 to
per cent. Consols fell Off u 4 per cent; United
States bonds, u q per cent, and the New French
loan q per cent. Erie shares declined u, to
SIX, but closed little better at SIX. further
rejection Of this action Of the Bank is seen in
lower quotation for French rentes in Paris which
declined to $3.50 The sudden
ADVANCE IN THE BANK OF ENGLAND RATE
OF discount caused no little sensation in Wall
street, where the possible reasons for 1t were
widely canvassed and discussed. That the emer-
rency was a pressing one seemed conclusion from
the fact that the directors were unwilling to wait
one day longer until Thursday when their regular
weekly session takes place., before making the
over the sensation bravely, and, beyond q tempo
rary advance OF u in gold the price rising to I1e4
and receding to 11e), the markets were unaffected,
especially as it was reported that
THE LONDON MONEY MARKET,
after little spasm Of activity early in the day, had
closed with an easier feeling and in pretty much
the condition 1t had been previous to the altera-
tion of the bank rate It seemed to be the opinion
here that the Old Lady Of Threadneedle street had
got into sudden perspiratton at the outflow OF
her money to the i've quarters OF the world, and in
her excitement had determined to draw the purse
strings against any further draught upon her
guineas France, Germany, Spain, Egypt and the
United States have drawn freely during the past
twelve months and Japan has just succeeded In get
ting some notes discounted by her. With all this
money continues easy in London and possibly no
alarm would be felt Just now were not
CAPITAL FLOWING TO AMERICA
I'm the natural process of its transfer rom an old
to new country, and did not the proposed heavy
payments OF indemnity money by France to Ger
many cause England to feel more practically the
effects Of her generous subscriptions to the new
French loan. AS to the former movement, we had
occasion to speak of it In the HERALD OF March 8,
as follows:-
centre as SetwseS New Ysk and London !, - none money
on prime coiiatersis Is ali The way
%crs ssd n III No
stream however hence the consecutive reductions
II sSs Ffse em Ss "a
millions from ailshe ports the country, furnish
ing a further abundant source of exchange.
Two days lster, or on the 10th OF March. the Lon
don Times which often betrays its Jealousy OF u.s.
contained the following:-
The system by which speculative infation at New
York Is kspt up By BORROWINGS on the LONDON money
tnnn Of last year. at time when gold might have been
ssssne es 20
London Ths was Occasional Sy practice on
se Of sas n
$ s parties
modated consisting o. railway stocks and bonds,
While the rus 81 Charged and the stpulsons a.
IN ssw
the and then in natnral course were trans
have been carried to enormoas Inc
! Iss ssytHss
sss ssy y' ensess hsh5s''s
sss "I1 %s,as s,,S.'s.
eight millions when the New York
= sn!ss .ssy &
s Ss
be secordes them In al Ss i the utms,e break
the SIDE OIL the Atantc which the
to fall.
And tonight cable telegram from London to a
Wall street news agency quotes the same paper
again on this subject as follows:-
LoSDoH, March 70, 1873.
The Timss In its issue of this morning says that New
York upholds gigantic speculatons by accommo da-
loans OF exchange, estimated at from ten to twelve
millions sterling.
We are not prepared to say how far the Bank Of
Enelands action in raising the discount rate has
been directed by this estimate OF
BORROWED STERLING,
but the estimate Is undoubtedly extravagant. Ten
millions of sterling would be fifty millions Of
dollars of our currency--an ensrmous sum to be
absorbed In leans upon Wall street coaterals. The
amount Of foreign capital thus employed just now
In the manner Indicated can hardly be more than
twenty to twenty-five millions OF dollars. The
Times article is unjust furthermore In stgmatizing
these loans as carelessy secured. Ii there Is one
experience in Wall street more certain than
another 1t is that the foreign bankers, who are
the vehicles OF these loans. are most exacting
lenders in the width Of margin they require, and
most searching In their scrutiny OF coateras. Let
any broker visit them with anything but first class,
active, dividendpaying stocks. and note the result.
AN ADVANCE IN FOREIGN EXCHANGE.
The leading foreign bankers advanced their rates
for bills on Europe In consequence OF the news
from, Landau atpruO beinu uarEad mn, IN 0Q AZ