The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-10
Foreign Exchange in Favor of
u the United States. a z
THE GOLD SPECULATION A BLuNufR.
The Abnormal Stringency Of. the
Money Market.
SATURDAYS BANK STATEMENT
The Weeks Movement at the
Stock Exchange.
WALLiSrRrrr

WALL STREET,
SUNDAY, March 90 p. M
Another event!ul week has marked the course
of business in the Wall street markets, the chief
feature being
THE ADVANCE IN GOLD M
to 115Z, the highest point reached In nearly three
years. The purely speculative character OF this
movement is readily seen in the condition of the
foreign exchanges, which are down to level
whose depression tends to invite the now OF specie
in this direction from London. Indeed the ex-
porting merchants, in place Of selling their bills at
current rates, are orered. the more profitable
alternative Of ordering the-coin from Europe. The
result Of this situation OF tho foreign exchanges
viii be watched with much interest during the
coming week, particularly ir'the gold clique cen
tinue to maintain the price above
LEGITMATR LEVEL.
Its circumstances point to an early and perhaps
disastrous termination Of THE current speculation
in the gold market. Thes Clique have bought and
control, they claim something ike twenty millions
OF dollars, which is moro by three millions than IS
on deposit In all the banks of the city al this time.
To get this gold they have to buy it all the way up
TO 1l5%. Jsy Gould, who Is reported to be a men,
Der OF the clique bougbtthe 500 900 of govern.
ment gold last Thursday at about 115k. The twenty
millions has cost the clique an average Of pretty
nearly us, taking interest. commissions and all
charges into account The interest may not seem
to be OF much importance, especially as
THE CLIQUE
were able on Saturday to get 1.32 for the use OF
gold. But it Should not be forgotten that, to get
this 1872 on few hundred thousands OF gold the
clique had to lock up all the rest Of their enor-
nous load and pay heavy 'shaves'' for its carrying
lust as If it was load Of railroad stocks. They
yalv ttcbn iptAr
rom their present predicament But the short,
interest is insignificant. In the first place the
merchants who were borrowers OF gold have found
II more profitable to buy gold at IFS, with sixty
day sterling at 1917 10S, than to bny gold at
il3 49, with exchange at no. In its designs In
this direction the gold speculation has been
failure. As for the
PURELY SPECULATIVE
"short" interest OF the Gold Room, 1t was closed
put long ago. In the next place the exporters are
beginning to think OF importing gold instead of
selling bills OF exchanges 30 that the speculation
promises to be as much Of failure as regards the
exporters as 1t has been In the case OF the i'm
pOrters Furthermore, the condition OF our foreign
trade was never 80 healthy, and Is cause for gen
sral satisfaction to the community at large During
The first two months OF 1873 the exports from
This port were So 600 900, and the imports thereat
b73,000,0o0 Now, as we have heretofore shown by
the statistics Of the United States,
THE EXPORTS FROM NEW YORK
are less than two-nfths Of all the exports, and the
imports about two-thrds OF all the imports. Ac-
sording to these ratios the sotal exports for the
period mentioned have actually exceeded the total
imports despite the unfavorable discrepancy In
The figures at the port Of New York. Whatever the
,eason, whether it is the calmer and more indus
!rous temper Of the people under the continuance
If peace and the diffusion of wealth under the
financial system Of the country or whatever else,
the expansion OF domestic enterprise 10 going on
steadily and with it the larger and cheaper produc-
lion Of exportabe merchandise. So far in this year
o our Lord 1873 we have sent abroad more goods
than we have brought in taking the value Of them
DOLLAR FOR DOLLAR,
- declared at the ports OF entry and export, and
Aaving out Of the calculation the difference be-
tween the value OF the dollar in paper and the dol
ar in gold. In short, every argument that can be
adduced is In favor OF an Immediate and consdera-
bic fall in god The clique have blundered into an
unwise speculation. They have been working for
over six months. and now, when they have ad.
vanced the price to where they hoped to see sue
cess, they find themselves confronted by host OF
obstacles They may make q dash upon the few
scattering "shorts' yet in the MARKET and run the
rate for cash gold up to high figures but the fates
and facts are all against the ruition OF their plans
The dragging Of the speculation in gold has been
one Of the chief reasons Of the
CONTINUED SCARCITY OF MONEY,
the clique having used large quantities OF money in
the process OF carrying gold, which they have
lodged with banks, private bankers, and probably
with insurance, trust and other like companies
willing to take the gold as a pledge and keep
1t out OF circulation. The scarcity has also been
aggravated by combinations among professional
money lenders and by operators interested in
lower prices Tor stocks. The market however, Is
tending to ease and abundance, and will soon get
beyond control Of these parties. The stock specu.
ation has been mostly armer, the course OF
Pacific Mail having veered about to the upward
tack and giving more confidence to holders of
other shares New York Central and Rock Island
were strong on the "discounting" OF the semi.
annual dividend, and Harlem rose to $780, Western
Union Telegraph was about the only instance of
depression In the general list, but even in this
stock "break" OF about four per cent was followed
by reaction Of one to two per cent.
THE SOUTHERN STATE BONDS.
The Southern list was mostly quiet, with the
course OF prices irregular. The Tennessees were
iairly active and advanced TO 49, while the new
South Carolnas were weak and were enered down
TO 90 Virginia consols were frmer on the adop-
ton in the Legislature Of the bill adjusting the
claims OF the bondholders on the basis OF comprom.
Use agreed upon at the recent Richmond confer
ence. Louisiapas were utterly neglected Quite
an active demand has prevailed during the week
Tor the mortgages OF the New Orleans aud Jackson
and Mississippi Central Railroads and quite a con-
siderable Improvement In prices has followed.
Indeed, shrewd investors areN quietly picking up
the mortgage bonds Of the leading Southern rail.
roads on account OF the rapidly growing prosperity
OF most OF these lines, particularly those in the
track OF the cotton movement. The South is
steadily learning to handle her own cotton, 10
carry IT to her own ports and to ship It thence to
Europe direct, with
CONSEQUENT BENEFIT
TO her internal railroad system. The following
were the closing prices Saturday tor the Southern
fist, inclusive Of latest quotations ior the leading
Southern railroad and municipal Nbonds Ten.
cOupOn 6QL a "a. do nan, . 90.