The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-12
The characteristics of the
Situation.
RESULTS OF INITIATION.
Processes and Progress
of Recovery.
MONEY e AS Y
Gold Firm, Securities Strong and
Stocks Buoyant.
WALL STREET,

WALL STREET, !
SUNDAY, Jan. IL, 1874
Whether so rapid an advance in the price OF Sc
curities as has taken place during the past week Is
desirable or not, 1t Is certainly Significant OF ex-
traordinary confidence on the part Of the public in
the prevailing strength of the situation. predic-
ton made sixty days ago that we should witness
such an extraordinary state Of things as is now
observable would scarcely have been believed. Y ct
on all sides there are powerful reasons for the ex-
listing buoyancy. The banks are stronger than at
any period since the panic. The loan certificates
issued by them have been reduced In amount to
mere trne, If not entirely absorbed. Money Is
consequently easy and abundant. From
SIXTY TO SEVENTY MILLIONS OF GOLD
and currency are in process OF payment In the
shape of interest and dividends due on the 1st OF
January, and the disbursements OF the government
from the preserve" amount to say SEE, o00,0 900
more. The latter, how er, is weapon that cuts
both ways. On the one hand. 1t has proved an I'M
healthy stimulus, because 1t tended to create arti-
cial strength on mere assumption of expansion,
for the amount has really not yet entered the
channels OF trade. On the other nand it has famil
iarized the public mind with an idea OF imitation
and inspired the hope that Congress Will adopt
such new financial measures as win practically
bring about this result. Under such combina-
ton of circumstances it Is but natural that specu
lation should have become suddenly rampant.
and that, closing their eyes to the dangers Of the
future, men rushed mady into the
ARENA OF WALL STREET,
and added to Lhe tumult OF the strife. There are,
however, certain practical and healthy agencies at
work which not to be lost sight of in reviewing
the pending state OF affairs. Improvement is re-
ported In commercial circles. Fewer failures nave
occurred than were expected, as the result Of en-
barrassments produced by the panic. A summing
up Of the receipts of Is Western railroads shows
an increase of per cent in favor OF 1873. SINH
lar calculation OF the returns Of II Western roads
for December. 1872 and 1873 exhibits an increase
OF per cent in favor Of the last year. There has
also been a large increase OF the depositors in
savings banks throughout the manufacturing
States; a resumption of the various suspended
processes of labor-altnough ut reduced wages
and, in short, o much more rapid recovery from
the effects OF
THE RECENT CRISIS
than could possibly have been foreseen. 1t is
condition of affairs, therefore, that has invited
confidence, and although more or less Of glamour
may be thrown around It. especially in Wall street,
although there may be present elements OF dan
ger which call Tor the exercise OF the utmost
ton; although some of the shrewdest operators
on 'Change are now moving as carefully as II they
trod on broken glass; although innation OF cur
another panic, scores OF new accounts are being
made and new people are dabDling more or less
deeply IN the dangerous POOLS We see 1t stated
in the financial column of Boston paper that
even in that staid city 1.-The upward movement OF
stocks In New YORK Is daily attracting more and
more attention, and more than one Boston man
intent on good turn has gained enough to
make him do 1t again or lost enough to make him
SICK" What ia true OF Boston is equally true OF
other towns and cities, near and remote.
CAPITAL HAS CoMEsHITHER
and found investment In railroad securities, gov
crnment bonds ana the iuctuating chances Of
speculation. Prices have thus been enhanced
steadily. and OF late with but comparatively little
reaction, until 1t seems as If the heads OF men
ana women, too for that matter-had been turned
by the prospects OF sudden wealth. Unless check
occurs in this grand upward journey OF values the
plethora OF money must inevitably stimulate
credits swell the bubble Of speculation, lead to
che widest ventures and enu in disastrous collapse.
THE MONEY MARKET
Of the week has been exceedingly easy. with call
loans ranging from to per cent and the bulk Of
the business done at the lesser figure. For prime
discounts the range was from to per cent. 1t is
freely predicted that the rates OF money will be
much lower, inasmuch as they must obey the law
OF expansion now at work. The legal tenders now
outstanding are 1881, 1891, 600.
FOREIGN EXCHANGE.
Our business men ore RAPIDLY becoming accus-
toned to the new method OF quoting exchange
and like it exceedingly because OF its perfect sim.
picity. The quotation, So Is clear to everybody,
whether in business or not, as meaning that ster-
ling pounds in the shape OF drafts can be bought
for 81 81 gold, and 1t requires no long process OF
reasoning aud Of figuring to show how 1t came
about that when sterling exchange appears to be
above par 1t is In reality below 1t. According to
the new method, too, small gradations to value
can be expressed without the use Of extremely
small FRACTIONS, which are, to say the least annoy
ing In mercantile calculations.
THE BANK STATEMENT.
The bank statement OF the week exhibits more
than unusual strength. 1t will be noted that large
gains have taken place In SPECIE loans legal tend
ers and deposits especially in the latter item,
which amounts to upwards Of $14c00,0o0. 1t will
also be observed that the excess over the legal
reserve of 25 per cent is $5,ls9OoO The following
Is q comparison Of the averages for the past two
weeks:-
Loans. $261 1885, 400 $2G5, $4,000 Inc 800
specie, 1896, GOO 81, $40, 100 Inc. 4, 2S3 500
Legal tends l645S, 100 90, GOO Inc. A46S500
Deposits 2O5, 399500 29.6os. 900 Inc. IA, $685. 500
Circulation. 271S6,300 81 16s. 800 Dec. 1900
The following shows the relation between the
total reserve ana the total labilities:-
Jan 3. JaI TO- DyeT asn ts:
specie. SIS 1876, 600 $32 679, 100 Inc $4,2S35O0
Legal tends 4e,45s,1o0 5O,926,eoO Inc 4,4es.5oo
Tot reserve s74 s587oo ssa.oo5, 700 Inc sS.752coo
Circulation. 271ss.3oo 27.ls9,aOo Dec. 1900
Deposits 20b 399 500 21966S,0oo Inc. a. 800
Tot liaDtles $685. $685. 800 s24e soo Inc. 12Slsoo
a. Gala n in Al oD