The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-30
Further Effect Of the New Currency Bill
r in Speculative Circles.
STOCKS ACTIVE, BUT UNSTEADY
Gold LOwer-Foreign Exchange Steady-In-
Vestmtnt Securities Quiet
Money Active at 4 and Per Cent
on Call.
WALL STREET.

Tne feature or the days business here was the
reflective action OF the newborn buoyancy pre-
vaiing In business circles and the sudden develop
ment Of an active money market. In respect to
the occasion OF the latter there was more than
one explanation pronered. which may be noted,
nrst as the increasing activity in dealings on the
Stock Exchange, which. however remarkable, was
not sufficient In its entire volume as compared
with the business OF some days last week when
money ruled at 2 and per cent to account for an
advance IN rates to and per cent to- day. The
second explanation OF this sudden rise ascribed 1t
to the operation OF the new Currency Di which,
requiring banks to keep reserve in legal tenders
of per cent OF their circulation at the Treasury
IN Washington, and relieving the banks OF the ne
cessity OF any further reserve against circulation,
caused Drain upon the banks of this city, not
alone oil their own required per cent but also OF
so much of
TnE FIFTEEN PER CENT RESERVE OF COUNTRY BANKS
AGAINST CIRCULATION
as has been heretofore placed on deposit here, hve
per cent OF that amount to be OF course trans
lerred to Washington and the remaining ten per
cent to be taken nome for employment. 1t would
appear from the latter explanation, which GER
tany seems to represent more closely the opera
ton OF legitimate business as If the effect likely
to ensue had been largely exaggerated. The en-
tire reserve required to be kept on hand at Wash
tngton is only s17.oOo,oO0 legal tenders, against
the whole national bank circulation of $780, 600 OOO
New York, OF course, must supply it's quota for it's
own circulation, which will not be heavily felt in
view OF the surplus over the required legal re-
serve against deposits shown In the last bank
statement of 24,405,2OO. But in addition the
country banks, being relieved OF the necessity OF
keeping on hand their former proportion Of
fifteen per cent in lawful money OF their
circulation, will naturally draw on new
the necessary five per cent to be sent to Washing
ton. and adding the rest until the whole Is
absorbed. as they can ind employment for at
home Now, while the first effect or this is con-
traction Just here, 1t must be remembered that
this Ii not the only redemption city, and
OUR PROPORTION OF THE FUNDS IN COUNTRY BANKS
does not probably reach such figure, the with
sdrawal OF which, under such contingencies, even
TO the extent OF the entire amount held here,
would produce any dangerous stringency at this
season OF the year; and In the present condition
OF business jus. emerging from prolonged stag.
nation while there is the positive assurance that
should that money be so withdrawn in bulk even,
at Will only be for such employment as will directly
stimulate general trade, whereby we shall be
larger gamers than If falling Of such employment,
1t should remain here idle for months
yet, or after the experiment OF calling
1t home be suddenly returned here. In the first
supposed case legitimate trade will be largely
benefited, which Is the only substantial founda-
lion OF real value, While in the latter only mere
ephemeral speculation would find profit. Thus 1t
will be seen that 80 far as the stock market was
afIected to-day by this preliminary action OF the
Currency bill, real and supposed (and 1t went OF
In the AFTERNOON to some extent because OF this) it
weakened upon the illogical assumption that the
surplus money now held in the New York banks
ywQo unin IN nd NOR mar Ant ounriny
country districts.
FOR THE IMPROVEMENT OF REAL VALUES
In railway and other share property dealt In on
the Stock Exchange nothing better could happen
than that every dollar Of 1t be withdrawn, and be
40 held away In the steady uses OF trade. A lew
years experience OF Wall street sufices to convince
the locker on that stocks are strongest In
an active money market, when that is q
normal feature OF the situation and not the result
of artificial causes producing q lookup, because
active money means trade activity, and railways
earn most when such activity exists. "bull''
suggestion in respect to the decline this afternoon
,eminently characteristic OF that class OF specu-
lators, was 10 the effect tnat artificial manipula-
ton was at work, the great ''bear" leader being
!, OF course, held responsible Tor producing the
sitter feeling in money this afternoon, This, now
ever. is an open suspicion without anything to
justify 1t 0tner than the a poste'rOri necessity,
that certain effect being noticeable must be ref
cradle to q cause. II will be seen that ample
cause exists for this sudden turn in the condition
OF the money market other than any such indvld-
ual effort at producing IT, and that 1t contains In 1t
MORE GROUND FOR HOPE
chan occasion for uneasiness. There is suspicion,
however, in many minds which partly helped he
reaction this afternoon, that prices have advanced
too rapidly, and In this new growth OF o confident
tone In this market 1t would not be surprising to
fnd within the next few DAYS more retcent ieel
ing on the part OF outsiders in respect to pur-
,chases, with perhaps decline In prices This is
not given, however, as a prediction, but to pre-
pare those not intimate with the character OF stock
speculation not to be surprised should such occur.
SO far as the trade OF the country Is concerned any
such exhibition OF uctuating values will be wholly
outside OF indications in respect to IT,
THE RESULTS or DEALINGS ON THE STOCK EXCHANGE
TO-DAY
we're ON advance in the morning upon the leading
speculative shares OF u to 80 per cent which, Of
iering a profit to recent buyers, produced a
realization helped by the causes noted above and
reaction and decline OF from 4 to per cent from
the highest point OF the day. Before the close
there waI slight rally In the tone OF the market,
and prices left OF with steader feeling exhibited
In q very slight Improvement. The principal deal
inps we're In wabash, Erie the Northwestern and
st. Paul shares, Lake Shore, Rock Island, Union
Pacific, Pacific Mail and western Union. The days
business comprised the transfer OF 279700 shares,
Lake shore. usual, leading In the transactions.
The distribution OF this business. as well as
THE EXTREME FIGURES OF THE MARKET,
will be found in the following table, giving the
highest ana lowest prices OF each stock, with the
Gales therein:-
No Of
HIGHEST forrest. SALES.
n. Y. Cen. and Hud Con ........ lOl l0Oh 800
Rock Island ...........,...... ,lOsss l0O% 400
Delaware, Lack. and Western IlOls ITO $500
Wabash. Observation-Disclosures E. 1921 $3.50
Harlem. .........................l2 bia lAs 20J
western Union Telegrs phi ...... 76 TAX 5000
LAM ic nd Pacific Teleuranh