The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-11-03
FINANCIAL and COMMERCIAL.
Retrospect Of the Week on
Change.
THE PRESENT SITUATION.
WALL STREET.

The week inst finished bore a close family re-
,emblance to the one which preceded it. There was
the same roaring market at the beginning the same
Stacking of of prices at tho middle or IT, ana the
same sort Of rally at the close. In both cases money
rather the absence of 1t. was the moving power.
The Buttercupian invitation to 'come buy, was re-
ceived with degree of enthusiasm that woula nave
startled any ordinary seaman in II. Ms service
and was accepted with will that rolled up the record
of single days transactions to the extraordinary
and unparalleled amount Of some $4,000 shares
While everything was thus going cas- merrily az
marriage bells" it seemed a pity to spoil the fun
but it was spoiled nevertheless. very much, as it
appears to u.s. to the benefit Of q market which
was fast racing into dangerous excess. Nothing
pulls up o runaway stock market more efectualiy
than tight money, and Of this there has been an
abundance and to spare. The ruling rate the week
through plump seven per cent. and for most
part OF the time extra commission. which ranged
anywhere between 1-32 and x per cent. was ex-
torted from brokers who fell short of having gilt
edged credit or whose securities of doubtful
nature. To the naturally existing for tight
money was added the action Of the Comptroller Of
the Currency. who, suddenly waking up to the ex-
isrence of the law prohibiting certi6cations be
yond amounts held deposit gave notice
that the abuse must be stopped. The i'm
mediate effect to disarrange the whole
machinery of stock deliveries. reduce the amount
of dealings important extent and to consider
ably cool down the heat OF speculation. Although
there let up in the stringency OF money until
the very end--in fact the highest rates were made
after three o'clock on Saturday-the market rallied
sharply and closed with great buoysncy, but at the
time shorn of the unhealthy proportions which
had marked it early in The week. The notable char
acerstic Of the week lay in the circumstance that.
under the excessive money pressure. prices should
have given way so little. An explanation is to be
found in the belief that the strngency will pass
away next week, when the stream of currency
which has been running into the strong boxes
of interest and dividend paying institutions
will begin to run out. and needy borrowers
will find themselves afoat more. Indeed. there
Is every why there should be an abundant
supply OF capital for all legitimate purposes at legal
Of interest. There has been. it is true very
important advance in the prices Of everything that
Is bought and sold. but there has been also an i'm
portant expansion Of the circulating medium. A
vast amount of gold, whose value can only be ap-
proximated to. but which was merchandise on De-
cember 81 last and money on January /. was the
first addition to the currency. Next we have re-
ceived $50, 900 900 from abroad, and the flow still
continues: seventy to eighty millions will have
been dug out OF the mines during the year and will
remain here, while the extraordinary de-
mands Tor our DreadstuuS ana produce
abroad must to great degree be settled
for in hard cash. While we thus blessed with
unbounded prosperity it is o pity that the nation
cannot become honest and pay its debts. What is
true of individual is in nine out OF ten true
of q nation. and no man suddenly raised to q state
of afiuence would be esteemed either honorable or
.onest did he refuse to call in and pay Off the due
bills which he forced issue in the day of his
penury Yet this is just the position of the United
States at the present time. There just S3lG
in amount of these due bills ahoat under the name
of legal tenders aud 1t is neither credtabe to the
nation nor just to its citizens that they should be
allowed TO remain The matter is even worse.
tor they positive danger, since they tend to
cito speculation beyond all bounds and to endanger
the safety of it just to the extent that 1t is inu
enccd by the existence of these unpaid paper prom
Uses. 1t is part not only of honor but Of wisdom
that these excrescences upon our financial system be
brushed away and forever. and it is tho duty Of
the country to bring Congress to tho necessity OF
seeing it in that light.
The weeks sales ut the Exchange foot up total
of 34 SIT shares against 1884 036 shares the pre-
ceding six days. Following Is an epitome Of the
weeks business. with the range Of fuctuations:-