The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-03-04
THE METROPOLIS.
Honey and Other Matters In
New York.

| New York, 3.-The Graphic says:
Not a few people came down this
morning expecting to sell stocks,
and receive pronG ON the passage
of the funding Dill. From the very
lOpening, however, there were orders
70 take all offerings, and instead OF
| weakness there was strong tone
which developed buoyancy, when at
the end of the first half hour news
came that the veto OF the funding
OIL had been written cut, ana Just
mere one OF The inconsistencies that
characterize the course Of SpecuIa-
CIOn manifested itself. Those who
had bought stocks on the hope Of the
passage of the funding Us measure
OF imitation, began To buy on the
yetOing OF the bill. Shorts took
alarm and were driven 10 cover b1
Tie manIpulaIIOnS of operators, who
yesterday and the day before were
the principal buyers of stocks.
There is little doubt that the adj
vance to-day was due mainly TO the
closing OUT OF short accounts, tor
the report was freely circulated that
fundlng amendment ShOTn of all
obnoxious features would be tackled
on to the deficiency bill and passed
to-day. The situation III other re-
SpeclS has not changed.
SO great has been the increase in
che number OF messages Offering
here that the Western Union Com
pany has been compelled 10 borrow
operators for It's main Office from
the American / mon and Atlantic
and Pacific offices. The Commercial
Bulletin, III its financial article says
the day opened at the Stock EX-
change on tile news that the fund
ing bill had passed the House in the
same form that ii came from the
Senate which made stocks weak.
Then news came that The treasury
will buy lat supposed market priceS)
.S5,O0D,O0J of and i per cent. bonds
on Wednesday. This strengthened
the market aS did also tile later
news that the President had vetoed
che retunding bill. Later in the
day the decision of Judge Blatch-
ford refusing to grant an injunction
to restrain the Western Union Tel
egraph consolidation, and the re-
port that Judge Sedwick had SO far
modified the recent INDUCTION
granted by him, that 4o15 per cent.
of the scrip declared as diYiuend to
the Western Union Telegraph
shareholders could be issued, gave
great strength to telegraph stocks,
and the result of all was general
Use in stocks, declining from l to p
per cent. for holding stocks. UniUeu
States bonds advanced Is and "a.
The treasury, in the last ten days
has taken about $IS,O00,OO0 lawful
money, placed there 10y banks Civ
ing up note circulation. 1t has paid
out Tor bonds bought about $4,000
900, so it retains about Sl2,00O,OJO
which has been taken from
bank reserves. This money,
if it should remain in the
treasury, will cause d stringent
loan market, and the question Is
how TO get it out. The report was
current that the treasurer would
return to the banks which have
SINCu up luGlI CIlCuldllOu llt law
ful money which they had deposited
to redeem their notes. Later it was
officially announced that he will re-
turn the greenbacks to those banks
which may have deposited them,
provided the bonds which may have
secured their circulation still remain
on deposit and none of the circula-
ton of the bank has been redeemed
from the deposit. He declined,
however, to surrender greenbacks
upon the redeposit of bonds. If 5
per cent bonds are again deposited
new certificates must be issued. If
the money cannot be got back into
the banks in this way then the only
other way is to buy bonds at the
price to the extent of SIP
100000. This would restore the
banks to the condition they were in
ten days ago, or before the Senate
passed the refunding bill. If the
treasury buys more than S120O0,OOO,
then the amount beyond will make
the banks prOpOrtionateiy better off |
than they were ten days ago.