New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-08-22
THE SPECULATIVE SITUATION.


The current rumors Of q speculative interest
on the short" side Of the stock market by high
Treasury officials may be dismissed by simple
recognition of the fact that such rumors exist.
If our foresight was as perfect as is our hind
sight. we would all be rich. Looking back it
now is easy to see that, if it is a part of the
business OF the Treasury Department t. regulate
the money markets of the country, the time 10
afford relief by bond purchases was three weeks
ago, when the Treasury aiding the unreason-
able and unusual export of gold by using It's
authority to exchange gold bars for gold coin.
That was the time. if ever, when the vacuum
created by gold exports should have been filed
by extra exertons on the part Of the Treasury
t.o establish an equilibrium in the money market
This is hindsight but is not a cause for charg-
ing the officials of the Department with specu-
lative interests 1t also is true that the methods
later adopted by the Department to relieve the
local money market are not suihclent 10 &C
complish the purpose.
N certainly is not the fault of the Department
that the holders of the l-2 per cent bonds
will not accept within is per cent OF
their full value at the date of maturity, SepteHi-
her /, 1891. But we are constTained 10 ahLn
the 1-2 per cents il would do more tO"afd
relieving the money market by retiring from tlle
market purchaser OF the per Genus, 80 'ia,
Oh" betfer chance for conversion To-day's Treasury
purchases of bonds included S3o7,G5O per cents
and only S27l,2oO OF IL per cchts , ne no so
ers of the l-2 per cents who would Ike 10 sell
their bonds to the Treasury If they could Ie-
invest in the per cents are met by Compel
tion for the As between the Government on The
one mart and speculators who are willing 10 pay
more than the Government price, because uity
practically hold put on the Treasury AT -.
There, however, is little II any question 'uat
the money market would quickly return I" us
normal condition Of per cent, II the thTcatcl-
ings OF labor troubles were removed. Ihey, WIN
timid CAPITALISTS, are the cause OF the hoiulnS
off of the loan market of millions of dollars which,
with the actual lookup Of last week. gives 10
fine Shylocks the making OF rates. IL is credit
able TO the firm of DreXcl, Morgan ~ Co'' VINO
probably are the largest Lenders OF MONEY aIhphS
The pryate bankers that they have not marked
mn any of their loans above per cent. Al
the money they have to lend is at per cent; II
they obtaining l-2 per cent per die i,'e ~
viii, every other banker, and with every National
bank Their capacity TO lend is not increased py
the rate: what they have TO lend they couId
os we'll lend at ! per cent per annum as al l.
per cent per diem: The unusual and unrcasQn.
able exports of gold, together with the tlmi0l'y
created elsewhere by the Threatening attitude 81
Mr. Powdcrly Of the Knights Of Labor, simply
ciI.a 70 The Sbvlocks the opportunity 10 make
Tho rates on daily balances. That II all iencc
the monetary situation is closely allied wl'h INC
threatened strike. The progress OF the sirlke Is
hung mn for three days. awaiting the decision OF
Tho Suprcme Council Of the Federation OF RAIL
,ray FmnIoyes at Tcrre IIautc tomorrow.
If the object was 10 depress stock values, hQlIi-
ino more ingenious could have been devised IMAM
The hanging IN Of the question AS power 70
danrnse values IL possessed more value than sud
don report that the Lake Shore Road was tlcd up:
II was that which made the market prices 81
ebares to-day as they are dc,ailcd in our general
Iist The size of the liquidation OF long
stock on the forced declines may be measured ny
Tie total transactions of 237,7sS shares III thr
General department, and $500 shares IN the IN
iisfed Outside of the days trading which was
ali ON the bear" side, and the taking OF prom
from one and another, the bulk OF III" stocks sOlu
to.dav was for the "short" account and must
Inc renurchascd. The knowing ones think they
iynow that no new Treasury policy viii be adopted
I'll after September /. Outside the vanderbilt
and Rock Island the lowest Of to-day,s prices
@nnerallv was not as low as those OF Monday a
week ago In the last half-hour there was a
Substantial rally from the lowest prices, nut H.
was due principally 70 closing, up OF ShQ orr
lies made in the earlier hours Of the day. Inc
1bears. had il all their own way Till they at
t.,onted 10 recoup and then il was discovered tha'
there were few stocks Tor sale
THE DAY IN TIE BOND MARKET
The Treasury purchased $3O7,65o per cent
honds ot 12d. and $27I.200 1-2 per cents al
I0a 10 At the stock Exchange there was 40
hw.jness done but over the counters OF some
Of the large dealers purchases were made al
IioLer figures than Government rates. Annexed
arc the closing quotations: