Year: 1869

n, r.


Tho money market b working with comparative
case after the stringenoy OF the past month. To-
day the great volume Of business was done at seven
per cent In currency and In coin. The threats OF
legal Investigation have doubtless frightened great
many lenders from asking unlawful rates, but 1t is
reported that as high as one thrty-second commits.
si0n was d-underhandedly, OF course. There Is
nothing TO prevent the exaction OF seven per cent
In ooin; at least such Is the impression, and hence
for such transactions the real rate Is between nine
and ten per cent. Coin interest was paid
between brokers on stock collaterals, while the
currency figure was paid on governments and other
prime securities. Al an onset to the extreme OF
commission the one hand 1t is said on the other,
that balances could not be placed at seven per
cent currency. The facts, both ways. show the
easier feeling prevailing The market was not uni
form throughout the day, however. In the morn
ing and until two O'Clock in the afternoon there
was but a limited inquiry. Borrowers took it for
granted that funds were plentiful, and postponed
their engagements. Towards the close OF banking
hours the demand was quite lively, and during
this period gold interest was paid. After half
past three O'Clock money was again plentiful
and lending freely at seven per cent. The ind.
cations that the stringency has entirely passed
for the present. or until artificial causes or the re-
turn Of those which created the recent tightness
again disturb the tendency OF the interest rate
There vague rumors that the present imitation Of
the stock market viii result In an attack by the
..bearsn who Will resort to the old stratagem OF


blocking up greenbacks." 1t Ii hardly probable that
money will return to the ease Of last September
when call loans were made at four per
cent. Forty or hfty millions Of dollars have gone
the South and have been will be absorbed there.
The dow Of currency In that direction at the present
time u still going on, but on diminished scale.
Moro will 60 in the spring In the shape OF Northern
capital, which, under the temptation OF the high
price Of cotton Is seeking investment In that region
Schemes for transporting Northern wealth and labor
to The South abound among our men Of enterprise.
Emigration has set In and win be a strong cur
rent In the spring. The revival Of cotton
culture is fever Just now with capitalists
The total crop in 1901 nearly 6OOo 900 bales.
That for 1862 is estimated at 100000. There is
therefore. wide margin for the investment OF
Northern capital and the employment Of Northern
labor The development OF the cotton and other re-
Of the South and the grain crops Of the West
win in few years require all the currency Of the
country Congressional theorists on the subject Of
resumption should bear these facts In mind. While
the period Of strngency in our money market has
ended, 1t Is, therefore, no sign that money will
not be active a. figures approaching the legal rate
The shipments Of greenbacks from the West are
quite abundant but not enough to make up for what
has gone to the South They will tend to reduce the
rate OF interest to six seven per cent, but not
lower. No good business man will now complain of
these rates; less rate would indicate redundant
unemployed capital. At this time, when the coun-
try should put forth every energy to recuperate from
the losses entalled by the war; 1t will be good sign
to see money healthy active, for the fact will be
but the reflection Of enterprises in the develop
Ment Of our resources.


Gold to-day was nrmer ald active, for the several
reasons Of the increase In the national debt, the
nmness OF exchange-which is at the specie ship
ping point-and large purchases by private bank
era, probably to cover short sales. These very
reasons also prove the really weak undertone
OF the market; for 1t required the strength
OF their combination to sustain the pre-
mium at but a slight advance The opening price
was 1857, from which there was an exceptional ad-
vance to 1885, The great bulk OF business done
At 1861 and 1854 The range Of price is shown as