Year: 1869

Congress decided that these bonds are redcema6le
in gold their purchase is therefore saving OF
something like twenty per cent. on the prncIpaI.
The report appears TO have semi-ofcal sanction thai
the Secretary viii not cancel the bonds which he
thus purchases, but will hold them in the Treasury.
applying the interest saved upon them as contribu-
tion to the sinking fund.-


Were he to destroy the bonds purchased, all his
stantly increasing prices. BY keeping the specula-
tors in doubt however as to his actual disposition OF
the bonds he will maintain the market at steady and
uneXcited quotations. With the bonds lying In the
Treasury vaults he has reserve with which TO meet
the expenses OF the Government should there at any
time be a deficiency in the revenues. The one great
salient feature of his conduct s the earning Of ite
rest on the gold balance of the Treasury. To make
be his constant aim. When the opportuni-
ties for safely employing It at interest
Of them Mr. Boutwell,, in his speech at the
Stock Exchange, made public pledge that he would
not let the spectators use him. The market was
very steady to-day. The quotation from London
came rs in the forenoon and 20 in the afternoon,
which, with the Improvement OF a in consols gives
substance to a rumor that cable advices have been
received TO the effect that no further advance may
be looked for tomorrow in the Bank of England dis
count rate. This Improvement In the foreign price
was reflected in a much firmer feeling in home
prices but without much advance The latter are
now so close upon the former that there is very
little margin for rise The London market will
have to recover all its ground lost in the late agta
tion before there be much, IL any change here.
The sagacity OF Secretary Boutwell, in stopping the
speculative operators by his proposal not to cancel
bonds contributed to this steady feeling


''The money market yesterday was without essen
tial change. The expectation OF five per cent rates
on call have been disappointed; but the iuctuation
to lower rate than six per cent. last year did not
begin before the list of June. Money is now very
generally employed at six and seven per cent. on
Governments, and seven on miscellaneous collate-
rails. Commercial paper steady in the vicinity
OF eight per cent. for choice double name accept
ances, with extreme quotations at seven and nine.
There is preference for longer dates owing to the
desire to full interest in the approaching period
OF easy money when rates on call are likely TO fall
below the legal figure.


"Gold was weaker and declined from 1888 to 1917,
with the bulk OF the business in the vicinity OF 1897.
The better feeling in London and the advance OF one
per cent in bonds there led to the change. It was
also the of the third of the series OF Government
sales OF god the effect of which must In the long
be inimical to an advance In the premium. Cash
gold was in good supply, and loans were made for
carrying at rates from to per cent. per annum up
to Clearing House time, and at per cent to 1at In
the afternoon. The Scotia took $4,000 in specie.


''The report OF the Gold Exchange Bank is as fol-
lOws:-Gold cleared, sos, ,S43, 900; gold balances
s2,095077; currency balances 81, ,759,S6L