Year: 1869

SUNDAY, May 0, 1s6e


the week which was comparatively quiet at the
opening was greatly excited toward the close. The
disturbing cause was an advance in the Bank OF
England rate OF discount to four and half per cent
the enect OF which Immediately felt here. Ever
since the establishment Of telegraphic communica-
tiOn between the two cities the money markets in
both have been very sympathetic The reason OF
this step the part OF the directors reported to
be the necessity of checking. the drain OF money
arising from the attempted negotiation OF several
immense European loans. The decline In United
States securities on Friday ensuing upon this
change led to a great depression in the home
market ana ian OF about TWO per cent
stimulated as it was by semi-oflcial announce
ment from Washington that the Secretary OF the
Treasury had decided TO take action toward pur-
chasing bonds before the close OF the fiscal year.
Corresponding to this depression there ad-
vance in gold to l391s for the highest point. the
feeling In favor OF rise being assisted by the
satisfactory relation OF our imports TO our exports
La the semt-panic which resulted from these sudden
fluctuations and from the widest reports OF the
tent OF the agitation in London there was heavy
decline stocks the market looking for brie spell
II II on the verge OF crash. slight reaction
took place late in the day under more favor
able reports IRON London and a movement
having been already begun 10 dtsconnect
market with these foreign influences,
there rather better feeling at the close OF busi
ness on the eventul Friday. Next morning the pro
position of the Secretary OF The Treasury 10 purchase
million of bonds weekly until further orders
published IN the press and turned the tide Of feeling
Better quotations came lrom London, gold declined,
stocks went up and the storm had blown over The
sudden determination OF Mr.. Boutwell, to put in
operation the provisions OF the Sinking Fund act
does not come a moment soon. 1t will be seen
fhat af IN tha
ment for a reform al Washington have singled
him out for decapita.ion on the score OF his
slack OF force" This is precisely his defect
His nresoution and vascillaton since his
induction INTO oc1ce have been painful Now,
however that he has awakened TO the urgent duties
OF his position and has had the courage to take this
bold and sagacious financial step, the people will
not be dlsincliDed TO try him a while longer With
the resources which our gigantic nation possesses,
We should long ago have shaken or great portion
OF the load OF national debt Our detriment been
the want Of wise fnancler In the Cabinet at Wash
hgtOn. The money market during the week was
irregular within narrow limits, as compared with
Its condition In the recent stringency. As high
gold interest was exceptionally paid in the
earlier portion, and as low as six per
cent on Saturday. The numerous business
engagements at this season keep the rate well up
to the legal figure, especially as the system
OF bank statements is repressive OF expansion. The
rate for commercial paper also declined under the
competition Of the banks In lending to their regular
customers and reducing the amount In the general
market Seven to twelve per cent constituted the
extreme range for the best endorsed acceptances.
Foreign exchange was inactive and, toward the
close. weak in response the higher rates for gold
An effort was made to sustain sixty days sterling at
1o34 but prime bills out Of second hands SELL
ting down TO 100, while on Saturday one prominent
house offered TO draw at 1895. The changes In the
English money market have made sight sterling
frmer as compared with sixty day bills, and the
difference between the TWO classes is three-quarers
per cent.


The range in the price OF gold during the past
week was as follows:-