Year: 1868

TUESDAY, March A-eP.M.


mo gold market experienced further decline to-
~, the extreme range having been from 1881 to
1871, with the closing quotations prior to the ad-
Journment OF the board at 1885, following which there
was an advance to 1881 1857. The decline to the
lowest point was Influenced mainly by the extreme
scarcity OF loanabe funds, which caused from eight
70 ten per cent per annum and 1-32 to 1-lo per
cent per diem to be paid for carrying coin.
The gross clearngs amounted to $56s70O0O.
tue gold balances to $1,542,4IS and the
currency balances to $2,2l0, 240. The steamer
Gernana Tor Hamburg took out $3O9, 900 in specie.
1he strihgency In the money market was felt as Sc
vereiy on the Stock Exchange as in the gold room,


ana seven per cent In coin was freely offered by
nrst class houses and this rate was accepted by most
OF the banks that had money to loan while private
lenders In many instances secured commission In
ADDITION. The pressure was all the greater owing


70 the disappointment occasoned by the failure of
se banks to embrace the proposition Of the Treasury
Win respect to the issue Of Clearing House certif-
Gates, and there is no prospect Of any abate-
0ent OF this until after the 1st OF April,
snless the Treasury affords relief in which connec-
ZION 1t Is proposed to call another meeting Of the
clearing House Association tomorrow to reconsider
tne subject which was under discussion yesterday,
nut no official action has yet been taken in the mat
ter AS may be supposed discounts are unattaina-
ble and commercial paper is unstable at the banks
and the mercantile community is complaining OF
this and reproaching the latter for lending too freely
on speculative railway shares. It is obvious
tnat the banks employed their funds less in stock


loans their ability to discount would be greater but
their preference for lending to the Stock Exchange
H very decided Were it not for the assistance they
are at present arordng to the various cques in rail-


way shares prices could not be sustained within
Aom fifteen to thirty per cent of those now cur
,Sent, and it is not at all impossible that, not
Wthstanding the special monetary facilities at
the command Of clques willing to pay literally
and enlist bank officers in their interest that the
stock market may break down and fall into more
demoralized state than 1t has been in at any time
Mnce the panic Of 1884 1t was certainly never in a
more precarous condition than it is at this moment
ana the banks should therefore be careful not to in
cur the risk OF themselves becoming the virtual
owners OF the coateras they hold by reason of the
borrowers margins becoming exhausted.


The stock market was weak until late
In the afternoon, and Erie declined to e7
and New York Central to 117A; but subse-
quently there was q rally, which was not,
however fully sustained at the close If the leading
stocks were left without clique support there would
be panic in them forthwith and If the cliques fail
to prove strong enough to support them, as they
easily may do, there is nothing to prevent very
heavy decline in all the speculative shares
There Is consequently a life and death
struggle going forward between the bulls
and the natural tendency OF the market, which is
downward under the prevailing strngency and the
demoralizing effects Of the Erie litigation. The out
side public, the street and the banks are alike afraid
to hold Erie, and the bull party has lost whatever
prestige it originally had. In Wall street opinions
are governed by personal preJudices and inter-
therefore
outside of it public sympathy is on the
side Of the Erie directors not because
Mr.. Drew is preferred to Mr.. Vanderbilt as railway
manager or the latter Is admitted to be superior in
this respec but irrespective of personal consdera
tons and because the people are opposed to the
eentration OF so much power in the hands of one
man. TO great extent it is mere question Of dol
lars and cents as to which side gains the mastery
over the other; and far the stockobbng part Of
the struggle is concerned the public has no
interest in it, as it belongs purely to the arena
OF the Stock Exchange. If Mr. Vanderbilt
had the management of the Erie Railway
he would probably make it a better paying
property for the stockholders than 1t is at present;
but the interests Of the latter matter of course
are subordinate to those of the public. 1t is more
important for instance that we should have railway
competition and moderately cheap rates Of fare and
freight than that railways should pay large dividends;
but where the former secured there is no obec-
tion of course to the latter, and with economical
management there Is reason why moderate
charges and good dividends should not go together
The reports from Albany to the effect that the
Erie Railway bill will pass both branches of the
Legislature, and the general impression on the
Stock Exchange is that there is little doubt Of this


The market for government securities, notwith-
standing there was an improved investment demand
at the counters Of the leading dealers, was weak,
owing to the monetary strngency, which caused h
per cent to be paid for turning" them until to-
morrow. and seven per cent In gold and commits
sion besides in some instances for loans upon them


But the depression is wholly due to the scarcity OF
money, 1t win be succeeded by buoyancy when the
pressure Is removed. The failure Of the Clearing
House yesterday to accept the offer of the Treasury to
issue ten millions Of three per cent certificates has
caused much disappointment among the borrowers
Of money, to whom the present stringency Is
source OF great inconvenience. The Treasury 1t ap
pears, stipulated that the banks should apply for
them as q necessary relief, and that they should ar
range to take at least Ave millions Of the giving In
exchange seven-thirty notes at LOG, or compound in
terest notes ut par and interest both. The propo-
sitiOn to comply with these terms lost by vote
Of 80 to 49, Some OF the members opposed the issue
Of certificates account Of its tendency to infaton
and q reduction Of the rates OF interest, and
others on the ground that the banks arc
In no need Of relief and that It would
be bad policy to place themselves in such
dependent position towards the Treasury. To-day 1t
was proposed that meeting Of bank officers should
be called to consider plan for buying five millions
Of the certificates with seventhirty notes at the price
mentioned but the meeting was not called, and no
further steps were taken in the matter. The Sub
Treasurer however, bought from half to threequar
ters of million OF seven-thirties, and sold, 1t is
understood, limited amount Of gold the currency
balance in the Sub-Treasury being too low, 1t is
claimed. to permit Of anything clcacious being
done in this way for the relief OF the money market,
and II is argued that the banks rejected the Trea
sury proposition yesterday they cannot be in much
distress, which, however true with regard to the
banks is not SO with respect to borrowers. At the
close the market was steady at the suboined quota
fiQna:-ReQstcred. 1881 llnI< llna< cnllnnn. ISL