Year: 1875

AGITATION IN THE GOLD MARKET.
VARIOUS THEORIES TO ACCOUNT FOR THE RIsE IN


GOLD-INFLUgSCE or FINANCIAL CHANGES IN


ENGLAND AND FRANCE-VIEWS OF PROMINENT


BANKERS.


The Gold Exchange presented scene of
excitement yesterday which has not been observable
for a considerable time within its dngy precincts Gold
opened at li advanced to l5I back to l14, and
closed at lis. The OF this sudden advance
attributed continued heavy loss OF bullion by tho
Bank Of England and heavy exports OF gold from this
country There been steady decrease in the bullion
OF the OF England for several days past and yeser
day it was announced that 253OOO had been withdrawn
Outgoing steamers have taken large quantities OF gold
which, 1t has been thought might find It's way into the
Bank Of England. aud perhaps change the flow OF
bullion, or ut all events supply that which had been
withdrawn. Tho latest advces. however, do not iudi
cate that this result accomplished. All sorts OF
theories aoat to the OF the disturbance In
monetary circles One story was to the effect that the
City Of Paris about negotiate loan OF 2j0 OO 900
francs, and for the purpose OF placing the loan with
advantage, a bear movement had been begun on the
London market for the purpose OF driving gold to Paris
and by making money in the latter city to aid in
securing subscriptions to the loan This story, however,
may be taken with many grains OF allowance.


prominent banker yesterday attributed the advance
mainly 10 operations Of the Syndicate in placing the
now United States bonds. The Government IS calling
the old Five Twenty bonds from the other side. The
European nations not freely taxing tho new Elves
offered the United States exporting very little, and
the result that the called bonds must be paid for IN
gold. This accounts for tho outflow Of specie
from here ant tho advance In the rate. The
banker concluded his remarks with this
proposition "I II the action OF tho Syndicate in pac-
ing SSOOOOOOO OF the Fyes gold to advance
from l09i to 15s. what viii be the price Of gold when
tho remaining OOOOO OF bonds placed within the
balance OF the year" Behind all these theories
fact Is oleraby certain and that is, that the bulls in
gold have taken advantage OF natural and unnat-
ural causes to begin vigorous upward movement. the
full power aud effect Of which il yet unknown


Joseph seligman OF the firm Of j. & W. seIgman, at
No 81 Broadst said the immediate cause Of the sudden
rise in the price OF gold probably due to the with
drawal Of large amounts from the Bank Of England 1t
WAS generally understood that about 100000 pounds
sterling had been withdrawn during the past three
DAYS His Arm had not received any advces from Lon
don ON the subject but it rumored the street
that the gold had been drawn by the Bank OF Berlin.
Others supposed the drafts TO have originated in Paris
and the money have been sent 10 the Bank OF France.
There did not to be positive knowledge the
subject. There were also other reasons Which may
have affected transactions IN gold million
dollars gold had been sent TO Havana within
n few days. 1t was also known thaI
the amendments the tariff increasing the duties
certain articles would be in force in two or three days,





heavily TO meet their payments at the house.
As an Individual opinion. he believed the movement
originated with the bulls in gold and tho values were
merely specuative and fictitious There real
substantial basis for an Increase the price OF gold
but IN the present Of the finances temporary ad
vantage would be taken, and these sharp operations
must be expected. 800 ., ,,


Originated in the present financial system, or rather
want OF financial system in the management OF the
affairs OF this country. The recent OF Congress
were not, properly speaking financial legislation, but
political compromises and maKeshifts. The promise to
resume specie payments at any hxed time could not be
kent unless the necessary conditions were supplied
There must be sound financial basis on winch to
work. The great laws Of trade and finance which are
recognized in every country the foundation
OF credit and which governed 10y fixed principles
will regulate andcontro the market IN spite OF Congress
lanai and partisan enactmens. Our Secretaries Of the
Treasury have not accepted these established facts and
MT Brtow the present Secretary OF the Treasury had
not long in Office and was doubtful II he grasped
remedy 1t known that he was not satisfied that
Congress would ndose or sustain any policy at variance


nued these disturbances would necessarily occur and
were merely temporary in their character.


WOtherspOon q Co.. at No t5 Exchange-pace, stated
that the money articles In The TRIBUNE gave correct
idea of the financial situation and as to the withdrawal
certain bankers Off that the gold had never gone odt
OF London. The present excitement had Its origin in
rate OF interest by concerted on the Bank OF En-
gland for gold The Government should adopt fnan-
cal policy would attract gold to this country
paratory to specie payments. aud there would be no
fear Of shipments OF gold 70 steady the London market





Government bonds, advancing prices their scarcity
in this market and the large importatons from Europe
necessary to supply the demand for home Investment,
had been important features IN tho financial transac
lions Of the past month The savings banks insurance
companies and National Banks were large and steady
BIZ ers while estates, trustees and capitalists were put
ting away large amounts for permanent investment.
and the people generally were disposed, to large ex-
tent, to make their investments in the same di-
recton. The dealings for the month had
been very large their transactions reaching nearly
OOO He did not therefore any necessity for
apprenension The sudden rise gold would probably
be severe on the shorts" otherwise he believed that
the rise would be good thing for the country. The i'm
porting bonds and the exporting OF gold would be
checked while the exports OF grain, cotton, and other
produce would be freer and more extensive and the
net receipts abroad would with the advance in
gold.