Year: 1870

As,> WALL STREET, I


THURSDAY, Sept Is % M.


MORE ACTIVITY.


The predisposing causes to an active market at
the Stock Exchange to which reference has been
made quite frequently OF late In this column, as-
serted themselves more prominently to-day under
the combination of such fostering influences as
further reduction In the Bank Of England rate Of dis
count and another large increase In the bond pur.
chases Of the government. The former, by tending
to check the export OF capital from this country a.
sures the banks against o further inroad on their
coin reserves through the medium OF gold ship
ments, while the latter operates to place the
rency balance Of the Treasury In the banks,
with the effect OF increasing their legal
tender reserve. But 1t was the tacit pro-
mise Of the government which was thus
implied that had the most to do with rendering ad
dtionAlly buoyant the speculative feeling at the
Stock Exchange. On two occasions Of late the Sec
retary Of the Treasury has exceeded his expected
disbursements OF money In cancelling the public
debt and has not as yet neutraized the erect upon
the money market BY increasing his sales OF gold.
The relaxation to the money market by these extra
purchases of bonds Is even more than Is apparent.
The obliteration Of million Of bonds would by IT.
self simply set free million Of money; but not only
Is the capital invested in the bonds set free but
million more comes out or the Treasury
upon the street. The effect is, therefore, TO
place two millions of money In the market
ready for reinvestment or the policy OF the govern
ment in this matter the political writer's charge that
it is Intended for influence upon the fall elections,
but it will be remembered that we intlmated week
two since that General Grant and Secretary Bout
well were intent upon making the money market
easy with view to promoting the business activity
OF the country as o means to accomplishing the
Presidents av0wed policy as expressed in his inau-
gural, Of faithfully collecting an abundant revenue.
The street, therefore, moves with more confidence,
and engagements are undertaken with little appre-
hension Of o dangerously stringent money market
this fall.


GOLD 1141S A 1l3zs.


The reduction in the English discount rate, which
shows that the market IN London aDundantly sup
piled with money, despite the transfer OF capital to
this country through the agency OF the Canadian
banks; the advance OF 1ve-twentes In London to
0Ox 907S, and the better exhibit of our domestic
exports, which this week are million larger than
two weeks since, while the imports, on the other
hand decreasing iE such proportion as TO bring
the figures to an equality, were o strong COM
bination OF influences against higher gold and
effected fall to-day from 1141s to 113T, the COM
paratlvely slight decline being due to the heavy de-
mand for cash gold In settlement OF customs duties,
as well as for the maintenance OF speculative con-
tracts in the Gold Room. 1t was this demand
which occasioned an eventual reaction to 114h in
the afternoon the upward turn being strengthened
by the new complication in the French and Prusslan
war, which presents King william as demanding to
make peace only with the re-establshed Regency OF
the Empire. The course OF the market Is shown In
the table,