Year: 1870

FToTe the N. Y. Herald


''The important event OF the week in financial cir
ces was the announcement OF the decision Of the
United States Supreme Court on the question of con-
tracts made before and falling due after the passage
OF the Legal-tender act the opinion OF the majority
of the Court declaring all debts SO created to be
payable in coin. The effect was however, less per-
ceptble than might have been anticipated and after
a few days discussion the topc--llke all Wall street
sensations-was soon dismissed from general
consideration. The question is one which has
lost much OF it's interest," for the that during
the eight years of suspension old contracts have
been cancelled or merged into new ones watch will
be settled without legal recourse to the decision just
rendered OF course there are numerous minor
debts and money contracts which are not obviously
adjusted by the general tenor OF the ruling OF the
court but these If itgated will only have to go the
rounds OF lengthy judicial processes, and meantime
the cause OF action will have disappeared in the re-


''Wa Street has become quite bearish in its views
OF the immediate course OF the gold market. When
the opinion OF the Supreme Court was given it was
supposed that the greater demand which would
thus arise for the precious metal would influence
higher prices, but whatever the eventual effect of
this decision, gold has been weak and heavy. IL is
difficult to say why the premium did not respond
temporarily given the market seemed to be taken
advantage of to sell large amounts which
had been held by speculative hands in ex-
pectatlon OF rise which did not come. The
bulls in gold have had long and tedious waiting
OF it, and tired OF the delay and the dulness OF the
market have at last unloaded to the best advantage
The outside influences are not such as to favor an
advance, and as is known that the Government Is
steadily opposed TO a rise, bull movement does
not enlist much favor among the SPECTATORS In
deed, the chief operators abandoned the Gold
Room month ago, and have not since seen
inducements to return. The specie shipments are
nominal, and although the export since January
has been nearly four millions, the greater portion OF
II has comprised coin in tFduSitu between Mexico,
Cuba, and South America and Europe and gold and
silver Dars With the present price or exchange
there me. is no profit In shipping American coin, aud
shipments OF cotton and produce Gold Is therefore
gravitaung TO lower prices, and unless the specu-


tors step IN TO sell 1t short, and create an unnatural
demand for 1t, the immediate future is likely to wit
ness one step nearer the consummation OF specie
payments


1.-THE money market during the week was steady
at four to six per cent, with i've and six as the pre-
Vailng rates on call loans with pledge or Govern
ment bonds and miscellaneous stock collaterals.
Whatever tendency the market manifested to still
lower ngures was cOunterbalanced by the Increased
volume OF business in stocks and the consequent
absorption OF more OF the idle capital with which


the banks are supplied at this season. An influence


is now at work which may eject some fluctuations in


the rate on call In the immediate future IL seems that
our CITY banks are endeayoring to remedy the evn
OF the overpus OF national bank notes Dy making
| them up IN packages and sending them home Tor
/ redemption, thereby eXtempOrizings process OF
redemption which should have Congressional re-
| gulation. HOW far these exchanges VIII Affect
| the money market remains TO be seen. Remotely
| they VIII benefit local banks, lnasmuch as
| they Will III few weeks strongly Iortuy the re-
| serve OF greenbacks, and thus afford more scope
i for the expansion of loans and the increase OF
deposits. Commercial paper was In good demand


at six TO eight per cent for prime double name ac


cepances, and at to eight for the best single


names. Foreign exchange was steady In the face OF
| a lighter supply of commercial bills, and only
| moderately active at 1OSM@109 for prime bankers
| sixty day sterling, and l0sH@l094 for sight


sterling The absence OF commercial bills is attri-
butable to the fact the exports OF the Southern
ports are constantly growing In magnitude, and


hence the drawing from Southern cities on Earope
direct"