Year: 1871

From the Herald


"The chief event of the day in Wall street was
the sudden and great relaxation in the money
market under the disbursements OF the Government
in payment for the fve-twenty bonds purchased
the previous day. The speculative clique who are
seeking to produce strngency by the withdrawal Of
money from he street nave not given up the at
tempt, for the banks lately creditor at the Clearing
House have not shown the return OF the money: but
their efforts have been rendered futile by the inn
the rural districts and out-of-town banks


"1n fact the market was already passing out OF their
control when the Government disbursed money. Yes
terday at the close they were unable to keep up the
rate on call. This morning they made a desperate
effort to start activity and frightened some small
dealers into paying seven per cent gold, but after
O'Clock money was offered In such abundance that
letters were forced to accept six and five per cent
rather than lose interest over night, while some
borrowers were supplied at as low four per cent
1t was money creuasse, which broke down the bar.
Iiers of the clique and hooded the street. the
tide being suddenly swelled towards the
close close ,o OF o,l banking ! hours py the payments
IRON IRON the su@3-Ireasgry ~ While the pool are
other reports state that their failure is the result of
mismanagement The real secret of their fasco
however, is the natural abundance of money and
the easy situation OF the banks 1t is the city
is just now glutted with national bank notes. which
but people use them and pass them from hand TO
hand, so that their office OF a circulating medium is
conserved The cliqne doubtless anticipated that
the glut OF them would help their scheme. But
when money is tight borrowers will take national
paper not affected by the recent rregularty in
the rates on call, and prime double names quoted
las per cent. discount. Foreign exchange was
rather less firm, bat rates were unaltered.


"The Gov vernment list was more active aud the
fresh inquiry seemed to run the ten.fortes in
view OF the approach of the 1st of March, when an
other coupon will be due. The London market was
beti er, but its improvement simply communicated
strength here. The currency skies, although dig
tinct Government issue, originating as a subsidy to
the Pacific Railway, were lower on the report from
Washington that the Committee on Appropria-
tiOns had under consideration resolution instruct


ing the Secretary OF the Treasury to abate his pre-
sent demands upon the road for back interest and
to pursue the policy which was originally observed
with reference TO the matter At the close the Gov
ernment list was strong and buoyant for the gold
interest bonds.


''The gold market strong on purchases by the
clique, who are manipulating the money market,
and whose most recent strategy seems to he move
ment in the Gold Room for higher prices, with
view to depressing stocks, that sequence being eX-
pected to follow, as has been it's wont to do ever
since the two markets were unsettled by the Franco
Prussian war last summer Defeated in the money
market, they turn to the Gold ROOM anticipating
that high gold VIII bring down stocks Their efforts
to-day extended to the Sub-Treasury, where they
made great show OF demand for gold by sub
lifting great number OF proposals ranging from
ITO (Which was far below the markeD to 110691G,
the total amo6nt solicited being S7,036,000 The
million was awarded In two-one lot OF S950000 at
11O'62H, and another OF s5OOO0 at ll063H. These
movements put gold up only \ per cent.-viz., from
l1Ob to 1l0A."