Year: 1870

from the NJ I. Herald


'There was less activity in commercial cir cles
owing to the storm, which kept dealers from
Change. The Liverpool advices show frmer mar
kets to-day for cotton and wheat, but exports are
still embarrassed by the lack OF sufficient freightinp
facilities. The engagements for wheat are for a
was heavy, and prices yielded about 1c. on export
able grades the market closing nrm but dull at the
'Tbe continued deferment of the order OF tho
Secretary OF the Treasury permitting the prepay
ment, without rebate, OF the November coin interest
on the public debt has tempted the holders OF gold
to give the loan market another squeeze 1t will
be remembered that they dessted from their recent
efforts in this direction through an intmation that
MIR. Boutwell, would be induced to permit this pre-
payment, while meantime they had managed to
force the shorts to cover their sales, and placed
great deal OF their gold on the market It has been
usual for the Treasury to pay the November coupons
about week before they become DUE


Last year the prepayment began October 26, so
that II Mr. Boutwell, adheres to this precedent there
remain only few days to the time when the bull
movement In gold must give up the ghost Some
stress laid upon the fact that one Of the leading
officials OF Canadian bank was in town to-day and
the bulls used the point dexterously in manidu-
lating the loan market 1t is evident, from very
nature Of the speculation Of foreigners In our
market, that they wish to gold decline. Ia other
words, they naturally desirous of getting their
gold back for fewer greenbacks than they sold it
United States and turns 1t into greenbacks is,
through self-interest a bear in the gold market.
The real relation the Canadian banks hold to the
market is not at all clear If the truth were known
1t would be found that they using part OF their
gold in the loan market and are specializing for





doubtless agents specializing for the Canadian
banks, effected the squeeze to-day only by with
drawing about 81 500 0C0 cash gold which they locked
up without interest while they forced considerations
ranging from 1882 to LILO and q per cent for the
balance of their store. 1t may be wise policy to
reduce ones capital fifty per cent and double the
interest," but there is just as much money in getting
the ordinary interest on the full capital The only
object OF the squeeze is to enable the bulls to
unload. Hence, when by their efforts in the loan
market they had frightened the shorts into buy
ing up TO 1871, they began to SELL and the market
declined to and closed weak at 113 the reaction
being assisted by cable kilograms more promising
the high rates for borrowing parayzed
foreign exchange. the leading bankers
bills and to 1O9H for sight, at which reduction the
marl ct was dull and weak at the close The lowest
rate for borrowing to-day was l32 and the highest
for the Clearing House u. For gold ex Clearing
House the shorts subsequently paid as high as n
per cent Even after the business OF the day had
been settled the uneasy operators for decline were
determined to guard against any contingency, and
this evening paid and 3-16 for the use OF gold to-
morrow"