Year: 1870




changes In prices have not been 40 wide IA might
nave been anticipated Very naturally the most
ACTIVITY was displayed In the Gold Room, where the
price nuctuated between the extremes Of li7I. and
little later point being attaiaed at the close OF
tne week immediately upon the confirmation OF the
in'eheence or the surrender OF Napoleon and the
captuIation OF his armies IN tho eastern portion OF
FRANCE. The situation even at this moment
Is not without its perplexities to the speculative
dealers oil the street. for the future OF the Franco
Prusslan war is not so definitely determined as 10
leave the minds OF Wall street clear as to the course
whlch the markets VIII take. In analyzlng the feel
Ing In the Gold Room We and that from the begin.
n'ng 70 the middle OF the week there had been
strong bulish movement, developed by the expecta.
uon that the immediate future OF the war; accord.
Ing to the doctrine OF chances, was to witness, II
not decided French successes, OF least strong
check to the current OF Prussian Victories
The calculation was confidently made that
tnere was to be turn Ia the tide. and
Tue time was thought to have arrived when the
dramS or tile war was to present change In its
ASPECTS. Hence gold was advanced to NIX. At this
point however, the German bankers began to sell,
ana continued their offerings up to the close The
sudden and remarkable course which the war did
take completely upset the calculations OF the
"Dulls." and left the market in the hands OF their
however,
fall was less than the 'bearsn anticipated, ana the
resistance which the price exhibited at 1l5
ia has been cited as proof OF the
formation OF a speculative bull clique whose
existence before this time has been regarded
as mythical. 1t Is doubtful even now whether such
combination remains whatever may have been
done iew weeks since towards the organization OF
one The legitimate demand for gold at this season,
coupled with the small amount In the banks, the
total amount which they held last evening being
less than OO0 has been the occasion of large
orders from the merchants to the brokers' an on.
portunity for the ful1lment OF which was unex.
pectedly presented in the sharp decline OF Saturday
TINS hypothesis, ana the large purchases to cover
speculative contracts made by the foreign bankers
earlier In the week, go far to account ror the
strength which gold showed in face Of the extraOr-
dinary influences operating for a decline. The iu.
ture, however, when we shall have crossed the pre-
sent gap In our diminished exports leaves no room
for doubt that, take what course gold NAV IN the
interval, there VIII be nearer approach than ever
since the close OF our own war TO specie payments
ana that, too, before tho year 1871 has been well
entered upon. Already the effect OF approximate
peace ABROAD has led to an important advance In
the foreign price OF cotton, which Is the staple
that will form large and increasing
portion OF our exports henceforward. On the sup
position that France and Prussia Will he at peace
again within few weeks 1t Is evident tnat the for.
mer country, supplied. she is, with an inflated cir.
culating medium owing to the issue Of the Treasury
franc notes, will develop an activity and advance
In prices similar TO that which was produced IN onr
own country by the immense issues OF government
paper. We shall consequently find ready market
for our immense stock Of grain. while the cessation
OF war VIII revive the cotton industries OF England.
with the winter tnerefOrs, we may look for an I'M
portant reduction IN the gold premium.


The course OF prices at the Stock Exchange has
justified the warning given In tins column last Mon
day morning that the popular anxiety to mako
speculative sales in anticipation OF repetition of
the panic ana stringency OF last September might
commit a very serious mistake. The market in
these days Is completely In power OF spec,la.
tive combinations that II movement in opposition
to them Is almost certain to be disastrous The larger
holders have despaired OF market wherein to real
ize and have hypothecated heavy blocks OF stocks for
loans running three to four months TINS entrenchny
themselves against the contingencies OF light money
market In the interval. The market was decidedly
buOyan, ana prices rose two TO three per cent In
the course OF the week, the advance being sinu.
lated by the continued deierment OF active money and
by purchases to cover outstanding contracts. The
situation, IN BRIEF shows that the cliques loaded
up with heavy lines Of stocks, which they hne
taken the precaulon to guard the possession of'by
extensive time loans. 1t Is their plan to cultivated
short interest in the hope of making mar
ket by the necessity OF the shorts when
the fall s,rngency shall have passed ard
the public are tempted by the return Of
easy money to try again. Meantime they trust 10
chance for an IMITATION OF prices which Will extr-
cate them from their difficulty. Realization at tie
present time would be the ruin of half the larg,
operators who control the street.


The government market was strong on the foreign
news and prices advanced In sympathy with tht
current OF quotations IN London. Curiously enough
however, when gold fell below 49, the market re-
ceded. owing to the repetition or the sanr
Influences which caused the decline last spring
when gold fell to 1l0it. The establishment
OF equilibrium In the price OF government bonds /.
matter OF extreme delicacy. With high gold th.
enhanced value OF the coupon renders TIE principal
dearer In currency. With gold at ia the coupon II
equivalent to only seven per cent in currency. ant
hence we fnd sudden retreat in the price OF th,
principal, which previously had been advancing OF
the improvement abroad. which was graduali'
removing the probability OF return of bonds TO TIM
country.


The money market was shade more active a
compared with the previous week, but the better
demand was due 10 the larger business at the stocA
Exchange rather than to any outflow of currency.
Indeed, the movement OF the latter was rather In
favor of the metropolis, the decline in gold having
arrested grain operations In the West and checked
the demand from that section. On call the rate
ranged from four TO six per cent. Discounts were
easier. Foreign exchange was depressed by large
sales on Canadian account. and the market closed
dull on the basis OF lO9ss for prime sixty day and
110}z for sight sterling.


THE BANK STATEMENT


The weekly statement OF the associated banks was
more favorable than anticipated and shows little
change In resources from the previous exhibit; for
the loss In reserve. while moderate as compared
with the weeks Immediately preceding, has been
attended with decrease OF liabilities, 30 that the
surplus above the legal reserve falls on only
$22l ss9. The following shows the statement as con.
trasted with Its predecessor