Year: 1870




SUNDAY, Jan. = 1870
The business OF tile past week In Wall street was
on diminished scale, under q general disposition
10 make new engagements until the advent OF the
New Year.


THE GOLD MARKET


attracted than usual attention. for the reaso on
that In the two sales by the government Mr.. Bout
well contradictory In his policy. At the outset
was the understanding that In future ne would
not reject bids which were within half cent OF
the market price Hence the inference by the street
that. provided shis limit was obtained, gold would
not DO held back. 1t gave q virtual promise that
future sales would be uninterrupted, experience
showing that II IL easy 10 dispose OF the gold at
small traction below the market price. This policy
underwent sudden alteration on Friday, however,
when the last million OF the year was TO be sold An
order was then received from Washington to accept
only such bids as were above 100. Under the pre-
vious understanding gold fell TO ll9h. 1t now
reacted to 1907. What is the meaning OF this sud
den change IN the Secretary's panss 1t Is not di-
cult perhaps, to determine His capacity to sell
gold viii be greatly diminished in months ensuing
to May. The Treasury gold balance after the pay
mens OF the January interest win show only about
twenty millions Us actually the property OF the gov
ernment. The income from customs during January
Will be light, as not only have our importers re-
duced their purchases but the season Is the one
when the receipts Of foreign goods fall TO the lowest
OF the year. Hence should he pursue his policy OF
selling ten or twelve millions OF gold per month he
would before May leave the Treasury almost empty.
His action, therefore, Ii only . preparation for o
reduction OF his programme for January. The gold
sales of the month will be sufficient merely to pro-
vide means for buying the monthly cancellation Of
bonds for the Sinking Fund. AS to the effect upon
the gold market 1t is an open question The gold. If





ness is operative from either place. The foreign
demand cannot but be light until the export
Is over-that Is, until spring, when the imports
Will begin to be felt.


TIE MONEY MARKET


worked gradually closer until the last day OF the
business week. when there was some relaxation,
owing to the desire OF lenders to employ their bal
ancss over the two holidays while the government
disbursements In payment Of purchased bonds also
combsted the natural activity Of the market which
was due to the calling in u loans to meet the pay
ment OF January dividends. interest, coupons and
the like The money 30 disturbed Will continue to
remain out OF bank for few days OF the ensuing
week, and hence some activity Is looked for until
| the 9TH or tn inst


were quiet and rather easter, "gllt edged" prime
short paper going as low as eight per cent and or
| dinary prime double names at nine to twelve.
FOREIGN EXCHANGE


heavy and declined, closing duh and rm at the
| lower quotations.


GOVERNMENT BONDS


were active toward the close In response to sharp
rise In Europe and In sympathy with the irmer
tone communicated to the gold market by the action
of Secretary Boutwell, refusing sell below l2O.
THE STOCK MARKET
was heavy until near the close OF the week. when
tilt between some OF the prominent operators In
duced upward turn In Northwest, which resulted
| In more buying and o stronger feeling generally.
The feature was o decline In Pacific Mail to AK,
upon which price 1t eventually recovered nearly two
per cent.


THE BANK STATEMENT.
! The weekly bank statement OF the associated
banks, which was presented on Friday afternoon, is
| highly favorable and shows the beginning or the
accumulation OF funds at this centre 50 usual IN the
winter montha The specie item Is Increased two
and three-quarer millions and the legal tenders hall
| million dollars, while the loans are decreased
about seven hundred thousand dollars The de
crease IN loans Ia doubtless due to the calling In o
| funds by the banks for the payment OF dividends
| and semi annual interest The reserve has beer
| increased three and quarter millions, while th'
| banks have nearly three millions in the surplus
above the legal The totals OF the last tw
stataments are as fOlOws.--