Year: 1872

MONDAY, August 1916 p. M.
On 'Change to-day wheat and -four were lower.
The cotton market was unchanged.


MONEY THREE PER CENT.


The money market was steady and easy at per
cent as the rate call, that figure having been the
average rate Of the days business Some good
borrowers who were disposed to dispute the mar
ket got their balances tribe lower but the bulk Of
transactions was at per cent. Prime paper was
quoted per cent discount.


FALL IN GOLD-115 A 114X.


The chief feature OF the day was the sudden and
considerable decline in gold, which, after few
opening sales at u.s. gave way in the first half hour
to 114h, and thence gradually to 1141S reaction
OF q a 4 per cent occurring In the subsequent
progress OF business The sales were for the ac-
count of the leading member Of the gold pool, who
Is about to leave the city, and gives out that he
does not wish an interest in the market pending
his absence. His conduct was generally regarded
however, as sign that the pool had been demor
allied at their inability to advance the market, and
that the more discontented and


DISCOURAGED


members had sold their gold and withdrawn. In
deed the professed purchase of three millions of
gold last week by the broker of Daniel Drew was
doubtless q feint 10 mislead the crowd Of dealers
and enable the pool to begin selling. Some of the
pool are still heavily Interested but the current of
tnc mdTkeC ID settlnS against Cnem ana develop
ing strong feeling the ''bear" side. The de.
cline to-day was helped by cable advices Of a sud-
den rise in British consols, the result PROBABLY Of
the return to these securities Of money that had
been held or for investment In the new


FRENCH LOAN,


the wave Of European capital that had surged to-
ward Paris having been scattered with the closing
out OF the loan, to the other money centres and to
London particularly, where the influence upon
American securities is likely to be greatly bene-
fcial The persistent weakness of foreign exchange
had also sapped the foundation OF the gold specula-
tion the relatively dearer value Of gold an arti-
Gle of export leading to cessation OF specie (gol
shipments and an augmentation Of exports of do
mestic merchandise and corresponding increase
OF bills on Europe. 1t is no secret that the gold
pool had for On object to catch and "twistn the
great


MERCANTILE SHORT INTEREST
more particularly, and the name of Mr.. A. 7. Stew
art was freely quoted in the Gold Room as the
great "bear" OF the market who was down on the
programme for the severest squeeze" The wealth
and credit Of the gentlemen threatened stood to
them, however, in this emergency, especially as
the device Of borrowing bills OF exchange was a
move on the board to which the pool could inter-
pose no check. Foreign bankers were always will.
ing to lend our merchants their bills on London
against greenback coilaterals, so that the mer-
chants found means of paying their creditors
abroad without seeking dollar Of the gold which


THE CLIQUE


fondly imagined they could dictate their own terms
for In this way the merchants defeated the efforts
of the pool to make "corner" in gold, and hence
the gradual weakening Of the gold speculation.
Throughout the present season the pool found it
extremely difficult to make gold lend at ''natn and
then on few occasions only, and their interest ac-
count shows


HEAVY LOSS.


Last year the combination, small it was, made
gold worth enc per cent for days use on one day
and exacted steady consideration OF u a 4 per
cent for quite while. The stimulus of this exam
pie largely Influenced the organization of the
present pool; but meantime the merchants and
others who have occasion to gold from
day to day learned the trick OF borrowing bills of
exchange and the pool came in day after the
fair. Our remarks are not intended to defend the
virtual speculation which every merchant engages
In who does not buy gold at the market price to
close his account with Europe, but prefers


TAKING THE CHANCES


of lower premium later in the season. This kind
OF policy tempts ''bul' speculation, and such
a one has only failed now because Of the good
fortune and credit OF the mercantile ''bears.r At
the decline to 1l4% heavy purchases were made
to Oil outstanding orders, and reaction to 1141S
took place. the market closing at 114M. The de-
moralization Of the clique and the lower premium
combined to stiren foreign exchange rates, the
leading bankers advancing their asking figures for
sterling to 100 for sixty day and lo9X for sight bills
The course Of the gold market Is shown in the
tablet


GOLD FLUCTUATIONS.


10 A. N. .:."...... 1l5 11:5o A. M....-.. 114x