Year: 1870

WALL STREET,


FRIDAY Oct. 2l--6 r. NJ


In commercial circles there was only moderate
activity to-day. but prices were steady. In bread.
stuns prices were shade frmer under better do.
nestle inquiry for the finer grades Of wheat. The
cotton market was dun.


GOLD 1925 49,


Tho Gold Room was concerned to-day as much
about the loaning rates as about the price or the
precious metal The borrowing rates for cash gold
were firm at the opening when as hirh as a 40 was
paid for the Clearing House. But as the forenoon
wore on II became evident that there was n better
supply OF gold, and the rate eventually fell to nat
WINE In exceptional instances where the lenders
'nao reirained from accepting earlier bids as
hign as three per cent was paid for carry
hR After the business OF the day had been
niade up there was the usual engagement OF loans
ior tomorrow, and, as the feeling grew that the
market would be 'squeeZedu again, borrowers, in
sneir anxiety to secure their god agreed pay 1-18
ano q per cent Tor the use or 1t. The transactions
daiy are becoming almost stereOtyped repetition
Ia ths respect, the only variation being in the as
cending and descending grade Of stringency. The
balances tonight In the Gold Bank show that nearly
all the gold taken out yesterday restor cd to the
market to-day. Wnlle the Canadian banks are In
general charged with this artificial manipula rion OF





British North America. whose agents state that they
nave constantly renewed their gold loans every
morning, and have never withheld gold and kept
II unemployed for the purpose Of produc-
ing artificial rates. 1t also said that
the President or the Bank Of Montreal,
Wnen In the city day or two since, solicited to
JOIN me movement tor locking up gold bu, that he
emphaticay refused to lend his assistance or sane.
tion TO any such scheme. These facts only confirm
wnat mas be en- hitherto stated In this column to the
enect that the foreign lenders Of gold in market
are, for their own protection, favorable to lower
ruling OF the premium. Hence while there IS un
doubleday collusive movement between some OF
these Canadian bank officials and our domestic ope-
rators TO manipulate the price gold in furtherance
OF their private speculative plans gold actually
belonging TO the Canadian banks is beyond their
reach Tor disposal as much as II IL were in be-
ieaguered Paris. But being agents Of the banks
for lending the gold, and knowing the neces.
stiles OF the market, they Withhold or let
loose the gold suits their speculation in the gold
market proper. They are In league with brokers In
the Gold Room, wno buy and gold accor ding to
the oraers given by the Clique. While tnus fulfilling
their commission to lend the gold at the best rates
they can procure they take 10 make those rates
suit their own plans, and doubtless eXcnse their
oonscieces by the logic that they lend all tue gold





OF 1t next day at one-eightn per cent, they are
morally fulfilling their duly to their employers in
Canada Hence when they are desirous OF going
'long" they make cash gold easy for the .shorts''
cannot resist the temptation under such circum-
stances to SELL When they have bought their line
wMch may range from million TO two millions they
squeeze" the cash gold and run the price up
and hold the loan market stiff while they unload
and 90 ''short' million or two more Their
''short" line being placed they make cash gola easy
again. and the price falls to point which enables
them to cover And 80 the process Is repeated from
day to day, or may be twice the same day the pre-
caution being taken meantime that they shall be
in such position as to suddenly get out Of their
'1ong" gold should there be premature order
from the Secretary Of the Treas ury TO prepay the
November interest This explana tion will serve to
clear up what has appeared to be so mystero OF
late in the movement or the gold market. The
Canadian banks have eremptorily refused to sell
their gold. They seek sim ply such rates OF interest
as they may get for Its in facilitating the
speculative plans OF the ''bears.n Their agents,
however, having discretionary power In the use of
this gold, speculatIng for their personal
count and employ 1t as best forwards their private
purposes. The course OF the market to-day reflects
the operation OF the Influences thus Indicated. In
the forenoon, under the peace predictions from
London and report that the Secretary OF the Trea-
sury had ordered the prepayment OF the November
coin interest the public debt, gold fell to 1929,
the temptation to the bears to sell being rendered
more seductive by the easing up Of the gold loan
market The clique bought from 11216 up to
1l2N, and gave the market closing stinening
touch by taking few ''tens'' at 113 very late
this evening when the Gold Room was almost
deserted. Their agents have also prepared the loan
market for squeeze tomorrow by agltating
high rates this afternoon that morrow, If
naught untoward spoil the scheme, they VIII repeat
the operation Of high rates Tor cash gold compel
the 'shorts" to The course OF the price to-