Year: 1870




The speculative interest OF the week was largely
diverted to tho Colo Room, where much curiosity
was manifested concerning the progress OF the most
recent "bull" movement In the precious metal
That curiosity was not such, however, to induce
any important addition to the number OF operators
who are now ranged on either side Of the specula-
ton The premium was lower at the close than at
the opening, following the line OF curve with It's
greatest depression midway OF tho week. The
brokers' who as brokers often do, bought for them
selves whec they bought on clique oroers, SOLD out
their own gold at the high prices ruling on Monday
ana left it to the cllques to rally the
market again later on The cliQues, from all indi-
cations nave not 'got out' OF their gold, and can
not, with profit, or even without loss, until they
have raised the market one or two per cent, ana
there rendered 1t nrm enough to sell upon.


1t will be found at no very distant day, however,
that the gold movement which ls thus In what .
pugilist would call 'cDanccry," Ii only subsidiary
to the plans OF the "bull cques to extricate them
selves from the extensive lines OF stocks which they
have been carrying through very dull market, the
public this spring having shown very little
enthusiasm about taking part IN the CAM
paign, the ease OF the money market to the
contrary Notwithstanding. To use figure which
the war has rendered familiar to SO many OF u.s. the
cliques are building pontoon bridge over which to
escape the consequences OF their heavy ventures IN
stocks. The hrmness Of the gold market is to con-
tribute the buoyancy requisite to float the load, and
II by patient labor they can gradually and slowly
exchange their stocks for gold at the present mar.
ket prices they Will. by accommodating their money
upon the latter, give 1t strength which
Will enable them to make successful retreat
out OF the former. Tne sagacity OF such
a manmuvre is on par with the undeniable
skill which these SPECTATORS possess. No operator
can lose more than IS per cent on gold. A tumble
In stocks would cause him to lose possibly twice or
three that sum- The clique, like troops well han
died by their general arc moving from one strategic
position to another to enable them to gather the
fruits OF their campaign. They arc executing
financial change OF base. Local influences have OF
course their effect upon values at the Stock Ex-
change, but the above Will be found to comprise the
most comprehensive view OF the present situation
OF affairs in this department. of Wall street.


The money market was easy, at five to seven per
cent as the extreme rates on call loans It Will
be seen by the bank statement below that
the banks have been more conservative the past
week. and reduced their line OF loans about two MIL


lions OF dollars; but hts policy was an onset to the
decrease OF resources in the banking movement OF
the previous two weeks, when the "bear'' ciques
sought TO precipltate decline in STOCKS by lockng
upm greenbacks rather than the result OF apprehen-
sion of greater activity in the immediate future.
The exchanges with the West and South are still In
our favor the demand from those regions being Still
inexplicably deferred If not postponed. Commercial
paper Is in moderate supply, and rates remain
steady at seven to eight and half per cent for
prime double names.


The government market was alternately strong
and weak In sympathy with the fluctuations In gold,
and closed firm at the quotations recorded further
on. In the Southern list the only activity was IN
the new Tennessces, which advanced 60 So in the
hands of the party who have undertaken to advance
their price in 1urtherance OF speculative move
ment Foreign exchange was higher and strong,
closing at 1887 100 for prime bankers sixty days
and l0915 1O9% for sight sterling bills


THE COUNTRY GROWING TO SPECIE PAYMENTS


The recent decline Of gold to 110A was the result
Of a process which we have all along maintain ed
would solve the problem of return 10 specie pay
menus. We have constantly suggested that Con-
gress should not medde with the currency as q
means to tnat end. The wonderful growth OF the
business OF the country will ere long render every
dollar OF paper active, and bring the specie once
| more into circulation. We find the following en-
| oorsement of the HERALD platform OF specie pay
| ments in the London Economist Of Marcn 20:--
But wnat Is the cause OF this general fall To &C
| count for 1t we must consider carefully the exact
case OF America. We may describe 1t lsuoject to
correction we shall give Directly as country
| largely augmented amount OF business. Tue number
OF greenDacks issued by the government the same
but the OF these greenDackS, the bargains lOl
which they are wanted, the comnodltles whlch they
have (as Americans say) TO ''m0ve" have increased
! very RAPIDLY. The South IS now again becoming IL
| be prosperous. Inc whole country. which, at the
| end OF the war, was a DESERT Is now again In par


still, in most places, to considerable extent and
| In some places to q remarkable extent. Inc same
| greenDack currency which at the end or the war
| only circulated IN ana had 10 DO only tue WORK
the victorious country now clrcuiateS IN and mus


meet the needs OF the defeated halt, too. Inc busl


ness OF the South s new, and as 1t has 10 be trans


acled IN the Old money, there Is fresn demand for
that money and the value OF IL rises. Ii may, IN
! deed be replied that the government paper cur


rency Is not the only paper currency VI the United


States; that there Is also national bank currency


Dut the ilrst place, tne amount OF this Is llmltet
| by law. In the next place the value OF 1t must b'


the same as that or greenDacAs for 1t IS paya bic II


greenbacks, aud a fixed proportion of grcenbacA


must be Eeld as reserve against 1t by every ss lnt
| bank; and, thirdly, the South never got It's du
| proportion OF this bank currency. Ii was too poo


to get IL. TINS national BANK currency miss be sc
| cured by deposit Of United States oonds and TINS
Is a considerable Investment or capital. fne Souti
has not been able to pay down enough to obtain
| due snare IN Its circua.on. secured circulation
necessarily ls a heavy burden on very poor coul
| try, though very light burden on rcn country
| The amount Of national currency


Last year, OH 9th OCTOBER $299, OILS, 90


Now ls.......... Zso'oc''oo
showing no real increase. The case then. is one O
the most remarkable III economical history. OWNS


to the enormous increase IN the amount or American
business an increase probably unprecedented whe
| we consider botn the area OF business ana the guam


tlty OF business the same amount Q, paper currenc


IS not as efficient 1t was once and Its value Is ar


preaching TO tnat OF gold now that the South Is rap


iuy improving and that It's improvement aids q


WHO sell TO II ana deal with 1t. The principle OF th


phenomenon is Old and European, but 1ts size Is ne'
ana altogether American


TIE BANK STATEMENT.


| The weekly statement or the associated bank


yerlfes the truth OF the suspicion that the falling


in the legal tender Item the previous two weeks wa


OF speculative origin The clique who were the cans


Of It appear have abandoned the effort; for the r


turn OF Saturday shows the restoration or the none


to the banks while increase in the deposits repre-


senLs the continued receipt Of national currency iror


the Western states. The specie line Is dow u abou


two millions, the customs duties OF the week bein


again quite heavy-some three and q half millions


The following table shows the condition Of New Yor