Year: 1871

/ WALL STREET
| SUNDAY. Sept 81, 1871.
Trade during the week has been active but prices
| irregular ana unsettled The dry goods market
| SHOWS some signs OF slacKening. The advance In
gold, coupled with the relaxation In the terms for
1 the use OF coin has stimulated the export trade.
THE WEEK IN WALL STREET.
| In financial circles attention has been generally
absorbed with the course of the gold market, which,
| Under clique manipulation, was very strong. The
success OF the speculative movement In this direc-
| tiOn would have been greatly impaired, however,
had it not been assisted by the actual scarcity OF
coin in the country, the returns Of foreign trade
showing that during the fiscal year ending July 1,
1871, we lost over seventy millions OF dollars OF
specie in settlement OF the balance OF trade leaving
as therefore, SO much poorer of. The clique re-
peated their squeeze early In the week. and yhere-
FORE invited the interference or the Secretary of the
Treasury, who ON Thursday sold six millions, but
with only temporary effect In depressing the price,
which on Saturday touched 115h. The squeeze"
was net repeated In "Cash' gold, which became
even heavy and di1acuIt TO carry after the govern
ment sale.


The money markeo was irregular ana feverish,
advancing from three per cent TO seven anu closing
on Saturday afternoon at merely nominal rates.
This sudden relaxation was due, in part, to





OF the employment OF balances during the
two days to Monday, out principally to a notice
from Mr. Boutwell, that he would on Monday re-
ceive proposals for the sale to the government OF
three millions OF ve-twenties. thus equaizlng his
Treasury operations, SO far as the money market Is
concerned. by releasing the currency withdrawn by
his extra sale OF gold. 1t Is fortunate that Mr. Bout
well has taken this course, for the banks are very
poor and need every dollar which can be spared
from the Treasury.


Government bonds were also irregular and fever
ish, in response to the more active demand for
money and were depressed late In the week by
rumOrs OF o heavy market in London, but eventu-
ally rallied with the rise In gold ana closed strong
the reaction inducing belief that the foreign mar
ket had improved.


The foreign exchanges suddenly advanced, in
sympathy with the relaxation In the terms for the
use Of gold and an advance in the Bank Of England
rate of discount Part Of the time 1t wac difficult
to get sight sterling at less than 109H, but the rise
In gold allowed produce shipments and better
supply OF commercial bills, under which bankers
bills fell on fully One.quarter per cent.


The more active inquiry for money on call stiff
fened buyers rates for commercial paper, ana
prime names only were negotiable In the vicinity
OF seven per cent.


The stock market was feverish, with wide and
frequent fluctuations. The reoccupatlon OF the





''breakn in prices, resulting from heavy sales by
the ''bears." movement to cover led to strong
reaction but the rise brought out fresh Sales under
which the market again declined, the lowest prices
or the week being made during Friday or on Satur-
day morning. The Oversod condition OF the market
rendering 1t quite sensitive TO fresh movement TO
cover, the announcement OF Mr.. Boutwell, that he
would buy three millions of bonds on Monday
started q second scramble for stocks. but the
''bears" In covering were met by a fresh line Of
sales, occasioned by the bad bank statement; but,
assisted as they were by revival OF courage on
the part Of the "buls," the market maintained its
upward tendency TO the close OF business, when
prices left on with decided improvement on the
| lowest prices OF the week.


THE BANK sTATEMENT.


The weekly statement OF the associated banks
proved very unfavorable. The total loss In reserve
! Is over six Millions comprising loss Of five and
half millions Of legal tenders and over half million
| OF specie. Inasmuch the Treasury operations OF
the week embraced sale OF six millions OF gold and
| purchase OF three millions OF bonds, the loss in
greenbacks must be attributed in great part to ship
mens Of currency to the interior The loss In specie
Occasi0ned, naturally. great deal OF surprise. In
view of the heavy sales OF government gOld but is
counted for by the heavy customs payments and the
moderately large specie shipments OF the week. More
over the average is rising ono IN specie and does
Ols
sin this Item. But any calculation of the reserve
| based on this consideration should also take into
consideration the fact that the average in green.
backs is railing one and that the loss Of five and q
half millions does not fully represent the decrease
OF legal tenders. Some effort has been made, slight
though 1t be, to curtai the liabilities and accord


ngly the deposits show not only the loss OF reserve
| above specified, but also contraction Of about
| three and half millions in loans, occasioning re-
duction Of nearly ten millions In the deposits. Des
pe this effort the surplus has been impaired
the extent Of about So 900, and as the banks
| last week had surplus or only $4700,0OO, they
| are left now with surplus OF only q
little over o million dollars. This extraordinary
situation Of the banks has seldom or never been
paralleled in their history. When 1t is remembered
that there only about sixty banks In the Clearing
House, and that the uptown and more conserva-
tive institutions certain to hold surplus reserve
equal to more than the million dollars OF surplus
shown in the combined statement OF all the banks,
there Is prirad Idcie evidence that fully majority
of them have grossly violated the law requiring
them keep their reserve up to the specified per-
centage and in view of this we think it highly I'M
portant that the Comptroller OF the Currency should
demand an Official statement OF the condition OF the
banks as they stood ON Saturday, and strictly
enforce the penalty prescribed for violation OF thu


law. Otherwise what safeguard have the commu
| nifty against q most dangerous bank expansion
| With the reserve thus drawn down TO the verge o


its limit and with outstanding loans OF $500 900 600
| s1,ott nr.vo tr