Year: 1870

MoRs the NJ 7. Herald.


''wall street presented unusually interesting fea-
the sharp decline in gold With the closing quota
tion tonight OF lIx@ll1H the salient point OF the
through the operation OF numerous innuences SO
curious in their connection with and bearing upon
notice. Behind the present movement the there is, Of
course, considerable manipulation, but the specu-
lators whe are assisting the decline have blum
tendency OF the market. Remote as the cause


is IL is no less true that gold s continuing 20 ex-
perence the reaction from the corner OF last
September, when the price was forced 10 1G5 Be-
fore that eventful Friday 1t was common remark
that no article safe 10 deal in, long or short


as gold because the movements in IL were so delibe-
rate and free OF violent nuctuation In time OF
peace that an operation either way was attended
margin. But that corner proved it was danger
ous as speculation in stocks, and as confidence in
OF the corner entaied greater disaster, and has
since elected unusual caution among speculators.
Hence the daily clearanceB now range from
twenty to forty millions only where formerly they
ranged up TO hundred and even two hundred mil
M SyeT spOfS Ave OF 1ne ocg Ss
cal bankruptcies and distress produced by
the great tumble In gold have also rendered business
impOrtations Is shown in the marked diminution in
the introduction OF foreign goods. Now, the imports
the chief sources OF the demand for good and the
cause OF the premium thereon. As gold has con-


tinued to fall since September, parties OF 'bulsh'
propensities have occasionally interrupted the de-
cline in expectation OF an upward reaction but the
causes OF such reaction have been wanting. Since
the begicn OF the year there have been two de-


berate efforts the part Of the professional specu-


ators to put gold back to 130 but both failed and
the bulls were glad TO get out without loss
there until they sold out Latterly we have had
the decentralization produced by the foreign
demand for our Government and railway securities,
and the cable reports constantly advancing mar,


ket for the nve-twentes In Europe where the rates


een IN ese S1f s


bonds and stocks do away with the necessity gold


shipm ents, and the precious metal remains with
in all Its plentitude Again, there IL o sort or
homeopathy about the gold markets decline pro-
duces decline. The feeling that gold was cheap


constantly. Hence the great mass OF dealers were


1ong' II. In the absence OF both natural de-


destiny for the pricea decline. The universal i'm
preston that gold was cheap kept the
shorts out, or rather limited their numbers, and


hence the bulls have gone on day after day paying


five or ak per cent. to have their gold carried but
without the satisfaction Of seeing the market ad-
they sold out In disgust The new buyers sold out
turn, and so the market was slowly falling twas in


WashDston S secretary sees S
intention TO pay the March interest on the
ten,iorties without rebate; following which
| sury az noon Of only a, portion Of the amoRnt


offered, the gold dealers being Indifferent as TO
| be sold; while at the same time foreign exchange
| was weak on the enhancement Of Five-twenties at


London and Frankfort. The condensed result was


decline in gold to 117%-the lowest point since


September, 1852 Curiously enough, the temper Of
| the gold room changed the bear side, and OF the


sales at the lowest figures of the day very many


were speculative account II there Is a reaction
Of any moment from the present quotation in the


absence Of outside influences, 1t will be due to this
! temptation to Oversel the market. - lI0IT
"The effect upon the government market OF the


decline In gold has also been curiously interesting
! In earlier transactions prices were steadily main


tanned at those Of the past few weeks, the demand
! on foreign account nve-twenties In London advanc-


ing today to s93 being such as to offset the lower


premium. But the sharp decline to 11Tf worked It's


fnnuence at last and lowered the general list Of Gov
| ernments quarter 10 half per cent The curions


feature, however, is the equalization Of the
price OF 1885 and gold, both selling to-day at
| 117s4. In this steady approach Of the two ono
\ tatons to each other the market seemed TO cuimi-


nate for with the present condition Of national
| debt and finances the maximum price OF a
| bond is not more than its equivalent In gold. At


least such appeared to be the opinion OF holders for


the S1s were freely and generally offered as their
par in gold. The more recent issues however,


still show margin OF several per cent difference,


but that margin Is tonight the narrowest In their


record for while gold has fallen several per cent


within the past few weeks, the 65s 61s and oSs have
| yielded only about half per cent In brief,
gold manifests q tendency to overcome and Oblte-
| rate the difference between its price and that


OF all the issues. The market closed steady and