Year: 1870

"Tne activity In the various departments OF Wall
street precpitated by the sharp decline in the gold
from the vicinity or I20 few weeks since, was not
arrested during last week, although the indications
at the close were favorable to a steadier, If not
hrmer, ruling In the premium for the Immediate
future. The lowest point touched 80 far Is 1iOL,
which was followed by an eventual reaction to ia.
The change In the speculative sentiment OF the
street reflected In this upward turn is due to the
Interpretation OF the further progress OF the
Funding biI which is regarded as likely TO meet
with fatal opposition in the lower branch OF Con-
gress where it will encounter the antpathy OF both
the national bank interest and the Western inna-
tOnists. The fact should be borne in mind how
ever that the speculative fraternity OF Wall street
are not harmonious on the bull side OF gold, and
hence allowance must be made for their representa-
tons Of the situation as affecting gold Undue pro-
minence is given by them to the probable effect OF
the defeat OF the Funding bill. 1t should not be
forgotten that the decline In gold commenced before
the Funding bill had made any essential progress In
the Senate and is the effect of natural out
side of the Congressional action had upon that mea
sure. The tone OF the foreign exchanges indicates
that the precious metal is not in demand for ship
ment abroad. On The contrary, the prospect
is fair that before summer we shall import
gold What, therefore, is to prevent repetition OF
the experience OF the market when gold thought
cheap at 12O, and still cheaper at 116? bull
movement Just now is purely speculative. 1t is
based upon no foundation likely to sustain it IN the
commercial world. The operators who have gone
In to put the price up again will very likely find
themselves again weighted with an unbuoyant load,
lust as they did at 120 and at 6 1t will not be easy
To bring the public ia on the bull side an0 the sue





fact that the outsiders who had sold gold short at
112 were frightened into covering when the market
went q small fraction against them.


''The sympathy between gold and outside values
was most forciby illustrated In the Government
market where prices nuctuated widely and wildly
with every change in the premium. When gold de-
clined to 110A the slxty-seyens, which were most
actively dealt in sold down to 107H. With the pro-
specrlve defeat OF the Funding bill and the reaction
In gold the quotations at the close exhibited sharp
advance, and the market possessed very hrm
undertone.


"The rate on call loans continued to range from
four TO six per cent? with the bulk or business at
to per cent 1t remains TO be seen what effect the
movement OF currency TO the interior, as indicated
n the bank statement, will have upon these figures
but as the drain cannot continue beyond the middle
of Nav and as the banks fortified by resources
having the exponent OF twenty-five millions excess
over the lawful reserve, the less timid dealers in
stocks are devoid OF apprehension for a stringent
money market Commercial paper was neglected,
although there is good supply on the street Rates
are frm at seven to nine per cent. for the choice
grades OF double name acceptances. Foreign ex.
change was dull, and at the close barely steady on
the basis OF 1857 for prime bankers sixty days
sterling"