Year: 1871

to q higher standard mas Deen unfortunate In some
respects in unsetting estimates and leading to
rather less confidence on the part OF buyers but
large trade Is doing and so far promises expand
10 very large proportions before the holidays.
THE WEEK WALL STREET.


In financial circles the chief features have been
the rise in gold in face OF Treasury sale of four
millions and the weakness and decline on the Stock
Exchange.


The gold clique having been emboldened to ad-
vance the price OF gold to ll4h and the rates for
the daily use Of gold TO oneelghth OF one per cent,


the Secretary Of the Treasury took advantage Of the
large bids on Thursday to dispose OF twice the
amount advertised to be sold. The effect was unim-
portant and temporary. The speculative interest
for decline had been already so large that this
double amount was readily absorbed, ana Occa-
stoned merely transient reaction 10 113%, the mar
ket subsequently advancing to 1l4A. The loan
ing rates are henceforward likely to be
kept within the legal limit owing to the
fear Of judicial interference the subject OF con-
spiracy In the gold market having been committed
10 the consideration Of the Grand Jury in special
charge OF Judge Bedford. In some quarters 1t Is
held that as the Treasury has recognized gold as
merchandise by selling it by auction its strict
tary character has been destroyed, at least
pended, and that consequently any consideration
exacted for its use Is Unsuitable and lawful. The
claim would hardly be sustained, however before a
court and jury.


A heavy feeling pervaded the Stock Exchange
and prices were weak and lower, considerable de-
cline being reached on Saturday, although the
downward tendency had been somewhat oDscured
by the intermediate ieverishness and wide nuctua-
tons OF the market. The excessive expansion OF
the banks in loans and reduction OF their sur
plus reserve to the comparatively small amount OF
$4,000 600 attracted fresh attention the dangers
which surround the financial situation particularly
In connection with the belief that the loans referred
TO outstanding on stock cOaterals to the extent
OF between 5000 O00 900 and $3.50 100000. This very
unfavorable showing Of the banks came just as the
character OF the dividend on Lake Shore was an
nounced, the terms being general disapp ointment
to the street. There Is furthermore something the
tone of the atmosphere which recalls the eve OF the
revusion OF September, 1869. The consolidation OF
New York Central with Hudson River was the sig
nal for the great fall IN stocks which then ensued,
the consolidation idea having been employed, Just
as has been the Lake Shore dividend, to work OF
the stock Of the clique on the street. Curiously
enough, IL Is now the second anniversary of that
memorable epoch. According to the day OF the
week last Saturday aud tomorrow will be the
second anniversary OF the plemOnitory weakness
the Vanderbilt securities which was the pre-
cursor Of the great tumble in New York Central.
Next Friday ls, for the same reason, the second an
niversary Of the famous Black Friday. Forewarned
however, is forearmed. The subject of recur-
renee OF such disaster has been uppermost in many
minds ever since attention was directed by the
HERALD to the enormous expansion OF the banks
The outsiders have as general thing left the mar
ket and the leading stocks controlled by cllqucs
almost entirely. Lake Shore was probably dis
posed OF before the dividend was an.
hounced. The point to buy was clrcu
lated continuously for weeks past Considering
that there are about q thousand brokers and that
each broker has on an average one or two specu-
latve customers "long' OF from one to five hundred
shares, it is readily seen that the clique have dis
posed OF their load. trusting that in the lack of dis
cpline among the scattered mass OF spectators the
shares Will eventually tumble and find their way
back into the c.ique's hand at lower prices The
decentralization IN the local finances Of the city
has also contrDu produce depression.
while the jobbery OF the Syndicate and the new
loan aud the recent heavy delalcations OF
government employees have unsettled confidence.
Whatever the future OF the market and Its
outlook not most encouragng-we beg leave to
revive the recollection OF the reader that the HERALD
has strenuousy endeavOred to set the public arignt
on the situation. We told the public when the
cques began buying last winter; We foretold the
intermediate "breakr at the beginning OF summer,
when the new loan proved q failure in Mr.. Bout
wells hands, and we advised again that the cques
were in search or a market and were trying whee-
die the public when at the end OF the summer vaca-
into lie and activity.


Money was irregular In supply, and rates nuctu.
ated between . and per cent, the market closing
easy on Saturday at a per cent


Foreign exchange recovered on che abatement Of
high charges for the use Of gold, and the leading
drawers advanced their rate for prime slxty-day
sterling TO 10sH.


Governments were duh and weak until the recov.
cry in foreign exchange allowed The resumption OF
shipments to Europe.


The dealings of the Stock Board will be resumed
tomorrow morning III the Exchange building.


THE LAKE SHORE DIVIDEND.


The dividend on Lake Shore has been agreed upon
by the special committee in whose hands it had
been entrusted 10y the stockholders meeting held ut
Cleveland. The dividend will be 40 per cent, in
stock, when will raise the floating capital stock to
49O0O 900, and leave Sl.oooOOO OF reserved stock
I'm the hands OF the company, to he applied as may
be necessary or advantageous In the fnan-
cla operations OF the road. The dividend
will be issued al FIRST In the shape OF o
scrip certificate, emitting the holder OF each
share or old stock to forty shares Of additional
fully paid stock upon the payment OF an equivalent
In cash equal to 33s per cent OF the par value of the
new stock. The cash will not be required at once,
but IN nstalments as the company progress IN
doube-tracking and equipping the road, the first in
stament to he 10 per cent. When the last install
ment has been paid the holders OF the scrip will re.
ceive the certificates OF stock themselves.


THE BANK STATEMENT


The weekly statement OF the associated banks con-
tinues to show reckless expansion OF loans in face
OF further heavy loss in legal reserve The exhibit
Is OF character calculated to excite alarm and Is
deniaply "pad," to quote The monosvllabc opinion OF
1t prevailing throughout the street. The frantic effort
OF Mr.. Boutwell, to help the "bear" syndicate in gold
10y selling four millions OF government treasure has
failed TO increase their specie balance, for the reason
that the entire amount went back into the Treasury
for customs. loss OF half a million more was &C.
casoned by the specie shipments TO Europe. The
gold Of the Treasury paid for in large part with
greenbacks, which, with the movement OF currency
TO the interior, is reflected In decrease OF over