The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-01-19
FINANCIAL AND COMMERC GAL
FRIDAY, Jan. 1916 p. M.

combination of bank managers met to-day, and
came to a resolution in reference to the award of
Treasury notes to be made tomorrow at Wash
ington. OF the result Of their deliberation
has not TRANSFERRED. 1t seems to be generally sup
posed that they bid for the whole loan at lower
rate Of interest than their last bid. Quite large
number Of private bidders made their deposits at
Mr. Cisco's office, and there is fair prospect
from present appearances that the competition
will be lively. 1t seems to be supposed that most
Of the notes will be taken at from a per
cent The government, we understand, will need
no more money before the 4th Of March.
Foreign exchange is quite firm; the leading
bankers ask LOG %-mercantile bills being scarce.
Rates still leave profit on the importation of
specie from Europe, and we may expect remit
tances for some weeks to come large amount
is expected per ASIA
The stock market was rampant at one time this
morning, and the advance in prices was general.
Burlington and Quincy advanced per cent;
Rock Island, 211; Galena, 3; Michigan Central 2;
Pacific Mail, 2; Reading, ~; guaranteed, l. and
other stocks rather less. After the board there
was some realizing, and prices were lower at the
close, though steady. The advance in the railroad
shares is predicated on the large increase in the
earnings last year showing that political ag-
tations do not affect them njuriously. The general
buoyancy of the market appears to be ascribed to
some private understanding that the republi-
cans in Congress going at last to make the con-
cessions demanded of them by the South. Nilsson
ris advanced one per cent to-day, Tennessees %,
Treasury notes "a. The following were the last
quotations of the day:--United States SIS 1874,
92A a SO; Virginia 6's, 1874 rs; Tennessees,
7424 rs; Missouri 6's, $50 co. Canton, l4lla a
49, Cumberland Coal preferred, 8 rs Pacific
Mail, 80 a u; New York Central, 1917 80; Erie,
391a "a; Hudson River, 4s14 "a; Harlem, 1871
a 3; Harlem preferred, 3sA q &c., Reading, As a
"a Michigan Central, 81 "a; Michigan Southern
and Northern Indiana, 1871 a; do. guaranteed,
"a "a; Panama, lis ll6; Illinois Central, IS
"A; Galena and Chicago 7Os4 IL; Cleveland and
Toledo, 351S "a; Chicago and Rock Island $50
"a; Chicago Burlington and Quincy, TAI u.
The progress Of events at the South renders il
pretty certain that, however this secession drama
may end, q total reconstruction Of the internal
commerce of the United States Is now inevitable.
II cannot be expected that Northern merchants
will ever again carry on the business they have
heretofore carried on with the South on the same
terms as heretofore. in at least four Southern
States the reputation, for a time or altogether
of debts due TO the North is being gravely dis
cussed. Governor Brown, of Georgia, recommends
the confscation Of property belonging to Northern
men. Stay laws, applicable only to debts due to
the North, have been introduced into the Legisa-
lures of Mississippi and Louisiana. An act has
passed one branch Of the Legislature of South
Carolina rostponing the payment of all debts due
to Northern men till after the 3lst of December
next. A similar measure appears to have passed
one house in the Georgia Legislature also. 1t is
not our purpose to discuss the merits of these
various measures, so far as the interests Of the
cotton States are concerned. Those States will
discover soon enough that legislative interfe-
renee with the natural laws of trade is always
hurtiul. But what we desire just now TO point out
is the reconstruction Of our commercial system
which these Southern movements will involve.
Heretofore the South has bought all its goods here
on credit. Six and eight months paper have been
the usual terms on which our jobbers have sup
piled the South with dry goods and general mer-
chandise: and II must be stated, in justice to the
South, that the trade has been profitable one to
New York; that, in an average of several years,
the Southern buyers have met their paper honora-
bly, as it matured, and that, whatever some States
may have done, individual Southern merchants
have hardly ever been heard to hint at repudia-
joyed a higher credit here, as rule, than
merchants from the West or the East; and
New York houses in the Southern trade oc
cupied the first rank in commercial circles The
events transpiring at the South tend to change
ali this. II is not natural to suppose that New
York houses will hereafter be willing to grant
long credits to citizens of States which have
passed or even seriously discussed stay laws dis
eliminating against Northern people. Southern
credit will fall as low a. the credit Of Wisconsin
fell before her people began TO think Of redeem
ing their character And instead Of consuming
tie proceeds Of each cotton crop in advance, the
South viii now have to wait till the cotton is
grown shipped aud turned into cash before they
con supply their wants. In the meantime, the
events which have cau.cd this depreciation OF
Southern credit have increased the financial
strength and power Of New York to an unexam-
pied extent New ork now holds, in bank and
b-Treasury, very l,l.'c less than thirtyfye mil
lions Of specie; and exchange Is held at l06so
that gold must conc here from Europe
for some weeks 10 come. This city will
have little or no Southern trade tl,is sea.
son but there is reason TO believe that
il wiz erioy trade with the West and
North which will more than make mp for the loss
The West after three years Of poverty and econo-
mics, is az length able to buy and buy largely; II
needs dry goods groceries, everything. These II
VIII This year be the business Of New York to Inn
por' and supply. AS the business will be cash
trade, tic West sending forward it, produce as
last az 1t IL gets The goods, and as Europe needs
all The cereal produce can spare II Is not likely
that This trade, however active Il may be- will
cause any strain upon our credit, or any dminu.
ton Of our cash resources; the prospect IL, there
fore, that We shall witness an easy money market
throughout the season and that money Wal rpla