The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-07-19
FINANCIAL AND CONNER GAL.

are being made above five per cent. The money
which was withdrawn from the street for the July
dividends and was kept idle in consequence Of the
check at Richmond, is finding its way back into ts
old channels. Certificates Of indebtedness ara
quoted %; green back Treasury notes, Ios Il.
Gold advanced this morning from 10 at ths
opening to 1917 by midday. After sales at this
price it then fell back to 1l9L, ll9, ll8s4, and
finally closed llsH bid. Bills on London opened
at 1897. rose TO 1917 and were last quoted 1904
q l3l, there being in many instances a very wide
difference between the views of buyers and sellers.
The imp ortaton Of dry goods for the week is over
million, nearly $500 goo OF which are silks. The
new tariff will have the effect Of reducing our i'm
ports Of dry goods very materially, though persons
engaged in the trade still believe that many i'm
portant and expensive classes of goods will con-
tinue to come here as usual. They are slow to be-
lieYe that American manufacturers can compete
with their rivals across the water, even with tho
duty.
The stock market was erratic and irregular but
generally lower, to-day There is not much active
speculation going on, and no general rule governs
the course Of prices. AT the first board today
the feature was the decline in governments. Tho
skies Of 1881 fell "a 4, 7.30 notes "a. and the
fves Of 1874 l1a Considering that we had no bad
news in the morning papers. this decline was q
matter OF surprise. 1t affected the general mar
ket to some extent. Tennessees fell 70. Missouris
"a, Michigan Central 2s, Southern old Is, Illinois
Central "a, Toledo r. On the other hand, Pacific
Mail advanced y New York Central "a, Erie 4,
and Erie preferred H. The trunk lines are doing
very large business, and the dividend Of only per
cent on the Central, when 31a a was expected.
is evidence that that company, at all events. 10
going to be kept in sound condition. There was
a rather better inquiry for bonds, without much
business. After the. board, vague rumors OF
changes in the army began TO circulate. and under
this influence United States skies sold down to o6,
and New York Central to 9OA. After a time 1t
began to be understood that the appointment OF
General Halleck to the general command of the
armies might be guarantee for increased and not
diminished vigor and efficiency in the conduct ofthe
war, and the tone of the market improved. At the
second board, however, the market was very duh
and the course Of prices downward. United States
Treasury notes (7.30) fell to 1Ol q "a. The mac
ket closed weak. the following being the last quo
tatons:-United States 6's, registered, 1881, 80 q
n; do. 6's, coupon, 1881. ss1S "a; do. IS, 1874.
IS a a; Treasury notes, $40 per cent, l0l u;
Tennessee G's, 4sss4 so; Virginia SIS, So q 81;
North Carolina 6's, S. 6S Missouri 6's, 46H
"a. American gold 1lS1l "a; Pacific Mail, 1861
= X; New York Central, s0A n Erie, 1874 q;
do. preferred, 6lA a *; Hudson River, 4s a "a:
Harlem, IAN n; do. preferred, 81 Il; Reading.
81 a IS; Michigan Central, 57L u; Michigan
Southern and Northern Indiana, 241S a; do.
guaranteed, 1914 81; Panama, $50 49, Illinois
Central, Sc "a; Galena and Chicago, 6SH u:
Cleveland and Toledo, 45H q 46; Chicago and Rock
Island, 81 "a; Chicago, Burlington and Quincy,
75% &c; Milwaukee and Prairie du Chen. 3lH
u; New York Central rs Of 1876, lOs l0s Erie
third mortgage bonds 97h n Michigan Central
SO, lst mortgage, l06 l07; Illinois Central bonds,
rs, 92H "a. After the second board there was
quite rally in the market. Central sold at 81,
and that was bid for more; 1874 for Erie, 6la1 for
preferred, and SO on throughout the list.
The recent act of Congress authorizing the issue
of hundred and fifty additional millions Of legal
tender notes, and the possibility OF still farther
issues, present q subject Of such general interest
that the question Of the countrys capacity to ab.
sorb currency must itself soon become "absorb.
ing" There are those who believe the maximum
was reached just before the breaking out of the
rebellion, when the bank issues and gold coin IN
circulation amounted, in the aggregate, to about
si60 000, 900. Business was then as active as it
had ever been, the crops and the importations
large; labor, real estate and all commodities
were commanding high prices. and Of course, re-
quired proportionate amount of money to effect
their liquidation and transfer; for it is well set
tied principle that the equilibrium between the
currency and the property of a country, though II
may now and then be Temporarily disturbed, IL
and must be generally maintained. But the opinion
which is entertained by many, that the volume
reached at the period mentioned was as great as
it can be until the restoration Of peace and the
revival Of business shall demand an increase OF
currency, is an unsound one, simply because Of
the essent al difference between the issues Of
banks, which have local circulation merely, and
are constantly coming home for redemption, and
those Of the government, which have universal
range, are boarded gold used to be, are sent
longer distances for the payment of debts Tin this
respect taking the place, to o large extent, Of
drafts and domestic bills OF exchange). and are
not returned for redemption. Precisely how much
more Of such currency as the latter the country
can find profitable use for it is not in any ones
power to say; but that it can employ much
larger amount than it has ever employed OF bank
notes and gold combined there can be no question;
and that, should the war be greatly prolonged, an
amount will be issued far exceeding anything
heretofore contemplated, it IL easy for any
one to believe who has carefully studied the
policy hitherto pursued by the Secretary Of
the Treasury. Ever since the CONNIE ncement Of
the first issue Of government paper the rate Of in
terest for the use Of money has ruled at about AZ
per cent per annun, sometimes running as high as
6, and occasionally falling to TX per cent So
long as the rate can be kept ct or below 5 per
cent the government can borrow at per cent oil
the money il requires-that is to say, so long as
capitalists continue to have faith In the wisdom
and integrity OF the federal administration and in
their ability to bring the war to successful ter
nination To say tina. the rate Of interest will be
hent at a very low noint BIZ the continued issue Of