The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-08-30
FINANCIAL AND CONNER cIAL.
-4uxspAr, August CO p. \


suslnssa on the stock Exchange continues extremely
DALI owing TO the almost total absence OF outside orders
70 buy The majority OF the regular stock houses feel
sbearish and consequently look for slightly lower
prices but nearly all the professional street operators FOL
low the lead of the Erie ball party Of Broad street. and
like the shoals of small fish that sometimes follow in the
track of whales they liable be swallowed UP At any
time The great ease in money Ia, however opposed 10
fall OF considerable magnitude, call loans having
been made stock collaterals to-day al four per
cent The stubborn duiness which characerizes the
market, Notwithstanding this condition Of monetary
affairs at the time shows the strength OF the pre-
vsing lndisposton speculate for rise among tho
leading brokers and outside capitalists
At the ten O'Clock session Of the open board Erie sold
at sok. Reading 104SS Cleveland and PittsbuY 70x,
Fort Wayne 81, Ohio ana Mississippi certificates FAY AT
the first regular board there inclination shown
60 put out sellers options Erie closed II lower Reading
y, Illinois Central " Cleveland and Pittsburg 4, Rock
Island ", Ohio and Mississippi certificates X Quicksilver
n, Fort Wayne, u. Cumberland was y. higher Gov.
eminent securities firm, but not active Coupon
tnve-twentes advanced u The new issue closed at
lo4N, coupon ten-fortiss le4H. Thore was sale Of
Central National Bank stock 81 l05. 3sta
A. the open board at o'clock prices fraction
higher At the second regular board the market was
dnl but steady. Erie closed higher than at the first
regular board, Reading Il, Michigan Southern e, Ceve-
land and Pittsburg u, Fort Wayne " Cumberland was
unchanged There was a sale OF Central American
Transit at 90 Government securities dull Coupon
hve.twentes declined ".
At the open board at half past three the market was
unchanged Erie closed on the call at se7s, Reading
los, Michigan Southern S4i Cleveland and Pittsburg
70x Prairie du Chen 40, coupon ten-forties bS) as1s
It not generally known among those interested in
the Cleveland and Ptsburg Railroad that the regular
meeting of the shareholders Of the company held in
January last resolved TO change the time Of hold
Ing the semiannual meetings from April and October to
January ana july and that any dividends declared
these meetings should be payable in the following MONTH
namey-February and August.
The sluggish of the money market has oct a, rest
specuAiions and apprehensous regarding the future
policy Of the Secretary of the Treasury pending the
meeting Of Congress. It is understood that he is not
yet prepared TO make any announcement but that before
long he will avail himself Of the authority conferred by
the act of March g. 1866, to offer long stock
thirty notes in exchange for outstanding certificates
Of indebtedness and interest bearing legal tender notes
This would enable the Secretary continue the issue Of
certificates of indebtedness without depressing them In
the open market because they would in all likelihood be
rapidly absorbed by conversion into such securities
the Treasury might provide the
six per cent in gold on demand, threeenths in
rency In order that there may he misconccption
this point quote the language of the act referred
TO- which shows that the securities into which the float
ing Indebtedness Of the government may be funded
not included in the six hundred millions authorized by
the act Of Harch g. 1885, referred to- but distinct and
in If that amount, which latter is already be-
ing subscribed for In the form of seventhity Treasury
notes.
And provted further that the entitled can act to
fAa NJ
ment and for other purposes" approved June 80, 1894
shall be construed authorize the issue OF bonds
of any description authorized by this act. And any
Treasury notes other obligations bearing interest
issued under act OF Congress- may ut the discretion
Of the Secretary Of the Treasury and with the consent
OF the holder be converted into any description OF bonds
authorized by this act; and bonds authorized shall
be considered part of the amount of six hundred mil
lions hereinbefore authorized
The Secretary Of the Treasury Is by this act ''anthor
lied to borrow from time 'me the credit of the
Untod States in addition TO the amounts heretofore
authorized any mol exceeding the aggregate six
hundred millions Of dollars and to issue therefor bonds
Treasury notes Of the United States in such form
he may prescrbe ind much thereof may be issued
In bonds shall be OF denominations not less than fifty
dollars, and may be made payable al any period
not more than forty years from date Of ISSUE
or may be made redeomab'c at the pleasure of the
government at after any period not less than five
bears than forty years from date and much
bereof may be issued in Treasury notes be made
ponyer bIe into any bonds authorized by this act and
may be Of such denominations less than fifty DOL
brs, and bear such dates and be made rcdeemablc
payable at such periods as in the opinion Of the secre
tary of the Treasury may be deemed expedient."
he rate s,s.s: when payable IN CON- shall no! e1
rys3 sx Ter cent pei annum and when not payable in
coin shal no, exceed seven and three.tenhs per cent
per annum"
las ovod Marchl
certificates Of indeb ednes is in the following words
BE IL onactod by the Senate and House OF Representa-
tiyes nf the United States OF America in Congress as
sembled, That tho ecreay Of the Treasury be, and nc
hereby AUTHORIZED TO 70 be issued 10 any public
creditor who may be desrous to receive the same upon
rsqusion Of the head Of the proper department in sa-
tiscton OF audited and settled demands against the
pited States certificates for the whole amount due or
parts thereof not less than one thousand dollars signed
BY the Treasurer Of the United States and eon.cisgncu
as may be directed the Secretary OF the Treasury
which certificate shall be payable in year from date
earlier the option Of the government and shall
bear interest at the rate of six pr cent per snnum
The gold market was firm. but inactive. The opening
price was I44i. followed by an advance to 14s1i II
subsequently, dccl'ncd to 1441s the closing quotation
Foreign exchange has been in very limited demand at
Ios 1925 for bankerS bills at sixty days with few
transactions al 1924. importers arc deierring remit
tancss in expectation Of lower rates. resulting from fu-
ture cotton shipments
Another statc--Kcn,ucky-ha decided against tho
oonstituional.y OF the legal tender act Judge Robert
son. Of the Court Of Appeals, OF that state gave an
opinion, from which tho following Is an extract
Whenever jurist inquiries whether statute Is con-
sisten with the State constitution, lie looks into that
constitution, not for grant but only for limitation
or the power inherent In the peoples legislative ogap
NO Ear an not forbidden by their organic law.
But IA Congress derives It's power from grants by the
people OF prc-cxisng State gnties enligh-
ened inquirer into the consiitutionay of any Of It's
acts looks only 10 delegation OF power by the fedc
raj constitution for that constitution expressly declares
that all power not delegated by reserved to the States
or the people. In this class OF therefore, he
Who asserts the power holds the Affirmative, and
uuicss ne msin tains IT, the conroverted should
not be enforced law by the Judiciary On the con-
trary, the party affirming that legislative act Of State
is prohibited BY the state constitution must prove IT,
and uusss the proof be clear the contested DO
admitted to be law The distinctive difference between
the classes Of Ia that Ia the former the power
must be shown 10 have been delegated but In the latter
II must appear 10 have been prohibited.
And IN this case, therefore, the power 70 pass the
Tender act must satisfactorily appear 70 have been dele
gated before the Judiciary should recognize and enforce IT,
Ths earniuos of the Detroit and Milwaukee Railroad