The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-27
FINANCIAL AND coMMERC GAL
MrpxEsnAr. July 2a-ap. N.


The stock strong and active at the frs
board this morning the 'bull movement in Erie causn,
sympathetic rise in the entire list. The latter stool
was 49 higher than at the second board yesterday
Reading "a, New York Central Ia, Michigan Southern
l. Rock Island g. Fort Wayne a. Illinois Central anC
Cumberland unchanged. Government securiie
underwent further Improvement Coupon hve-twen
ties were q higher, ten fortes T. AT the open boar,
at one o'clock Erie continued strongly in the ascendant
and the rest of the list partially sympathzed Erie sole
up to s3A.
AT the second regular board there further ad
vance Erie closed 81 higher New York Central x
Hudson River ! q, Reading 1Ss Michigan Southern u
Cleveland and Pittsburg y, Rock Island 81, Fort Wayne
u, Ohio and Mississippi certificates u Government
securities firm. Coupon 1ve-twentes advanced n
Ten-fortes unchanged.
At the open board at half. past three, the upward
movement continued Erie to 9716, and CLEVELAND
and Pttsburg ran advance based in both instances
purely speculative and meretricous grounds There
has been alteration in the condition Of affairs to
make the Erie stock worth more than it this day
week. when it sold at 81, but the bulls run.
ming 1t up the bears and how far they
will succeed remains TO BIO seen. The directors
declared at their meeting to-day a dividend
OF four per cent on the and three and half
per cent the preferred stock free of tax but as the
money with which the dividend has to be paid must be
borrowed tho conclusion which the street drew from
the result of the meeting that IL received its i'm
pulse from speculative motives and the subsequent ad
vance of the stock has justified this conclusion New
York Central closed &C. Hudson river l15, Reading
1861, Michigan Central 10S, Michigan Southern %,
Cleveland and Pittsburg e. Northwestern 49, Illinois
Central 1877 Rock Island 1os7S, Fort Wayne 994, Prairie
du Chen 49, Ohio and Mississippi certificates 25ss, At
lantic Steamship Company 1856, Canton 49, Cumberland
AZ, Quicksilver 57%
Afterwards the street. the market continued steady
and Erie sold up to ON
Gold has been very firm all day, notwithstanding the
arrival of the Scotia reporting fyetwenties at Tx
on the 14th inst in London. The opening price was
143x after which declined to 143 and then advanced
to 1881 " at which 1t stood at Eve p NJ. The sup
ply cash gold Is abundant and cash purchases have
been made in some instances, at u below the regular
rate.
The foreign exchange market is unchanged Bankers
ask 100 for their sixty days bills and 1898 at short sight
Money moderately active at six per cent, with ex
ceptiona transactions at seven The discount line is
firm at 8 per cent for first class commercial paper
The financial affairs of the government still being
actively inquired after in Wall street. and the future
of the Secretary Of the Treasury is matter Of
considerable speculation The seyenthrty loan has been
entirely absorbed by tho agents Of Mr. Jay Cooke and
1t Is asserted by those cognizant Of the condition
OF the Treasury that the Secretary will be under
necessity for calling upon the banks for loan i'm
nediately, although the outstanding acquisitions prob
ably amount to nearly three hundred millions.
1t is the intention of Mr.. McCulloch however, TO rely
mainly upon certificates of Indebtedness pending the
meeting of Congress- On the LIST Of the present month
there were about hundred and fifteen millions of the
old issue OF certificates of indebtedness aoa and these
will mature at different periods between and the 10th
OF December next The new already amounts
10 nearly forty millions and 1t is understood
that 1t will be increased at average rate of
about eight hundred thousand dollars day, until
the aggregate equals that of the old issue
outstanding The Secretary has the power to receive
temporary deposits to the amount of hundred and fifty
millions, only ninety millions of which have yet been
deposited There is a of sixty millions there
FORE under this head The Treasury is paying all the
obligations il can, apart from quartermasters certA-
Gates currency. The latter it discharges by paying
seventy per cent in certificates and the balance in
currency.
The heavy Withdrawals of specie from the Bank Of
England which had been going forward for the week
previous the departure of the Scotia point TO in
Of the rate OF interest The then prevailing rate
Of three per cent unusually low, and advance Of
onehaf per least would not be matter for
prise.
The Comptroller of the Currency has addressed the fol-
lowing letter Connecticut bank officer in relation to
the action of the Legislature State taxing gov
eminent sccuritcs:-
OTY1CE COMPTROLLER THE CURRENCY,
WAsHIsoros July %, 1885. I
cannot but express my surprise that the Legislature
Of the State Of Connecticut should entertain proposition
TO virtually connscate portion OF the government
securities held by inhabitants Of that State
The law exempting from taxation government secur-
ties Is specific and clear that cannot be questioned
The bonds were disposed Of and purchased with tho pro-
vision o. law part OF the contract that they were to
be exempt from taxation and the country has received
equivalent for such exemption in the additional price
received for the bonds.
Can any one believe that the obligations of govern
would have sold for anything like the price
allied at any price nj all commensurate with their
value II II had been supposed possible that they could
be taxed by State laws directly indirectly If your
Legislature can impose a tax Of fifteen per on
the income derived from government securities, II Is
just competent for 1t 10 impose tax OF fty or one
hundred per cent.
is source Of regret that any Northern State should
for single moment countenance an attempt to repu-
date nufy a constitutional act OF Congress. and one
too that deemed necessary TO preserve the integrity
OF the nation. In aspect of the case, however II
may be regarded a most fortunate occurrence IL
will serve To show the people that will not be safe for
the government to allow the Southern states TO be
so reconstructed as TO permit their being repre-
sentcd In Congress as unit, MS they would be- by
who would be but too willing TO unite with
Northern men Of the character Of those fayorng the
under consideration, to repudate the national
debt, not by direct action by equally destructive
want OF action In providing the Of payment.
am glad hear the whole country have reason TO
rejoice, that tho Finance Committee Of your State Senate
stands opposed 10 this nsidious The Of
the proposed would be 10 reduce the value govern
ment securities hands OF the people OF your State f
teen per cent, provided there that
further exacton would be imposed but without such
assurance would reduce the market value much more
the next any subsequent Legislature could increase
the tax 10 the extent OF destroying their productive
value entirely The State OF New Hampshire has passed
q law imposing tax Of twenty-five per the
come derived from National securities.
II this action confined 10 the two States the
suit would simply be to deprive the people OF New
Hampshire and Connecticut Of the privilege Of holding
or owning government securities IL Is very clear that
the States would not get the tax the would sell
their securities 10 parties of the States, or 90
themselves with the securities.
IT, however other Northern tatcs should follow their
example and should be conceded that they had tho
right TO do So the credit OF the government and OF tho
national currency would be practically destroyed.
This perhaps Is the object OF the confederacy In this
suicidal scheme I think justified in say ing that
there Is not the least danger of the proposed act IL Il