The New York herald., 1865-04-14
FINANCIAL AND COMMERCIAL,


THURSDAY, April 1892 "
The gold market 1rmer to-day than during The
previous part of the week, but it st without spec la
tive activity. gradual absorption OF coin for invest
ent has however, been ong forward since the extreme
de line and this has materially reduced the floating sun
ply ia the street. The prospect OF return Of soe of
securities from Europe at the same time tends "a
strengthen confidence in the maintenance Of the
prse range of quotations The opening prce l46,
after VIII ch it steadily advanced to l47 closed at
that at i've p. NJ.
The stock market active and moderately strong at
The first board the bears being apparently ndsposcd to
oppose its natural course The most buoyant stock
the list Illinois Central which is extremely
for delivery and which has been largely oyersold II
AZ higher than the Of the second board yes
terday Erie advanced Ia, New York Central lh, Hud.
son River u, Michigan Central u, Cleveland and Pitts
burg 1, Reading x, Northwestern ~ Rock Island 4,
Fort Wayne T, Cumberland az. Michigan Southern
declined q. Government securities lower under
the adyces from Frankfort stating that the fall in the gold
premium had produced little effect upon the price OF
nvewenties as was accompanied by large arrivals of
fresh stock, which had gutted the market. American
securities, however, the only active the
Bourse Coupon SKIES OF 1881 declined ~ fvetwenties
X en-forties steady AT the open board at one
O'Clock the market active and quotations Il a IA
dull and barely steady. Illinois Central was S
higher than at the close OF the first board,
Michigan Southern 4, Cleveland and Pittsburg
q Northwestern u, Fort Wayne IL. Erie "a
lower New York Central u, Hudson River a, Rock
Island u. Government securities irregular Cou
pom skies of 1881 improved u, but Gvetwentics de-
elined q.
AT the open board at half past three the market
dull and steady.
There will be session OF either the regular open
stock boards tho gold petroleum. exchange tonor-
row, in consequence OF its being Good Friday. II s
probable that there viii be almost total cessation OF
business in Wall street the feeling in favor Of observ
ing the day as holiday is general The banks and
public Offices will, therefore, be likely to transact
merely nominal amount Of business
The supply Of loapabe funds is in of the de-
mand and although the regular rate for money at call Is
five per cent on governments and six on railway secur
ties special offered low as four per cent
this afternoon Tho best grade of commercial paper
discounted at a 10 per cent.
The future of tho money market and the course Of
prices is engaging the attention Of both the financial
and cal community. When the broke out
the circulation OF the banks in the loyal States
about hundred and forty millions, to which may be
added similar amount in specie. The paper circulation
in the whole country was, however, only about two
hundred millions, and the specie held by the banks
ninety millions. This amount of money is
than riped in paper and 1t is constantly undergoing
increase by national bank issues An active speculative
period has been the result Of this naton and the recent
decline OF gold and consequently of prices generally is CAL
cuated stimulate speculation in the future long
the public expenditures continue largely exceed the
revenue which they likely to do for very long time
The transient prosperity, at least the appear
snce of SUCH which the country has enjoyed thus far
n, tia IN leriti
mate but speculative influences. Paper money
has supplied the fuel for driving the machinery
of trade more rapidly than natural; but
tho machinery will ultimately suffer accord
ingy, just as laborer, who by the use
of stmusnts may render himself capable of extra ex
etons fora longer time than he would be without then
feels exhaustion when his forced task is The
gumen that applies to tho individual applies equally to
che nation, and cannot exceed our strength now
without paying the penalty hereafter There have been
some prominent supporters however, of the alacy that
an inconvcrtible currency quckens industry, and is
therefore national good The present Secretary of tho
Treasury appears think judging by his letter con-
demnatory Of California for adherng to specie payments
although In his inaugural address to his subordnats
h seemed to incline towards hard cash basis Hume,
In his essay on Money" favored this theory but in
ord to carry II out nconverblc currency would re-
qurc 10 be permanent which would be impossblity,
the natural tendency Of such currency Is towards
depreciation, which would finally, If persevered in long
enough, lead to worhlessness. rise in prices by
paper money depreciation dolusive; and OF the ncon
vert bic currency plan John Stuart Mill very properly
says-It calculates finding the whole world persist
ing forever In the belief that pieces OF paper
arc riches, and never discovering that with
all tn r paper they cannot buy more Of anything than
they could before. At periods which some mistake
ci, of
specuat on, the spectators did not think they
growing rich because the high prices would last but be-
cause they would not last and because whoever con
tnued to realize while ths sy did las. would find himself
after tho recoi in possession of greater number OF
pounds sr dollars without their having become OF less
value"
SO long, however, the national debt continues to in
crease the government will, under tho present
system OF par loans find itself unable to pursue
Of currency contraction for easy money
ket necessary to its immediate and temporary nan-
Gal success The reco therefore must be avered till
the Treasury is longer In need Of large supplies of
borrowed money Even the scven-thirty loan tends
towards naon as in many cases those of the smaller
denominations paid and received money; and that
abe government has sanctioned this by its
ample the following note sufficiently tcstiG II vas
written In response a statement made by number OF
Cincianai merchants representing that the qsrtermas-
ter there was unable pay the vouchers presented to
him
GE). r. DAVIS ESD, President Chamber Of Commerce:
The Secretary Of the Treasury Is e1ering himself to
provide funds TO the claims the Quartcrastcr
department. and is paying those willing to receive gov
urnment bonds am not aware OF any other measure
that scharge government Indebtedness.
H. NJ STANTON, Secretary OF War.
WAsgryGroN, April v, 1865.
The only conclusion that therefore be drawn re-
specng the future OF the money Market is that it will
be one Of great ease which VIII have the effect Of stmu
atng speculation and Of sustaining If not enhancing,
prices for every description OF property We
ing upon the second phase OF paper money system
and a speculative period.
Foreign exchange quiet at 1887 1905 for bankers
ster ng at sixty days. and lOs llo% at short sight
Buyers deferrng rcmances in Anticipation OF lower
rates. but leading houses disposed to make con
cesslOns
Governor Brownlow, OF Tenneslce, IN his recent
r. "a 20 ,l,eg, & ~. .t.ta.