The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-09-15
FINANCIAL AND COMMERCIAL

fAuRspAf, sept 10 r. NJ
inc stock market has been very dull to-day and there
stronger disposition shown to sell portion Of the
list sshort" AT the open board at ten O'Clock and al
the first regular board prices wers steady At the latter
Erie closed higher than at the second board yesterday
Reading 4, Michigan Southern u, Prairie du Chen ".
cleveland and Pittsburg declined u, Cumberland y.
Quicksilver was unchanged. Government securities
were quiet and unchanged
At the open board at one O'Clock prices were
fraction lower AT the second regular board
The market was rather heavy New York Central closed
X lower than at the first regular board Erie r. Reading
u, Michigan Southern Il, Cleveland and Pittsburg x,
Prairie du Chen u, Cumberland q. Quicksilver adj
xanced u. Rock Island was unchanged. Government
securities rather inactive, and coupon tenfores
declined 4.
Az the open board at half past three the volume OF
business extremely light and the speculative feeling
iame New York Central closed at 9sh (s3), Erie tbs
SON, Reading lo7, Rock Island 112A, Michigan South
ern ID 81 6S4 Northwestern preferred 6ls Northwest
ern 27x, Cumberland 49, Quicksilver ASH.
In referring to the puts' OF Erie sold by the specu
latve director in yesterday article, we wrote 30 as the
price not 95, printed This stock has been COMPARE
lively neglected to-day and stree opinion favors It's
decline It 10 being talked down, and pro tempore 1t
appears to have no friends
The petroIeum stock market marked by its usual
than at the same time yesterday Oil Creek &c.,, United
States 15o Montauk SOC higher. At the second
board Webster 81 &c. 97c higher than at the
drst board. Cherry Run unchanged at 29c Pithoe
Creek was Sc lower, closing at s. TO- Excelsior 1c.,
closing at $780, OIL Greek 10c closing at ST. United
States &c., closing s26 So Oceanic sold at roc,
Tack 3Oc
The gold market has experienced further decline to.
day The opening price 1885, from which, after adj
vancing ~ gradually receded to l43 the closing quota
ton being 143 1885. At the time the supply of
for delivery has not been very abundant loans hav
ing been made at 1872 The discussion Of the expected
funding loan and the policy OF contraction which
it would indicate are not without influence in
depressing the premium, in combination with the
sweeping army reductions promised, the sales
of coin by the subTreasuy, the absence of active
demand for export and the apathy OF speculation.
Foreign exchange has been in moderate request at
lO9k u for sixty days bankers bills, the latter rate
being the asked by leading drawers.
There is no change Of note in the supply of money
offering at per cent on call The demands
of the Stock Exchange are at present very
hight, but the discount line is more active
at former rates. Should the funding loan make
its appearance soon it would have moral effect in favor
OF increased monetary activity and is possible that the
adoption of the bank note redemption scheme might
sures tending towards contraction of the circulation
Moreover it is desirable, that the government
longer the market borrower that the way should
be paved towards consolidating the debt
We give below copies of the letters from the Secretary
OF the Treasury and the Comptroller of the Currency
which referred yesterday in the course of our re-
marks the proposed scheme of redemption for the
notes OF country national banks The letters in question
we're addressed the committee Of the New York banks
in reply following from the LATTER sent TO each
OF these gentlemen for the purpose of obtaining
precision OF their vicws:
New York. Sept. l. 1885
DEAR SIR-The question OF the treatment OF national
bank by the New York Clearing House Association
In to be presented consideration at meeting b.
held in days. Your simple expression on this sub
iec will have great weight In fact, bank officers
are reluctant until all apprehension Of difference
OF between You ami themselves is removed Let
mo, therefore, ask the favor of you TO say IN word
First whether in your opinion, 1t IS advisable for the
banks ablish and maintain regular system OF re-
dempon of national bank notes by sealing and return
ing them to their place n issue as formerly ana second
whether you consider such system Of redemption as
calculated promote the welfare Of the community and
the stability Of the banks themselves
Your immediate reply will greatly obSe the bank
officers as the meeting referred takes place Monday
or Tuesday.
To this letter the Secretary Of the Treasury made the
following reply
TREASURY DEPARTMENT Sept. 9, 1886.
DEAR SlR-Tour faver Of the 7th inst. is received.
have merely time categorically your ques
lions without argument and without attempting to give
isasohs
NV opinion lie that the national banks ought TO redeem
their notes the commercial centres and that system
that shall compel when it will not be done voluntarily
such points Is needed to give uniform
value to tho of the national banks and that the
effect of such systom would be advantageous to the
people and 10 the banking system.
Tho points at which redemption should be made are
those ut which the interior banks in conformity with
very truly yours, H McCULLOCH.
Camn roll Of
from Washington by sickness sent the following reply
from Roch ster:-
ROCHESTER, Sept II, 1885.
DxAR Sis-Your letter OF the 7th inst. is received
Fsrs-Whether in my opinion it is advisable for the
banks establish and maintain regular system Of re-
dempon OF national bank notes, by sealing and return
ing them TO their place or issue as formerly
Sectmd- Whether consider such system OF redemp-
lion calculated 20 promote the welfare OF tho commu-
usty aud stability Of the banks themselves.
can no objection whatever To your proposed plan
or all national banks what they cannot otherwise be- Of
euuai every Part of tho country III they are
redeemed par New York. Philadelphia and Boston,
they will par in every section OF the land. am
confident the measure adopted will meet the approval
AZ tho public and Of all sound hanks, and may be the
means OF preventing disastrous results to all material
interests OF the country.
The Of lcgnl tender notes OF all descriptions
In circulation is about six hundred and eighty nve
e8Sl millions and the circulation OF the banks State and
national is about three hundred 5000 msons, together
with legal tender and bank circulation in round numbers
ono thousand millions seven-thirties are also used TO
considerable oxtent currency The bank circulation
Of the wheie country North and South at the breaking
OF tho rebellion not two hundred ZOO mil
lions and the gold and silver circulation at that time
not over hundred and MY lG0) millions. The cir
ouiaton OF the country this time Is about three times
creator than it had been before the suspen
sion specie payments The enormous expenditures or
le and the sudden and great increase OF the
volume of business created by the war, rem
dered An increase OF the circulating me-
dunn an absolute necessity. The is
over, and but a comparatively small amount
OF currency will DO required by the dsbung officers OF
che government and the created by the has
already nearly ceased The great increase Of the volume
or currency must consequently, show itself. either by
s the business centre Of tho country TO
m extent that will make II q necessity TO have some
mode of redemption provided otherwise new impulse
will be Rven imitation and increase Of prices Until
ooyent il found for the whole volume Of currency In
this way Il would DO absorbed oven # II was twice as
much as issued
other nations in and producing unless the
rata az foreign exchange enormously high The high