The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-12
FINANCIAL AND COMMERCIAL

SUNDAY March IL, 1885,
There has been an active speculative movement on inc
Stock Exchange during the past week, ana espo'N' "
Srie and Michigan Southern, which are uhuo' 0t'' "'
Up 'ation. The former was at one time 60 s0"oo ioi
deliver, hat the borrowing rate u y per cent
per Jay pu'>he "corner' engineered IN IL soon gave
way, and on Frl and saturday loans made flat.
The stock sold up To D. Wednesday but on Friday 1t
touched ST. Michigan S0~hern remained throughout
firm, and advanced from 7Oh TO - with
large transactions. The general .-arket was some
what unsettled by the break in Erie, and
tho decline of gold; but notwithstanding these
adverse circumstances and large sales by the bears
prices were well maintained and the speculation for
rise gradually gained strength At half past e O'Clock
Saturday the following quotations were curren
York Central sl2s %, Erie s2h " Hudson River
1881 lOi Reading 97JS 9S, Michigan Central 1slh a
a. Michigan Southern 1873 IA, Illinois Central IFS bid
Cleveland and Pittsburg 75s x, Rock Island 1917
~ Northwestern 25a<, preferred 52a4 y. Fort Wayne
s01 90 Ohio and Mississippi certificates FAX r. Can
ton 42A "A, Cumberland 423s, Mariposa lie II,
Quicksilver 40H "a.
Governments securities were firm and shade
tive than usual Of late The belief that the Secretary Of
the Treasury will accomplish the funding of seven thirty
notes without resorng to the sale of bonds and by
merely exchanging the former for latter without any
disturbance of the market inspires confidence and con-
tributes materially to It's strength The Comptroller Of
the Currency in letter written month called atten-
ton to the fact that by the act OF June go 1854 United
States notes can be converted into compound
notes and by the act OF March 1865 certificates Of
debedness compound interest notes. nve per cent legal
tender notes and seventhrty notes can be converted
into six per cent bonds There is consequently says
the Comptroller full power already conferred by acts Of
Congress to fund the floating debt without any further
legislation on the subject, and necessity for
making loan for any purpose whatever, as all the
funding can be done by exchanging security for
another in the manner referred to- avoiding those de-
rangements of the money market which would other
wise occur, the consequent depression of securities
on the Stock Exchange. is supposed in certain quar-
ters that considerable sales of the third issue of
fve-twenties which were made during the week repre-
sented recent conversions Of sevenhry notes terms
privately agreed upon by the Secretary of the Treasury
and the holders.
There increased activity in the gold room, but the
course of speculation almost entirely on the "bear
side, and the market weakened from 134 Monday to
100 on Saturday. Late in the afternoon, however, 1t
recovered TO 1925 a. The Treasury, by having
supplied the with coin, made the interest of
the brokers to speculate for fall and they have
failed TO profit by the opportunity The government has
not boon seller under 1877 and is not likely be for
long time to come. so that the floating supply o. coin
will grow gradually smaller by the drain into the
Sub-Treasury for customs duties The market thus
relieved from the artificial pressure under
which II has latterly labored the prem UNI
will advance again, and 1t is desirable for the
interests of the country that should Confidence
values generally is less shaken by sudden dis
turbancc Of the value Of tho paper dollar and that stag
nation which is the leading feature at present of every
branch of trade to great the result Of the In
discreet sales Of gold by tho government These sales
have temporary effect in depressing the premium but
they be OK assistance in paving the way to
return to specie payments Neither they
likely to have any permanent effect in making
sho gold and paper dollar approximate moro closely
In value. In tho event Of the floating supply
being inadequate meet the demand for customs
duties would be desirable that the government should
DO seller for that purpose publicly but not privately
The policy Of flooding the market with coin enough TO
present good basis for "bear' movement, and then
allowing TO bo absorbed before fresh lot thrown
over the manner, directly promotye OF those
fluctuations which tend to parayze enterprise and indus
try and convert legitimate business into hazardous
speculation The range Of the market each day Of
tho week follows:-