The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-23
FINANCIAL AND COMMERCIAL.
FrmAY. June ZAP. n,

change has been dull to-day The suspense with which
further European is awaited checks operations In
the former while the speculative period which Is gene
rally regarded imminent the other has not yet
commenced although IL threatens and there never was
time when the monetary facilities at the disposal oil
Wall street greater than they are at present Cold
opened with appearance Of heaviness at ias ana
declined to 14sh, loans being meanwhile made without
Interest. but il soon rallied to 1879, and loans
commanded 1872 1-lo per cent per diem IN favor OF
the lender The market subsequently reacted 70 1885,
and then advanced steadily l50k, the quotation at
baIfnas five The closing for loans was l32d in
favor of the lender Of the coin The bulls still retain
control Of the Market and they evidently manpula
ting for rise at present They argue that we have
shipped much gold and the residue Is 30 SMALL that
while news Europe financially favorable to US can
not materially lower the premium, continuance Of
financially unfavorable advices cannot fail TO pro-
mote an advance to higher point than has yet
boon reached since the termination Of tina
war There is truth In this far as
It relates to the immediate future say the next two
three news but 1t Is to see that after the
shock OF actual outbreak Of hostes has been felt
in Europe confidence would gradually return in the
money markets Of Europe owing to the deniteness Of
tho position and with this the exchanges would soon be
likely TO turn far in favor that the war would
bring far more profit than loss. Our breadstuffs
would be in demand from necessity and our securities
probably from option while the foreign market for COT
ton and other American products would hardly be
impaired by the Germanic and Italian struggle
Nevertheless gold may possibly but not probably be
forced by caprice Of speculation the stress of
legitimate demand far higher in the meantime. This
nevertheless will argue nothing against the theory that
the will be Of greater benefit than disadvantage to
this counry-time being necessary 70 prove the cor
rectness Of the latter
The of the rapid rise Of gold to 1881 Monday
morning was not however, the result Of fears Of
foreign operating upon the minds Of foreign bankers
and others in this country much the con-
sequence Of the reckless sales Of gold by
the government in May These sales made
at such low point that stimulus was impaired to the
export Of coin and more shipped than would have
been had the Treasury at that early stage OF the Trans
atlantic demand not played into the hands Of the agents
OF foreign bankers and others here, at the same
time that incurred the suspicion Of being actuated
by sinister motives OF its own. The Treasury acted
on a wrong principle which, however dictated,
merits emphatic condemnation, and neither the
Secretary nor the sub-Treasurer here complain
II the public has mental reservations as to the
personal interests which pecuniariy subserved by
the extraordinary gold operations Of the government In
Nay 1t would have been easy for Treasury officials
their friends to have bought large portion Of the
gold which the SubTreasury sold at 100 and there
after to have sold the at from ten TO twenty
per cent advance, the SubTrcasury meanwhile carrying
che amount, that few will give the Treasury on
cials their friends the benefit Of the doubt
that they did not do The prestige Of their
and fame Is thereby impaired, and
ultimate dismissal from once Of more Of their
number is predicted the result Of the investigations Of
the Congressional Committee to which the subject has
been referred provided the committee docs It's work
IL ought to do It, conscientiously and thoroughly.
To cap the climax Of this Treasury gold sale scandal
confession from the Secretary OF the Treasury
Congress explanatory Of his dealings government
securities which places him in very questionable light
and shows clearly that tho finances OF the
country in the hands Of those who do wrong either
by accident intent and who therefore UNIT for the
postons Of trust they occupy. We arc sorry that at
time which may l be considered critical nnan-
ca history tho administration Of the Treasury should be
such that people Of all classes ready to ascrbe
rupt motives to It's officers and who therefore have
little confidence In its skill or integrity.
Passing from this subject to that Of the
pstonai bank notes, We encounter . grave
evil which II Ia tho duty OF Congress to
mitigate or abolish speedily possible. That ma
tonai bank notes are financial nuisance every bank
president In New York at least will DO willing to testify.
rhsy nnd their way from tho country and stick here
whore order get rid Of them for legal tender notes.
the banks have TO lend them for period OF from 10
twelve days without interest Upon the bonds deposited
10 secure the ultimate redemption Of these
notes the Treasury 10 paying tho full rate
Of interest in gold, which will soon aggregate
moro than twenty millions per annum- This last Is
direct waste Of money while the national bank notes
serious element OF weakness In currency system.
Congress should therefore, adopt radical for
converting national bank notes into legal tsnde This
be done by calling all the national bank notes and
substituting therefor legal tender notes. at the time
cancelliug an equivalent amount Of the bonds
already deposited al tho basis OF security
with tho Treasury Department Tho subject
is OF such paramount importance that even this
advanced stage Of the session. call upon Congress
legisiste regarding L. With n currency composed en-
tirciy Of legal tenders shall DO operating upon Q
sound and definite basis which win greatly assist US In
tho work OF ultimately resumng specie payments but
with the national bark notes In circulation shall bs
perpctuay drifting into difficulties and holding out .
premium to fraud, In the Of the Merchants Ma
aoua Bank nj Washington and that Of the banks CON-
srolled by Culver, Penn Co
On the Stock Exchange Fort Wayne was the strongest
sf the railway shares but there marked activity
In any Of the stocks The suggishnsss Of speculation is
somewhat remarkable considering the improving value
Of railway property and the extreme ease OF money
loans being made at "a per cent, with . supply Of
capital in excess Of the demand
Al the early session Of the open board Erie sold 81 6ox
50. Michigan Southern 7oX, Cleveland and Pittsburg
s6x. Cleveland and Toledo losx. Rock Island o5x,
Northwestern 2o7s-prcferred 6sx, New York Central
esH. Al the nrst regular board the market steady
but dull Erie closed Is higher than II the halfpast two
board yesterday, Michigan Southern y, Reading y,
Michigan Central ~ Cleveland and Pit,sbury y, Rock
Island ~ Ohio and Mississippi certificates r. Illinois
Central lower Northwestern preferred Y. ATTAIN
nc Mall ~ Government securities were quiet and
steady.
AZ tho o'clock sessions the market was nrmer for
Fort Wayne which sold at osk, and steady on the 70
mander OF the list AZ the half past two board u Wa
dull and prices werc without material change New
York Central closed lower than as the nrst regular
board Michigan Southern " Cleveland and Pisssburs X,
Cleveland and Toledo u, Rock Island y. Erie closed
Y hlghor Rcadino Aorth csforn rrafsYra6 vort