The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-02-05
FINANCIAL AND CONNER GAL.

FINANCIAL AND coMMERc GAL.
SUNDAY, Feb. 4, 1880.
Tho stock market was unsettled and depressed at in
teryals last week although its general tendency up
ward until Saturday afternoon when, under heavy
sbear, operations in Erie, there was sympathetic de-
one in the whole list and at p NJ Erie quoted at
Tx Michigan Southern 6sK, Cleveland and Pttsburg
g. North western Elk 27x, preferred b4,S New York
Central s7h, Rock Island s9,<, Fort Wayne % s2A
me railway speculation lacks buoyancy, owing to the
Of strong outside support the uncertainty
regarding the future action Of the Treasury, the
reduced earnings Of most Of the leading railroads and
the preponderance Of financial strength the "bear"
side Of the Market and in stock specuations Is gene
rally the largest purse that wins The bulls in view Of
this condition Of things have been afraid to show their
horns boldly and speculation has accordingly angushed
But the short" interest Is large the prospects OF the
great arteries Of railway traffic are so good and the
money market 10 30 easy, that il the bulls con-
tnue to allow the market to 60 by default 1t will
DO their fault It may be that all values alike with
ali prices will ultimately go considerably lower for
while discount this at present is premature and
invites corresponding rebound The danger at the
present that stocks will 60 below their real value
just In the spring of 1884 they went above IL; but
the bulls and torn down by the bears in Wall
street will command much higher prices than
they do now, and be the most lucrative
Investments the continent, for railroads will
grow in importance and prosperity with the growth Of
the country and by connecting the golden shores Of the
Pacific with the great marts of commerce the Atlantic
seaboard attract hither strong current Of traffic from
the Orient whose overflow will freight our merchantmen
to the Old World
Government securities we're dull but experienced a
partial recovery from the depression Of the previous
fortnight
The money market was throughout easy at a per
cent and the lowering Of the rate for temporary deposits
in the Sub Treasures to five per cent tends to keep
money cheap. There is considerable amount of CAPT.
tai unemployed and loans made at four per have
in some instances not yet been called in; while the
temporary deposits in the Treasury here aggregate
about seventy-two millions.
Gold has been firm, and con for delivery scarce The
price advanced from 139A Monday to 141H Tues
day. but after opening at 140H Saturday. it closed at
1899. The demand for duties during the week
amounted TO So 0O0 The Of gold certificates
outstanding the LIST inst S. 391 ESQ., the total
Of in the Treasury and Treasures on the same
date $51, 443, 161.
Foreign exchange weak and at the close bankers
bills England quoted at 10s short sight 1O9H
1921 In view Of the large preponderance of imports
exports going forward the probabilities favor higher
rates before long The receipts Of cotton at this port
the week ending on Friday evening last were Is 964
baes making es2 292 bales since the LIST of July 1885,
The exports were, during the week, 1901 bales,
making 81 0l8 bales since the beginning Of July The
stock on hand at New Orleans the 9th of January
was 1000 baes Mobile 81, 0O0 Savannah H. 1As At
Liverpool January 20 the stock was estimated at
alt 500 bales, Of which 10000 American. The
Mt NJ
the season, but there is diminished confidence their
continuance and the prospects Of planting the crop
are less promising than was generally anticipated.
The new Finance bin reported IN the House of Repre-.
sentatves has been the chief theme of conversation In
Wall street for the last few days. and in connection with
1t the financial policy Of the government has been much
discussed The bill provides against the increase OF the
debt but authorizes the Secretary Of the Treasury to
dispose bonds either home abroad The bonds dis
posed of out Of the United States may be made payable
principal and interest, in the coin Of the country in
which they made payable but not TO bear more
than five per cent interest The bill is amend
ment TO the oct Of March 3. 1885, extend
ing its operation TO enable the Secre-
tary Of the Treasury at his discretion, TO fund any
OF the floating securities of the government whether
interest bearing not This Of course, includes cur
rency, the authority to fund which was however,
ferred section Of the act Of June go 1894 which
issued
this act may made convertible into any bonds issued
under the authority Of this act And the Secretary Of
the Treasury may redeem and to be cancelled and
destroyed any Treasury notes United States notes
heretofore issued under authority Of previous acts Of
Congress- and substitute lieu thereof equal amount
OF Treasury notes. such authorized by this act
OF other United States notes. The now BILL by forbid
ding the increase Of the debt, practically prevents
the Secretary Of the Treasury from selling his
bonds below par, and reduces the authority 10
change Of floating for funded securities And this
not be carried into effect except easy money
ket which will aoat the bonds above par creating
inducement for the holders Of seventhrty notes and
other unfunded securities exchange them for bond
ct par The Secretary will find himself in such position
during the next years and half and until all Of thu
eight hundred and thirty millions OF thirty notes
ct least taken up, that continued monetary viii
DO indispensable TO enable him TO provide 10
his maturing obligations To contract 10 currenc
during period would produce strngency and lowe
the market price Of the bonds putting stop TO fu
ther funding.
Moreover, the national banking system is dcpender
for It's safety upon contraction of the legal tendc
notes, and will always be tho most formidable STUN
bling block In the way Of such contraction and u
mate return to specie payments SO great financial In
cubus already upon the country, and costly to tn
Treasury that its speedy overthrow is to be DESIRED
this be possible without leading TO general bankruptcy
bA the system entered into all the channels
trade that II would be dificult 10 devise = remed
that temporarily at least would not be than III
evil ITSELF But thing Is almost certain-namely th'
when the day Of resumption comes II not before, n
great majority Of the national banks will DO unable to
deem their notes. and then will the downfall OF n
pet scheme OF Nh. Salmon P. Chase But mcanwhi
Congress has 10 In ~ power TO so amend the Nation
Currency oct TO make the bonds deposited by the
banks security for their circulation nonnereet bea
Ing At the beginning Of the year there were s2ss 37e
$50 OF bonds so deposited bearing coin interest
the rate Of six per cent and involving