The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-11
FINANCIAL AND CONNER GAL.


FINANCIAL AND CONNER GAL.
SUNDAY, June 10, 1885
There was . steady increase Of monetary exper
enoed during past week. and the general for cal
loans was i've per cent The disbursement Of the semi
annual interest the thirty loan due the l5tl
inst, amounting to sloo5o 900, will further swell thu
volume Of eanabe funds this CENTRE for which there
is no longer outlet into the Sub Treasury, and which
will therefore have seek employment on the stock
Exchange Some Of the city banks have OF late been
saddled with heavier weight OF country national bank
notes than they could conveniently dispose OF, and In
order relieve themselves have been compelled TO loan
them brokers and private bankers Tor nve or SIX days
free Of interest consideration OF the loans being paid
or in legal tender This shows the necessity
which exists for plan Of enforced redemption OF ma
tionai bank notes this and other central points, say
Boston and Philadelphia and perhaps the quickest as
well Is the most efectual method OF secur-
ing the desired result would DO for Congress
60 pass an amendment to the National Currency
act requiring all the banks not in the three cities
toned to redeem their circulation in the manner pro-
posed The Secretary OF the Treasury and the Comp
toer Of the Currency have already spoken strongly in
favor Of plan OF compulsory redemption and it is evil
dent that without the issues Of country banks will be
perpetualy choking up the channels Of the money
ket at the financial centres and particularly at this great
tend towards this point where they dead weight
whereas the notes OF the New York, Boston and Phia
depha banks constitute no such incubus, but are In
active circulation and demand everywhere. or course
the country bankers opposed to redeeming their
notes, except at their own counters; but they
require be taught that instead Of being money their
notes are merely promises to pay it on demand, and
there is every to believe that well enforced
compton scheme would exert q highly sautary effect
upon the management OF large number Of national in
stitutions which would thus be bound to maintain
reserve that under other circumstances might
existence
This however, is only q subordinate question in
nection with the national banking system which is
founded false principle and which calls for radical
amendment. national bank currency should
have been authorized and much less should interest in
full have been allowed the bonds deposited with the
Treasury the basis OF circulation BY authorizing the
bank notes Congress created what is now becoming
dangerous nuisance and by allowing interest
the bonds subsidized the banks in the
aggregate at the rate Of about twenty millions
year In gold. supposng the full amount of
circulation authorized to be issued. new national
banking law has been drawn up in Congress intended to
meet the deficiencies Of the original one but not
yet acquainted with It's provisions We presume pro-
vdes for the OF the total circulation TO four
hundred millions; but It should also provide for the
gradual reduction OF the interest the bonds deposited
with the Treasury by national banks and the substtu
ton by regular degrees Of legal tender Treasury notes
for national bank notes The hual result would
be that we should have national bank currency and
no banks Of ISSUE but uniform currency issued by the
Treasury and based directly upon the credit Of the gov
eminent No better paper money system than this
could be desired, and to speedily possible
with the welfare the banking interests Of the
country should be the Of Congress- The banks the
large cities independent OF circulation Of their own,
as they do business upon deposits, and the country
bankers will therefore be the only grumbles, and the
grumbiings Of these will matter little.
There . moderately active market for railway
shares carly In the week, and Erie esq., and the
stock became for delivery in proportion to the
demand from the bears that per cent per diem at
ono time paid for it. Subsequently the price declined
% and then recovered to 63H AZ Tho specula.
tive director ID understood 10 b. still clearing the
stock, and the company having accommodatngiy lent
him twentyeight thousand shares besides convertible
bonds he has mot failed 70 these 70 his advan
taga Enc has been Of late dampsr upon the rest
OF the market and tho clques formed 10 ope-
rate for . rise have been afraid 70 ven
ture upon the sullen tide Of speculation, while
the Eric railway merely ran from Dan 70 Beenhebs,-
namely tho stock Exchange There parties formed,
understood in most Of the leading Stocks but thus
far for Of SUFFICIENT speculative boldnes their
par their efforts have proved abortive, and the
&reme In money has alone sustained the market.
A summer dulness SONS 70 have boon stealing over
the Stock Exchange during the last few dAys and the
bulls instead OF making hay, have been baking In
the sun, apparently content 70 maintain, for the
time being. mastery inactivity. Tho speculative
spirit may n any ime however, emerge from it, chFysa
lis state and putting it, wings, soar higher, and all
the material conditions Of the market favorable 70
At ave O'Clock on Saturday closed dull but firm n
the following quotatons:-New York Central 97k y,
Eric e3H . y, Reading 1ooh . ~ Michigan Southern
7ox u, Cleveland and Pittsburg sax 4, Rock
Island s2x ss. Northwestern aox sl-preferred
ooxsk, Fort Wayne 0ok y. Cumberland 4esK,
Canton 6sk . So
Gold has ranged from 1881 to l4ex during the week.
and more than usual activity has characterized the
market for the metal much that the prevailing
dulness on tho stock Exchange is partially due TO
the diversion In business 70 the Gold Room Although
large "short" interest has been created and loans
were made Saturday at 132 3s2 In favor
OF the lender, the market closed barely steady
at l3ox q 4. The specie export Of the week from
this port and Boston aggregated IS aoo but belief
In decline Of the export demand IN consequences OF the
ess unfavorable financial advices from Europe we'll
AZ tho anticipated effect Of the payment Of about nine
millions OF con interest on account Of the July
coupons, induced large sales 70 realize and q
strong current Of speculation for q fall This last
will correct itself by checking the decline, which
"a not likely make much further progress at present.
Tor We have much gold not to feel the effects for
some months TO come. The demand for customs duties
at this port for the week o. 34o against which
the California brought nearly million, mostly
Ia gold bars and double eagles
Foreign exchange active for Wednesdays steamers
at ITO . 11lx for bankers bills on England
at sixty and three days respectively, but after.
wards IL was dull At loox and Xix The English news
BY the Allemania rcassurns On the Soth ulI consos