The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-20
FINANCIAL AND coMMERc iAt.

W. r \. IS fI. wnDsssDAY, Dec. 19-6 p II
Win suxs exception the fluctuations In the railway
share market have bean very light to-day, although an
aVsaGe amount OF business was transacted The specu
lasve feeling rather tame and tho bears were moro
active selling than the bulls were In BUYING but prices
vislded very slowiy and they were quick 70
ma disposition Of portion Of the street was evidently
70 dscount stagnant market during the holidays but,
While certain degree Of dulness may be looked for
lsclne in pross improbable judging from the present
temper and condition OF the market and the aspect Of
monetary anars. There is larger short interest
outstanding than has probably existed any time since
he Of the year. and while there much
scnnsoed with the real value Of railway property
q advance In prices there nothing apart from specu
lativs influences to decline There be little
doubt that Congress will pursue q very moderate
with regard to the currency and the Secretary Of the
Treasury must see that to in contracting the
plain legal tender notes at the rate Of four millions
month a authorized by existing act Of Congress-
viii be to prevent the conversion Of the hundred
millions Of thirty notes into bonds Congress
should take the initiative In this important NATTER and
provide that the volume OF non-nterest bearing legal
asnds shsIl NOT be contracted but that the compound
interest notes may b contracted - they mature at
rate not exceeding twenty millions tho nrs year. fifteen
millions the second, ten MILLIONS the third, and
issued to replace matured "a often
necessary This would remove from tho public
nind those vague spprebensions Of revulsion which
have been inspired by those bulIonists who wish
return specie payments by contraction OF the
reucy There 10 In reality danger whatever Of revu
sion few failures may occur from overtrading and
unsuccessful speculations, but the general trade Of
tho country rests secure basis provided
che finances OF the government properly admins
tered, az specie paying times could afford Moreover.
the1 fact of currency being inconverble guards
the market from the danger of foreign drain TO
which should be always subjected under opposite
conditions The year promises to open under aus
piecs favorable TO commerce and production, and
real values cannot fall to improve with the
viva OF prosperity in the wasted South, which OF
itself will give . fresh impetus to erprse
at the North. To further contract the currency
70 any material exten: In the present stnat.cn
OF sairs would be like killing the goose that lays the
golden egg and consequently 1t would be piece Of bad
etatesmanshp and one, too, which would have serious
eject In diminishing the public revenue.
The supply Of money available for the Stock
Axohange Is abundant Tho general rate is six cent
but some OF the banks continue to ask seven. Excep
tiona transactions at FIVE are, however, still common
among the dealers In government securities Leading
bank officers express the opinion that the market will
gradually work easier, and 1t is not improbable that,
with January will reduction OF the rate Of inter-
est for call loans to Eve per cont The local exchanges,
the South excepted in favor OF this city and within
month return flow from the South will set in while
the drain that direction has almost ceased There s
only limited business doing in the discount line, and
the best grsdo OF commercial paper passes at az per
cent
At tho opsn board at ten O'Clock Erie sold at 1884, Il
Michigan Southern s2k So, Northwestern 5sH a ~.
ditto preferred 79X " Fort Wayne 107 AT the regu-
lar board from ten TO twelve the market moderately
active but barely steady AZ twelve O'Clock Now York
Central closed TX lower than at the time yester
Gay. Erie x, Michigan Southern 1k, Cleveland and
ritsburg ~, Rock Island a. Northwestern Iys-dltto
preferred ", Fort Wayne Il, Ohio and Mississippi GER
Nhoates y. Cleveland and Toledo 81 higher, At
lantic Mail Y. Government securities were duh Cou-
pom ten.forties showed desne OF u, thirty
notes Of the second series ~ Fvetwenties Of the
issue Of 1 ss5 were u lower.
After tho call . meeting OF the board held at
which decided abolish the system OF contipu
Gus oa which went into operation yesterday morning,
end TO revert TO the old system, emitting tho
o'clock GALL This was sensible conclusion as the new
method sgnaiy failed
~ the O'Clock open board tho market
stsady the chief .activi,y being confined TO North
western aud Erie. Al the haf.past two board II
was without change except for Cleveland and
y lower than a. twelve o'clock, Reading ~, Mch
gan Southern z. Cleveland and Pittsburg ~ Rock
Island X. Northwestern e, do preferred y, Pacific
Nail ~ Atlantic Mall 4, Marposa preferred " Western
UAion Telegraph 4. Government securities dun
bus steady Al the open board at three o'clock the
market hammered aad prices declined . fraction
New York Central sold at 1907, Enc TAX 73x Read.
ing los io,k, Rock Island l0s, Northwestern 52,S
do. preferred 1877, Fort Wayne 1857, Michigan Central
Il2x, Michigan Southern SIX. Cleveland and pit,sburs
Ss,I, Cleveland and Toledo l22k Ohio and Mississippi
certificates, 2sh. Afterwards there was active de-
mand for all the leading stocks and prices adv anced
Erie being especially steady. Al half.past I'VE the
market steady at the following quotations New
York Central l10k Ill, Eric 1871 u, Reading 1861
4. Michigan Southern 81 u 4, Cleveland and Pitts
burg ssk x. Rock Island 1os7S los. North western
62K y, do. preferred 1914 70, Fort WAYNE l0ek q
1o7. Compound wore quoted thus by the
deaers:-Jrne, 1854. 1ls'sa ri July, 1l5zs 1l6K /;
August, li5H y; October. 114K az; December
llsh ~; Nay, 1885, llih x; August, 1ioh a u;
september, ITO 1loA; October. 1o9k a no.
Tho gold market was rather heavy. Tho opening
price ls1X, followed by gradual decline 10 1885,.
and reaction to 1917, the closing quotation being
1851 1877 Tho decline assisted by reported ar
rivals from New Orleans Of foreign bills drawn against
cotton, aud adyices that more 10 follow. Tho
downward tendency OF the premium keeps the market
for government gold bearing securities dat The supply
Of coin for delivery equal TO the borrowing demand
and loans generally made without interest.
Tho foreign exchange market was Inactive and heavy
In Tone owing 10 the prospect Of cotton bills from the
South Affecting rs,os Bankers bills on England, At
sixty days, quoted at the close at 109k n; At
three days no liois: commercial. ios 100; francs
Mt sixty days, ASK 5i5 at three days, 10 Six
Bills on Berlin ~ a 72K; on Bremen, 7sk 7sX; on
Frankfort, AK slt1; on Amsterdam, Il az; on