The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-07
FINANCIAL AND CONNER CiAl.
SUNDAY, May 9, 1885.

SUNDAY, May g. 1896
Business in Wall street during the past week has been
brisk but without speculative excitement The chief
incidents of current interest were the Ross forgeres and
the introduction of the Consolidation Loan bill in tho
Senate The new State law taxing brokers' sales also
attracted considerable comment and provoked a good
deal of honest Indignation the impost beng generally
regarded as equally unjust and unconstitutional. We
understand however that Governor Fenton and the
Attorney General have agreed to suspend the execution
of the law pending a legal decision upon the question:
and to be made and tried accordingly. IT.
as the State constitution says every law which imposes
continues or revives shall distinctly state the tax
and the object to which it shall be applied and 1t shall
not be sufficient to refer any other law to hx such
or object the fate of the bill seems clear
The new loan bill provides for the Of bonds
thirty years bear five per cent interest," the TO
be called the consolidated debt Of the United States"
and TO be exempted from all federal and State taxation
This provision appears important at first sight
than really is; for owing to the fact Of than
three millions Of our bonds being held abroad and
large amount beyond by parties whose incomes are
under six hundred dollars, which exemption it
Is proposed TO increase to thousand dollars, only
about onesxth OF the aggregate Of the debt 1t is esti
mated is reached by the income tax the annual inter
est And the income tax is the only to which gov
eminent securities at present subjected II follows,
therefore, that the loss consequent upon the entire ex
empton of the funding loan from taxation would BIO so
light as to bear no comparison to the amount gained
by reducing the rate of interest to five per cent,
and moreover, It is urged that without the
proposed exemption would not offer sufficient induce
the conversion of thirty notes. which
is specially designed for The Senate Finance Committee
will is understood report 1t without material modih
cation and there is probability of its beng acted upon
by the Senate during the next week or ten days Had
the period fixed for final redemption been fifty instead
of thirty years would have been better the longer
stock has the higher its market value supposed
TO be.
The provision contained in the bill to divert tho
savings OF interest at the rate Of thirty millions year
TO the establishment of sinking fund for the reduction
OF the principal of the debt is timely, and all the more
because Of the existing law this subject
being thus far treated dead letter This bill will
have influence in curtailng the amount of green
backs in circulation is intended only for the fund
ing OF securities other than these, the reduction
Of which is limited under act OF Congress fresh the
public mind Neither will any disturbing effect
upon the money market extreme monetary will
be necessary to its success and whatever currency
subscribed to the loan will be Immediately restored to
circulation. It WILL indeed. be the best possible qua
rantee Of absence Of monetary spasms and will
far settle and define the aspect Of financial affairs
oil sides.
The stock market has been fairly active and nrm tho
tendency Of prices being decidedly upward but with here
and there speculative lull under which they merely
remain steady decline fraction. The impression that
railway stocks cheap is becoming moro confirmed,
and there moderate and growing demand for invest
ment At the same time money is SO cheap and abund.
ant that there every inducement for spectators
TO anticipate appreciation Of values by
r~- thn optNinn AF
the Is indicated by the fact that the bears
insignGcantly few, while the bulls many. At the
close Of the week hopeful feeling prevailed and there
was strong demand for Fort Wayne, which Is rapidly
recovering from Its recent undue depression Milwaukee
and St Paul preferred and but TO less extent Cleve.
land and Ptsburg In the miscellaneous list Mariposa
preferred active and buoyant At af-past five on
Saturday the market closed very hrm ut the following
quotations Ohio and Mississippi certificates 2eH "
Canton Is u, Cumberland AZ y, Mnriposa pre-
ferred 25k \, Quicksilver 54x y, New York Central
92x 4, Erie TAX *, Hudson River 1l0H y. Read
ing lO7x " Michigan Southern Tx IS, Illinois
Central 122K y, Pittsburg s2H y, Toledo lo4K X,
Rock Island 124s a. Northwestern 29I H-preferred
6lx y, Fort Wayne 1905 u.
Loans at call made the Stock Exchange at s
per and first class commercial paper discounted
Tho gold market was firm, the price advancing from
e3K Monday to 1874 on Saturday. The supply Of
BIN for delivery became easy, In consequence Of the
Treasury disbursements and loans were made fiat at
DO close The daily range Of tho market UNDER: