The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-01-22
FINANCIAL AND COMMERCIAL.
SUNDAY, Jan. 81, 1865.

course of speculation The decline OF the previous ior
night brought strong buyers into the Market ooh ior
investment and otherwise and TINS, tosetner win
che Iarue sshortr interest assisted in rallylng
prices from the forced depression which char
sc,orzad the first ten days of the year. The
decrease in the earnings OF most OF the principal
railroads and the new finance BILL drafted by Mr. Nc
uocb and introduced in the House of Representatives
by Mr. Morrill, used capital by the bears to pro-
mote scmi-panc in stocks and gold with considerable
success But their arguments grossly exaggerated the
Importance of both. The reduced railway earnings
still much larger than they in 1858 and 1884, when
stocks were much higher, and ample in the ma
FORTY Of Instances for the payment OF dividends,
unless the surplus should be devoted to other
purposes while In the Of Eric and other leading
roads the earnings considerably larger than they
were year ago. and therefore in their highest degree of
prosperity The finance BILL although naturally exciting
the apprehensons Of all men In business is virtually
unimportan measure If the Secretary Of the Treasury
acts in accordance with the interests of the country but
vague dread Of practical mpossibes arising from its
passage inspired the bears In gold aud stocks and
number Of people sold out their securities In
quence The snare succeeded, and the spectators
for fall reaped the reward which their
credulous victims were eager to bestow. The bill
In its original form we know will not pass, as the
authority to negotiate foreign loan will be stricken
out; but supposing that such monstrous proposition
were to pass would be very injurious to the Treasury
t 1t avaed itself Of the authority the bill asked for
The proposition TO negotiate distinctly foreign stock
Is a simple absurdty, which is Questionable
ON political than financial grounds and the authorizing
such measure by Congress would be insult az we'll
injury to the country. II foreigners want to in
vest In our stocks let them buy them in
kets not they welcome to leave them alone and
The they do and the less debt held abroad
The better The money grubbng Germans have had tho
Bagacity to invest in our bonds, and they have
prontcd accordingly; but 1t will IN the end proba-
bly, provo to have been better for us If the Va
teranders had kept their money to their own
mercenary selves, for they likely to be foremost
in sending back securities for sale here In the
OF political troubles arising for the Teutonic is
FOND Of making of its ucre Of its oen and garlic
Tho danger attending our debt being held largely
abroad is which has not yet been sufficiently appre-
ciated but may at future time become painfully
manifest Not less than three hundred millions OF
securities are held In Europe and the amount is est
mated by some high as FIVE hundred millions.
Supposing any considerable portion Of this to be
suddenly returned to the consequence would be pro-
poronate drain Of gold and corresponding increase Of
the gold premium.
We have the best reason however to believe that Mr.
MoCulloch Is to doing anything which will en-.
danger the real interests Of the country and that he
does expect the foreign exchange and foreign
clauses in the bill to be passed by Congress He is
conservative in his intentions and has desire to dis
turb the existing state OF affairs, and he admits that
contraction Of the currency will be impossible till
after the seven thirty notes funded This merelya
common sense of the financial situation for 1t is
apparent all upon perusa Of the official OF
the public debt that The Secretary OF the Treasury will
DO dependent upon easy money market for at least
two years and q half 70 come, and that meanwhile,
10 contract the currency materially would DO 70
bankrupt the national banks reduce the revenue and
seriously embarrass the Treasury. Mr.. McCulloch
knows that during this time he will be almost power
less to in any important respect and that the
popular fears OF contraction and resumption OF specie
payments have rdcuously slender foundation In fact
a, however great a radical he might BE- IN finance,
the situstioa would control him. II he negotiated
foreign loan the gold bonds here would decline and
prevent his making the transaction as profit
able q II he sold them at home, and II
be oentotsd the legal tender notes he would perhaps
placs himself the position Of unable 10 meet his
aoceptances without heavy SACRIFICES The financial po.
stcn of the government is stil weak, and requires
very careful nursing during tho process OF lis gradual
reouperaiicn 70 the specie standard which shall be
fortunate In reaching during the next ten years.
The Inducements 10 exchange government for
he appearance OF the finance bill referred
y and the decline In the latter; and, a con-
sequence while governments heavy, railway shares
rapidly recovered towards the close OF tho week. their
upward tendency being strengthened by the prospect Of
brisk spring trafc. There pressure TO sell
governments the part OF the public but the brokers
Interested kept up quotations to the bcst OF their ability
otherwise there would boon decided fall In them.
The government list closed dull aud rather weak on
tho gold bearing stocks The railway speculation which
buoyant during the early part OF Saturday, slug
gish In the afternoon At half past i've o'clock New
York Central was quoted at % a y. Eric seK a y,
Hudson River 1891 ioaK, Reading 1914 Ak, hichi-
gan Southern 7ox u, Cleveland and Pttsburg SAX a
IS, Rock Island lo2 y, Northwestern aiXak, pre-.
fsrsd SIX Y. Fort Wayne o5,s 4, Cumberland As a
n, Quicksilver Il a42
There pressure 10 sell and consequent decline
In Paciac and Atlantic Mail upon Of opposi-
ton limo OF steamers being In contemplation. Pacific
Nall scrip sold down 70 100 at tho two board on
saturday Atlantic Mail sold at tho board at loa
This heavy and apparently causecss decline far
outward appearances concerned; but Il Is not Inn
probable that there special for which may
soon become transparent
the gold market was steady throughout the week. the
sxtreme fluctuations being from i4ox Wednesday to
ts5x on Friday. The closing price i3o There Is
moderately largo outstanding 'short" interest," and
loans made Saturday ga per cent In favor Of
the lender Of the coin.
The latest European was calculated 10 advance
gold and foreign exchange but the latter was slow TO
Improve and bankers bills England at sixty days
closed at 10sk . losk. The imports are increasing,
especially Of dry goods The aggregate gold value Of the
whole for tho week ending on the 10th instant
bong So.lsosso. The advance Of the Bank Of
Essiaad r.s Of disooun. to eight per cent, shs,
o ths Bank Of Hranos 70 psr cent and that Of tue
Bank Of Holland 70 0k per cent will exert influence
In sdvAncng the rates Of exchange during the coming
week. BILLS on Paris at sixty days were quoted on
Saturday = k22 . si7x, short sight 5ieK 5l3s.
Antwerp AM q b.1o, Amsterdam 4ois AK, Frank.
fort <eg 20, Prussian thslcrs u y.