The New York herald., 1866-02-12
FINANCIAL AAND COMMERCE.
Sunday. Feb. IL, 1866


SUNDAY, Feb. II, 1850.
Iast week was on the whole. duh one In wan street.
yhe suspense with which the action Oh congress upon tne
new Finance bill is awaited tended 70 limit sne volume
of busInes and on the Stock Exchange prices remained
sbout steady till Thursday, when strong buyers
made their appearance in the Market and acquired
undertoue of strength not before observable since
the commencement OF the year. Quotations i'm
proved with the increased activity Of. business,
and q confident feeling was manifested by
the operators for rise. At haf-past i've
O'Clock last evening Michigan Southern quoted at eo
Cleveland and Pittsburg 7oK 80, Northwestern 27x q
%, preferred 6lK Y, Rock Island 10lS, Eric rs .
u, Fort Wayne olX Ak, Hudson River 100 a u, Read
Ing 100 y, New York Central sSk q y.
rise In railway stocks looked for on the basis OF in
creased earnings and the recent fall was precptated
by exaggerated fears Of their indefinite decline 1t is
only reasonable 10 expect recovery from depression
which proves have been to great extent causeess
The reduced receipts Of some Of the Western roads,
which for few weeks furnished such ample capital
for the bears, arc being succeeded by considerably
enlarged returns and there 10 general concurrence
Of opinion in favor of the mot earnings Of the Railways
especially the western lines during this year. In excess
Of those OF 1885, their working expenses having under
gone great reduction while there 10 every prospect or
st further curtalment Tho 'bear" interest is, how
ever st powerful 10 tho upward course Of prices
and until the Finance bill s disposed Of In Congress tho
market will be or less unsettled by conflicting ru-
mors and vague apprehensons Evon should the amend
rnent to the old bill pass In ts present FORM which i'm
probable the Stock Exchange alike with the entire busi
ness community, will experience certain sense of relief
and the bugbear Of impossible contraction and foreign
loan will sink into comparative nsgnincance. Its pas
sage has been already discounted and the BEARS in any
event, will ind 1t Of very little future service
Government securities improved during the latter part
Of the week. under the reassuring effect Of Louis Ma
poleons speech in reference to Mexico and the growing
impression that the financial policy Of the government
must necessarily be conservative in character to enable
the Treasury meet Its maturing obligations during the
next two years and q half.
The gold market was very Arm up to Friday under
scarcity Of coin for delivery, loans being made at
per cent per diem; but on Saturday 1t weakened under
increased supply caused by sales Of brough. by
the California steamer and otherwise, and loans
made at q 1-16 1t was at the same time rumored
that the government in the market seller, but
this seemed hardly probable The ''shorts" in gold
have severely taxed during the last fortnight to
make their deliveries, and they are calling loudly upon
the Secretary Of the Treasury to supply the market from
the surplus In the Sub Treasury. The practice Of the
government selling gold secretly s, however, TO be
condemned the more especially as an act OF Con-
ess already provides for the diversion of any such
plus TO the creation Of sinking fund II the surplus
In the Treasury large to justify the sale of por
tion Of IL the sale ought TO be publicly advertised and
the proceeds devoted TO the establishment OF the fund
In question: the law relating TO which has thus far been
treated dead letter. and the repeal Of which Mr. Nc
Cuoch asked for in his report grounds that by
no means clear. Gold advanced from 1897 140 on
Monday TO 1l0K Friday, but Saturday it touched
1889, and closed at 13oK.
Foreign exchange depressed and the rates through
out tho week steadily declined under excessive sup
ply Of southern cotton bills and disposition the part
Of importers 10 defcr remtanc g. In the hope OF de-
olns Of the gold premium after the supply Of coin in
The market becomes moro abundant. The demand for
gold Cor customs duties the Treasury supposed TO
have suspended s sales has been heavy but the banks
have lost far smaller OF specie than has been
paid into the Sub-Treasury The question Is asked,
Where does tho gold for duties froms 1t comes
partly nom boards, and TO some extent from with
drawas Of overdue interest the gold bearing debt;
but a. tho subTreasury stating the amount of Its
daily balance, fails to separate coin from paper 1t Is
impossible 10 tell whom the government is seller un-
lsn occasionally by Gold observation. Bankers
sterling bills at sixty days weakened nearly per cent
Sstwssn Monday morning and Saturday. closing at lo7 4
l0Tk Bills on Paris were at the same time quoted
at Sf 900 . ST. SOC. Hamburg. 8SK 3o Amsterdam,
cox 40x; Frankfort, 4ox COX; Bremen, II 77x.
Prussian thalers were Toka AL
rhs export Of cotton for the week ending February
vss above the average alike with tho general export
trads aggrogAting 1l,so7 bales Tho receipts In this
market for the week ending on tho sth were 27 500
baisa The market dull and declining, mainly under
Ehs Liverpool advioca A recent circular states the
receipts u the ports Of the United States since September
l. 1895, t l17s0oo bales, and the exports at $40 900
y~f.~ . ham ~ hale tnto ou
sl cotton statements and estimates differ strict reliance
can hardly be placed upon tho exact accuracy OF any
them Tho stock at Now Orleans on February is ~
turned At $50 900 bales Savannah tho I'd, TO- 4oa
bales Charleston, the 1s COS bacs Galveston, on
January a. 14s bales The crop prospects in the
South reported 10 be less promising than heretofore
The old property In many without the
means OF planting, and number Of difficulties bcse
nsw comer Among these local hostility TO Northern
men, scarcity Of cotton seed, tho purchase lease o
eligible plantations and tho labor question. Free paid
negro labor has not yet been established and the system
n IN that unpleasant transitional state which invariably
attends reorganization Moreover comcrs however
sutcrprsns and well provided with capital In nearly
every case unaccustcmed 10 planting consequently
ct great Disadvantage compared with the old plancr
and their pronu for the nr year two II indeed they
realise any, VIII probably bs vcU>small Tho real
restoration Of The cotton trade OF the South
must come from tho soushernen themselves, aided
by Northern capital and the strongest incentive 70 com
msrolai and Agricultural activity win lie In political 70
oonslructon and the longer this 10 delayed the ongo
viii Tho productive industry Of The South continue
iangnish- ....
fns money market has been without any new feature
the Of the last two months bcing sin IL
marked charAcssristc Notwithstanding the large amour
On temporary loan In The ub-Treasury. or what IN
these enormous deposits 70 the government ai pro
sent u h difnouIt 70 SEQ, and 81 any tim
ths policy Of receiving them 10 Questionable
We long ago pointed out the Of weakness they
70 The Treasury the latter must be always prepared
sss twenty 1--we millions Of them Clearing House Ger