The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-02-04
FINANCIAL AND COMMERCIAL.

davs OF last ek but subsequently became stronger
and the reaction 'ade steady progress up TO the close
This was partly do TO the influence Of capital from
outside sources. attracts by the low prices At which
leading speculative shares ~ re selling but still more "a
tho purchases Of the bears coVer 'ner conuacts
Many OF the latter changed to o. Jun sue unoof tne
impression that the decline had been ana tha'
IL would bo easier 70 put stocks up than nad before
been to put them down. The shrinkage Of P,ices 81
the same time largely diminished the demand for mc2ey
the stock exchange and enabled houses in first cass
credit to supply themselves freely at per cent
while firms OF inferior standing were narrowly scru-
nzed and treated lees literally with respect margins
and the csrticaton OF their checkA This policy the
part Of the banks caused large forced sales Of stocks to
bs made by houses supposed to be strong and although
the prominent failures which took place were few there
ID NO doubt that far larger number Of firms are
what IL called worse than nothing and their
dependence b upon the margins Of their
Hence twenty per cent instead Of ten usual Ia gene
rally demanded by brokers' and much IL not all OF this
IL available for the brokers' own operations II they
choose 30 70 employ IL Stocks be easily loaned and
The borrower gives the lender check for the full market
value. but where this cannot be- done brokers have
habit Of turning" their customers stocks and setting
the "short against the "long' account in q way
which relieves them from borrowing largely even when
securities II is the capital which flows into brokers'
hands in margins that makes the business even more
attractive than the high rate commission for buying
and selng-an eighth per cent-which is charged
where special agreement is not made. The policy of
the brokers TO draw money into the street to repensh
their empty pockets and they TO think that this
will be sooner done by exacting margin Of twenty per
cent than smaller one and 1t will furnish
after the upward reaction has temporarily exhausted
itself, better basis for fresh shear" movement
After the recent experience Of the Bank of North
America the banks justified in refusing ccffcations
beyond the to the credit Of the drawers Of the
checks and the practice OF certifying almost indscrim
nately should have become general as it has
1t obvious that the system places the Of the
depositors well the Of the sockhcde TO
extent, In jeopardy and the competition for
business among the city banks should be allowed to
override their discretion. There many good houses
to whom this accommodation may in moderation with
safety be extended but there others who receive
who entitled 1t neither the ground Of respon
sibity nor probity.
The week closed upon an easy seven per cent
money Market and the scrutiny with regard to
names. collaterals and margins are becoming
less severe. At the Same time large amounts
were left with the leading dealers in government
securities at4a per cent. showing that tho supply
dence among both lenders and borrowers strength
ened by the publication Of the proposed bill for redeem
ing compound interest with loan certificates
vertbis into currency at the SubTreasurss demand.
to the extent OF hundred mlions This BILL II 10 said,
will be reported by tho Finance Committee Of the Senate
during the present week. The main objection TO s
that viii substitute one form Of interest bearing
sccurty for another whereas would be better to issue
plain legal tenders in redemption Of these notes thus
saving Interest entirely without increasing tho volume
or legal tender notes However tho issue Of these GER
tHcates will compel tho SubTreasuries to keep large
reserve OF legal tender paper constantly on hand with
which to redeem them presentation advantage
to the banks from the proposed win be found
tho provision IL makes FOR hundred millions Of tte
outstanding one hundred and fortyfour millions Of con
pound interest notes. and the necessity which obvises
for the banks keeping large reserve In plain Dgal
tender notes as they are accustomed 70 bold The
banks would doubtless employ their funds much moro
freely whilo holding their reserve in loan certificates
than thoy find prudent TO do at present. and nus
large amount Of held part OF tn icgni
reserve would be thrown into circulation and Contribute
to the general ease OF tho money market Against ns
however, muse be placed the additional smoys which
the Treasury might reserve 10 enable Il 10 redeem these
certificates and practically they will be almost idsu-
! ticai with the Clearing House certificates Which
Arb still outstanding, but the interest q whch
hes ceased. Why, therefore, pay interss on the
new issue Of Mcs5 Ufsi,cates and Aow y the
Treasury TO pay them OF without sBcyacnin upon
u reserve Or nfsy millions Of gfsenbset aufsnzed tor
the redemption Of the temporary loan Pa' 'cea' teh-
dsrs would DO nanifestly both eooo's1 ana con-
venent
The railway Share market was arm a 40 close OF bust.
on Saturday, and tho quotatorcurrens q nan'
Aua.v auudar vc~L rAu
Erie, 5s,S Il Reading, 1o4,s hichan outnern' Tx
TAX; Illinois Central 1o7; cieves sna r.sours .
So, Rock Island, s7As Ak; Te-"Asas' VI "a
Northwestern. 81 s7k; az. ,srs.e, =. - s
The gold market was. "a 81 ~. $50. sno "eeA ano
advanced from 1s4 .r ,aax =. T.a as Iuo a00n On
Saturday HAVING -, 80 20, ;" progress OF the
,...L... 4iovement gives YER Arm undertone 10 L
70 and its tendency is deciedly upward not.
Hiding the fact that the rates of,oregn exchange
" oelow the gold shipping point rhampor,ations are
6owever tho increase, and the COMMERCIAL indebted
ness TO Europe larger than II otherw would have
been. bat for the postponement remittapcss
in consequence Of the dulnsss Ntradc Tha
danger TO which we constantly expopd having Al
portion OF the six hundred millions q our uritiea
held abroad suddenly returned TO ms fo' sae' ,kes
prudent persons disposed TO buy rather hn 70 ="
and were il no. for this the impeachment s'anoD WOW
be amos. without influence spoa !s Pee, nv ~ 2
Il H. Il will be likely TO sxsrt 5y rassens influence
There viii be fuzzy Like that which followed the ~
a,sena;ion Of President Lincoln an, then everything
will sabsde into ts normal state ssain The customs
demand for c.d FOR the week at tlis port an oun'ea .
S2,0s2 ,OO0 and the coin inisrek paid out py ~
Treasury 10 $4,000.
The foreign exchange market was dull and the c'os.s
rates were under BANKERS bills on ENGLAND ~ -"
days, Ios,s Iosx: at three days, 100 losh; com
m evoiaI biils 1OY IOe francs at sixty days. At
S1sk; At three days, s 1sx 51ek; bills on Berlin
"a . Y2k: on Bremen, 7s,s "; on Frankfort u
AK; ON Amsterdam, Al an on Hamburg Se's
sex: on Antwerp, SEA b.1sx.
Mining shares were generally active and strong sns
chief interest Of the market being centred in Corydon'
which rose to 90 IS Saturday, mainly In consequence
Of the stock having been oversoId Among tho steam
ship shares Pacific Mail recovered 70 1921 tho depres
SION which II had previously suffered being partly ave