New-York tribune., 1867-01-01
MONDAY, Dec. 31-P. N.


Gold opened at 13i and closed at 133s The Henry
Chauncey brings from Aspinwall $6S0,li7.
Government stocks all higher, with an increase
of business The whole share market is higher, but
at the close there was indisposition to pay the
extreme rates Erie is an exception to the advance,
and has been steadilypressed to sell all day. Adams
Express advanced per cent, and Hudson River 10
per cent Pacific Mail was in fresh demand and sold
at TO- Mariposa Preferred sold at 32i and was III
demand. At the close the following prices were paid:
New-York Central, 11l3911ii; Erie, 67saG7i; Hud-
son River, 135G110; Reading. 105!a10jl: Michigan
Central 10s; Michigan Southern, s3!0Si; Illinois
Central l2096l21 Cleveland and Pittsburgh, cola
00l; Cleveland and Toledo, 125; Rock Islord, 1910
1914; North Western, 461 iGi Northwestern Pre-
ferred, sl!asl;; Fort Wayne 1059l05i; Mariposa.
32..
Money Is per cent on call and borrowers very
ready TO pay it, In commercial paper the transactions
are small at for best names. and for fair. In
many quarters the opinion is expressed that the COM
mencemcnt Of the year is to be the signal for re-
newed ease in money and a general restoration OF
business As the canses which have united to produce
the existing stagnation in trade and demand for
money at full legal rates upon the best colateras
still exist in full force this hope will hardly be real
ized War taxes continue TO eat up the substance of
going OH n contraction Of legal tender money
"A contraction only 10 be stopped by decreasing
taxation 10 point where the Treasury will be with
ont power 10 cancel legal tenders or 10 buy up com
pound notes, themselves legal reserve for banking
purposes. Unless these compound notes are renewed
in some form as they mature, ali idea which should
not for moment be entertained by Congress or the
Treasury there must be sharp contraction in bank
circulation and bank credits. The compound notes
now represent probably $500 OOooo of bank credits,
which must he retired as the compounds mature.
The plain legal tenders are being retired very
slowly. and thus far the decrease in legal tender
money OF all kinds has had no effect beyond advanc-
ing the rate Of interest call from o per cent But
other and more violent effects will be shown upon
the money market. and the prices of commodities,
contraction proceeds to that stage where the combined
amount OF legal tenders, compound notes and coin
fall below the legal reserve required under the bank
ing law. Then will be- scramble TO sell goods
and to borrow money similar to that recorded in the
numerous revulsions which have marked the history
Of commercial enterprises stimulated by excessive
paper credits. The year is not TO bring debtors
ability 70 meet obligations based on commodities
bought AT high prices by selling the at lower
rates, which means that good many debts are TO
remain unpaid. The real cost Of the Rebellion is
now beginning to appear, and those who manage
their affairs upon tho model adopted when the Gov
eminent was making and spending two millions Of
paper money per day, and was at the same time the
great purchaser of everything from pins to mammoth
rcn-clads, will soon find their The great
purchaser with manufactured money has disappeared
and is succeeded by the tax-gatherer and funded
debt requiring daily nearly halt million of dollars
for interest alone.
The bank statement in not so favorable as was
pected, and shows decrease in deposits and legnl
tenders.
The following shows the condition of the New
York City Banks: