The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-05
FINANCIAL AND CONNER lAL.

FINANCIAL AND CONNER CiAL.
WEDNESDAY, Dec <-ePH.
rns gold market 10 becoming settled and steady in
tone. II opened this morniug 1879 and advanced to
1874, following which there . decline TO 1874
the closing price prior tho adjournment Of the board
following which the quotation remained II 1877 I37
until late in the afternoon. There active borrow.
ing demand for coin and loans made rates vary
ing from three TO ssven per cent for carrying. The
gross cearngs amounted to sol, 5ss 900, the
gold balances to sl,5i462s. and the currency
balances 70 e2549,7ll. The nrmnsss OF the
foreign exchange market At rates very near tho
specie shipping point b causing the bears to
eovsr" their contracts and npartng firm undertons
70 the premium, but among the professional speculators
there are sill more operators for fall than for rise
Inc announcement that the bill repeating the tax Of
swo ana hall cents per pound cotton passed the
house OF representatives BY nearly unanimous vote OF
40 70 ~ had little or effect the does not apply
70 any cotton grown this year. The bin passed a IL
WAS reported from the Committee of WAYS and Means
BY Mr. echspck who said that the reason why the bill
vas not made TO apply 70 the cotton growth
IN 1867 was because ons-nfsh Of the crop had been
anesoy marketed and . vsry large portion
{" nad passed from the hands Of the
grower into the hands or brokers and spccuators 20
shat the growers would derive no bsusn. from tho mas
sase Of the law made applicable to the present crop
and the committee believed it T. b ingredient and i'm
pracscaole TO Include Il in the repeal It Is perhaps
ossr has II should mot have applied to this years crop
under the circumstances although portion Of The
hsr had been marketed there would no excuse for
making the distinction The Senate Will daubtess NJ.
the blu and the drag upon cotton culture in the
future being removed, large crop In 1864 viii
probably b the result The report Of Secretary OF
shs Treasury has been very little discussed In the gold
1oom, and u does mot appear to have been even
generally read, the great majority contsntng thsm
ssvss With reading the comments of shs sswspapsrs
upon t. a@ ~
Speculation on the Stock Exchange Il still sluggish
and ne prevailing depression in trade all over the coun-
~ causes general movement FOR riss TO be deferred
pending the action Of Congress upon The currency but
shs hope b entertained very Confidently that action viii
soon b taken against any further contraction The fact
that oasd money like Mr. Brooks arc. found intro
dacng bills asd resolutions TO this effect indicates the
strong current Of public feeling, not only against con-
traction, but In favor Of initiation During the afternoon
tAs suspension Of several prominent houses
was ramorsd. but We forbear mentioning names At
pressne the bulls h stocks argue that the worst
effects Of contraction being felt and that the
repeal q the act authorizing the Secretary OF the
Treasury % withdraw four millions Of legal tender
notes pr month. win give An upward impetus to
prices and inspire renewed confidence In but the
bears ars naturally dsncined take shis view Of the
cass. whs they suppress doubts with regard to the
policy d Congress In relation 10 the currency.
The report Of the Comptroller Of the Currency con-
tains remarkable piece Of special pleading favor Of
the national banks and II opposes the exchange OF ma
tena bank notes for legal tenders and the cancellation
Or purchase Of tho bonds deposited q basis OF
circulation in this wiss:-The banks have issued,
So khpan Hmm drAS -
the legal tcndss issued in place Of these he caicuas
would purchase $277 600 Of the bonds deposited BY
the banks security for the redemption OF their
q Washington supposng the average price the
% b 10s somewhat below the quotations The
interest on these bonds 1t six per cent would be
$l0oo 600 Tue national banks paid for the year 1859
el00l9 $50 In taxes namely-nationa S. zoe 93s and
Ssats 81. slo4sI II the bonds purchased BY pro.
posed new issue Of legal tender notes loS
che annual interest them would be 00o add
Mr.. Huburd therefore argues that all the saved
By the Substitution would BIO the difference between
this and the taxes paid, namely 84s, GIL. He
then goes on to say tina; the national banks
compelled BY law to hold constantly in reserve
certain per cenage Of their deposits and circulation
legal tender notes. the aggregate Of which Is
from hundred and nifty to hundred and eighty mil
lionA The banks be tells get interest this
and u much OF ther capital invested In noninterest
bearing United States II would be about
sonabs for the government TO pay interest the
d che banKs for pay the salaries OF their
eerka He maintains that the withdrawal Of their
circulation would nine out Of ten OF
the national bsnks to wind up, NOT because
the privilege Of circulation essential 10 their exist
sncs. bat because they would not submit to the
lions Of the National Currency without the compsn-
satory privileges Of circulation Here, then, admitted
that the circulation u eraiuiy 10 the BANKS and the
Comptroller has only succeeded in proving BY his
satsmssts the truth Of what the advocates OF
change a legal tenders for national bank notes nave
urged in support OF their view OF the But
purpose discussing the report length hereafter
There was moderate demand for money from the
Flock Exchange. and h was freely met Al seven per
cent but the siringoncy in the discount line has been
aggravated BY the failure in the tea trade to which
referred yesterday. together with Of fresh fail
ures and grocers paper 70 in particular regarded with
such distrust that only very small portion OF tina,
Offering IL marketable On tho street tue best grade -
nssd q . 10 per cent and good but prime
81 10 Is. The banks not buyers Of CONNIE rcial
paper coming from outside sources but they discount TO
. very limited extent for their customers In undoubted
casss - seven per cont AZ tho commencement OF
business the stock market nrm. but dull and at the
early session Of the Board prices advanced fraction
Erie sold a. Tx 7lk; New York Central. ll4;s;
Reading, oek; Rock Island, 90; North Western, 90
cox; do. preferred. e7S o7ss; Pacific Nail, 1874
lx7H. @MN
Al the nrss regular board the market stronger.
ald Northwestern common advanced 10 GA or within
about I'VE per cent OF the pce OF the preferred stock
New York Central showed advancing tendency. aud
SALES we're made at 1l4s. New York Central closed
higher than at the time yesterday, Erie * Read
ing y, Rock Island e. Northwestern g. do preferred
*, Fers Wayne y, AuwYkss and 81 Paul preferred \,
Western Union Telegrapht Pacific Nail was y lower.
Governments securities dniI. Coupon lvc-;wenies
of iSs2 closed Y higher seses-thrtiss second series,
Is; third series k.
AT The open board Al one o'clock the market was dull