The New York herald., 1867-10-03
FINANCIAL AND COMMERCIAL.


"WEDNESDAY, Oct I'D H.
The gold market has been strong and active today
under the combined influence OF decline in nvstwen-
abroad threatened collapse Of the ceda Mobisr
Paris and The letter OF Gen. B. T. Butler 70 contem
porary defending and explaining his views In favor Of
paving on principal OF The ssd bearing debt in legal
tender notes-a project which s growing in favor not
only the West, but esewhsre The opening transac-
lions l43s, from whsch point there steady
advance 10 li4l, and tho closing quotation was l4sss
IA Loans we're made rs,es varying
from three TO seven ger cent for carrying. The
gross clearings amOsntcd TO sa2 IS, 900, the
balances 10 8 and the gold balances
60 s., ,2l6,74l The Russia only So 600
m specie The failure OF the C7oton Bank yesterday
has occasioned disrust Of cher institutions and u
has been topic Of conversation, brt doubt
less there are otser roiier tmber the national
Banking system which win give way before long and
1he the better for tbs public interests
There active demand for money from the
Stock Exchange per cent, and tho supply was
barely oqual 10 IL although houses experienced
little or no difficulty borrowing AZ they required
Government securities sys with other good col
la,eras no exceptions oeng made In their favor and
ihis checks speculsye inquiry FOR tnem The drain
westward IS still gcing forward without abate
ment and tho ranks are pursuing very
cautious policy IL view OF their diminished
resources Hence dscouns dhacul, 10 obtain, and
zach hank confines itself strictly 10 the best paper OF
its own customers she rate for which is still nomnaly
seven per cent a few it submits to
g. q Ibe most urgent applicants are the Western
banks vii ca send the paper they have discounted
endorsed for re-discoun their pron lying in the
difference between the rate charged by them and that
which they have TO pay here. The announcement from
Washington this morning that the Treasury s prepared
70 issue three per cent certificates in redemption OF COM
pound which may be hereafter presented
for redemption inspired certain degree OF confidence
among the bulls the Stock Exchange by removing
apprehensions OF striugency arising from the ma
turing OF about eighteen millions OF these notes In
October and not FAR from twenty millions In December
The effect Of paying on these maturing notes out Of the
Treasury balance would boen in
money panic confined this city alone but extend.
ing all the country The result Of issuing the cert
hcaies will be to make the contraction Of an equivalent
OF compo und interest notes unfe the former
be held by the banks portion Of their reserve,
and used at the Clearing House legal tenders. But
the Is by OF imitation. as it merely
involves the exchange of security tor another On
she September s9l 512 $50 Of compound
interest outstanding OF which sl2,6 730 had
matured and therefore ceased bear interest About
forty three millions mature year, namely Nay
nineteen millions In August twelve, in Septem-
ber nne and in October and November three
millions. No bank is permitted to hold moro
than hreeAhs OF its in these certificates; but
the OF the latter limited to fifty millions
bank likely find itself with larger proportion.
The accumulated interest the compound notes will
amount about twenty per at maturity, and il is
expected that this Will be paid in currency The follow
ing is the text OF the providing for the Of the
certificates, approved March 2, 1867
Be IL enacted That for the purpose OF redeeming
retiring any compound interest notes OUTSTANDING the
Becetary Of the Treasury hereby authorized and di-
reoted TO issue temporary loan certificates in the manner
prescribed by section four OF the act entitled IAN Act
10 authorize the issue OF United States notes and
for the redemption or funding thereof and for
Funding the floating debt OF the United States"
rate not exceeding three per cent per annum pruc
pal and interest," payable in lawful money on demand
and be held by national bank holding owning the
same part OF the reserve provided for in sections
thirty aud tbirtytwo OF tho entitled "An Act
provide q national currency secured by pledge OF
United States bonds and to provide for the circulation
and redemption thereof" approved June 8 1854 Pro-
vded that not less than twonfths Of the entire reserve
q such bank shall consist Of lawful money the United
States And provided further That the amount OF such
temporary certificates At lime outstanding shall nos
exceed $50, 000,0 900.
The stock market was firm at the commencement Of
business this morning, and at the early OF the
open board Erie sold at o6'< 66 New York Central
10sx and Northwestern 42I At the first regular
board the market active and strong at advancing
prices-Ere, Western Union Telegraph and Northwest
Central closed Il. higher than at tho time yes,sr-
day, Erie 8. Reading y. Michigan Southern ~, Cleve
land and Pistshurg 3h Rock Island 4, Northwestern
1X, do preferred 2S, Fort Wayne 1H Milwaukee and
81 Paul AZ do. preferred H, Ohio and Mississippi
tincates x, Western Union Telegraph lSs Hudson
River 4 lowor, Michigan Central y. Government
securities heavy and coupon ave-twenties OF
1885, the new Of 1867 and scven-thires OF the
second and third series declined y. Tennessee skies
new, declined "a.
Al the open board at one O'Clock the market con-
tnucd strong and prices higher Erie sold at 67h
New York Central 1oob; Michigan Southern, s21s, and
Cleveland aud Pstsburg so7s. AT the second regular
board the market showed dropping tendency. Now
York Central closed y lower than at the frst regular
board, Ere - Cleveland and Pittsburg " Rock Island
q, Northwestern ~ do. preferred " Milwaukee and
ST. Paul u Ohio and Mississippi certificates y, Western
Union Telegraph ~ Michigan Central was ] higher,
Michigan Southern u, Pacific Mail y. Government
securities dun barely steady Coupon
OF 1881 and hve-twenlss OF the issue OF 1885
declined 4. Missouri advanced Z, and Tennessee
sixcs new, declined IL
the open board at harpasi three prices continued
20 decine subsequently tho market became weaker,
and O'Clock closed unsettled at the following
quotauons:-Nsw York Central, l09k l09L; Erio,
e61 a CO.,; Hudson River, l27 12s; Reading, 1oi%
q 1o1% Michigan Southern, SIX SIN; Cleveland
and Pittsburg, 7a7S so; Rock Island. Io2A 1927;
Fort Wayne 1904 i0o,s; Northwestern ae,1 AZ;
do. preferred. ee,1 81; Pacific Mail, 14lH l42 Ohio
and Mississippi certificates, 2ek az Western Union
Telegraph, 36sS s65<; Atlantic Mail, la
The following comparison OF the prices current at
the nrst board to-day and this day week
Sept Is Od. q Hioher.
New York Central. ..1o7H lo9H 2
krle. ............... olss oo.a On
Hudson RIVER. .l26Z 121h u
Reading. .................10 .10l4 l0fh -
Michigan Southern. TX 81 AZ
Cleveland and Pittsburg. Tx sos az
Rock Island ........... 1o0a 1885, .
Fort WAYNE. 1905 r. d. -