The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-02-05
FINANCIAL AND COMMERCIAL.

MONDAY, Feb 4-6PM
Both gold and stocks became buoyan and excited this
afternoon In consequence Of passage the resolution
in the House Of Representatives nsructng the CON-
mittee OF Ways and Means TO prepare . bill providing
against any contraction Of the currency during the pres
emit This following Immediately after the proposal
to convert compound interest notes into four per
loan certificates, redeemabe demand in legal tenders
was surprise TO the street, and the bears becoming
alarmed, covered their shorts freely the rise was,
however too sudden 70 b fully sustained and slight
reaction followed II ID BY no means certain that the
Senate will second the action OF the HOUSE with
regard 70 this new measure and should II not the
bears wii turn the rise to profitable account by selling
the market down again. The Senate will however do
well % adopt the resolution and thus leave the currency
70 regulate itself and restore confidence in the stability
Of values With respect 70 the bill substituting four per
can't certificates for compound interest notes.
different and may be regarded JED In the interest," Of
the national banka There Is NO good reason why the
govsrnmeat should sus such certificates bearing inter-
ss and thereby place itself under the necessity or
keeping constantly on hand large amount Of legal
tender notes. Of paying out is Of nfty mill
lions 70 redeem them. II would be much moro simple
and economical pay on the compound interest notes
they mature with plan grcenbacks. II would how
ever palpabe inconsistency to issue interest bear
ing loan certificates anew, while large amount Of Clear
Ing House certificates outstanding upon which the
interest ceased The banks OF this other cities nd
IL convenient keep although they bear no inter-
est simply they redeemabs in legal tenders
and can be used SUCH Where then can the promoters
Of tho new bill find reasonable for introducing
such measured The national banks would as a matter
of course like nothing better than this arrangement but
II Is high time that these privileged institutions should
be reduced TO the footing Of ordinary public com.
panies
The gold market opened at 1864 and after selling up
TO 1861 declined to 1861. It recovered TO 1861
and remained steady at 1861 e till within few min
utes Of three when suddenly 1874 the osten
sibe cause being the passage Of the nonconracon res
outon before referred to- and closed steady and excited
at 1879 ~. Loans were made by paying per cent
for carrying and also without interest The
main strength Of the market has it's source in
the threatened impeachment of the President respecting
the results Of which opinions differ widely Tho demand
from importers and others outside Of the larger
than usual In anticipation of further advance in the
premium, and there are no symptoms OF the market
beng cqued, although there doubtless large holders
among the speculative houses The OF ex-
change against the rise and the shor interest at
present not worry heavy Yet Notwithstanding the ten
dcncy Is Enthusiastically upward. aapH .9
Tho money market is easy seven per cent for call
loans, with Few exceptions at six, while the leading
dealers government securities have still large amounts
left with them at 4 Ia per cent Tho banks arc
lending moro freely on mixed collaterals and
ordinary margins and there are longer complaints
Of difficulty in borrowing among stock houses in fair
credity The statement Of the associated banks for the
week ending the I'd instant ID favorable 70 settled
condition Of monetary affairs at this centre, although II
shows them be only about $780, 900 stronger in point
Of than they last week. The deposits have
Increased 52O the circulation, the legal
tender notes. s252 esq., and the specie s3lss77 The
only decrease u In The loans namely $ii5, as Tho
Totals Of the present and previous statements are Is
amdar:-- 8lssAls "a