New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-05
rE1MolerM ANn MNINa sTOcKs.-FIRsT BOARD
~ NinnntnIn lDayidson
MONDAY. Nov. l-r. ".

MONDAY. Nov. Ar. N.
Gold closes At l4OI after selling at 1893 and lll'
the latter under "private warlike rumois from E'-
rope.p The crmiugs.of the Gold Exchange Bank
were SCs.G44.ooo. and the balance $l,5l7.nO'
Government stocks are steady at Saturdays rates.
Tennessee IL were ] per cent lower, selling 1t 61.
In Railway Mortgages little doing. The Share mar
ket Opei.cd heavy and continued duh Throughout INC
day. There were occasional rallies OF t0s per cent
but the tendency of the market was toward lower
prices AT the second Board prices OF several lead-
ing shares broke down. Illinois Central was quoted
at lg4!al2lt aud Cleveland aud Toledo par. Later
In the day the market rallied.
Money is active at G07 per cent. with more doing
at the highest quotation. The movement OF cur
rency is again attracting notice. The West IL send
ing currency hither, and there is Southern demand
Commercial paper sells at 7Go for BEST and lO@is
for second rate.
Foreign exchange is firm. Bills ut co days on
London are quoted ut 1OS!9i09s for commercial;
1O90 1922 for bankers; do Mt short sight lO9i~los;
Paris at 90 dan - 50s5.i5; do. at short sight, 5lSs@
OLA; Antwerp. 52095l5; Swiss. 6.2O@5l5 Ham
burg, S5sG;6; Amsterdam, 40s04l Frankfort, 1910
Al; BremcI ,SQ - Prussan thalers, 7ltV72
The conversion of 40 notes into $40 bonds is pro-
ceedinr so rapidly that before Congress adjourns
next Summer il must adopt funding scheme cover
ing the whole National debt. Many people er1one-
ously think that the Treasury is now funding the
debit" bnt II is great mistake. Ii is only inducing
holders o s to exercise their right to take twenty
year SIX per cent bond at the maturity Of the 7S'
prior to their maturity. After these calls" for six
per cent bonds are satisfied, aud little breathing
time gained 10y the Treasury, funding proper Will he
In order IL was and is STILL the expectation OF The
Government to be able. when the tive years option
ON the 5-2Os natures, to them by long bond
Il hmm xxua
also entertained that when the ten years option on
the lO-4cs brought them within the control Of
the Treasury they would DO either paid or
renewed in a new bond ct lower rates Of
interest. As il is now evident that the
National debt is not TO DO paid OF in an absurdly
short period Of time, but that it can only disappear
gradually from the surplus Of future years,
the best mode Of funding it. that its payment
shall earrass the country, will soon be eagerly
sought 10y Congress and the people. The trouble
with the debt that it is of various issues all
of them short and, like the notes of merchant out
standing, must be paid by fresh borrowing on short
time nation to borrow cheap must first assure its
creditors in most positive terms that the income
upon its securities will be paid in COIN the value Of
which is nearly universal It's next point is 10 make
the obligation it gives long, as the length OF per-
manent investment is an element OF value almost
as important us tho rate Of interest THIS element
of remOteness in maturity has thus far been
neglected in the United States by borrowers of all
degrees, among corporations, States, and the Ma
tional Treasury; by the latter greatly to its
disadvantage. This want of long investments
in securities of undoubted value has long been felt
by trustees OF estates and by all DESTROYS Of invest
ing funds when security Of the principal and certain
fixed income could be got. Assuming the fact that
the people win demand Of Congress that the debt
hall he maid Inv n moderate demand nDOn them for
taxes through an extended period of time, the
practical way of funding the debt will be found in
an irTedeemable five per cent bond or, if the term
irredeemabe distastefu bonds payable at the pleas
are Of he Government after ffty years. aud allow the
holders Of any existing security to exchange them
at par for the fifty-year bonds Into these new
bonds, with political harmony secured through
out the Union. as it will be at remote
day, the entire national debt not paid
by surplus revenue. from o mu,h lower
rate Of taxation than now prevails, would surely
60. In that form it could DO bought IN open
market at its current price, from surplus at
less cost TO the people than by leaving it. now. in
the form Of short loans at per cent, falling due at
fixed dates The proper funding Of the debt is hardly
less in importance than political reconstruction and
the sooner it is attempted the better That the debt
is to DO paid in full and upon the terms expected by
the lender is conceded by all but few political adj
venturers, and nothing remains but to adoptthe
most economical mode Of doing it.
The amount due to depostors in the trustee savings
banks of England and Wales, November 90, 1885,
was G3l 49, 1872 Us compared with f5 AS SIG, Novem
Der 90 1865. The decline in the deposits is attrbuta
bic in part to the competition Of the postoce savings
banks and in part TO the unsettled state of trade
The circulation Of notes in Great Britain is reported