The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-07
FINANCIAL AND COMMERCIAL.
THURSDAY, August o-sP.

SoACS
to realize profits, and the suddenness with which
the price yielded caused them to turn nom sellers to
buyers to prevent heavy break The fact Is that
gold has been run up entirely too fast Of late even
supp0sfng that speculation will ultimately carry II
higher and violent reaction In 1t Ii inevitable. the
mercantile community are asking why Mr. McCul-
loch does not sell gold, especially now that II IL
known that the President has decided not to sign
the Funding bill, which placed certain restrictions
upon the Secretary in selling gold az respects CON-
missions to brokers. There was ct the close OF bust
mesa to-day more than sixty-nve millions OF
coin in the bTreasury in this city, and not moro
than fifteen millions Of this Ia represented by gold
certificates 80 that there is in the actual ownership
OF the government more than fifty millions exclu-
OF the amounts held at all the other ports Gold
Room report has 1t that the total is much smaller,
and In this way importers and others who have &C.
casion to buy gold have been msled. 1t 10 semi
ofncially announced that Mr.. McCulloch means to
sell portion Of his surplus very soon, but the bulls
Ia the Gold Room proclaim that he dare not do so,
aud that they are familiar with Treasury secrets.
At the same time they are really apprehensive
that he may do 80 and thus break down
their speculation for q rise, and they watch
each other with anxiety lest some one should
sell out upon the rest and, in their own
language smash the market prematurely. Whether
treasury 1cllS Vi uOt, tlcIclOIc, lilo Uulib
treading very dangerous ground and will ulti-
matey be defeated in their efforts to control the
premium. It is true that commercial and political
causes have favored nrm market for gold for some
time past; but there ia vast difference between this
and the rapid advance have recently witnessed.
Gold loaned to-day at from two to four and a half
per for carrying and this shows that there is
scarcity OF the precious metal and that the people
are not boarding It; for II they were doing 80 the
would be in favor of the lender instead Of the
borrower OF coin The foreign bankers are not at
present shipping gold. as even now they can buy
bills of exchange cheaper than they can ship coin,
and the rise In gold Is causing large shipments of
produce that otherwise would not have been made,
and hence gold, which has risen from lao without
any special cause, will be likely to find Its way back
there. The Sub Treasury discussed $4,000 in coin
in payment Of interest during the day.
The railway share market has been dull and hest.
tatng during the day. and Erie reacted from the ad-
vance of yesterday afternoon, sales having been
made as low as 59x, and at the close its tendency
was downward. The break in Erie has inspired
operators In railway shares generally with certain
degree OF tnidity, and the outside public will do
well TO leave them to the controlling cliques under
existing circumstances 1t being equally dangerous
to either buy or sell. Money continues abundant at
three per cent on governments and four on mixed
collsteras the supply being largely in excess Of the
demand
The market for government securities was nrm
and active this morning at a fractional advance
upon the closing prices OF yesterday but it subse-
quendy lost the improvement and remained steady
and. quiet, although an increased investment de-
inand was reported. Ten-fortes and SKIES of 1881,
after their recent advance were neglected and u
lower. The disposition to convert the former into
uVefWenttpa and wid ho
tween them Is becoming general. II q i've per cent
bond which has possibly only six years longer to
run Is worth 1osH, the dve-twenties OF 1858, which
nave at least five years to run, worth u.s. allow
ing Tor the difference between I'VE per cent and
SIX per cent interest during the time mentioned.
The supply OF new gold-bearng bonds has
ceased with the conversion Of the remainder
Of the seven.thirty notes. and the erect
OF this in the face Of q steadily increasing
annual demand for investment cannot fail to be seen
in materially improved quotations for the former
ghe shipments Of ive-twenties to Europe are on
much larger scale than usual, ard the indications
are that these will increase rather than diminish
there being growing demand for our securities not
only in Germany, but in England and France, while
here at home they are far cheaper than any other
stocks bearing the rate OF interest. Even the
Pacific Railway bonds issued by the United States
and bearing six per cent interest," payable alike with
the principal In currency are selling at 108, and
allowing for the accrued interest the fvetwenty
bonds are but little higher-a circumstance sufii-
ciently anomalous to attract attention. At the
close the market was firm at the subjoined
acknowledgement, 1881, 1862 115zs; coupon
1881. ll6 11ek 520's, registered 1862 10oH 109X
52o's, coupon, 1892 1l4,s 114X; do, 1884, I10x q
Ill; do, 1885, 112H q 112H; do, 1886, January
and July, 1osx losX do, 1857, 1857 100; do,
1868. 1881 100; 1o-4O's registered, 1861 q LOG;
1o-ao's. coupon, 1ook 1ooK; September com.
pounds, 1885, 11sH; october do, 1ls.
At the commencement Of business the stock mar
ket was steady and Erie sold at GA but at the early
session OF the open board it declined to e1l sln
At the first regular board Erie declined to COZ; but
In other stocks there was material change. Erie
closed higher than at the same time yesterday,
Reading ~, Michigan Southern ~, Cleveland and
PittSburg ~, Rock Island y, Milwaukee and st.
Paua preferred Ohio and Mississippi " and Pacific
Mall y; while Tennessee skies, ex coupon, were Y
lower. Government securities were inactive butte
fraction higher In some instances At the open board
at one O'Clock Erie unsettled and sold down to co.
At the second regular board the market was dull but
Reading closed higher than at the frst regular
board, Erie y and Pacific Mall Il, while Tennessee
stxes. ex coupon, were lower. Government 80.
curites were dull and y . lower At the open
oV"Au os pTiCtS were Without material
change, Eric selling at e1x and Reading at o3z "a.
During the remainder OF the afternoon Erie was
weak, with sales ct 60x, while the general market
was dropping and at the close of business at six
O'Clock the quotations were a. subjoined:-New York
Central. 1907 1al; Erie, 6ok 5ex; Reading, o..
93k; Michigan Southern, so,S q s6H; Cleveland
and Ptttsburg ssk Q SsX; Cleveland and Toledo
lo2k l0sk; Rock Island, 111K liz; Northwest
eru. 81 sax; do. preferred, s2x s2x Fort Wayne,
1924 1lok; Ohio and Mississippi. 80 q aOh; Pacific
Mail, lo2 lo2k; Western Union Telegraph, SAX q
34X.
The foreign exchange market is weak. and prime
bankers bills at sixty days on England can be
bought at ITO, although settlements are made in
some instances ct lloH. The supply OF Ger
man bankers bills drawn against shipments
OF bonds IL large and they are offered freely
at io9k. and sales are made a. low as
losx The current high price OF gold is stimulating
exports OF oil kinds, and before long the shipments
Of oresdstufs and cotton win bring down the rates