The New York herald., 1868-05-25
FINANCIAL AND COMMERCIAL.
SUNDAY. MAY "a. 1868.

|
SUNDAY, May "a, 1868.
The only marked feature of business in Wall street
last week was the great activity and buoyancy of
government securities, which experien ced an ad-
vance of than one per cent, and in the of
ten-fortes one and three-quarters per cent owing
to considerable purchases on foreign account, smu
lated by the fact that the Secretary Of the Treasury
has disposed of all but 100000 OF the amount
authorized by Congress, so that the loan Is
practically closed. limit being therefore put to
the supply the demand will be likely to carry
up the price. Moreover, the act under
which these bonds are issued expressly pro-
vides that the principal rs well as the n-
terest shall be paid in coin, foreigners feel
that they are beyond the reach Of anything
that Congress may enact in relation to the finances
at any future time; although there ls no reason to
apprehend that the government will break faith with
holders of any other of its bonds In any respect
Another great advantage which the ten-forties pos
Is the length Of time they have to rum the
bonds not being redeemable until forty years from
their date, the government, however, having the
option of redeeming them ut any time after ten years;
but viii certainly not be able to avail itself OF this
privilege until long after the resumption Of specie
payments, and there will be no nducement to pay Off
a five per cent loan until after the six per cent
loans have been redeemed. The demand for all
the exportabe bonds was stimulated by the
advance of about per cent In five-twentles In
London during the week, while the home demand for
investment and the temporary employment of capital
was unusually heavy The resolutions with regard
to the finances reported by the Committee Resolu
tions to the Chicago Convention eXered q reassuring
effect upon the minds OF those who were before In
doubt to the tendency of future financial legsla
ton In Congress, and the good feeling produced by
the vote OF the Senate impeachment was thus
| ~ mt Of Ma inter
on the public debt has led to an active demand
| for reinvestment, while the growing abundance
| and cheapness Of money at this centre and
elsewhere have caused the banks to be free buyers
In anticipation of higher prices. Notwithstanding
the recent Improvement in prices 1t will be by
references to the stock lists early in July and jan
uary last that they are lower now than they were
then, allowing for the accrued interest," which in the
case of the hve-twentes Of 1865 and 1867 dates
from the 1st OF January and in that Of the ten-fo
tics from the lst Of March, the interest the bonds
of 1862 and 1sc4 being payable in May and Novem-
Der. On the 1lth OF July the bonds of 1902 sold ut
1l2L those of 1864 and 1865 at l097, and those OF
| 1867 at 10s&. The indications are favorable to u
continuance OF the present active demand for United
| States stocks and further considerable advance In
| prices these being still for the interest they bear
the cheapest securities in Wall street. and the out
side pubic IL AFRAID to touch railway shares in their
|
| The conversions OF seven-thir'y notes into FIVE
twenties have progressed very actively at the Sub
Treasury of late, the total since the st inst having
been S2ob52, $50, beyond which the purchases OF
these notes by the Assistant Treasurer have aggre-
gated about ten millions. The last OF the fifty mil
lions of three per cent certificates were paid out yes
ter,lay in redemption Of compound interest notes. OF
which sl7 ,256,00o had been presented at the Sub
Treasury between the date OF their maturity, the
18th instant ana the close of business on Friday. II
s not improbable that further issue OF these Ger
tifeatcs will be authorized by Congress for thf
redemption Of the compound notes which have not
yet matured. The special activity in the conversions
of seven. thircs s due the ininaion that the new
dvetwcntics OF 1s6s without the July coupon will bt
exchanged for them after the present month. The
suh-Treas,ry dsbursed s2,04 200 In coin In pay men
OF interest on the public debt within the week and
received 1884, $50 for customs duties. The ota, coil
interest payments since the lat instant amount Il
nearly seventeen millions. The shipments OF spec,
during the week amounted 10 S3,g47.637. But not
withstanding the price OF gold remained Throughout
remarkably steady, the fluctuations having been from
1885, to 14o with the closing transactions at i391
while the volume Of speculative business IN the golJ
room was light.
The stock market was extremely duh and sieadl
unttl Friday when II became somewhat nrmer an,
less inactive than usual of late yesterday after
noon the Improvement stll more decided III
some of the railway shares, while Pacific Mail ad
vanccd to 93'S, this being the strongest stock h,
list The speculative feeling OF the street Ia, how
ever, tame, and the speculation In railway share
entirely lacks outside support so that the task Of i'm
parting activity TO 1t rests with the cques con
trolinfthe respective stocks, and their only objcc
n engineering rise In prices is TO sell ont at h
advance preparatory 30 the inevitable reaction down
ward The market Is in that artificial state when 4
either buy stocks sell them shortn IL to play agans
loaded dce for although the public is unwilling tc
relieve the clqucs OF their load the abundance o
money enables them to temporarily mark up prices
where they have a "short" interest to work upon
while they have the power to depress prices as mucl
as they please by throwing some OF their stocks OF
the street, and II requires but small amount o
these TO accomplish the object. That the cque
would find the public any more willing TO buy a
still higher prices is 30 doubtful that they will hard
find II profitable TO make the experiment. II Il
announced that the Union Pacific Hallway has beer
! completed TO q point six hundred miles beyon,
Z Omaha, and sixty miles Of railway are now con
, struced over the Rocky Mountains the sum