The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-12
FINANCIAL AND COMMERCIAL.

money, the principal dealers In government secur.
ties being amply supplied at three per cent while the
general rate for call loans on the pledge Of mscel
,aneous collateras is four. In few cases nve per
cent may be paid for small amounts but this rate 10
wholly exceptional. The foreign balances here are
large, but hardly more than usual and those who
attribute the prevailing present monetary ease to
the influence OF these greatly exaggerae their eject
Tor, although they furnish capital. they do not
increase the currency, and 1t is the supply Of and
demand for the latter that regulate the rate of In
terest. Foreign balances represent so much gold
and exchange, but without currency or It's repre-.
sentative, they cannot be loaned out here The
monetary ease at this centre and elsewhere is due TO
Domestic causes and If there no foreign capital
seeking employment here the condition of affairs
would be about the same. Foremost among these
causes is the fact that currency contraction been
30 long supended that the business OF the country
has become adjusted to its volume, ana hence
confidence in the stability OF values far as the lat
ter are Influenced by the circulation Is restored and
she currency performs wider functions than would
during period Of distrus while resort Is had more
Freely TO bank drafts certificates OF deposit checks
ana other forms Of currency than would be the case
under opposite circumstances. While contraction
was going forward legal tender notes, to a large
amount In the aggregate were boarded under the de-
Wsive idea that paper money and gold would rapidly
OF property, including securities, would decline as
gold approached par there was nothing so safe to
hold as greenbacks. The people have fortunately
recovered from this depression which had its remote
origin IN Mr.. McCulloch's Fort Wayne speech an
the trade OF the country is now more healthy and
conducted on more conservative basis than at any
time since the commencement Of the late war. The
facility with which collections are made throughout
the Eastern, Western and Middle States affords con-
elusive evidence Of q general prosperity, which
b far more solid and gratifying than the
teyerish appearance OF wealth which attended the
imitation Of war times. The non-contraction policy
does not even permit OF the further cancellation of
compound interest notes without the issue of an
equivalent amount Of three per cent certificates
which can be held by the banks legal tender and
counted as portion OF their reserve Moreover,
trade at the present time is without those danger
Gus speculative features which make the mercantile
community large borrowers OF money The amount OF
commercial paper offering for discount Ia very mode
rate, and comes mainly from the dry goods trade
n which there has been considerable activity of
Afe. The best grade passes freely at six and q
hah and seven per cent. and prime names at from
sixty to ninesy days in other departments of
trade are negotiated at from five to six per cent
AT the auction sales held to-day the bidding was
more spirited than Yesterday, and fine dress fabrics
were taken with considerable avidity but domestic
cotton goods were shade lower while woollens
showed an advancing tendency, and the jobbers
reported moderately brisk business at steady
prices. The general trade OF the city is fully equal
70 the average Of late years at this season. The drain
Of currency westward continues very light and the
statement Of the city banks for the week is likely to
Reflect this feature OF affairs Nevertheless the tenn
per Of the railway share market is still bearsh but
~ talk Of the bears accomplishing anything by
'focking up greenbacks' is simply futile under exist
ing circumstances. The money market at no time |
during the summer was easier than it is now.
" Gold was steady and moderately active all day, |
And the fluctuations were from 1857 to 1444, with
the closing transactions prior to the adjournment OF
the board at three O'Clock at 14h, following which
rales were made at l44x, and the latest quotation
on the street l44t4 144%. There an active
borrowing demand for coin consequent upon the
unusually large "shortn interest outstanding, and
loans were made without interest to either borrower
OF lender and at rates varying from half to three
per cent for carrying. The gross clearngs amounted
70 600, the gold balances to 81, ,033 and
the currency balances to $1,S33, o32. The Sub
Treasury dsbursed $41,s69 In coin in payment Of
interest on the public debt. large amount Of
gold has been sold short in anticipation
Of the result OF the Maine election; but
the probability is that the full effect of this event
toms duties is heavy and rejects the activity which
b going forward in the marketing Of foreign
importations, but importers continue to borrow
gold In preference to buying it. The price varied 40
bhows AZ intervals-
l0A. M............143x 3P. M. ....1AS
HIS A. M..........l44t4 $3.50 I. M. ..1441a 144x
There has been steady and active market for
government securities throughout the day. the trans
actions in the 1vetwenties OF 1867 having been par
tcularly heavy Prices were fraction higher at
che opening than at the close last evening, and
they gradually experienced further improvement
under steady demand from the regular dealers, the
foreign bankers and other parties. The German
bouses have been buying the new nve-twenties for
shipment chiefly the bonds Of 1867 but those Of 1864
are beginning to attract attention. owing to their
being relatively IL per cent cheaper than the old
Raue OF 1885, the amount OF accrued interest both
: beiGg equal; yet, while 111K Is bid for the latter
only 1907. Is bid for the former To the extent Of
this difference therefore, there Is special margin
for rise In the vetwenties OF 1854 1t Is generally
understood that the heavy sales OF the bonds OF 1867
made on wednesday were 'shorts," and the ease
with which the market took these has strengthened
confidence N higher prices. Hence, to quote the
circular OF Messrs. Jay Cooke Co., referring to the
days busnes:-"The temper OF the street seems 70
have changed entirely. There are no offerings to
speak OF and parties hitherto bearish or Indifferent
bidding freely for bonds. The demand from
banks and other corporations and individual invest
increasing The market closed strong at half
past four with active inquiry for all the issues,
and the tendency OF prices Is decidedly towards
higher figures.
The railway share market was firm at the COM
mencement Of business at the closing prices Of yester
day and at the early session OF the open board there
was a fractional advance throughout the list and
moderate and well distributed business was trans
acted. AT the first regular board prices were well
supported, although there was not much speculative
spirit manifested in the dealings, and Reading
closed a higher on the call than at the same time
yesterday Fort Wayne =, Milwaukee and 81. Paul
IA preferred y, Marposa preferred n, Tennessee