The New York herald., 1868-06-20
FINANCIAL AND COMMERCIAL.


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FRIDAY, June 1876 p NJ.
The gold market was strong at the opening this
morning and the earliest transactions were at 140H
following which there was an advance to 140%, but
from this point the tendency was downward, and the
closing transactions prior to the adjournment OF the
board and afterwards were at 14o1. The volume Of
speculative business was large, but the borrowing
demand for coin was less in excess Of the supply
than at any previous time this week. the high rates
recently paid for loans having attracted gold into the
market for temporary employment. Loans were
made without interest to either borrower or lender
and at per cent for borrowing and one per cent
for carrying. The gross clearings amounted to
$5os6o,oOO, the gold balances to 81, 359 and the
currency balances to 81 2620,097. The SubTreasury
disbursed $4,000 In coin in payment Of interest on
the public debt, and the conversions OF seven-thrty
notes into hve-twenty bonds amounted to $6Olooo.
American silver is quoted at 61s ~ below gold,
and Mexican dollars are in moderate demand at lO3I
a lo3X in gold. The Senate short time since passed
the bill legazing gold contracts, and the latter has
since awaiting the action of the House of Repre-
sentatves. The measure highly proper and equita
BILE 0na and should have been passed simultaneously
with the Legal Tender act, and there Is no good
reason why the House should delay its passage now
We observe that Mr.. Romero, the Mexican Minister
Is representing the financial condition Of his unfor
contrary is really the case But supposing 1t to be
as this special peader states how Is 1t that the in
terest on the bonds of the Mexican republic market
ed In this city by the Messrs Corles two or three
years ago has not been paidP Those who subscribed
to it considered themselves swindled, and the Cir
cumsances Of the case are certainly very discredit
able to the government concerned.
The stock market was dull and somewhat dropping
early this morning, but 1t afterwards became firm
and remained so during the rest Of the day. Read
ing and Cleveland and Pittsburg were the strongest
OF the railway shares and Erie and New York Central
the weakest. The demand for Reading is based on
the theory that the stock is relatively cheaper than
almost any other stock the list when the sub
stantial improvements made on the company's pro-
perty during the last few years are taken into
consideration. The president In the last annual
report dated January 49, 1858, in referring to the
account of the treasurer and other statements ex-
hibiting the financial position and transactions OF
the company, says-"They show that portion
of the profits has been invested in permanent i'm
provements which should be rghtfully represented
In the capital stock; and this explains why the last
semi-annual dividend was declared payable in stock
at par" The general superintendent in his report
also says Of the general prosperity of the company
"Our merchandise business, both in tonnage and
receipts has proved larger than in any former year.
Most Of the staple products Of the territory taversed
by our main line and branches-such as grain, iron
ore, lime, limestone live stock pig iron and railroad
iron-have yielded us an increased tonnage. This
business promises to be permanent, as new fur
naces, rolling mills and fOundries now in process
of construction will continue to develop addi-
tional sources Of freight as well as of passenger
travel" But Notwithstanding the large outlay
for improvements Of various kinds the net earnings
In the fiscal year ending November 80, 1867, were
$249247s, nearly twelve per cent on the capital
stock. The stock Of such a company is certainly
better worth 134 than New York Central and either
the latter and other stocks too high or Reading
Is too low comparatively and in proportion as it is
below the average Of the rest Of the market is the
margin wdened for further rise. The directors OF
the Cleveland and Pittsburg Company meet this
evening at the st. Nicholas Hotel to declare their
1rst quarterly cash dividend. The consolidation Of
she Michigan Southern line with the Cleveland and
Toledo and Cleveland, Painesville and Ashtabula
Salready cOnsOlidated lines is in contemplation but
no preiminaries have yet been arranged, and 1t
As understood that the Michigan Southern will only
agree to the consolidation on equal terms. The fail
Ore Of Messrs. Goodyear Bros & Durand stockbrO-
kers, was announced this morning owing, 1t Is un-
derstOod, to their 'shortn contracts In the North
western stocks and Reading and losses by the de-
olne In Erie. The Stock Exchange Clearing House
still remains open for the transaction OF business
out the brokers refuse to make of it, and the de-
veres Of stocks therefore made In the usual way
Money continues In superabundant supply at three per
cent government securities ana four mixed col
laterals while the best grade Of commercial paper is
scarce and in request at a 51s per cent. The ma
tional banks throughout the country fully pre-
pared to make their July statements to the Comp
troller of the Currency and hence disturbance OF
the prevailing easy condition OF monetary affairs at
this centre or elsewhere will be felt in conse-
quence.
Government securities were dull during the morn
ing at the closing prices Of yesterday but after
the demand improved, and during the afternoon q
large business was transacted at advancing prices,
the recovery being equal to y q per cent. The
demand mainly for home investment and on
foreign account, and the offerings were very light.
The fve-twenties Of 1855 were In request from the
German bankers, and the fact Of their being more
than two per cent lower than the bonds of 1862,
although the accrued interest is exactly the same,
makes them cheaper purchase TO the extent OF the
difference and the equalization Of the two issues in
price Is only question OF time. Moreover the 1865
bonds have three years longer to run than those OF
ls62 and this is positive advantage the others.
The bonds OF 1862 were In demand, and there were
considerable sales OF these and large transactions in
those of 1867, which are held firmly. The pros
pective heavy investment demand next month
Is already exerting some influence upon the market
Snu ior '"e neAt t"o Vi three montis steaoy I'LL
provement is likely to take place In the market value
OF all our national securities, both at home and
abroad while 1t is safe to predict that these will,
from this time forward, permanently command
higher prices than they have done In the past. The
market closed strong on the street at the sub
Joined quotatlons:-Registered, 1881, 112% 112A;
coupon. 1851 1l7h 117'S; 5-2os, registered, 1862,
aOoX 1os,s; 52o's coupon 1862, 1l3S ll3's; do.
1854, 11Ox a Ill; do, 1885, 111H 111k; do,
1s65, January and July, ia; do, 1867, ia
114x; do, 1868, 1oeX 1o91; 1o-4o's, registered,
1oex 1861; lo-4O's, coupon, 1o6,S 1o616; June
1905 1O9ys 10; July 1905, 1927 110; August