The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-03-09
FINANCIAL AND COMMERCIAL.

II
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| SUNDAY March 9, 1865
The gold market was extremely dull during the
past week. and In the absence OF any new political
excitement the fluctuations were unusually light,
the extreme range having been from 1413S to 140x
up to three O'Clock yesterday after which there was
a decline to 14ox l4o4, under pressure to sell, In
nuenced by no apparent cause beyond the previous
| dulness and the large floating supply Of coin, to
carry which from four to seven per cent per annum
| had to be paid. The shipments Of specie and bull
lion for the week aggregated 81 200, and the GUS
toms receipts at the port s2,4s2 94o while the
Sub-Treasury dsbursed 81 $4,000 In payment OF in
terest the public debt mainly the tenforty loan.
The fact that the gold premium has declined instead
Of having advanced, as was generally expected,
since the President impeached goes to show that
the public credit has not suffered by the event. I'M
precedented 1t is in history. It Is true that
government securities have been neglected and
somewhat depressed during the interval but this
has been owing more to the agitation Of the Sher-
man Funding bill than anything else and the per-
sistency with which that Senator has forced his I'M
caled-for and damaging measure upon the attention
OF the country cannot be said to reject credit upon
his Judgment II he has really the financial interests
Of the country at heart. At any time such
a bill would have disturbing effect, II
there was the least probability OF Its passage,
because 1t conveys a threat that conversions
OF fivetwenties into the proposed new nve
per cent stock will be made compulsory. Its
fourth section provides that "the bonds known as
nvetwenties shall after the expiration Of I'VE years
from their date at the option Of the holder thereof
be exchanged for the bonds authorized by this act,
| and such as are now redeemabe shall be presented
for exchange on before the LIST Of November next
ana not thereafter and the residue to be presented
within six months after the expiration OF hve years
from their date and not thereafter" This alone ia
sufficient to defeat the bill bpt It has other features
fully az Objectionable It provides for fresh issue
OF forty millions OF currency and an increase OF
one hundred and fifty millions In the amount OF
national bank notes. while 1t reduces the aggregate
OF United States notes, greenbacks, to two
hundred and fifty millions, although national
bank notes are by law redeemabe in legal
tender notes on demand: Mr.. Morrill, in his
recent speech In the Senate condemned this bill
point by point and also the accompanying bill Of Mr.
Henderson, which might as well have been merged
in that introduced by Mr.. Sherman for 1t Is really
part of 1t. Mr. Morrill, Is very properly opposed to
further currency imitation, to the free banking
scheme which is to swell the volume Of national
bank notes and to the compulsory clause regarding
conversions. By offering long five per cent stock,
to run for say twenty-five thirty years, with the
principal and interest payable In coin, there would
be voluntary conversions sufficient to accomplish
the funding of the ve-twenes without the slightest
shock to the public credit; but any new
funding measure would be positively mis-
chieyous until the whole OF the seven-thrty
notes are redeemed or exchanged for FIVE
twenties into which they are convertible ut
maturity. The present time Is singularly inoppor-
tune for Messrs. Sherman ana Henderson to advo-
cate their peculiar views OF finance; but 1t Is more
than probable that the worst effect OF their speeches
and bills has been already felt and public confidence
will soon be restored when It Is discovered that their
supporters largely in the minority In both houses
The week closed firm, although duh, market for
government securities and there is no good reason
why prices should not recover from the decline they
have latterly experienced.
Tho sensation OF the week on the Stock Exchange
was an advance OF more than ten per cent in Erie
the closing price Saturday having been 7sk 7s,S
AGAINST 65X. the lowest point touched during the
previous decline. This movement is generally sup
posed to have been unexpected by Mr. Drew and his
co-irectors who have been legally restrained from
issuing convertible bonds In the capitalization
| OF leases otherwise and from adding in any way
to the capital stock. The quarrel between the Erie
and Vanderbilt parties further complicated on
Thursday by the Issue OF q counter injunction by
Judge Balloon, OF the Supreme Court, Broome
county, restraining frank WOrk IrOm dctlng as
director OF the Erie Railway Company or
prosecuting his suit AGAINST his codrectors and the
Attorney General and his agents from taking any
further proceedings in the suits commenced by him
In the name of the people against Mr.. Drew and the
Erie Company. The complaint and affldavits on
which this order was granted allege that Mr.. Work
s n representative OF Mr. Cornelius Vanderbilt who
is seeking to control the Erie Company and that he
and those cooperating with him are engaged in q
speculation in the stock, which they endeavorng
promote by their suit at the same time that they
accomplish their other purpose; also that Mr.. Work
authorized Of those cooperating with him in his
! suit to inform one Of the officers OF the CON-
| pany that the suit would be discontinued
| II large sum Of money should be
| paid as he might dlrect also that he,
| Work, caused himself to be elected q member
| OF the Erie board in the interest OF the New
York Central Company, and as such has acted in its
behalf ami kept Its managers advised Of what trans
pred at the Erie board to the great prejudice OF the
latter company and that he has been guilty Of gross
misconduct a. director and has abused his trust.
The order requires him to show cause why he should
| not be permanently suspended as director Of the
Erie Railway before special term Of the court to be
held at Cortlandville the It'll Of April next The
quarrel had It's origin in the action Of the Erie board
/ with regard to the construction Of the extension
i line from Akron to Toledo, there to connect
| with the Michigan Southern line to Chi
i cago; and what the ultimate result will be
tits idle t. conjecture at present; but the contest APP
pears to be conducted with much spirit and bitter
| ness on the Vanderbilt side. Whether Mr. Wander
bilt is directly interested In the bull 'pooln now
working the stock upward is uncertain; but as o
matter OF course those who 'song' OF the stock
sly that he Is in order to create the impression that
| It Is going much higher, which may or may not be
| the case. The legal contest to Gust the Erie party
| may go and yet the bull clique in the stock may
suddenly sell out and break the price down ten per