The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-01
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FINANCIAL AND COMMERCIAL.

The gold market has been firm and moderately ac-
tive to-day, and the fluctuations from 14Ox to
140X, with the closing transactions at 14O5. There
was brisk borrowing demand for coin, but owing
to the disbursements Of the SubTreasury since yes
terday morning in payment OF interest the public
debt the supply was ample to meet 1t, and loans
were made without interest and at a per cent per
annum and 1-S4 per diem for borrowing. The gross
ciearings amounted to ST. OOO the gold balances
to 384 799 and the currency balances to 81 O7S77s
The steamer Holsata took out 100000 IN specie and
the New York $4,000 The continued export OF
gold and the extreme hrmness OF the rates
OF foreign exchange are not without effect in
1mpartng an upward tendency to the premium, but
at the same time there is no probability OF any ma
teria change in this direction the salient feature OF
ahe gold market being its unyelding rather than its
buOyant quality. or the amount Of July interest
payable on bonds held abroad it is probable that
more than One-third will be renvested in fve-twen-
ties, while the balance will be RENTED In cOin
American silver Is quoted at 6s IA per cent below
gold, and Mexican dollars at 1881 1O3al The Sub
Treasury dsbursed about four millions yesterday
and million and half to-day in coin in payment
OF interest ON the public debt.
The Fourth National Bank posted notice this
afternoon to the effect that the July interest the
bonds OF the State Of Tennessee will not be paid
Tomorrow and upon inquiry we learn that, owing
to injunctons against the State Finance Board here
and In Tennessee, the Comptroller of the State has
cancelled the contract recently made with bank in
this city under which he was to issue $1,000, 600
OF new State bonds, while the bank was to loan
thereon 5000 600 to enable the State TO pay the
interest In question. The injuncons referred to
were issued on the complaint of holders of the
redeemed Tennessee Bank bonds of 1888, which ma
tured to the amount OF than million the 1st
or May last, who claim that the coupons OF the UNI
matured bonds must not have preference over the
principal OF the matured bonds Such being the
condition Of the finances OF the State the non-pay
ment of the semi-annual interest need occasion no
surprise The bonds experienced further decline
OF about four per cent, the Issue selling down
to 6sk and the old to H. the pressure to sell the
bonds being very heavy will be seen by reference
to the stock lists The railway share market
settled by decline in Erie to 6s& early in the fore
noon, the latter being attributable to the litigation
between members OF the Erie board involving the
removal OF Mr.. Eidridge president. The PROPOSE.
ton ia to elect Mr.. Drew as his successor; but al the
meeting OF the board last evening 1t adjourned with
out taking action upon the subject in consequence
OF there being no quorum present. special meet
ing WILL however, it is understood, be cal ed very
soon to take the matter into consideration,
and meanwhile and until the Supreme Court as
decided the case Mr. Diven the vice president, will
act as president pro ten The demand for all the
leading shares very active in the afternoon, and
the temper OF the street was decidedly bulish. The
reports relative to the growing crops continue to
convey promise Of unusual abundance, and the bulls
are led to look for largely increased railway earnings
In consequence. Money is very easy at three per
cent to first class houses and at to borrowers in
general on mixed cOllaerals, and there Is no pros
pect OF any important change In the condition or
monetary affairs until October, when the rate will
probably be advanced to seven per cent: but there
Will be ss-ingency either then or later in the year,
IN
occasions
The market for governments securities has not been
materially affected by the resolution passed by the
House Representatives yesterday calling upon the
Committee of Ways and Means to draw up bill
taxing the interest on United States stocks, us the
latter is regarded as merely intended for political
effect, and even those who voted for the resolution
would probably not vote for the bill they have asked
for. Such measure is one OF reputation and In
direct antagonism to the resolutions adopted In the
Republican Convention at Chicago. In order 10
show the feeling with which the measure is regarded
by the leading banking houses in Wall street we
quote the following from the private circular of one
OF their number issued this evening"
The action OF the House Yesterday upon the resou-
ton proposing ten per cent tax upon the interest
of government bonds has created feeling OF DIS.
trust in the market winch, without large sacri
fees OF bonds has made lower prices. it is impos-
sble that the thinking men OF Congress can CONSENT
final action, to commit themselves To measure
OF partial reputation, which must inlet lrrepsrabe
damage upon credit everywhere and cost hun
dreds OF millions In the continuance OF nigh rates
of interest upon our sccurities-rates which other
wise might be gradually and honestly reduced by ex.
change II 1t lie possible 10 levy thus tax OF ten
per cent nothing can prevent an indefinite increase
OF such taxation hereafter and the scheme is no
better than straight out erecnback payment. we
cannot conceive how the majority in Congress can,
IN view OF their recent pledges in convention con-
sent to he committed TO this proposed legislation.
Bonds opened at Saturdays closing prices excepting
July 'Sss and '07's, which were - lower and close
At the close the market was firm at the following
Observation-Disclosures 1851, l13 a 1884,; coupon,
1881, my 117H; 6-2os registered 1852, 1921 q
1O9ls 520s coupon 1852, l3 lis 5-20's, coupon,
1884. il0x 1101s; 520's, coupon, 1865, Ill T1s;
5-2Os. coupon, 1865, January and July, 1885, 1l8x;
B-2O's. coupon, 1867, 1l31 1l31S; 5-20s, coupon,
1858, 10Oss a 1Oo1s; 104o's registered, 1861 iO7;
1o4Os. coupon, 107 1918; June 1908, lo97i 40;
July 1905 1092i q 40; August compounds, 1896,
I1s,s; September do, lis; October do. 1l71..
AT the commencement Of business the stock mar.
ket was rather heavy, owing mainly to the fresh
litigation in Erie and at the early session OF the open
board Erie sold ct esq., Reading, lo5 and Cleveland
and Pittsburg, So At the first regular board the
market was steady at the previous decline, and New
York Central closed = lower than at the time
yesterday, Erie y, Reading lis, Michigan Southern
Z, Cleveland and Pittsburg u, Cleveland and Toledo
~, Northwestern ~ preferred IA Fort Wayne y,
Milwaukee ana st. Paul Ia, ohio aud Mississippi q,
Pacific Mail 3, Tennessee skies, ex-coupon, 2js; new
issue 1lt, North Carolina SKIES, new ISSUE 3lf and
Missouri state skies =. The pressure TO sell state
Stocks and particularly those Of Tennessee, was
very marked. At the open board at one
O'Clock Reading advanced to 1867, while
Eric declined to 6sss. Pacific Mail, which
declined to 9sk al the previous board,
recovered to 90. At the second regular board the
market was stronger for Reading and the Western
shares the former selling lol, dividend, equiva-
Sent to 100, dividend included The state stocks were
very weak and Tennessee skies, ISSUE especially.