The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-16
p FINANCIAL AND COMMERCIAL.


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TUESDAY, Sept 15-eP. N.
rnere ID no cnfhge to chronicle in the condition OF
sne money m1rket the supply OF loanable capital
being abundant at three per cent government Sc
o0rities ana Iour on mixed collaterals The Park
Bank yesterday much to the surprise Of Wall street.
advanced its rate Of interest call loans to nve per
cent, and the consequence was that nearly million
and half Of it's loans paid on on the same day,
the borrowers being able to obtain the necessary ac-
commodation elsewhere at four. The trust compa-
Aies are asking five per cent for small and
moderate amounts on mixed collaterals, but
this affords no criterion OF the real state OF the
market. The German bankers are large lenders
OF money, and the supply from this and other
outside renders the stock houses to great
extent independent OF the banks, and there are no
indications that the foreign balances here will be re-
duced but, the contrary, they viii be increased,
provided they be fully employed at or above the
current rate OF interest. The glut or cap-
tai in Europe is undiminished, the Bank
OF England rate being still TWO per cent
while loans on consols can be obtained In Lombard
street at one and half The same condition OF
monetary AFFAIRS prevails the Continent, and the
Bank Of France held at the beginning Of this month
the enormous aggregate Of esq, 572 900 in coin and
bullion the Bank of England holding at the same
time 600, 1868. Here then, we have hard cash
reserve Of more than seventy-three millions Of
pounds sterling In these two INSTITUTIONAL larger
amount than has before been held by them
at any time In their history, and one, moreover
several millions in excess Of the aggregate OF their
combined circulation. The drain of currency west
ward rs almost imperceptiby light, and the local
monetary centres OF the West reported be well
supplied with funds the mercantile deposits being
above the average, while remittances are being re
Yrha ecifv-
II firm. The further the season advances the more
generally is 1t conceded that the conditions Affect
Ing the money market have undergone mate
xial changes even since this time last year. In
1867 the effects OF the niudicous currency contrac
ion which had been going forward for long time
previously were visible on all sides; but now this
has been 80 long suspended that the business OF the
country has become adjusted to the volume OF the
circulation, and greenbacks are no longer boarded
as they were then under the impression that
they were the only things that could appreciate IN
value The Treasury having ceased to be borrower,
and Its specie reserve having fallen considerably be-
low the average, its power to disturb the money
market by locking up an unnecessarily large cur
Tency balance has been taken from it, and 1t semi
ofciay stated that Mr.. McCull0ch does not contem-
plate any exchange OF gold for currency while his
reserve Of the former remains at anything like its
present low point Then, again. the trade OF the coun
try quiet and conducted such conservative basis
that the mercantile community want but very little
accommodations In the way Of discounts, and
hence monetary resources are almost
wholly available for the crop movement and
Wall street. This monetary ease, therefore, is
very much less owing to the foreign balances
left here for employment than to the other
causes referred to. The dry goods auction sales
held to-day were rather thiny attended and there
COnSeQuentV. m no
ding. and prices were not in all fully equal to
those Of last week. There is prudent disincIina-
ton to buy more than Is necessary for supplying
immediate wants, and while domestic cOttons are
somewhat dropping, fine foreign fabrics sun
ciently In demand to be well supported.
The result Of the Maine election fell fiat in the Gold
Room and the market was steady throughout the
day, the extreme fluctuations having been from 143x
70 l441s with the CLOSING transactions prior to the
adjournment of the board at three O'Clock at 14is
following which sales were made at 49, ana the
latest quotation on the street 143zS 44 There
was an active borrowing demand for coin from the
bears and loans were made in most instances with
out interest to either borrower lender, the eXcep
lions being at u per cent per annum for carry
ing The gross clearings amounted to $5l, 600,
the gold balances to 045 and the currency bal
ances to s1,7s7, 500. The Sub-Treasury disbursed
15S 304 In coin in payment OF interest on the public
debt, and the steamer Allemania, for Hamburg took
out $4,000 in specie. The prospect Of war or
peace In Europe Is much discussed among the
spectators, and especially the German bankers,
but It il as yet too vague to materially influence
operations in either direction. The ACCESSIBILITY OF
heavily taxing speculative transactions in gold is
generally admitted by disnterested persons it is
obvious that the enormous speculation which has
been constantly going forward In this commodity
since the establishment OF the Gold Room IL produc
tive of mischief to the business community at large
by promoting artificial fluctuations. The stamp tax
on sales at present is only dollar on every ten
thousand in currency and this il too triing either
to restrict operations or produce revenue. II Con-
gress should levy such tax as we propose 1t would
diminish grave public evil and be Of great ultimate
beneft to the national credit. The fluctuations at
intervals were suboined:-
10A. NJ. -. secs. 1885 ll:3o A. M........ lt4es
1880 A. M.......... 143X 3P. M............ 1445s
The market for government securities opened with
very firm tone and there was good demand for In
vestment registered bonds being especially sought
after on account OF their relative cheapness. Prices
were In some instances fraction higher than AZ the
close last evening" the result OF the Maine election
having exerted q beneficial effect; but as the day
away this fractional improvement was lost, al
though at the recession much nrmneas was sho wn.
The market has very strong undertone and public
confidence In our national securities lie growing. The
foreign bankers steady buyers for shipment and
the demand for nve-twenties for investment In Eu-
rope IL on the increase. The savings banks are pur
chasing bonds In preference to lending their
funds ON call, and investors who deferred
buying in July are doing 80 now. The ''short' in
terest continues heavy and there is consequently
brisk borrowing demand for nearly all the issues.
At the close tho market was strong at the subjoned
quotations. Registered, 1881, 11ais Il3a coupon,
1851, ia 1l4; 52o's, registered 1862, iosh 1854
A2o's, coupon, 1852 1iaH l13h; do, 1854, 1929.
1907; do, 1895, Ill nix; do, 1865 January and
July 100 1905; d. 1867. 1855 100: d. is6s, lo9
1oox; 1O-4o's, registered loi1s io<ls; lo-4o's,
coupon, 104Y o 1o5; September compounds, is65,
11ek; october do 11sx.