The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-02-07
FINANCIAL AND CONNER GAL
THURSDAY. Feb dap n

In the afternoon il became strong and rather actiye
under The influence 81 dispatches from wash
frgton chef among which that relating 10 the bill
reported by Senator Henderson from the Finance Com
nittss repeating the limitations Of tho currency
act respecting the maximum Of the circulation OF ma.
siona bauAs aud allowing The latter 10 issue their
notes to the amount Of eighty per cent OF the par value
Of bonds deposited BY them with the Treasurer OF tho
United States, and providing that whenever the amount
of grsentacks and national bank notes exceeds
aeven hundred million dollars greenbscks TO be can
eelled to he extent of tho until the amount OF
sreenbacks outstanding reduced to two hundred and
nfy millions This bin construed IS avoring nfa-
son because 1t involves addition OF about fcrtyhvs
millions Ia the circulation Of tho country; but there are
objections to Of much graver character II has for
Its object the agqravaou OF tho evils already nsepara
ole frcaa tbs national bank note circulation, and Is
therefore carries it's condemnation with Il. This
bi II IL passed would add hundred and fifty millions
OF national bank notes the three hundred millions
now outstanding, and the country would have to pay
interest the bonds deposited basis OF circulation
10 the amount Of about twentyeight millions a In
gold. What the interests OF the country demand Is
= saving OF the snnual subsidy paid to the
banks in this form, and the bill now under
the consideration Of the House Committee on
Bankug and currency providing for the exchange OF
ahe three hundred millions of national bank notes for
needed reform and Itself TO the support OF
both houses. There is another important objection to
eenatcr Hcnderson's bn-namey, that as national
bank notes are redeemabe In leg tenders IL would be
Impossible for the banks to comply with the require
ments Of tho law with four hundred and nfty millions
OF national bank notes in circulation and only hun
dred and fifty millions Of United States notes. The bill
has evidently been drawn up in the interest Of the
banks without regard to the of the people
credited The fluctuations in the price Of gold were
from 14'a to 1879, and the closing quotation half.
past ave vas 142k 1924 Loans Of coin, which
tn superabuadant supply, were made at from four
seven per cont for carrying. Tho gross c'oarings
amounted to ssh 2o2 000 tho gold balances
and tho currency balances to o69o7a The steamer
New York took out s4os. 600 IN specie.
Tho stock market nrmer in tone than for several
days past, and fresh manufactured
corning Erie, the fluctuations IN which from TEX
20 ~ Thoro large "short interest in the stock
and some opposition to It's recovery comes from this
aeurcs while the speculative director is understood
% stin picking up all he without advancing the
price. There was general advance in quotations
owing to purchases by strong parties who, ope-
Tsrog on general principles not infu-
cncsd by the artificial causes which have
been at work TO depress prices during the last few
days The fact that fourteen OF tho principal railway
companies earned on average sos per mile
last year than In 1865, notwithstanding the extreme
dulnsss IN trade strengthens confidence in the growing
value OF railway property and the accomplished
and prospective In tho management OF several promi-
mont lines contribute to similar result and it not
FOR the corruption which underles railway manage
mont in this country the stocks which specu-
ative footballs in Wall street would be rapidly absorbed
oy investors at far higher prices than they at present
command, with perhaps two or three cxcepuona
The money market is easier than 1t last
week, and the dealers in government securities arc
offered more capital at four per they use
while the banks free lenders On miscellaneous col
iaterals al 6vo per The OF class COM
msrcial paper offering ia very limited ami
Il Is promptly discounted at 5x 8 per cent
The prevailing monetary Is likely to last for several
months longer at least and the tendency towards
sti greater plethora OF capital, tho mercantile demand
for money bsing limited all the country, and the
absence OF other employment for II It Will remain tho
disposal OF the Stock EXCHANGE aud stimulate
speculation. The suspension OF contraction, by strength.
snng confidence in values and prolonged In the
money market, will exert . powerful moral influence
which will give the country the fules, OF all tho
currency there Is In circulation and thereby
suit practically exhilarsling fresh issue OF
rency without involving tho Objectionable features OF
imitation Tho full effect OF the law prohibiting the fur
thor contraction OF greepbacks has indeed yet been
felt and 10 much to DO regretted that the
not passed The West clsmorng for nnton and
the naonsts Ia both OF Congress strongly
represented, but tho danger with which threat
sued from this source should be guarded against Al
che time It Is apparent all sides that further
contraction would be suicidal contraction having been
unwiseiy carried to dangerous extent during the
year and half and therefore Congress should provide
for tho Of grecnbacks in exchange for the
compound interest bearing loyal tender notes and the
three per legal tender certificates issued in redep
scn OF thess the LIST Of January there about
eighty millions Of these outstanding. To cancel this
amount Of legal tenders held almost exclusively by
the banks portion OF their reserve. would be con-
trary spirit II tho letter OF the Authorization
bill and detrimental to the interests OF the country, which
have suffered too much by contraction already. Mr..
Ingsrso introduced bill providing for the issue OF
fsr,y.avo millions OF legal tender notes and tho
purchase and cancellation OF equivalent amount Of
United States gold bearing bonds but this fails to meet
the case and therefore amendatory act should DO
passed defining tbs Senate amendment TO the anti.
contraction BILL providing for the issue Of notes for
those cancelled to include compound interest notes and
three per certificates Beyond this there should BE-
no further msddiing with the currency.
Government securities have been quiet all day, but
the market steady aud there moderately good
investment demand At tho counters OF the leading
dssisra There was alss limited inquiry for nve-
swsntise for shipment Tho indications that none
Of the crude schemes funding the public debt which
have been Introduced in Congress will pass and that
me dsos will b allowed remain in tic present shape
Pending tho settlement Of the reconstruction quss-
son would be unwss 10 unnecessarily disturb conf
dsacs By uaksrng with tho snancss and certainly noss
q the bills thus far presented 10 either House entitled
70 consideration would Be innsitsy better 10 leave
The debt funded Into hvetwsntss than TO adopt any Of
shsm. Senator sherman, from the Committee on
FINANCE .oday reported substitute for the bill intro
aucsd some weeks aso by him. bpt deserves the same
fate the original and will doubt fail TO become
law. AT the close the market nrm.
Al the commencement Of business The stock market
was m and all traces Of the uneasy feeling Of ysstsr
day morong had passed away. A. the early session or
the omen board prices were . per higher than