The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-05
FINANCIAL AND COMMERCIAL.
TUESDAY. Anrnst A-aP M

The gold market has been very strong TO-DAY and
the fluctuations were from 1853 to 1862 with the
closing transactions, prior to the adjournment, at
l46h, after which the price TO 146z The daily
volume OF business continues large and the prevail
ing disposition OF operators is to buy the general
peliel being that the premium will rise much higher
within the next few months on commercial and
political grounds and in view of the limited floating
supply OF coin this is by no means improbable The
excitement attending the Presidential election is
doubtedy favorable to strong gold market, and
the preponderance OF imports over exports Is re-
sultlng In steady outward drain OF specie. The
Sub-Treasury discussed $4,000 in coin during the
day.
There has been renewed excitement and further
break IN Erie, which fuctuated between 81 and 60L
during the day, but at the close it weak at 57,
The bear movement in this stock. 1t is asoertained
originated with strong parties, whose object is to
put II to price between 40 and so, where it
Will pay them to take hold Of it with view to con-
trolling the next election. Meanwhile, by the fall
they are promoting, they mean, If possible, to
seriously cripple certain houses which have been
working in opposition to their interests for long
time past, and the indications are that they will
be successful in depressing the stock to the desired
point unless some other support for it than has yet
presented itself makes its appearance. Street
rum0r dwells on the fact that Messrs Steward Il
Banker have not taken their seats on the Erie
board YET and that Messrs. Vanderbilt and
Drew both inimca to the present
Erie party and that II these gentlemen, directly or
indirectly choose to exert their strength they can do
whatsoever they please with the stock Most of those
In the combination now at work to SCOOP" Erie out
OF the hands of weak hodere are temporarily out of
town, and the concert Of action between them is
hardly suspected by outsiders but their efforts are
nj Al mad bar Erio 10 a lint
tlecock in their hands. Although therefore, it has
fallen heavily already it is liable to fall considerably
more, and the next few days, or even hours, will
practically decide the next Erie election. The mar
ke for the stock has been entirely demOralized, and
1t has also had the bad effect of breaking the spirit Of
the bull movement in railway shares generally.
Government securities continue dull, and there
was no material change In prices during the day,
except for ten-forties, which advanced to 1895
under the operations Of some of the German
bankers, who are specializing upon the fears OF the
people and endeavoring to create false impression
as to the value OF these bonds. The latter have
already run four years and therefore they have only
six years longer to run, and they bear only five per
cent interest per annum; yet while they are selling
at the price mentioned the fve-twenties Of 1868,
which have al least five years to run, are selling at
100. The hve-twenties are, therefore, relatively
much cheaper, and an opportunity presents itself
Tor the holders OF teiforties to convert them into
nVe-twenues and make handsome profit upon the
transaction. A sharp upward movement In govern
ments is only question OF time, and
meanwhile the large dealers are buying up all the
stocks offered by weak holders and .short' sellers
but it is fair to say that the supply from these
sources is very limited At the close the market
was dull but steady at the subjoined quotations.
Registered, 1881, 1888 1853; coupon 1881, 1151
<
pom, 1862 1141& 1l4sS; do 1864, 1lo5S Ill; do,
1865 ll214 ll21a; do, 1865 January and July, 1888
lOsa; do, 1867, 1888 109 1O-40's, registered,
1855 l0524; 10-40's, coupon, 100 q 1907.
Money continues extremely easy to borrowers in
good credit On satisfactory coaterals but Erie is
jected as collateral by the United States Trust Com
pany and nearly all the banks and private lenders On
government securities the supply is largely IN excess
Of the demand at three per cent and miscellaneous
coateiaIs, although the general rate is four, there
are not few exceptional transactions ut the lower
rate. JUS now credits and margins are scrutinized
with some severity as II is considered likely that the
heavy break IN Erie VIII result in failures and lend.
ers have lost confidence in The stock. A report is
current on the street that the Erie Company has
purchased the Bristol line Of sound steamers anu
damaging use Is made OF this, although 1t il contra
dicted by those directors Of The company who have
been elected directors or the steamboat company in
question.
AT the commencement OF business the stock mar.
ket was unsettled By increased weakness in Erie
which, after opening at 62 declined to 81. At the
open board at ten O'Clock, however it rallied to
s9K 5sis. aud the rest Of the list which had
yielded slightly, became hrmer. At the first regular
board prices were without material change, and on
the call New York Central closed pa lower than at
the same time yesterday, Erie 81, Reading IL,
Michigan Southern a. Cleveland ani Pittsburg az
Rock Island Z, Fort Wayne II, Milwaukee and st
Paul preferred p ohio ami Mississippi 4, Tennessee
skies, eX coupon, l; new issue, IL North Caro-
lima SKIES ex coupon, "a, ana Missouri State
skies \. AT the open board at one
O'Clock Erie sold at 5eS a 597s At the
second regular board Reading declined to 81 and
Rock Island closed u higher than at the first resu
lar board, Fort wayne a, Milwaukee and st. Paul
preferred -, Tennessee skies, ex coupon !; new
issue "a, and North Carolina SKIES ex coupon, IL;
while Reading was ~ lower. At the open board at
halfpast three Erie sold at tso aud Reading at 81
the tendency Of prices being downward. The mar.
ket was languid and dropping during the remainder
Of the afternoon and at quarter rast six Erie was
very weak and the following quotations were cur
rent:-New York Central, i3o'E: Erie, SIX O SIX;
Reading. 81 4; Michigan Southern, SO s64; Ceve-
land ana Ptisburg, 81; Rock Island, 1115S 111H;
Northwestern S1T q So: Northwestern preferred,
ux STA: Fort Wayne 1923, 1922; Pacific Mall,
lO1 1OIh; Western Union Telegraph SAX a s4I.
The foreign exchange market is dun and rather
heavy ia tone, although rates are nominaly un-
shanged. Bankers bills Oh England at sixty days
were quoted at the close at 40 liO%; at three
days, llO's nos; commercial bills, 1908 109Z.
Bankers bills on Paris Of siXty days, 5.15 a
6ISI.
The drain Of bullion 10 France, which has made
MAT country the largest storehousc OF The precious
metals In The world continues 10 attract attention IN
England, ana It ~ suggested That The Bank Of
England should try TIN same experiment az
uiat which has been so successfully adopted
by the Bank Of France OF Offering for bullion
little more than the standard price and the sr9ges-
ton IL entitled 10 consideration " by this plan the
bank could increase it, stock Of coin and bullion and
30 augment its circulation according to the existing