The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-02
AND COMMERCIAL.
WEDNESDAY, July 1-SP. n.

the fluctuations were from 14oH to 14OH, with the
closing transactions before the adjournment OF the
board at 14o3s, following which the price advanced
to 140H There was brisk borrowing demand for
CON- but the supply was superintendent, owing to
the Sub-Treasury disbursements, and loans were
made without interest and at per cent for carry
ing. The gross clearngs amounted to $S4, 1885, 900,
the gold balances to 81 l7204l and the currency bal
ances to s., 2oe, 49, The steamer Russia took out
$3.50, 900 in specie. The indications are that gold
will rise temporarily to limited extent under the
disturbing influence OF the House resolution taxing
the interest United States stocks aud the decline
in the latter consequent thereon. While the pre-
MUM Is remarkably unyieldng in the absence
OF disturbing causes 1t is sensitive to their
presence, and although the taxation proposed
by the House may be received with approval
by large section Of the community, it will never
theless have a depressing effect for the time be-
ing upon securities abroad, and whatever lowers
the price OF vetwenties is calculated to advance the
gold premium Moreover, the steady and unprece-
dentedly heavy exports OF coin for more than three
months past not without erect in strengthening
the undertone OF the market and the supply of gold
in the country is unusually light the BANKS OF this
city having held saturday last only 81, 1853 300,
while after the payment or the July interest the
amount in the Treasury will be considerably below
the average. The Sub Treasury discussed about two
millions and half in coin during the day In payment
Of The interest on the public debt.
Money is in somewhat better demand than usual
OF late and the general rate for loans Is four
per cent, although the outstanding loans at three
have not been advanced or called in. In some
instances transactions were reported at five per
cent, but these were exceptional. The general
opinion Of bank officers that this slightly increased
activity arises from the preparations OF the banks
for their quarterly returns to be made up on Satur-
day next for transmission to the Comptroller Of the
Currency on Monday, and that after these prepare
tons have ceased the loan market will relapse into
its former extreme ease, and meanwhile 1t
will not be any firmer than 1t is at
present. The railway share market was very strong
and active all day, and prices advanced steadily
from the opening to the Close Reading experiencing
sharp advance to 1929, ex-dividend, late in the
afternoon The feeling Of the street is favorable to
higher prices for oil the leading stocks and the earn
ings Of the railways continue to show considerable
increase over those of last year.
The dealings In Tennessee State bonds have again
been very large, and at the first board sales OF
the new issue were made as low as SO, owing
to the non-payment Of the semi.annual in
terest but from this point there was re-
covery to 10 in the afternoon, the latest transac
tons having been at this figure. The upward
reaction was due to rumors to the effect that the
a more sound and reliable financial policy than has
been hitherto pursued the financial necessities OF
the State demanding that some step Of the kind
should be taken The debt Of the State the close
Of the about seventeen millions. twelve nit
lions OF which secured to the State by liens
railways to an average amount Of from twelve 70
thirteen thousand dollars per mile. Since the close
Of the the debt OF the State has been increased
to nearly thirtysx millions, owing mainly to appro-
priatiOns for railways, although the latter were
under prior mortgages for nearly their fun value
Some Of these are small country lines, connecting
with the main lines, which cannot be relied
upon a. Q source Of revenue to the State
and II sold tomorrow they would probably
bring only small portion Of the amount
Of the State lien, which in some instances
Is computed to be more than $4,000 per
mile. Thus far this class Of railways has been
enabled to pay Its interest through the sale Of bonds
appropriated by the State for construction purposes
But notwithstanding all the appropriations which
have been made by the state not more than hun
dred and fifty miles Of new road have been built In
Tennessee since the termination Of the war. This
seems nothing less than an abuse OF the appropria-
tons, and the Legislature should cause strict in
quiry to be made into the railway management Of
the State The most proper course for the State to
pursue now is to increase its local taxation and
fund Its floating debt into new bonds, and
in this way in less than two years It
would be in position to resume the payment OF
its semiannual interest without having to borrow
the money for the purpose, and meanwhile the credit
Of the State would rest upon a better foundation
than 1t has done OF late.
The market for government securities has thus far
disappointed the expectations Of those who looked
for activity and buoyancy Immediately following the
first disbursements of the Treasury in payment OF the
July interest the public debt, and this afternoon
there was sharp and general decline In prices, the
cause being a pressure to sell both 'short" and
"long'' stock based upon the resolution passed by
the House of Representatives on Monday calling
upon the Ways and Means Committee to frame
bill taxing the interest on United States bonds and
q rumor that the committee will report bill in con-
f0rmify with the resolution tomorrow The res0lu-
ton In question has developed strong feeling in
quarters in favor OF taxing the interest the
bonds, and until the bill called for Is finally
disposed OF II will tend in some degree to check
speculation for rise In them, both at home ana
abroad. Moreover, the approaching Democratic
Convention is a source OF uneasness as opinions
are divided 70 its action relation the finances
although the democratic leaders here favor
good faith platform and are confident that such
one will lie adopted. Prices have already declined
far that IL IL probable they hard pan and
the principal dealers disposed to pick up stock at
the reduced quotations. At the close the market
a fraction higher than one time In the after
noon but nevertheless, unsettled, and the quotations
on the street suboined United States 6s, 1884,
registered, 112h 49, coupon 1884, 1l2 49, 5-50s
registered, 100 a 1875 5.20's, coupon, 1852, 112A
1925; 5-2o's, coupon 1864, IlO% llo1s; 5-2os,
pom, 1865, 1los liOA; 5-20's, coupon, new, 1865,
1oS% a losA; 5-2Os, coupon, 1867, 1854 1857;
1o-i0's, registered, lo6h; 1O-40's coupon, 1o61i q
1917 7.3o's second series, 1854 100; 1905, third
series, 1854 a 100.
Tie private circular OF a Wall street banking
house thus describes the the market daring
the day.
The government market opened at about the clos
ing quotations OF yesterday and the transactions at