The New York herald., 1868-06-26
FINANCIAL AND COMMERCIAL.
THURSDAY. June as-sP.M.

THURSDAY, June 25-6P.M.
The gold market opened moderately active this
morning at 140h, but from this point there was
gradual decline to l4oS and the closing transactions
prior to the adjournment Of the board at l4Ok
following which the latest quotation on the street
was 14oH 14o4. Cash gold was in better supply
than yesterday and loans were made at 1-64 l-32
per cent per diem and a 9 per annum for borrow
ing as well as nat, which Is the technical term for
no interest to either borrower or lender The vol
ume Of speculative business was rather large and
about equally divided on the bull ana bear side.
The gross clearinss amounted to $685. the gold
balances to and the currency balances to
$lS52,330. The steamer Hermann, for Bremen, took
out $3SO,O in specie. Bonds Of 1s47 and 1s4s ma
turing on the LIST proximo, have thus far been re-
duced to the amount Of s., 600, 900.
The proposed reduction Of the whiskey tax to
fty cents per gallon is variously discussed.
The reduction Of the impOst would un-
dOubtedly diminish the incentive to fraud, but
the opportunity ought not TO be allowed. and where
At is possible to collect fifty cents per gallon it Is
equally possible to collect two dollars under thor
oughly efficient system. Unfortunately we are with
out any efficient system, and the Internal Revenue
Department is full OF rOgues, who make 1t their busi
ness to cooperate with fraudulent and Illicit dis
tllers and fleece the government that employs them;
but notwithstanding all this the revenues Of the
country are abundant that the Treasury is amply
supplied with funds, and q much larger revenue
could be raised If necessary. Under the present
machinery for collecting the whiskey tax larger
income would probably be raised from one Of
nifty cents per gallon than from one Of
two dollars, but the attention of Congress should be
turned more towards the prevention of frauds than
the reduction Of the tax, for OF all the taxable
commodities whiskey and tobacco should be the
most heavily mulcted. Both drinking and smoking
Should be made expensive luXures by heavy taxa
lion, and in this way Congress- might obtain revenue
enough to enable it to dispense with the most odous
of all the taxes-namely the income tax, which, as at
present imposed Is not only unconstitutional but
-onerous, inquisitorial, vexatious and without
equality
The money market continues superabundantly
supplied with capital at three per cent to first class
borrowers, although The general rate asked for small
amounts on miscellaneous cOllaterals is ur per
cent. The banks find 1t impossible to employ more
than portion Of their surplus in loans the Stock
Exchange, and hence they are compelled to seek
employment for the remainder in the purchase of
government securities; for the demand for discounts
Is too small to enter materially into the calculations
OF bank officers that Of the best grade being
and in request at five per cent. The plethora Of
loanabe funds at this centre Is only to be paralleed
by the condition of monetary affairs existing in Lon
don where the bank rate is still per cent while
loans on consols in Lombard street are made at u
IA \. below this figure. And this extreme ease
Is not likely to be disturbed either here or in
Europe
The stock market was somewhat dropping at one
time during the forenoon, except for Reading, which
was firm; but after tile first regular board there
quick recovery and Northwestern preferred sold up
TO 79A. Later in the day, wnen ii became known
that the Reading Company had declared a scrip
dividend Of five per cent, the stock advanced
to 104I under large transactions. The feeling
OF the street Is very bulsh and in view of
this and the extreme abundance and cheapness Of
money and the prospect Of rates remaining as low
as at present until the crop movement begins in
the autumn it is useless to look for lower prices ON
the Stock Exchange, and the bears are willing to
bde their time. The reports relative to the growing
crops are unusually favorable from all sections of
the country and the bulls not incorrectly calculate
upon increased railway earnings In consequence,
and predict much higher prices for stocks.
The market for government securities was steady
at the opening, but 1t afterwards became heavy,
mainly in consequence OF the operations Of some OF
the dealers, who were anxious to buy at the
reduced quotations. The decline was equal to x q
u per cent in instances from the prices current
yesterday morning, but at this point there was an
active demand from parties who had been awaiting
q
covery of about quarter per cent took place at the
quarter past two O'Clock call. The investment de-
mand at the same time quickened, and considerable
purchases OF fve-twenties were made by the banks
for the temporary employment OF capital. The
lowest prices were made at noon, and the hammer
ing was done with very light sales by the simple pro-
cess Of Offering stocks down. No considerable lots
came out however, and the undertone OF the market
was reaHy strengthened by the efforts 10 Jr-ak II
down by those anxious to buy. The disbursement OF
nearly forty millions In coin by the Treasury In July
and more than thirty millions in currency by the
States the banks and railway and other corporations
cannot fail to largely stimulate the demand for In
vestment and materially af1ect the Of prices
The Assistant Treasurer in this city has gwen notice
to the holders Of the bonds of 1s4 and 1s4s that the
latter will be redeemed either here in washington
and after the lst proximo and that interest the
same will cease after the 30th inst. The bonds must
be assigned to the Secretary Of the Treasury for
redemption and endorsed by the party to whom pay
ment required to be made At the close the market
was steady at the subjoined
1881, 1884 1la's; coupon 1881, ll7X 49, 5-2O's,
registered, 1892 109h ITO; 5-20's, coupon, 1862,
1134 1885, $685. coupon, 1864. 1107I Ill 5-20's
1865, 111& 111,s; 52o's coupon, 1885, January and
July. 1857 ia; 5-2Os, coupon, 1857, ia O 1141I
5-2Os coupon 1868, 1O9sl ITO; 1o40's. registered,
1oeT lO7Js; 1o-4os, coupon, 1878 1o7l; June
1905, 109A no. July 1905, 109% no; August
compounds, 1865 11s1; September do, us; october
do, 1Ft8.
At tfe commencement Of business the stock
market steady, and at the early session OF the
open board prices were without material change
from those current at the close last evening" Reading
selling at 1885, and Erie at 60. AT the first regular
board the market was slightly lower except for
Reading and the Chicago and Northwestern stocks,
which were strong. Erie closed x lower than at the
same time yesterday, Reading q, Cleveland and
Ptsburg " Cleveland and Toledo Il, Rock Island 1,
Northwestern Ia, preferred 4, Ohio and Mississippi
4 and Western Union Telegraph Ia, while North
western was q higher, preferred ,s, Pacific Mail X,
North Carolina, ex-coupon, IL and new issue IL.
Government securities were duh and steady. Ten
forties showed an advance Of an eighth and FIVE
twenties of 1867 decline of ON eighth After the