The New York herald., 1868-06-17
FINANCIAL AND CONNER clAL.


therefore hoped that the Treasury viii at once
increase the noatng supply OF gold by cashing the
July coupons on presentation. Up TO the adjourn
mept of the board the fluctuations were from 1908
10 14o with the closing transactions at 1405s; but
subsequently the quotation advanced 10 1407s l4l
mainly in consequence OF apprehensions among the
bears and belief among the bulls that coin will be
IN stln more limited supply tomorrow, owing
70 the locking up operations Of the clique con-
oerned Loans were made at rates varying from
Two 10 fourteen per cent per annum for borrowing,
and az 1S2 Lea per diem, as well as without inter.
est: but late in the afternoon engagements for
Wednesday were made at still higher rates. The
gross clearings amounted to $55, 5,ooo the gold
balances TO s2 69s and the currency balances to
xs 229 79l The steamer Germania took out $3.50 coo
in specie The short interest outstanding appears
from the extent OF the borrowing demand TO be
large and the frmness OF the market of late has un
doubtedly been source OF considerable disappont
ment TO the bears but this s the natural result
Of legitimate causes Affecting the premium,
whereas the squeeze which is now being |
felt is partly artificial, and in far as 1t is so the
speculators responsible for IL are TO be condemned
and If possible checkmated. There s no probability
Of any other than firm market for gold while the |
Drain OF specie to Europe continues, but all specua-
i've efforts TO make 1t arufcally scare are produc-
tive Of evil to the importing community and sympa-
mecay TO the people ar large, as the effect upon |
the price OF gold is for the time being always Of a
disturbing character. The shipments OF gold fi0m |
san Francisco in May aggregated 81 es9,67 against
3Is7s 7s0 In the corresponding month last year.
OF the total amount Of the July interest on
the public debt and railway bonds and the dividend
on Illinois Central stock 1t is estimated that about
Ten millions will be due 10 parties in Europe, while
The bonds OF 1868, which mature on the 1st proximO
are mainly held there; but as the Treasury has the
ont of na viz ha In iOna OF onv n,o
after their maturity by continuing to pay the inte
rest on them, II may be that these will not be called
in for redemption Immediately upon their maturity.
II does not follow however, that the amount drawn
here on European account viii be RENTED In specie
hut on the contrary, it is probable that large por
on OF it viii be reinvested in United States bonds.
The railway share market has been very duh but
frm all day. although no material change In quota.
tons took place. Reading and the Western stocks
showed the most marked tendency towards improve.
ment, while Erie and New York Central were with.
out buoyancy, Notwithstanding that settlement be.
tween the Erie and Vanderbilt parties is probably
remote Money was just abundant it has been at
any time since the commencement OF the present glut,
and first class stock houses had diffcuty in Dor.
rowing all they required at three per cent although
the rate generally asked on miscellaneous collate-
rails was four. There is very little commercial
paper Offering, and the best grade s scarce
hnd IN demand AT D per cent. IN the
West the local centres are well supplied with funds,
and loans on call are made at Chicago at six per
cent, significant fact when we consider that the
usual rate is ten There is no probability of any
abatement Of the prevailing monetary ease until the
end OF August and meanwhile the banks will be
forced TO employ much Of their surplus in the pur.
chase OF government securities, the demand from
speculative and mercantile sources being entirely
inadequate TO the absorption OF the idle capital OF the
country. The national banks will make up their
quarterly returns or the 1st Of July but their condi-
ton is such that they stand in no need OF making
any special preparations for the same and hence no
disturbing effect whatever upon the money market,
mere OF elsewhere, is to be looked for. The virtual
defeat OF the Tax bill In the House of Represen-
tatves yesterday is so far satisfactory because the
latter was entirely too cumbersome and compli.
Gated 10 be consistent with the public welfare. The
Committee of Ways and Means now engaged in
preparing new amendatory bill taxing
whiskey and tobacco, and there Is scope for
their ingenuity in devising ways and means
for enforcing the collection Of the whs-
key tax. The present tax is not any higher
than II ought TO be, but il has been found impOs-
sitie 10 collect 1t by the machinery now in force, a
reduction Of the tax TO dollar per gallon might
be tried with possible advantage. The proposition
10 reduce 1t TO sixty Gems should however, be re-
Jected.
Ihtle mas Deen very strong ana active market
for United states stocks all day, although a frac-
iional reaction from the advance OF "a per cent
which followed the opening was experienced in the
early part OF the afternoon. The demand both for
home investment and on foreign account was large.
and the rising tendency Of the exporable bonds
particularly marked. Confidence in the public credit
is growing, owing TO the improved condition OF the
national hEances and the fact OF all but a small
amount Of the seventhrty notes having been already
funded With respect to the revenue no apprehen-
sions whatever Of deficiency need be entertained,
and there is no country in the where the people
have shown such substantial patriotism as they have
m the United States, ana where taxes
however onerous are willingly paid. II
necessary far larger amount OF revenue
Than Is now collected might be raised; but this
should not check efforts being made towards a sim.
pnncation Of the tax law reduction OF the pub.
JIG expenditures. The flve-twenties OF 1865 ere
now being issued in exchange Tor seventhrty notes.
ano tbs afternoon they quoted at 109ss 1892.
Tue disbursement OF about thirty-two millions in
com Interest by the Treasury the 1st OF July and
eight millions more in redemption OF the principal
OF maturing bonds will doubtless largely stimulate
ire investment demand on both home and foreign
account, and the Simultaneous payment OF thirty
hi'"hs more IN currency Of Interest and dividends
ny uanhs and other corporations throughout the
country viii operate materially in the same
"necuoh' Ihe stoppage Of the supply of
bonds oy the closing OF the gold loans will at the
same time add 70 the excitement and buovancv pro.
duced by this heavy demand and our national secu.
rites will permanently rise to higher figures than
they have hitherto been quoted at ~ the close the
market for ali the issues was strong at the sub.
joined NEUTRALITY-SUSPICIOUS., lssl III. a ll2i,:
coupon, 1881, 1l7}. ll7a: 5-2O's. registered 1852
1905 1895; 5-2os, coupon, 1s62 ll27. a 49,, do
1S4, 11014 1l1jS; do, 1866, Ill llll,: do 1865
January and july 1875 III; DO, 1851 IL.
ll4is; do, 1865, 1925 1o9's; loiO's, registered
looA lOe's; 1O-4O's, coupon, 1904 1857; June
5.3os, lO95s ITO; July 1905 11o5s Ill; August
compounds 1861 llsH september do, lis; October
do, l11Js.
At the commencement Of business the stock mar.