The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-16
FINANCIAL AND COMMERCIAL.
WEDNESDAY, july l5-6 p. NJ

Department under Mr.. McCulloch has, from the be-
ginning of his administration, contributed largely
to foster the speculative element in the Gold Room
10Y its peculiar method of dealing with its surplus
coin Instead OF supplying the wants Of the mer-
camille community for the payment Of customs du'
res by public sales Of its surplus gold 1t has fed the
market secretly through brokers. who have been
paid an eighth Of one per cent commission for per-
corning the business which the department should
have done for itself through Its officials IN this CITY,
The aggregate amount of these commissions Is enor-
nous, and never was the public money more extrav-
agantly spent than In the sums which were PAID 10
Messrs. p NJ. Myers & Co. and McGinnis Bros d
Smith, the government brokers. We perceive that
by the new Funding bill which passed the Senate
yesterday the Treasury Is prohibited from paying
commissions for the sale Of gold, but this step to-
wards reform comes rather late in the day. and 1t Is
doubtful whether the bill in question will become
law special act should therefore be passed COM
peng the Treasury to sell its own gold through Its
officials free of all expense, except that attend
ing giving notice the public OF the sales in ques
tion Gold has been twice below 1913 since the termi
nation Of the war, and yet 1t has to-day
sold at 1927, 80 that 1t cannot be said
the Treasury has done anything to appreciate the
value OF the currency during the intervening years,
notwithstanding all the resources at its command.
The case was very different In England during and
after the Napoeonic wars, where such an organiza-
ton az the Gold Room would not have been allowed
existence. Here 1t is an incubus on honest In.
dustry, and therefore call upon Congress to pass
a heavy tax upon all sales OF gold not intended for
the payment OF customs duties, and II the tax is
fixed at fifty dollars every thousand dollars in
gold 1t will not be too high. The gold
spectators are the most useless OF all the
non-producng classes, and as their business
is opposed to the interests of the people, by disturb
heavily it is taxed within the limits in which the tax
can be collected the better. The erratc policy Of
Congress in'deang with the finances has been pro-
ductive Of great dead Of harm by weakening con-
ndence in the value Of securities both at home
and abroad, and this has given the gold spectators
a lever to work with Of which they have made the
best possible use. II we contrast the financial his
tory of England after the battle of Waterloo
with that OF our own country after the cap
ture Of Richmond we find the comparison
the reverse Of naterng to Congress and the Treasury
Department. No wonder that few foreign bankers
and others are enabled to control the gold premium
TO great extent when the government policy is
such as it has been since the suspension Of specie
payments; but the time has come when the public
credit should stand high and gold should decline
The first duty Of Congress is to tax the opera
lions OF the spectators heavily and this would at
least have the good effect Of increasing the
public revenue The announcement made in
the Senate on the authority OF the Sec
retar7 of the Treasury, that after meeting
immediate demands the amount OF coin &C.
ruaiy owned by the government would only be about
shirty-seven millions, strengthened the market for
gold today, and the fluctuations were from 141zS to
1925, with the closing transactions prior to the ad-
.Sournment at l421, following which the bids were
per cent below this price. Loans were made at :
per cent for carrying and lat." The gross cearings
aggregated 1854 592 00O the gold balances Scissors
and the currency balances 1922 The shipment
OF specie by the steamer China was s5O5,OoO
Money was in superintendent supply at four per
cent on miscellaneous collateras, and the leading
dealers in government securities were offered large
amounts at three per cent Owing to the dulness OF
trade commercial paper continues scarce, and the
best grade is in request at five per cent. The condi-
lions Affecting the money market are favorable to
prolonged ease, not only during the present year
but for an indefinite period to come. The govern
ment Is no longer borrower, and currency contrac
ton is stopped while there is speculative activity
in trade, ard business is transacted mainly
on cash basis. Hence the demand for
loans Is confined almost entirely to Wall
street. and the requirements of the West
TO move the crops will be met chiefly by renitances
OF national bank notes. the supply OF which at this
centre aggregates probably not less than forty mil
lions IN the banks and Sub-Treasury and these are
not counted by the banks in their reserve in their
weekly statements. Tie stock market was dull and
rather dropping during the greater part of the day.
but at the second regular board there was decided
improvement in its tone and prices advanced 4 L
per cent, the rise being most marked in Erie, New
York Central and Reading. The transfer books OF
the New York Central Company will close
on the 3lst inst, preparatory to the pay
ment Of the cash dividend OF four per
cent for the half year on the Goth Of August The
oyt forgerIes and the bear attack based upon these
rs well as the extremely hot weather. to have
spent their force upon the market, and in view OF
The abundance Of money, the large earnings OF all
the railways and the highly promising crop pros
poets In all parts of the country, general advance
in prices and an active speculative movement are
probable. The Chicago and Rock Island Railway
Company is about to issue orders the per cent
dividend payable on the LIST OF September next
which Will dispense with the necessity OF parties
lifted to the dividend sending to Chicago, where the
transfer books are at present open and where they
viii remain open until the 10Th OF August. These
may be obtained and fled up at the companys Office
in this CITY, where further Information on the sub
ject will be afforded and where the dividend orders
will be issued after the LIST of September.
At the commencement of business the stock market
was dull but steady, and at the first regular board
Tho volume OF business was light and evenly dis
tributed. Now York Central closed on the call 2
bower than at the same time yesterday Northwestern
preferred Il, Fort wayne ~ Milwaukee and St. Paul
preferred " Canton u, and Tennessee skies, new
ISSUE l. while North Carolina skies, issue,
y higher Government securities were dull at q de-
cline of an eighth per cent. At the second regular
board the market was at about the lowest point Of
khe day. and New York Central closed on the call Y
lower than at the first regular board Erie y, Cleve-
land and Pistsburg " Northwestern X. preferred y,
Milwaukee and st. Paul preferred y. Ohio and Mis-
tsissippi y, Pacific Mail y, and Tennessee SKIES
,ex-cuypon, Y; while Fort Wayne was higher.
Government securities were dull but firm. At the
open board at hafpast three the market became
strong Reading advancing to 96k, Erie to SO and
.C,evaIand and pittsburp to S5 During the