The New York herald., 1868-03-24
FINANCIAL AND COMMERCIAL.
MONDAY, March 23-oP. ]

MONDAY, March 23-6P NJ. i
Tne gold market has been weak to-day and the
nacuations from ls9k TO 1881, with the closing
transactions prior to the adournment OF the board
1t l3sX, following which the quotation declined to
1SsH q 1855 The decline was due In part 10 the
scarcity Of currency which caused holders Of coin
20 sell out In order to obtain greenbacks while many
OF the stock operators borrowed coin stock colla
erals for the same purpose and In this way
q considerable "short' interest has been
created. Notwithstanding moderately active bor-
rowing demand, from seven to nine per cent paid
for carrying gold The gross clearings amounted TO
$40 22l 000 the gold balances to 81, 4s9 and the
currency balances to s. 6s267l. The importatons Of
specie at the port from foreign ports last week
amounted to $22,99l. The impeachment trial at
Washington exerts no influence upon the course OF
4he premium; but the letter Of Mr.. Jay Cooke advo-
eating the payment OF the principal as well as the
interest OF the nve-twenty loan In gold, and
showing that when the bonds were marketed
the people were distinctly told that the principal
would be payable in specie, has had tendency to
aepress 1t by removing apprehensions Of o return
OF 1ve-twenties from Europe In consequence Of the
dstrust occasioned by the agitation Of the Sherman
Funding bill and threats OF paying the funded debt
In greenbacks. In this connection we may mention
that the principal OF three different loans has been
issue OF fve-twenties was made-namely
the loan Of 1912, due December 81 1862;
the Texas indemnity bonds, due December 81, 1884,
and the bonds Of 1S47 due December 81 1867. 1t is
evident from these instances that 1t Is the policy OF
the government to redeem its gold-bearing bonds In
specie so long no law exists to the contrary The
letter Of Mr.. Cooke goes prove that Mr. Chase Mr.
Fessenden and Mr.. McCulloch as well as he and his
agents, represented that the principal OF the
ave-twenty loan was payable In coin, and
he argues therefrom A that as o principal
in ordinary business transactions is bound by the
acts Of his agent so the government is bound BY the
promises made to the public by him and the several
Secretaries Of the Treasury referred to. But as q
government is not amenable to the laws which
enable one individual to enforce contract against
another, and as the whole question is one Of public
policy and good faith, there is wide scope for argu
ment to whether the government simply bound by
the letter OF the act authorizing the loan whether
1t Is incumbent upon 1t to take cognzance Of the In
depreciation which was officially placed upon it
when the bonds were being marketed. That Mr..
Cooke has presented very clear case from his point
Of view Is undenlabe, and when he claims that he
acted In good faith in telling the people that the bonds
were redeemable In gold there is reason whatever
TO doubt his sincerity 1t Is premature to discuss
the question Of redeeming the vetwenty loan at ALL
however, and with this rejonder OF Mr.. Cookies to
the speeches Of Messrs. Sherman, Butler Pendleton
and others the subject should be dropped, both in
and out Of Congress- for the present at least.
The stock market has been dull, and during the
latter part Of the day it was depressed, New York
Central having declined to 12l1 and Reading
to ssX these being the weakest of the railway
shares. Erie fell or to s0A, and it would
have gone considerably lower but for the efforts Of
the bull party to sustain it, and they doubtless find it
very costly white elephant their hands. The liti
CATION In which the company is involved has made
1he public distrustul of its value and therefore
willing to hold ii, while the street is afraid to
touch 1t, unless to very limited extent for a quick
surn, and the banks almost invariably reject it as
collateral for loans. The Legislature viii
IN all probability pass the bill legalizing
the recent acts of the company, and it win be
contrary to the public interests il this is not done
and the broad gauge route opened from this city to
Chicago. The whole railway share market Is in o
very precarous state, and the withdrawal Of any Of
the artificial props by which 1t is sustained would
precipitate panic, and, owing to the high prices
now current as well as the absence Of large
s.short'' interest, the fall in that event would
be very heavy. Herethe question occurs, how far
would the banks and trust companies sulrcrY They
are the chief uphoders Of the market at present by
their large loans time to the various cques, and
although their cOllaterals and margins may appear
good enough at present. there is no knowing how
heavy fall might leave the money lenders the
actual owners Of these stocks; and while the
money OF the banks Is thus employed the
legitimate trade Of the country crippled for want
OF facilities for obtaining discounts. Money was
very active at per cent, this rate gold being
paid many instances. The refusal OF the Clearing
House accept the three per cent certificates from
the Treasury the terms offered created surprise
and disappointment, anu uniess Mr.. Van DycG be-
comes purchaser of seven-thirties in the open mar
ket increased stringency is apprehended until after
the first OF April
The totals OF the city bank statement for last week
correspond with those already published and the
changes from the previous return are decrease in
Soans Of $780, 1884, in specie Of 1913, in net de-
poss Of $o 9969 in legal tender notes Of 81, 7so
and In circulation OF $50. comparison Of the
present statement with the returns for the corre
spending weeks in 1857 and 1866 respectively shows
the subjoned changes-
March %, 1867. March 81, 1s8s
Loans $259, ,4003l5 Inc. 81, ,0l6, 5S5
Specie. .......... p143,B13 Inc. S,SO03g5
Clrculati0n.. 33blv4o Inc.. Os3,ltU
Deposits. 1872 2375,615 Dec... 1,l640S9
Legal tenders. ........ 6Oeo4,s5S Dcc... S,633S72
March "a, 1860. March u, 1s6s
Loans $234 500515 Inc. so, ,916 $50
Specie 13,gt56J1 Inc. 3,99S, B57