The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-17
FINANCIAL AND COMMERCIAL

FUNANOIAI ANO COmWEhClAl.
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THURSDAY, July 1e-ePM
The gold market has been very strong all day. IN
der the operations OF the spectators for rise and
the fluctuations were from l421 to l42zx, with the
closing transactions prior to the adjournment of
board at 142K, following which the quotation ad-
vanced to 1917 l43. Coin was in superintendent
supply, and loans were made at rates varying from
two and half to i've per cent per annum for carry
ing. The gross clearnes amounted to $52 900,
the gold balances to $l,4O6,741 and the currency
balances to 3d. $50 The steamer Hansa, for Bre-
men. took out $4,000 in specie. 1t is to be
hoped that Congress before its adjournment
will take up the subject OF taxing specula-
tive transactions in the Gold Room, and If
the tax is fixed at $50 on every $4,000 In coin II
viii hardly be excessive Where gold Is intended for
the payment OF customs duties, however, its sale
must be exempted from the mpost, and this dlstnc-
ton can be easily made Even II the tax failed to
check materially the existing evils connected with
the Gold Room it would bring in a considerable rev.
enue, but the probability is that 1t would break
up the Gold Room as q speculative arena, and
men, in order to evade the tax. would
have to buy and sell stealthily and incur the
attendant risks. In England, during the suspension
OF specie payments, such institution a. the Gold
Room would not have been tolerated, and those
operating in 1t would have been treated as con.
spirators against the public credit; but here
Congress and the Treasury Department have aided
aud abeted them in various ways and the result is
that gold is 1929, against only 125 In March, 1885,
Neither in Congress nor the Treasury Department
have we had any exhibition Of a knowledge Of the
financial question, and the public credit has been
damaged instead OF improved by what has been
done. In England the contrary during the period
W WAS iaalnu ri
by every available means and specie payments were
fully restored in 1928 and partially in 1921, the
Napoleonic wars having terminated with Waterloo
in 1916. Congress must now go to work to improve
the public credit in order to accomplish the results
which were achieved in Great Britain; and her
resources at the time were much smaller than ours
have been, ana still are yet the gold premium there
declined steadily after peace was proclaimed, and
for two or three years before the resumption Of
specie payments the premium coin was very
trning. With efficient Secretary Of the Treasury
The country would be much nearer specie payments
than 1t is and the gold question is one which COM
mands the immediate attention of Congress.
An English writer differs from the grand pr1n-
ciple laid down at the Paris conference Of 1857
respecting a universal coinage, which principle
was first prominently advanced by Michel Cheva-
Tier, the coinage to be based upon q single gold
valuation, and argues in favor Of double valuation
based upon both gold and silver. The alteration Of
the English standard from silver to gold effected in
1916 has been productive Of mischief although very
much less than II the silver standard had been uni
versally abolished. 1t is still retained In nearly half
of Europe, and thereby about five hundred and fifty
millions of silver currency is maintained through
out the world. The steady growth Of population
and commerce necessitates as large growth Of cur.
rency as ii is possible to produce provided 1t is In
coin or paper resting upon sufficient foundation of
coin and good credit. The writer in question re.
marks:-
Whatever difference of opinion may otherwise
exist among political economists about the effects Of
authorities on the subject are agreed-to w.t. that
the large increase In the supply OF gold has given
and to general social development and progress, and
that 1t has considerably enhanced the material well
ale anu pn G ma Inc mere
direct gain and advance in general wealth, even in
the most abstract acceptation OF the term; the
teral, papable signs OF this advance in wealth are
seen and felt In the stimulus and encouragement
which large increase In the universal capital must
necessarily give to industry and commerce and
labor and the increased production OF all kinds Of
commodities either In consequence or In anticipa-
ton of an Increased demand for them.
The stock market has shown decided improve
ment to-day and the tendency of all the railway
shares was upward, Reading, Erie and New York
Central being especially buoyant. The indications
favor active speculative movement and con-
siderably higher prices based upon the increased
earnings OF the railways in comparison with the re-
turns of last year. the highly encouraging crop pros
poets and the abundant supply Of money Loans are
now made mainly ut three per cent on government
securities and four mixed collateras and first
class commercial paper is scarce and in demand OF
6a5K per cent. The domestic exchanges are In
favor Of this centre, and there is no probability Of
anything more than o moderately active seven per
cent market for money at any time this year, Or in
deed, SO long as the government is not borrower
and currency contraction remains stopped. Those
who anticipate repetition OF stringency this fall
are. therefore, likely to find themselves mistaken the
conditions affecting the money market having
changed during the last twelve months.
There has been revival Of speculative activity In
government securities to-day, under which prices
advanced rather sharply the stimulating cause being
the further rise in gold. At the close the quotations
were as subjon ed:-United States Ga, registered,
1851, 1888. 113x; do, coupon. 113X ia; 5-2o's,
registered, 1921 1osx; 6-2o's, coupon, 1852,
ia a 114H; do, 1864, 10Y o Ill; do, 1896,
H. a 1928; do, new, 1895, 1905 1Osx; do 1867,
l00k 1O9a.; do, 1865, 1927 1o9s; 1o-4o's regis
tered, 1915 los; lo-4o's, coupon, 1o7X o 1857.
1905, third series, 1857 lo9x; August compounds,
1865, 1lsk: September do, lis; October do, III.
At the commencement Of business the stock mar
ket was firm but quiet and at the early SEES
sion Of the open board prices showed q gen.
erl Improvement upon the closing figures
OF last evening. At the first regular board
the volume OF business light and
New York Central closed y lower than at the same
time yesterday, Northwestern y, Milwaukee and st.
Paul Il, Tennessee skies, ex coupon ~ new issue
], and North Carolina skies, new issue, 8; while
Reading 4 higher Mich igan southern y, Cleve-
land and Pittsburg Ia, Northwestern preferred ~
Fort Wayne l, Western Union Telegraph 4. Govern
ment securities were firm and in some instances q
fraction higher. At the open board at one O'Clock
the market was firm but duh. Following this how.
ever 1t became strong and more active, and at the
second regular board New York Central closed y
higher than at the first regular board, Michigan
southern Il Cleveland and Toledo 4, Northwestern