The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-21
FINANCIAL AND COMMERCIAL.

SUNDAY, Sept. 20. 1868.
The market for government securities was on the
whole firm during the week under an improving de-
mand for home investment and steady absorption
OF fvetwentes by the foreign bankers for shipment
The speculative business among the dealers was not
very active, however; but the borrowing demand on
nearly all the issues continued large, the "short" in
terest outstanding being stin heavy. The i've
twenties Of 1857 the favorite security both for
shipment and home account, ana the transactions
in these have been larger Of late than in any other
stock, while the difference In price between these
bonds and those Of 1852 Is prompting European
holders to exchange the latter for the former. Pub
lie confidence in the national credit is grow
ing; and the supply Of bonds having reached
its maximum, while the demand not only continues
undated but goes on increasing, and is likely to
do so from year to year, the market value Of our Sc
curities cannot fail to steadily appreciate until ve-
twentes are at least on par with three per cent
consols in London. At present they are cheaper
than any others In the country for the rate OF in
terest they BEAR although the people are not fully
aware Of the fact. There is, consequently, no In
ducement to buy speculative stocks at the current
high quotations while governments can be got at
prices which will appear very low two or three
years hence. Those who anticipate Congressional
action upon the question whether fivetwenties are
redeemable In gold greenbacks more than likely
to be disappointed although the subject will probably
continue the theme Of political speeches for some
time longer. The question will be practically solved
when we resume specie payments and not until then,
and both the government and the bondholders Will
have reason to be satisfied with the result. The
market closed very strong, with indications OF in
creased activity this week. 'aasSssrsssNpe
The stock market was on the whole strong and &C
tive and at intervals considerable excitement at
tended the dealings, especially those in New York
Central Erie and Pacific Mail, In which the transac
tons were particularly heavy. The annual
election Of the Erie Company will take place
on the 18th prox., and the transfer books will
reopen on the 14th. The advance in New York Cen
trail was attributed to the prospect Of the long talked
of stock dividend being declared and it Is said that
the matter will be brought up for consideration at
meeting to be held on Saturday next. It is hard to
see however, how stock dividend will ultimately
improve the fortunes of the stockholders, and its
speculative effect has been largely discounted. The
great and to all but few the unexpected abun-
dance and cheapness Of money was the main cause OF
this brisk speculation for rise following the bearish
feeling which prevailed fortnight ago. and the bulls
made capital out Of the rather heavy short interest
outstanding. Several weak houses on the bear
side were reported to have failed on Thursday and
Friday and stocks were bought in under the rule for
tner ACCOUNT Tnere lS no QOuDt tat, Win very lew
exceptions, prices are far above the range Of real
values and almost entirely under the control Of
cliques. and therefore the outside public should
avoid these inflated speculative stocks they would
80 many arrows. Erie continues scarce and in ac-
tive borrowing demand.
The gold market was without any marked specu-
lave feature during the week, although at time
rumors Of impending political trouble between
France and Prussia were circulated and the extreme
fluctuations were limited to N per cent-namely,
from 143s to 144 and at the close the drift Of spec
uation was in favor Of lower premium, the latest
quotations on the street on Saturday having been
144s 144K, with the sales at 144H. There was q
good borrowing demand for coin from the bears and
loans were generally made ''nat." The customs
demand at the port aggregated 81, ,5l4 and the
exports $64o, 800. while the SubTreasury dis
bursed 1928 1888 in payment Of interest the public
debt. The loss of nearly a million and O half in
specie by the city banks is almost entirely atributa
BILE to Withdrawals for the payment Of customs
duties. The daily range Of the market was as under
afod.