The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-01
FINANCIAL. AND CONNER GAL.
FRIDAY, July 3l-6P. \

but from this point there was sharp reaction to
144x under Q false report that dvetwenties were
TAX in London. Subsequently there was a recovery
to l4SH, and the closing transactions prior to the
adjournment Of the board were l44X, while the
latest quotation on the street was l44X l45 There
was large attendance In the room and great
tvity in the dealings at intervals. The borrowing
demand for coin was moderately active and loans
were made at rates varying from one to four
per cent for carrying. The gross clear1ngs
amounted to $So,757,oO0 the gold balances to
$eo02,9o6 and the currency balances to
$2937,Ss3 The Sub-Treasury dsbursed $500 In
coin in payment OF interest the public debt during
che day and converted $780, $50 OF seventhirty notes
into fve-twenties. Money continues In superabun
dant supply at 8 "a per cent on call and the best
grade OF commercial paper is scarce and in request
at sac per cent. The railway share market was
strong and active during the forenoon and prices
advanced throughout the list but 1t subsequently
reacted slightly under sales TO realize profits The
pressure to sell State bonds and especially
those OF Tennessee, continued with increased
activity, and late in the day the latter
were weak and feverlsh, partly under the effect
OF dispatches from Nashville stating that fraudulent
issues Of State bonds to be investigated and that
twenty millions Of State bonds to be sold to pay
the militia thirty thousand Of which it is proposed
TO call out to suppress the Ku Klux Khan.
Government securities were dull and dropping
during the early part OF the day. and prices declined
"a a a per cent, but at the last call there was
general Improvement Of about "a per cent from the
lowest quotations previously current under good
demand from strong parties. The time for convert
ing the last OF the seventhirty notes into currency
expired to-day, so that the maximum OF the gold
bearing debt, with some unimporant exceptions, has
been reached, and the stoppage of the supply OF
bonds is likely to result in steady ad-
in thar yparl-af for not nnlv
has the home demand for them increased
annually for some years past but large amounts
have been exported the consequence Of which is
that the aggregate Of bonds now in the country Is
some hundreds OF millions less than it was in 1864.
The interest upon the public debt is semi-annuay
reinvested to great extent and demand from this
source cannot fail to tend to gradual and perma-
nent improvement in the value OF our securities pro-
vding Congress does nothing in the future to check
1t. An erroneous impression prevails that all the
acts authorizing fivetwenties are worded like the
original one under which the bonds Of 1862 were
ISSUED, whereas there is a substantial difference be-
tween them Thus the act Of March 8, 1855,
under which the bonds Of 1865 1867 and 1868 were
ISSUED leaves 1t optional with the Secretary OF the
Treasury to make the principal and interest Of the
bonds payable In coin currency the words Of the
act being ''and the principal or interest, or both,
may be made payable in coin or in other lawful
such bonds Treasury notes, when payable in CON-
shall not exceed six per cent per annum, and when
not payable in coin shall not exceed seven and
threetenths per annum, and the rate and character
OF interest shall be expressed on all such bonds or
Treasury notes." This is very important feature,
which has hitherto been overlooked in the funding
controversy, for practically 1t places the six per cent
bonds issued unuer this act on par with the ten
forty loan At present the cheapest bonds on the
<HnA
amount OF accrued interest as the bonds OF 1862 and
1885, while they considerably lower than either.
At the close the market was firm at the subjoined
quotations Registered, 1881, lis 115H; coupon,
1881, 115x a1l6H $685. registered, 1862 109,l ITO;
t-2Os coupon, 1882 Hay 114x; do, 1884, 111H
Xix; do, 1866, 1121< 1925 do, 1886, January
and July, 1857 100; do, 1867, 1925 l0914; do,
1865, 1o9h 1ooH; lo4O's, registered, 1885, lOss;
1O-4O's, coupon, 1857 1Osal; July 1905, 1885 q
10sX; August compounds, 1855, 119; September do,
11S1i; october do, 11s.
At the commencement Of business the market was
strong for railway shares and more than usually
active, Erie advancing to 69H. At the first regular
board there was considerable speculative animaton
and Reading advanced to $751; State stocks were very
weak however and there was an enormous pressure
TO sell Tennessee skies, and sales Of the new issue
were made as low as 6oH. On the call New York
Central closed TX higher than at the same time yes
terday, Michigan Southern u, Cleveland and Pitts
burg \, Rock Island z, Milwaukee and st. Paul pre-
Yerred y and Missouri State skies y, while Tennes
see Sizes ex coupon. were 81 lower, new issue az,
North Carolina sizes, ex coupon, ga and new issue
az At the open board at one O'Clock prices were
oghtly lower and at the second regular board Michi
gan Southern and New York Central were sold ex
dividend which Will account for the apparent de-
cline In those stocks On the call New York Central
closed AZ lower, dividend, than at first regular
board, Erie u, Reading u, Michigan Southern, ex
dividend az and Milwaukee and st. Paul 1, while
Tennessee sixes ex coupon, were lower, new issue
~, North Carolina skies, ex coupon. Il, and new
issue y. The rally in the Tennessee bonds was
mainly owing to rumor that the dispatches fr ON
Nashville announcing the passage OF the
Funding bill by the State Senate were
false. The continued pressure to sell was so
great however that they subsequently relapsed
and after the call quoted at 81 The fact that the
Funding bill It passed the Senate, or something
equivalent to It, Is the only escape for the State out
OF Its present financial embarrassmens Ii 30 clear
that the bondhoders have very reasonably lost faith
In anything better being DONE and hence the rush to
realize During the remainder OF the afternoon rail-
way steady but dull and at the close at
halfpast i've the quotations were as suboined:-New
York Central, 1929 132k; Erie, es,s esK; Read
ing, 95x a 951; Michigan Southern, ssI SO; Ceve-
land and Pttsburg, s9k q s9A; Rock Island, 11ox
1l0k; Northwestern, SO S3h; do. preferred, S2S Q
s2k; Fort Wayne, l1ok q 1lox; Ohio and Missis
sippi, 800 aox; Pacific Mail, ioia lo2; Western
Union Telegraph, s5h 36K.
The organization Of the National Life Insurance
Company OF the United States Is new feature In this
particular branch of business, which commands
attention both from Its novelty and It's Importance.
1t has the unusually large capital Of million OF dol
lars paid up to start with, and very comprehensive
charter granted by Congress and duly signed by the
President. The establishment Of an institution like
ths marks era in the system OF insurance in
ths country and brings 1t under the supervision OF
Congress. while the amount Of Its capital and the
character Of those associated with 1t calculated
60 inspire the public with confidence In the stability