The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-28
FINANCIAL AND COMMERCIAL.
MONDAY. JuIx 2f Is6s


MONDAY, July 27, 1868.
The gold market has shown strong upward ten.
dency to-day, ostensibly in consequence Of the con-
currence OF both houses OF Congress In the report Of
the conference committee upon the Funding bill
AZ, however, the latter does not make conversions
OF outstanding bonds into the new stock compulsory
And as 1t failed to unfavoraby affect government
securities In the least the upward Of the pre-
MUM must be attributed to general and speculative
causes rather than the special one referred to.
The fluctuations were from l4sK at the OPEN
ing TO l44k, with the closing transactions
prior to the adjournment OF the board at IA follow
ing which the quotations advanced to l44H lax.
There was moderately active borrowing demand
Tor coin and loans were made at two and three per
cent for carrying The gross clearings amounted to
ga, 000 the gold balances to $1l97, 346 and the
currency balances to sl,735, 1908. The imports Of
specie from foreign ports at this port last week
amounted to $4,000, making o total Of s4l57, 500
since the LIST Of January. The disposition to buy
gold on speculation for a rise Is more general
than 1t has been for long time past, and
there is much In the commercial position
OF the country to sustain premium Its present
point and even to force 1t higher while speculation
under such circumstances never fails to stimulate
Its natural tendency. There Is large mercantile
'short" interest outstanding and the bulls make
y
ment In their favor in the extent to which our Sc
curlties are held In Europe. But for the wretched
financial policy Of Congress and the Treasury how
ever, since the termination OF the war, the premium
would have been much lower than il Is by this time.
The disbursements OF coin interest by the Sub-Trea
sury during the day amounted to $24l,000 and the
conversion Of seven-thirly notes to $3l4,S5o.
The market for government securities has been
dull but strong all day, In sympathy with the adj
vance in gold, and at the close prices were u q p
Per cent higher than at the opening The new Fund
ing bill has been much discussed, but as there Is
nothing compulsory In it as to exchanging
bonds it will practically remain dead letter even
1t receives the signature OF the Presidents but the
advices from Washington are to the effect that
1t will be vetoed. In the Cold Room the bill is
generally regarded as an entering wedge for some
future bill taxing 1ve-twenties so as to compel
conversions; but this is d,scountng the future too
far, and the wish with many is father to the thought
We have at present merely to deal with the fact that
the bill commands nothing and will result in nothing
as it stands unless holders Of the outstanding bonds
voluntarily convert them into the new stock which
Is, OF course, very unlikely. The market
was very strong late in the afternoon at
the following quotations, and there were
no stocks Offering RE istered 1881, 1853 115H;
coupon, 1881. 1l5h a 1151; 5-2O's. registered
do, 1854, 11lS 111X; do, 1865 1904 a 1097S;
do, 1855, January and July, 1O9 1091s; do, 1867,
109& 109H; 10-l0's registered. 1854 1851; 1o40s
coupon, 1885 1OsH July 1905, 100 1O9H; August
compounds, 1885, 11S1s; September do, lis; October
do, 1I7is.
The railway share market has been strong but
dull, although late in the day there much more
animation than in the forenoon, and Cleveland and
Pittsburg advanced to S95s, Erie to 60 and Reading
to 95h. There is very firm undertone to the
| ''bull' speculation, and with the resumption
OF activity prices will undoubtedly rise consider
ably, especially for those stocks which have not
yet participated in the partial upward movement
|of the last two or three months. Money con-
tinues largely in excess of the demand at
IL per cent, with most OF the transactions for
barge amounts, and where first class houses are the
borrowers at on mixed collaterals. The supply OF
commercial paper is moons derable and the banks
have to rely upon the Stock Exchange for the enl-
ployment Of their capital. This easy condition 81
monetary affairs is likely to last for from thirty to
sixty days before the rate Of interest Is materially
advanced, and following this the sanyly win con.
S%,rra sh1, D.. -~~ d e. tzsa,,
snus N9p.idant at per cent, according 10 al tae
n.~.cations until the return now Of currency from
the West sets in and again reduces the rate Of In
terest.
A comparison OF the statement OF the associated
banks OF this city for the week ending on Thursday
last with that for the corresponding week in
each OF the two previous years shows the following