The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-07
FINANCIAL AND COMMERCIAL.

SUNDAY, sept. o. 1905
There was, on the whole, strong and active
market for government securities during the past
week. with the largest transactions in the nve-
twenfies OF 1867, which on Saturday afternoon ad-
vanced to 1851 100. The large ''short" interest
outstanding caused an active borrowing demand for
Ill the issues, and the purchases by outside parties
included several considerable lots OF registered
bonds by insurance companies having branches In
the New Dominion. The foreign bankers were
buyers OF bonds for shipment towards the close,
partly in anticipation OF rise in gold, and CONVEX
sions of the vewenes OF 1862 into the later issues
nre still going forward to a moderate extent
on European account for the sake of the
difference in price between them. The FIVE
twenties Of 1864 are relatively cheaper than any
Others, being nearly two per cent lower than the
bonds OF 1885, although they carry the same amount
Df accrued interest and equal to them in other
respects. Hence 1t will be singular II they fail to at
tract purchasers, which will carry them up to the
general level Of the market That the natural tendency
Of all national securities will be upward Tor an in
uenne length time to come is obvious from the fact
chat the supply has reached its Maximum while the
demand is almost certain to go on increasing from
wear to year. and for the OF interest they bear
they are indsputably the cheapest In the country.
As for the agitation OF the question OF gold
greenbacks in the redemption of the funded debt 1t is
safe TO assume that 1t will meet with no solution
Save the practical one OF a resumption of specie
payments, although there will doubtless be good
deal or political speechmaking and letter writing
the subject. Congress WILL however, it Is more than
probable. avoid legslating the subject, and the
ultimate result will justify all that was promised by
The successive Secretaries of the Treasury under
whose administration the various securities were
Issued. Senator Fessenden recently made a speech
~ Portland in which he declared that he announced
thrOuCh agents. while SECRETARY Of Urea sury
that the fivetwenties were payable, principal and in
terest, IN gold, and the act authorizing the later
Issues OF these bonds distinctly empowered the Sec
retary Of the Treasury to make the securities
Issued bear interest at the rate OF SIX
per cent, II payable In coin, and at seven
and three-tenths per cent IL payable in
lawful money. large portion OF the interest on the
public debt Is semannuay reinvested in our ma
tionai securities and the demand from this source
Alone will cause steady 'demand for them, added
60 which we have to deal with the fact that the
foreign demand increasing rather than diminish,
lng, and this only be supplied by forcing bonds
out OF the hands Of investment and speculative
holders at prices at which they are willing to sell.
At the close the market was strong at the following
quotations and before the expiration OF the present
month prices likely to rise considerably higher
Coupon 1881, ia 114x; 5-20's. registered, 1852,
10st4 10sk 520's, coupon 1862, 113>s 1885 do,
1884 1895 1ooX; do. 1865 January and July, 1857
100; do, 1867, 1857 100; lO4os, registered, 1854
. lo4l lO-4O's, coupon 1919 1864.
The gold market was dropping during the greater
part of the week. but after touching 1881 Friday
1t gradually recovered to 144si Saturday after
noon and the latest quotation on the street was
144si 144z%. The extreme range between the open
ing and the close was from 14ss4 to 1855, and the
s'shortn interest created during the interval was
very large, the bear element having been actively in
Che ascendant. The indications now are in favor OF
. further gradual improvement owing both to the
ycnewed firmness OF the rates Of foreign exchange
and the efforts OF the spectators for rise. The
exports OF specie from the port during the week
aggregated $643,3s7, and the SubTreasury received
about $2,o73oOo for customs duties and disbursed
O., log, 900 in payment OF the semannua interest
The tcnforty bonds. The daily range Of the market