The New York herald., 1868-03-26
FINANCIAL AND COMMERCIAL.


WEDNESDAY March 25-8 p. VI.
The gold market has been on the whole steady to
say and moderately active, and the fluctuations
were from 1881 TO 1854, with the closing transac
tioD prior the adjournment OF the board at 1854,
following which there was an advance to 1885, and
the latest quotation was 1881 1881. Although
there is large '.shortn interest outstanding, the
noating supply of coin was considerably in excess
Of the demand, and from four to eleven per cent
per annum and l-s2 to a-e4 per diem were paid for
carrying The gross clearings amounted to $65 900,
the gold balances to $2,1o2,s94 and the
currency balances to $3,355,579. The steamer ST.
IBERIA took out sls4 900 in specie 1t s noteworthy
that the rates OF interest paid for carrying gold ad
yanced from four per cent to the highest point Of the
day after it became known that the meeting at the
Clearing House at O'Clock had resulted In vote
OF thirty-one to twenty-four against receiving the
proposed OF three per cent certificates In
settlement OF the balances between the banks, show
ing that the effect Of this proceeding instantane
ously felt in renewed distrust. During the forenoon
1t was confidently expected that relief would come
from this source, and the disappointment was there
fore all the greater when the true state OF the case
became known. The speculative railway shares felt
the shock at once, and Erie and New York Central
declined two per cent within as many minutes. The
banks and private money lenders drew their purse
strings closer, and the previous stringency was
aggravated by fears for the future. From an
eighth to quarter per cent was paid
for sturning' stocks till tomorrow, and
large amounts Of New York Central were carried over
for day by the holders paying o commission OF
$li on each hundred shares. The general rate for
eal loans, both at the banks and among the private
bankers, was seven per cent in gold, but in not
few instances a commission was paid in addition.
The borrowers were, however, reluctant to confess
the fact as they regarded it in a light by no means
natterlng to their credit although there is good
reason why they should have done SO in
the present exceptional condition Of affairs.
Most OF the banks that opposed the
admission Of the new certificates for Clearing House
purposes did so because they recognized currency
imitation in the movement, and aside from that
Ihere doubt that the policy Of issuing such GER
ncates on the part Of the Treasury is to be depre
eaed for the latter requires to hold itself in constant
readiness to redeem them. To meet an emergency
like this however, much is allowable that would
otherwise call for condemnation, and the great
question that agitates Wall street is how can
the necessary relief be obtained. This may come
In two ways-ether by the Treasury paying
out certificates and currency in the purchase OF
severthirty notes at the market price, Ii it has the
means to do so, or by breakdown in prices on the
Stock Exchange, which would involve correspond
ing reduction OF the amount necessary to carry the
speculative railway shares. There Is little or no
prospect Of any material aid from the Treasury,
although it bought more than million OF seven-thirty
notes today but against this II sold certain amount
OF gold. weak market for the speculative shares
vs. therefore, probable until the supply Of money at
seven per cent becomes equal to the demand, and
this is not likely to be experienced until after the
first week in APRIL although partial abatement OF
stringency will be felt after the LIST instant.
III tie banks had loaned as largely they have
done to the various clques In railway shares
they would not be in their present perilous
position, and the mercantile community would
not find 1t impossible to obtain discounts
or to sell commercial paper The majority or bank
onncers however, are not opposed to any combina-
ton OF circumstances, which results in their being
abe to obtain seven per cent in coin for loans or
sa but after their action to-day they viii only have
themselves to blame II panic in stocks should
occur, which would leave them the virtual
owners Of the collaterals they hold against
loans, for twenty per cent margins are
easily swept way when prices are as high
- we find them. The Erie litigation
has demoralized the railway share market the out
aide public has deserted it, and II the bull clques
give way the end is easily foreseen Nothing new
has transpred in relation to Erie but the street
CARDS 1t sinking ship, and the public will do well
70 leave severely alone The reduced tariff on the
SOad Is now in operation.
There was an improved feeling In the market for
government securities at the opening, and quotations
afterwards advanced in anticipation Of the Clearing
House passing such a resolution as would result in
the Treasury exchanging five or ten millions OF
seventhrty notes for equivalent amount OF three
per cent certificates; but when this expectation was
disappointed relapse OF about a quarter per cent
was experienced. There was pressure TO sell,
however, and at the close the market was dull and
steady al the following quotations:-Registered,
1881 11oh 1l0A; coupon, 1851, 110H a 1lx; 520's,
registered, 1862, 1861 1oesl; 5-2os, coupon, 1892
I0osa 1905; do. 1854, 107h a 107H; do, 1856,
1917 1074; do, 1885, January and July, 1O6,s q
Do9S; do, 1867, 1868 1867; lO-40s, registered,
loo1s 1905; 104o's, coupon, 1904 a 100h; June
7.3O's, 1855 lo6As July 1905 1855 lO5S; May
compounds, 1884, lls; August do, III; September
o., 11Gh; October do. 116.
The stock market was dun and barely steady at
the commencement Of business; but ut the early ses-
sion OF the open board IL improved fraction, Erie
selling at 80 u 09A and New York Central ut lI9x
u9K. AT the first regular board the market was
quiet but firmcr at slight advance, and New York
Central closed z higher than at the same time yes
tertiay, Reading Ia, Michigan Southern 4, Cleveland
and Toledo y, Rock Island ~ Northwestern pre-
ferred Ia Fort Wayne y, Toledo and wabash Y, Mil
waukee and St Paul preferred 4, Ohio and Mssis-
nppi q and Western Union Telegraph ,s, while Erie
was i lower. Government securities were duh at
the FIRST call, and at the call they improved an
prices were q - higher than at the same time on
Tuesday. At the open board at one O'Clock the
ket was quiet and steady, and New York Central sold
At 1905 l2o% and Erie at 6ox. Immediately after
she call Il became known that the bank fflocers
a the Clearing House meeting bad rejected
che proposition TO receive the proposed three per
cent certificates In the settlement OF balances and
Erie suddenly declined TO 07I and New York Gen.
rh TO lis, while the rest OF the market became
weak from the same cause. Afterwards there was a
sAght recovery and at the second regular beard the
market was steady as to prices, but an unsettled
seeiing prevailed. New York Central closed lower
thsn at the first regular board. Erie 2. Reading *.
Michigan Southern !, Rock Island 1sl Northwestern
preferred 2, Milwaukee and ST. Paul y. Milwaukee