The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-03
FINANCIAL AND COMMERCIAL.
SUNDAY, August 2, 1868.

said that the draft for the purchase OF Alaska has
been already handed to the Russian Minister at
Washington, payable at the SubTreasury in this
city, the amount being $7,2oo,OoO; and in the Gold
Room 1t is expected that the remittances growing
out Of this will strengthen the upward tendency Of
the premium. Railway shares were, on the whole,
nrm and moderately active; but towards the close
Erie was hammered for the purpose OF buying.
Cleveland and Pttsburg was strong and In
good demand, and four per cent In cash
is offered for the next two quarterly divi
bends OF the company. The most noticeable
feature II the week was the heavy pressure to sell
Tennessee State skies, the new bonds at one time
touching oOk but subsequently they rallied under
purchases to cover short" contracts There Is con-
siderable uncertainty to the amount OF the debt OF
Tennessee. and the Legislature, according to the
press dispatches and private kilograms, has ordered
committee to investigate On alleged Over-ssue OF
about six millions. This charge OF an over-issue
arises from the alleged fact that the National Bank
Note Company Of New York has printed and issued
to the authorities about ST. 900 the green bonds
OF which less than three quarters Of million are
stated to be on hand unissued. while the Comp
troller's last report on the State finances re-
turns much smaller total or these bonds
outstanding. Governor BrownlOw being unable to
sign them, employed several persons to sign his own
name for him. and thus the detection OF fraudulent is
sues Is matter Of some difficulty. 1t Is, OF course,
due to the bondholders that the allegations Of fraud
should be Investigated, and either proved or dis
proved and the result made public. With respect to
the law Of the State giving aid to railways we may
mention that under the old Internal improvement
law $4,000 per mile was given to every railway
company to buy iron and equipments, and this grant
was subsequently increased by special appropra-
tons to between $4,000 and $4,000 per mile, Sc
nv n nrst
most Of the main lines were constructed, aided by
stock subscriptions and second mortgage bonds; but
entirely different system has been pursued since
the war; Security to the State seems to have been
almost lost sight OF and the debt has been increased
about fifteen millions Of dollars mainly in aiding
short country lines Of road that do not promise to
pay more than running expenses. Thus according
to the Comptroller's books the Knoxville and Ken
lucky line, thirty-five miles long, has had appropri
ated to 1t 49, 1853 200; the Knoxville and Charleston,
sixteen miles, $685. 900; the Cincinnati and Cumber-
land Gap twentythree miles, 81, 1856, $50; the Rogers
vile and Jefferson, twelve miles, $42O, l6O. and the
Winchester and Alabama, thrty-fve miles,
$1,432,25 making an average appropriation OF
s4soes per mile. About sixty-hve miles Of
these roads were built before the war, and
the new appropriations were mainly to re-
construct and pay interest In this way the
debt OF the State, which was only nineteen
millions before the war has been increased to about
thirtynve millions while less than hundred miles
Of new road have been built since the to repre-
sent this increased Indebtedness. At the close OF
business Saturday railway shares were strong at
the following quotatlons:-New York Central, 1924
q 1927; Erie, 90 8Sh; Reading, OAK 941s; Michi-
gan Southern, SS1s ssh; Cleveland and Pittsburg,
SO a SOY; Rock Island HOY Ill; Northwestern,
S2A S2z; do preferred, s22l; Fort Wayne, HOE
110Z; Pacific Mail, 101% l0lX.
Government securities were dull during the week,
but the Indications are favorable to renewed &C
tivty and much higher prices These stocks rea-
lively cheaper than any Others In the country and but
for the agitation respecting the public debt in Congress
and the Democratic Convention they would have
advanced considerably above their present point
before this. The act Of March 8, 1886, which re-
ferred to on previous occasion, when strictly In.
terpreted places the vetwenties issued under 1t in
the same category with regard to the payment of
their principal the tenfOIties and the wording Of
the act In question entirely overlooked In the
debates on the Funding bill, the act which Congress
kept In view being the original one under which the
bonds Of 1852 were issued and which makes no men
ton of payment OF principal in coin. The usual July
investment demand has not yet been felt,
but 1t Is only deferred, and 1t is liable
to set IN at any time, and when It
does prices cannot fail to be actively In the as.
cendant. The gold bearing debt has now reached
Its maximum, and this stoppage Of the supply can
not but exert an important influence upon the future
course Of the market. The accrued interest all
the nve-twenties makes them worth about three
quarters per cent than they were the 1st Of
July and yet they lower in price than they were
then. This important consideration IL often over
looked.
Money was In superabundant supply during the
borrowers in general on miscellaneous collaterals
most of the transactions were at four per
cent. On Saturday. however, balances were
offered In some instances at two per
cent, and the amount of unemployed funds
carried over by the banks was very large.
There is nothing to indicate that there will be any
material change In this condition Of monetary affairs
for sixty days to come, and even then there will be
only moderately active six and seven per cent
money market, with an ample supply Of currency
during the remainder OF the year. This change In
the rate Of interest will not make particle Of differ
ence TO stock operators and the increased earnings
Of the railways growing out Of the crop movements
will give strong upward impetus 10 prices. The
statement Of the associated banks OF this city for the
week ending on Saturday reflects the prevailing
monetary ease. The legal tender notes show an in
crease Of sl4o2,475 and the deposits Of 31.a43,2o5
while the loans have decreased 81 o3s &c., owing to
the dulness Of trade and speculation. The specie
has been reduced $Sol 1894 and the circulation 1885,
The totals OF the last two statements are sub.
joined
Jutv 26. August I.
Loans ................t $3.50 345, 255 $2T9, 1857
Specie ................ 20, s04, lOl ~, J02, 1877
Circulation. ............ 80, 963,3I3 33,9jI, 305
Deposits .......... 220, 7oi, 662 22S, l04, Sd7
Legal tenders .......... 72235,5s6 73,03s,06l
The foreign exchange market was unsettled dur
ing the week by q superabundant supply OF bills
drawn against shipments OF securities, but prime
bankers refused to name lower rate than l10S for
sixty days sterling. At the close bankers bills on
England at sixty days were quoted at 10 lloS; at
three days, HON q I1ok; commercial bills, l0sH