The New York herald., 1868-02-01
FINANCIAL AND COMMERCIAL

Covey Inc iaIgesi noders OF coin are the English and
German bankers and The short interest outstanding
remains light In consequences OF the prevailing impress
oion that the tendency Of the price gold IN
UPWARD owing mainly 10 the disastrous reconstruction
policy OF oongress Cash gold is therefore abundant,
and loans were made at rates yaryinr from
rhres 70 seven per cent for carrying. The gross
ciearings amounted to s3s 74s, 900. the gold
balances TO Ns5l77l. and the currency balances TO
ez1so,I42 II was known late in the afternoon that
sns house Of Representatives, had agreed by vote Of
<os 70 % 70 the report Of the conference committee
ths OIL repeating the tax cotton grown after 1867
ana exemptng foreign cotton from import duty after
sne nrst OF November next, but the news exerted
perceptble influence upon the transactions. This
measure was imperatively demanded the score OF
public necessity in the south. and with she repeal
ofthe tax It is doubtful whether the crop will be
es large the last one for the poverty OF planters and
INSTRUMENTATION Of the labor system are stumbling
blocks In the way Of cotton culture hard DO over
come n the face OF the active competition Of other
countries in tho cotton markets OF the world
The uuprncpled spectators and their emissariss who
have boon circulating false reports during the as. few
days In order to depress the stock market revamped
their story about now issue OF Erie stock this morning
by saying that the Erie Company 10 capitalize
its leases This absurdity sufced make some per-
sons sell out and the stock time declined TO 73
IL Is true that by law passed by the last Legislature
any railway company in this State may capitalize its
leases but the Erie Company pays per cent per
annum upon these, and what sane man would convert
seven per cent security into non dividend
paying one at TAX. Tho New York Central Company
capitalized its Athens branch lease las, year. but the
rate OF interest in that only six per cent and
che stock was selling at 103 l04 when the eaptalza-
foo took place. Had the stock been selling below par
those who were receiving per cent under the lease
would not have entered into the arrangement IT.
however, the Erie Company could capitalize ,ts leases
amounting In all to about ten millions, Is would be
very good thing for the stockholders, would save
the company the 100000 n year which il
has now TO pay on account or these; but Il
ss very obvious that there is no possibility OF this
change being made while Erie common stock remains
below par and pays dividend If New York Central
had tose above par before its six per leases
capitalized it s evident that still greater nducemcnt
would be necessary to the capitalization or the seven
por cent leases of the Erie Company But Of course
shose who concocted this report that with
simd holders Of tho stock and make them sell out
order that they might buy ct the decline,
preparatory to fresh upward movement The
speculative directors make 1t their business to
swnde the street by Misrepresentation and such
are disgrace 10 the management OF corporation
They use their Office TO its derimon. aud their own
personal gain and make nab Of lying in order that
ehey may steal from the pockets OF the public. Tho
stock market became drmer the day advanced, while
the efforts to depress Erie seemed to have spent their
force, and general recovery Of prices took place.
Rock leland was particularly strong, and II is easy
Co see tha. in the event of the Supreme
Court declaring the issue Of tho 81 900, 900
of new stock Illegal there. would be demand
for cha, amount Of old stock 10 replace preliminary
the FINAL disposition Of the proceeds OF sale by the
court under tho manag OF The natural
tendency OF prices tho Stock Exchange upward,
aud shis s strengthened by the growing plethora OF
money Loans are made At four per cent on govern
msns and four and Ave on miscellaneous colaterals
while 6rst cass commercial paper is demand at 55S
es cent The drain OF currency from the West and
ohs points continues and the supply Of loanab.s funds
Is largely in excess OF the demand.
Government securities were dull and rather heavy
during the early part Of the day, although thsre
good investment demand At tho or the csdng
dealers. In tho afternoon, however. the market be-
came strong. and there brisk speculative inquiry
FOR vo-twent!ss OF all the issues under which prices
advanced u q per cent The plethora OF idle capital
at this centre is causing large purchases be made for
temporary investment by the banks, trust companies
and other corporations as well as individuals and the
tendency Of prices upward Thero is also active
demand for Central Pacific rs mortgage railway bonds
shrough the financial agents OF the company Messrs
Fisk Hatch, and the prlce Of the bonds has
Just boon advanced from ninety.dve and
interest TO ninety.eight and interest. AT the
close tas market strong at the subioned quota.
aions :-Rcgstcred 1881, INK ms; coupon, 1851,
11IX nix; 5-20's, registered. 1862 l0sn a IOsH;
s-2o's. coupon, 1862, Ill ill,l; do, 1854, l0sx
1oe; do, 1866 l091 l09X; do, 1855 January aud
July, 1915. 1o7k; do, 1867 1914 1919: l0.40's
registered. lo4ls . lo4ss 10 4o's, coupon. lo4is
10sss June 1905, lo7I q 107a<; July do, 1875.
l07s<: May compounds 1894 li7;s il.1.; August
do, lfeY 1Is.s; September do, 1l6 iiSi4 October
DO, 115L . 1i6.
The following circular has been issued to-day by
Aessrs Fisk Hatch relation 70 the first mortgage
aoonds OF the Central Pacific Railway Company
The sale or tho nrst mortgage bonds OF the Central
Pacific Railroad Company has recently been rapid aud
extensive that tho fun amount which the company had
proposed To sell at the original prico OF 30 and interest
ha. been and the price has been to %
condition Of the compsnys affairs their abundant cash
and high credit would to fully Justify
thc advance In the price Of ther FIRST mortgage bonds
and 10 afford sufficient guarantee Of active demand
for the bonds At the advanced rate
Owing TO the failure OF tho members OF the regular
and open stock boards TO make satisfactory agreement
vth the lessee OF the lower hall Of the Stock Exchange
building. II Is announced that they will meet tomorrow
For tfhusaCttOu o OuSnc5S t0nR room uuu0r
che Gold Exchange, New street. Tho public will be
nd United spectators. but only members Of the two
toards will be permitted 70 take part in the dealings
The object Of this movement appears 70 be TO exclude
Sumbsr Of persons who arc not members Of either
board from transactng business brokers buyers
and sellers on their own account This result may pos.
abby bs accomplished but In tho absence OF any other
for the lower hall or The Stock Exchange the proba-
bty Is that terms will be made which will result in the
brokers returning 10 their old quarters although Is
vretchsdly dark and III ventilated apartment.
Erie sold down TO 74h at tho Fifth Avenue Hotol last
nsht, but IL opened with o hrmer tone this morning,
and the carly session OF the open board sales
made at NI Tl,s, and the whole railway share
snarke nrm. A. the nrst regular board there
general decline and Eric sold as low g 73l New
York Central closed u lower than at the samo time
yesterday: Erie TX. Cleveland and Pstsburg Clsvs
land and Toledo an, Rock Island l. Northwestern pre-
fsrsd ix. Fort Wayne 2. Pacific Mall ~. Cumberland