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

| MONDAY, July Go p. M.
inc gold market has been strong to-day and
moderately active while the current Of speculation
was mainly for a rise. The fluctuations WERE how
| ever, limited to y per cent-mainy from l4Ok to
l4oA, with the closing transactions at l4OX. The
borrowing demand for coin was well supplied, ow-
ing TO the Treasury disbursements, and loans were
made ct per cent for carrying The gross clear
ings amounted to SIS, 500 OOo the gold balances to
Sl,SOs0s5 and the currency balances to ST. 1888 553.
The conversions OF seventhrty notes during the day
at the Sub-Treasury amounted to $365,97O. The I'm
ports OF specie the port last week from foreign
ports were valued at $197,lss, making a total OF
| Ss,10o,4S4 since the 1st OF January. American
silver is quoted at 81 ~ per cent be-
low gold and Mexican dollars dull at lo3,l lO3K
| in gold The frmness OF the rates Of foreign ex.
change at the present high point the steady outward
drain Of specie during the last three months and the
correspondingly large reduction Of the amount OF
gold in the country give upward tendency to the
| premium based on commercial grounds and in the
event OF the nomination OF Mr.. Pendleton, or any
one committed to his peculiar financial views politi-
cal influences would operate in the same direction.
The suit commenced in the Supreme Court of this
district on Friday last against the Union Pacific
Railway Company and the Credit Mobiler attracts
great attention, and important disclosures are
lexpected to result from the trial of the
case 1t is contended, with good show
OF reason, that the Credit Mobilier has no
claim to the PROFITS of the work Of constructing
the Union Pacific Railway, which have been enor-
nous. In the first place the government gave the
company bonds enough to pay for building the road
and accepted second mortgage the road there
FOR, and the company was authorized to Issue its
own first mortgage bonds to an equal amount The
amount OF bonds issued to the company by the gov
ernment varies from $4,000 to SIS, 200 per mile and
Ia addition 1t has grant OF IL acres OF land per
mile. The profits arising from this valuable subsidy
should have gone to the stockholders OF the Union
Pacific Company, instead of which they have
been wholly diverted to the Credit Mobilier,
which is "rng" composed OF directors OF
the Union Pacific Compsny-a corporation thin
corporation. The acts of Congress authorizing the
land grants and subsidies to the Union Pacific Com
pany make 1t incumbent upon that corporation to
build the road, whereas the road is actually being
built py the Credit Mober. thus violating the spirit
If not the letter. OF these acts az well as entirely
ignoring the rights Of the original stockholders Of
the Union Pacific Company. The whole case as well
as the manner Of building the road is matter which
calls for Congressional inquiry as well as judicial
interference.
The market for government securities has been
tremey inactive all day, and the transactions were
namely ten-forties and the fve-twenes Of 1862 and
1865. The frmness Of these was mainly due to the
advance in gold. one OF the immediate causes Of
which is the expectation OF large shipment OF spe
Gle this week in remittance of the proceeds OF July
coupons and the principal OF the matured bonds of
1S4s. The bill taxing the interest on United States
stocks ana the uncertainty attending the nomination
Of candidate for the Presidency in the Democratic
Convention alike tend to check speculation for a
rise, and investors from the same cause
are holding back. Al the close the market was duh
and steady at the subJoined quotatons:-United
States o's, Pacific Railroad 1929 1903; registered
1881. 112,s llsH; coupon, 1884, l1aH 1881;
5-2O's, registered 100 1OoK; 5-2O's, coupon 1862
ll3k 1881; $685. coupon, 1854 11oH 1lok;
6.20's, coupon 1866, 111x NIX; 5-20's, coupon,
new, 1866, 1857 1os1; 5-2o's, coupon, 1867, 1887
1OsH; $685. coupon, 1858, 1851 1887; 10-40's.
registered, 1867 lot; 1o40's, coupon, 107 1o7X;
1905, second series, 1851 1887; 1905, third
series, 1Oss q 1857; August compounds, 1885,
11sh; September do. 11s; October do, 1l7X. Coupon
tenforties quoted at 7Sx at Frankfort interest
counted.
The week has opened on an easier money market
than we had in the beginning Of the month and the
general rate for loans on cali was four per cent.
Commercial paper continues very scarce, and the
best grade Ia in request at per cent The quar-
terly statements OF all the national banks having
now been made up, currency will return to
this centre, where the supply promises ITO be
superabundant until October, when an advance In
the rate Of interest to per cent will probably
take place; but no stringency need be apprehended
in view Of all the conditions AFFECTING the market,
the government having ceased to be borrower, the
contraction Of the currency having been stopped
and trade being quiet and on legitimate cash basis
throughout the country. Under these circumstances
the supply Of money in all the large cities Is likely
to be fully equal to the demand only during the
remainder OF the year. but SO long contraction IL
suspended and the Treasury is not borrower
The stock market was on the whole steady
throughout the day but rather dull. The specula.
tive feeling OF the street continues bulish and the
tendency Of prices Is upward. The settlement OF the
difficulties formerly existing between the Erie di.
rectors and the Vanderbilt party has not yet been
responded to by tho stock but there Is probably no
significance In this circumstance. The crop pros
poets continue unusually good in all sections OF the
country and the current earnings of all the railways
so large that the bears are discouraged from SELL
ing their stocks while the bulls are embroidered to
extend their operations
At the commencement OF business the stock mar.
ket nrm but quiet, and at the early session Of
the open board Erie sold at II, Read Ing ok and
Northwestern preferred s2k. At the first regular
board prices were slightly lower in some instances
for railway shares, and Pacific Mail declined to OK.
In the State stocks the activity confined to Ten
nessee skies, which had downward tendency. On
the call New York Central closed \ higher than at
the same time Friday, Rock Island y, Northwest
ern 3k do preferred az, Milwaukee and st. Paul pre-
ferred n, Tennessee skies, ex coupon, x, and North
Carolina skies, ex coupon, 1X, while Erie was Y
lower, Fort Wayne " Pacific Mail az, and Tennes.
see sxes new issue, v. Government securities were
steady at q decline Of y, hve.twenties OF 1865 ex.
cepted, which were Y higher At the open board at
one O'Clock Erie declined to FOX and Reading to seh,
while Rock Island advanced to 10eX. At the second
regular board the market was dull but steady for
railway shares and weak for State afncka