The New York herald., 1868-03-21
FINANCIAL AND CONNER cIAL.
FRIDAY. March 2o-o NJ

FRIDAY, March 20-6P NJ.
gne gold market has been steady with tendency
% armness to-day, and the fluctuations were from
issk 20 1881, the closing quotation being 1887
lssx. There was pressure TO lend coin, and the
rates paid for carrying ranged from seven ten per
cent per annum and from 132d to ll6th per cent per
dem The gross cearings amounted to $50, 1871 900,
the gold balances to $l,625,l9 and the currency
balances to s2,52o,474. The steamer Hermann, for
Bremen took out $45,000 in specie. The passage
In the Senate yesterday of the Supplementary
Tax law, which abolishes taxes on domestic
manufactures and otherwise provides for the reduc-
tion Of the revenue has as yet exerted no material
effect upon the current Of speculation but should
pass the House and become law 1t would ultimately
tend to impart an upward tendency to the premium.
There is equality in removing one class OF taxes
without adjusting the rest OF the tax law to the
change and Ii is unwise to reduce taxation until the
expenditures Of the government are correspondingly
reduced That there is still much room for re-
trenchment cannot be disputed; but instead
OF showing a desire to curtan the public ex-
penses Congress shows disposition to augment
them and thus the Treasury candle is being burnt at
both ends. Mr.. McCulloch very properly wrote let-
ter to the Senate Finance Committee on this subject
few days ago. In which he pointed out the act that
the abolition Of the tax cotton will reduce tne rev.
enue about twenty millions, and mentioned tha' 'ne
proposed amendments to the act would Involve re-
ducton Of sixty millions, more or less on the pasis oi
MAST wears receipts besides checking foreign importa
tons and thereby reducing the income from customs
He considered that should the Dill referred 10
become a law the total revenues Of the
country for the next fiscal year would fall from
hundred to a hundred and twenty millions below the
estimates made in his last annual report, and he
therefore feared that the public income would fall
short OF the expenditures. Mr.. McCulochs fears
are not unounded; but it is probable, nevertheless,
that the bill will pass the House.
The money market was extremely stringent again,
and an eighth and in some instances quarter OF one
per cent commission paid for call loans in add-
uon to seven per cent, while the legal rate
IN gold was freely offered by first class
houses, and this was accepted In many
eases, by the banks as well as by private
lenders The proposed issue of three per cent
Clearing House certificates, hereafter referred to,
win be eagerly welcomed by the banks, and they
will probably be willing to give seven-thirty notes at
one per cent below the market price for them, as
even In that event they would gain two per cent per
annum upon this portion OF their reserve, which
would be clear gain. Although the recent pressure
shows some signs Of Abatement it is more than likely
that the loan market will remain rather active until
after the first week in April; but this will affect the
speculative railway shares more than the ood in
vestment securities, including governments.
The stock market has been on the whole quiet and
steady and there was diminished excitement in the
dealings in Erie, although the movements OF the
rival parties closely watched and great interest
attaches to the fate OF the bill legazing various acts
Of the company which was argued before the Assem-
bly, committee at Albany to-day and which is expected
TO pass either in its present or an amended form.
The bill empowers the Erie Company to contract
with the Michigan Southern for broad gauge from
Toledo to Chicago and to guarantee the bonds OF the
company which ts to build the connect
ing line from Akron to Toledo, 80 as to
open a through broad gauge route between
this city and Chicago. This Is reasonable and proper
enough; but the New York Central narrow gauge
monopoly is opposed to this because 1t opens OPP
position line which would be damaging to 1t; and so
the Vanderbilt interest has sent an array Of counsel
20 Albany to try to defeat the BILL which also provides
that the issue Of convertible bonds for the purpose Of
completing furnishing and operating their road shall
be within the powers Of the company accord
ing to the statute already existing. this
measure should pass ir win, Of course,
decide all the suits pending In favor Of the Erie
Company by removing the cause Of action, and hence
the narrow gauge monopoly will leave no stone un.
turned to prevent its passage, and swarm OF lobby
men are already at the scene OF action. The ques-
ften is asked why the United States courts have
been applied to for injunction in this complicated
ease as yet The judges Of the Supreme Court Of this
State all at loggerheads and confused with regard
TO It, and II will be the ruin OF some Of them II 1t Is
not taken out OF their hands and placed before un-
biased minds. The war OF the railway giants as 1t
stands may possibly prove long the Trojan war,
and the exes OF Jersey City hardly prepared for
that, although they have more to gain by delay than
their opponents, who cannot afford 1t. The Erie
Company has secured locus stdndi in New Jersey
by the passage In both branches OF the Legislature
OF that State yesterday Of bill enabling 1t to transact
is business in that State and under the companys
Offices win probably be established In Jersey City
Judge Clerkes order restraining the receiver Of the
proceeds OF the stock from acting PRACTICAL.
still In force, although vacated by Judge Barnard
and the receiver has received nothing thus far. Sc
this great Erie contest progresses, and until 1t Il
finally decided there is obviously no inducement fol
the public to buy the stock for II is liable to fall at
1ame lower than 1t has been for years.
The market for government securities was stead,
during the early part Of the day. and In the after
noon 1t became strong, Notwithstanding the con
tinued monetary stringency. The leading dealer
were, however, better supplied with money thar
yesterday, although there relief experienced
by borrowers in general. 1t was made known abou
three O'Clock that the Sub-Treasurer had been In
structed by the Secretary OF the Treasury to issue
ten millions OF Clearing House or temporary loar
certificates In payment for seven-thirty notes oil
compound interest notes at once, and this impaired
confidence In an easier condition Of the money mar
ket after the exchange has been made. The Sub
treasurer it is expected, will begin to purchase
seventhrty notes with this view tomorrow, unless
the price should have advanced beyond his
limit. The moral effect OF the Treasury
standing In this position, whether IL issues the cert
aafee OF not will be TO make the bankg lend more
freely than they otherwise would. 1t Is positively
denied by the parties supposed to be the best In
formed on the subject owing to rumor having
pointed them out as 'short," that any combination
20 depress exists that they have had
any 'short" interest in the market during the recen
decline The indications that the full effect OF the
monetary spasm has been felt, and that prices vii
soon experience sharp recovery, and in the presen
unsettled state OF the railway share marke