The New York herald., 1868-05-20
FINANCIAL AND COMMERCIAL


.unply of coin was In excess OF the borrowing de-
nand and loans were made at a per cent
for carrying The gross clearings amounted 10
s2a427 oO0 the gold balances to Sl3se,5O2, and the
currency balances to s2,o2S,6l6. The steamer
Cimbria took OUT $4o2,s3o in specie. The
sub Treasury sold more than quarter OF
= million of gold and bought nearly equal amount
M seyen-thrty notes. The conversions OF seven-
thirty notes into hve-twenties at the Sub-Treasury
aggregated 81 0s5 5O0 making total OF $40, ,444 $50
since the lst inst The Assistant Treasurer also paid
out during the day s1eI0000 three per cent certif
Gates and about 100000 in currency in redemption
or Nav compound interest notes. The disburse-
mepts in payment Of coin interest on the public
debt continue to range below half q million
per day, those made yesterday having been
s4ss,OOo. In reference to the government sales OF
gold the Secretary of the Treasury recently sent to
ihe House Of Representatives letter from Mr.. Van
Dyck the Assistant Treasurer here. IN which 1t Is
stated that the gold sold between March 2, 1861 and
March IS, 1868, amounted to $500, S25, $50, the
currency realized from such sales aggregatlng
f293, 1884, 1853, and the amount of commissions paid
thereon being 1921 65o at the rate OF one-eighth
Of one per cent. This rate of commission ts
excessive when we remember that the usual charge
made by stock houses to their customers is one-siX
teenth per cent and that they are quite willing to
buy or sell large amounts for a thirty-second, or
Van Dyck makes alusion to this high rate Of compen
sation and says
Close observation has confirmed my opinion that
whatever apparent economy there might be In ac-
cepllng proIered services IN this particular branch
OF business there would be in reality no saving to
the Treasury or beDeft to the commercial cOmnu-
my in nominal reduction OF the commissions
allowed. In the early stage OF my connection with
tne Treasury 1t was my custom to connde the sales
Of gold to various firms and individuals enjoying
good regulations for responsibility and experience
The desire to share In this Business well for the
compensation granted as knowledge OF the opera
tons Of the Treasury which 1t involved, soon flied
my oice with app cants and their friends, until the
annoy yances from this source became intolerable.
SATISFIED also that the in ormatlon impaired was used
for individual proit and that the employment OF o
number OF agents facilitated disclosures aecting the
premium sa,es, deemed it expedient to entrust
the business to two or three firms OF established
character and credit
1t does not follow however, that the work OF selling
the Treasury gold any better done by the houses
referred to than 10 would have been II they
had received only one-haf OF the rate Of CON-
mission which has been paid 10 them, and to
select 1.-TWO three frmsn for this business
has an appearance Of favoritism, the more
particularly members Of two Of these houses
are family connections OF Mr.. McCulloch. Nearly
quarter OF q million OF dollars has thus been paid
for doing what the Treasury could just well have
done for itself. These gold sales in violation of
the act OF Congress authorizing the creation Of a
sinking fund; but they are made, there is coed
reason why they should not be made publicly by a
Treasury clerk at the Sub.Treasury building, due
publicity being given to such sales by advertisement
As the Secretary OF the Treasury is not likely to take
the initiative in this reform, however, 1t is to be
hoped that the attention OF Congress will soon be
directed to the subject
The money market continues extremely easy, and
loans on government securities are made mainly in
large amounts at five per cent while the general
rate on muxed coaterals is six. Balances are, how.
fver left with first class private banking houses In
BONE instances at four; and owing to the
nulness Of business on the Stock Ex.
change the demand for money falls consider
Ably short Of the supply. The applications
for discounts are very light, and first class CONNER
fial paper s quoted at 61l per cent. The opera
lions Of the SubTreasury are conducive to still
greater monetary ease as Its purchases OF seven
thirty notes exceed its gold sales and 1t is present
Engaged In paying OF the compound interest notes
which matured on the 18th inst. TO the amount OF
nearly twenyfour millions. Up to the close of bus
ness yesterday slo255o $50 Of these notes had been
presented since their maturity, and $15 900 OF
three per cent certificates issued in payment.
Fhe railway share market was dull and steady
during the greater part Of the day. but late in the
afternoon became strong and less Inactive Among
the miscellaneous shares Western Union Telegraph
declined about per cent, owing to the contradic
tion OF report previously circulated to the effect
that the company would declare two per cent
dividend The story now Is that 1t is without the
means 10 10 this, and therefore does not con-
template 1t. The transactions in Pacific Mail
were on larger scale than usual especially towards
the close, and 1t would seem that there Is some
for this activity with which the street is not
yet familiar. AT present. II we may judge by the
large 'short" interest in the stock the prevailing dis
position OF the spectators TO sell It, In the hope OF
saking 1t in at lower figures; but other parties are
apparently buying The speculative feeling among
sne brokers and professional operators is tame and
The cliques are inactive.
The transactions in government securities have
again been very heavy and q further advance Of u
per cent has taken place in prices. the largest
advance being ten-forties, the demand for which
was stimulated by q rumOr that the Secretary OF the
Treasury had sold the remainder or these bonds,
amounting to about two millions and q half, to o
prominent house in this city. The hrmness Of the
market for nve-twentIes abroad and the steadiness
OF the gold premium stimulated purchases Of the
exportable bonds, including hve-twenties Of 1862
aud 1885, ten-fortles and skies OF 1881. The home
investment demand was chiefly for the hve-twenties
Of 1857, which advanced to 1lOI. The purchases Of
unhed States stocks are just now on fully as
large scale as they have been at any time
emce the termination OF the war, and all
he indications are in favor of a steady
rse Tor some months TO come. There
ie also good investment demand for the first mort
gage bonds OF the Union Pacific and the Central Pa
cific Railway Companies at par. At the close the
market was buoyant at the suboined quotations.
Registered, 1881, 114H l4K; coupon, 1881, ll4H
n42s; 52os, registered, 1862, loes 1897; 62o's
coupon, 1892 1oe,S 1921; do, 1894, 1918 1o7yf;
do, 1885, 1o7,l 1915 do, 1896, January and july
11e 1lok; do, 1867, 1loH l1o4; Io-sos, regis
tered 1854 lo4; 1o-4o's, coupon, 1O4 q lo4x; June
s.30s, I07I 1915; July 1905 1o7x q lo7JS; Au-
gust compounds 1864, lis; september, do, ll7h;
October do. III.
At the commencement OF business the stock mar.
ket was duh and steady at about the closing quota
tons OF last evening and at the early session Of the
open board New York Central sold at 1881 and Erie