The New York herald., 1868-06-02
FINANCIAL AND CONNER ctAL.
MONDAY, June Id p. M.

MONDAY June 1-6P. NJ
me gold market has been strong but ratner quiet
to-day and the fluctuations were from 1874 70 iSSb
only with the closing transactions al 1874 inere
was good borrowing demand for CON- ano ioaiis
were made without interest and az per cent ior
carrying The gross clearings announced 70 szo'ozo'
900. the gold balances to 81 anu 'no 0uiion0y
balances to $l,s45,e4s The Imports OF specie Hom
sore,un norts at this port last week amounted to
aAs oes making total Of s. 262 S73 since the 1st OF
Ssnnary The disbursements Of coin at the SubTrea-
.mrv today in payment Of interest on the public
debt amounted to $ls7,ooo.
The stock market was barely steady during the
forenoon. owing to further decline in Erie, which
touched esK under large transactions, but during
the whole of the afternoon the tendency Of all the
railway shares was upward, and there was marked
advance in New York Central and Northwestern pre-
ferred while Erie recovered to e97s, with a drift
towards continued improvement, the decline from
73S on Friday morning, without any apparent cause,
having been too rapid not to be succeeded by sharp
reaction in the present speculative temper OF the
street. The prospect Is at present more favorable to
what called summer speculation than has been ut
any time this year; but prices are 80 much above
real values and the market is so entirely governed
by the action Of cliques that there is no induce
ment for the outside public to buy any speculative
stock on the list. At the same time, have be-
fore had occasion to mention, it Is as dangerous to
sell "shortn as to buy, and the greater the rubbish
the greater the danger 1t is consciousness OF this
which has led to the active movement now going
forward in government securities, which still the
cheapest stocks In Wall street. In the future 1t is
than probable that they will not only gradually
rise to higher point than we have yet seen them
selling at, but that they will also be more actively
dealt in, like the funds of the leading Powers OF
Europe
The excitement in the market for government Sc
curities Is increasing and the transactions to-day
have been enormous while prices closed from 4 to
Ia per cent higher than they at on Satur
day, the greatest advance having been in the Gve-
twenties Of 1865 and 1857. The investment demand
continues unchecked and the foreign bankers are
heavy buyers Of the hve-twenties OF 1862 and 1865
and tenforties The effect Of the latter loan being
closed has not vet been fully elt but the ten-forty
bonds are relatively cheaper than any OF the six
per cents, while the fact that the principal as
well as the interest Is payable in coin
under the authorizing act is calculated to create
special demand for them abroad and already they
are quoted at only two per cent below avetwenties
of 1862 in London. 1t Will be remembered that last
Saturday week, when the bonds Of 1857 selling
at 1loH, tenforties 1O5 that the latter have
advanced only about one per cent while the former
have advanced three per cent. There consequently
more margin for q rise In these than in any other
stock on the list The old 1ve-twenties Of 1865
next in point Of cheapuess they carry the
same amount OF accrued interest the bonds
OF 1862, which are still u IA per cent higher al
though the former have three years longer to run.
The speculative transactions in these securities are
daily growing in volume, and one great OF the
extreme buoyancy OF the market is the fact that less
than eighty millions OF seven-thirty notes now re-
main to be funded, and bonds sold at higher
prices than those now current while all the seven
thirty notes were unfunded. At the present rate of
conversion it viii not take many days to alb
sorD the whole Of these notes, and then
every gold bearing loan will be practically closed.
The conversions at the Sub-Treasury to-day aggre-
gated $l2 66 600 and in exchange for the notes ve-
twentes OF 1868, 1857 or 1865 (new issue) will be
Issued without the July coupon. The conversions in
May were about sixty millions and the purchases
twelve millions. All the indications continue to be
favorable TO higher prices than we have hitherto seen
since the beginning Of the paper money era. There
Is good investment demand at par for the first
mortgage bonds Of the Union Pacific Railway Com.
pany, and also for those OF the Central Pacific Com
pany both Of which bear six per cent in coin interest
United States stocks closed strong at the following
quotations. Registered, 1881, liz a 112I coupon,
1884, 1867 1l7 52o's, registered, 1862 lOs% lo9
b2o's, coupon, 1862, 1929 1l2K; do, 1884, 11ol
110I; do. 1856, 110x ll0T; do, 1866, January and
July, ll31s 113; do, 1857, 1l3X 1l3zS; 10-40's,
registered, 100 1o6h 1o4O's coupon, 1863 1oeh;
June 1905, 109k 109%; July 1905, 1o9IS 109h
August compounds, 1885, 11sk; September do,
1l7A; October do, 117k.
The ease in the money market Is increasing and
large amounts we're loaned to-day at three per cent
on government securities the leading dealers in the
latter being fully supplied at this rate, while on
mixed coateras the supply of capital was abundant
to houses In good credit at four per cent. The drain
OF currency is still towards this city, the bank
statement for last week conclusively shows. The
mercantile demand for money Is very light,
owing to the dulness Of trade, and COM
mercial paper OF the best grade passes at
8 "a per cent There is no probability
Of any other than an abundant supply OF loanabe
funds at this centre until the end OF August when
the usual flow OF currency westward to move the
crops will set in. 1t Is this extreme ease and the
prospect OF Its continuance which one Of the prin-
cipal causes stimulating the rise In United States
stocks at present, for the banks, finding themselves
unable TO fully employ their funds In call loans,
are large buyers, and the is also the case with
other corporations as well as private individuals.
comparison OF the statement Of the associated banks
OF this city for the week ending on Saturday last
with that for the corresponding week In each OF the
three previous years shows the following changes:
June /, 1867 Nay 80 1898.
Loans s2J2 79l, ,5A Inc. Sl5,2S5. $40
Specie. H,6lT,0dO Inc. 32l4.O2g
Circulation. 33,747,o39 Inc. 3es,5e7