The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-07-27
FINANCIAL AND COMMERCIAL.

e~-~<->-
MONDAY July 26-8 r. M.
The week opened upon more easy money mar
ket, the rate on call to-day being quite uniformly
Blk per celt. Some loans at seven per cent lying
over from last week were undstarbed and o few
others were made at the same rate to weak houses
or upon inferior coaterals but these instances were
Offset. on the other hand, by exceptional trapsac-
lions at five per cent upon prime collaterals. The
DRIFT OF the market Is to still lower figures. The
hesitation is owing to the recent prevalence OF such
extraordinary rates and the Willingness or the
street to pay what seems comparatively cheap
ones. Capital is not loath to earn all 1t can,
ana the pressure of funds for employment 10
such as TO keep the interest rate from too suddenly
declining. great deal Of curiosity Is manifested
Is to The policy which the Secretary OF the Treasury
will pursue after the LIST Of August, particularly in
the Gold Room. The position of the banks in hold
ing $so,ooooOO Of gold against s2oooo,OOo at the
same time last year, rortines them against the EN-.
barrassment that would otherwise attend the bank
ing movement in the fall, result OF the loss to
them OF nearly 800 600 OF legal tenders which
supposed TO be permanently detained In the South.
The purchases OF bonus for the sinking fund win
certainly be continued, but the anxiety Is to learn
how extensive will be the purchases from the cur
rency balance Of the Treasury. 1t s fair to presume
from what Mr.. Boutwell, has already done that he
will be guided entirely by his ability to continue his
purchases In the winter, when Congress sits, there
Is q steady drain upon his currency resources for
the thousand and one expenses OF the session.
Hence he will probably economic his outlay for
bonds by the amount necessary for this contingency
Commercial paper does not show the reaxa-
ton In discounting rates which should fol-
low the easier working OF the money mar
ket. Prime business notes at four months
are still quoted eight to eleven per cent Even
baDkers' sixty day paper passes very seldom under
eight per cent The foreign exchange market was
frmer under the anticipation OF better demand for
bills arising out OF the scarcity Of the larger de-
nominations Of gold CON- which are the favorlte for
shipment and are beginning to command a pre-
MUM. One leading house put up the rate for sixty
day sterling to 1904 but the range of the market
was as Notwithstanding, sixty days, CONNER
clal, 1924 1o9X; good to prime bankers, 1927
11Oll; short sight, 1109s 11oH; Paris
sixty days. 6.l7K 6.121s; short sight, 6.12H
q 6.Iox; Antwerp, 5.17k q 5.12k; Switzerland,
.6.l7K a s.l21z; Hamburg s51s 80; Amsterdam,
4o1. 4os1; frankfort, 4oK 4ozs; Bremen, 7sh
TEX; Prussian thalers, 7o>z tx.
Government bonds were dull, but strong, the 1878
advancing to 121. The London quotation for 1928
came at s2S as sequence Of the advance In goid
The features were the coupon ten-forties which
rose to n, while better inquiry for the currency
SKIES induced rise to 1881. The London Star Of
the 14th inst. says:-
telegram from America informs us that Mr..
Boutwell, has ordered the Sub-Treasurer Of New York
TO purchase 81. 100000 OF bonds every wednesday
during the present month 1t to be wished that this
order mad been Kept secret 1t "leaked" out by some
knew anything about it, and the result was that
little knot OF spectators made comfortable fortunes.
e 1ens "a R 20 S All
OF 1t at present is that 1t is somewhat bold expert
ment The way in which Mr. Boutwell, has gone to
work Ia this He found large surplus OF money IN
the Treasury on his accession to Office, and had no
discretion to use 1t except in one way, which had
the purchase ofb0nds for the sinking rund. He had
bought ABOUT ten millions down to the end OF June,
and, according to the announcement above refer.
red TO. he Will buy up twelve millions
more this month. The purchase is fairly made,
ct public sale; but whether Congress was wise or
not In prescribing this for surplus money Is more
than doubtful. The taxation briggs more money
into the Treasury Golfers than the government re-
one suppose that present rate OF taxation will be
endured for many years longerP Gould not the GOV.
c BE- and on ns
den which the people have borne so long almost
without murmurf That policy Is better worth
trial than empirical schemes for "wiping or the
national debt Mr.. McUulloch always refused to buy
In bonds for the sinking Iund, and we scarcely
know on what experience Mr.. Boutwell, POUNDS his
new system.
The following were the closing street quotations
for government bonds:-United States skies, 1881,
registered. 121k l22; do. do. coupon 1919 12l7s
do. nve-twenties, registered 100 1924; do. do,
coupon, 1862, 1888 q 1887; do. do, coupon, 1864,
122h 1924; do. do, coupon, 1866, 1924 1925;
do. DO. coupon, new, 1865, 1904 l2o7s; do. do,
coupon, 1867, 1919 121; do. do, coupon, 1858,
1908 12Osl; do. ten-forties, registered Ill me-
40. do coupon, 1l19s 111ss; currency bonds. 1881
q 1881.
Southern securities were without special feature
forf ha Coro
"a, but fell or later to 53A The points OF the
recent decision Of Chief Justice Pearson OF
the Supreme Court Of Raleigh, relative to the
legislative appropriation to new railroads, are as
follows:-l. The act to incorporate the University
Railroad Company does not have in law the effect
to create a corporation. To give legal effect to
grant there must be grantor grantee and thing
granted. Here we have grantOr, the General As
sembly thing granted corporate powers and
franchises "to the same extent as possessed by
the North Carolina Railroad Company but there is
no grantee-no person, persons, or body polite to
whom the grant is made II this be so 10 would seem
to follow that the directors who are TO manage the
afrairs Of said "Unversity Railroad Company there
being In contemplation OF law no company cannot
have such rights as are enforced by the writ of
mandamus. 2. The General Assembly has no
power to contract debt to build O new
railroad unless the subject be submitted to vote Of
the people, The act Ia in violation Of the constitu
ton In ths:The tax levied by 1t disturbs the pro.
portion which, by the constitution, capitation tax
bear to the tax on the value Of property The fol-
lowing were the closing street prices Of the Southern
ex coupon, 90 q esh: do, new,
b7K So; Virginia, ex coupon, So 6sx; do, new,
81 aelK Georgia skies, "a SAX; DO, sevens, Ok
D1x; North Carolina, ex coupon, SO q sou; do, new
80 53k; Missouri skies, s7IS SO; Louisiana sixes
Box 10; do levee skies, e4x IS; do. do, Fights
b IS; Alabama eights, o3K ao4; do. fves, SO IS;
South Carolina skies, 64,S OF; do, new, "a o 90.
The upward course Of gold, so decided at the close
Of last week, was after some hesitation, continued
to-day, the price eventually touching 1874 at
which, however, 1t became sluggish and heavy. The
heavy shipments Of last week keep the market
strong. The engagemerts OF apecie for to.mnrrox,s