The New York herald., 1869-05-13
FINANCIAL AND COMMERCIAL.

Whatever the ultimate disposition OF the govern
ment bonds which Secretary Boutwell, has decided
TO withdraw from the market he faithfully compiled
with his promise TO begin purchasing to-day and
made the awards within half hour after the clos
ing OF the offers. The street is greatly perplexed
to his Intentions about them, and the conflicting
dispatches from Washington kept the dealers rather
excited. His plan has worked admirably. The
bonds which he obtained were purchased at and
below the contempOrane0us marker price. The
cepted 0ners were-$600 900 coupon CAS- at 1880,
5000 900 registered 62's at 1852, SIS, 200 regis
tered 64s at 1853 100000 registered 62's
at 1850 and $75,000 coupon CAS- at 1853.
Inasmuch as the last Congress decided that these
bonds are redeemabe IN gold their purchase il
therefore saving Of something like twenty per cent
on the principal The report appears to have semi
official sanction that the secretary will cancel
the bonds which he thus purchases but will hold
them IN the Treasury, applying the interest saved
upon them as q contribution to the sinking fund.
Whatever the hesitation mistakes Of Mr.. Bout
well in the outset he appears to have struck policy
in this question which will be ratified by public SEN
iiment. The government, in respect to its liabilities
IS just like private firm, and has the same right to
take advantage OF all honorable opportunities for Its
own benefit Were he to destroy the bonds pur-
chased all his succeeding purchases would have
TO be made at constantly increasing prices. BY
keeping the SPECTATORS in doubt however as to his
actual disposition Of the bonds he Will maintain the
market at steady and unexcited quotations With
the bonds lying IN the Treasury vaults he has q re-
serve with which to meet the expenses of the gov
ernment should thero at any time be deficiency in
the revenues. The one great salient feature Of his
conduct is the earning OF interest on the gold bal
ance Of the Treasury. To make this balance more
productive III this respect should be his constant
aim. When the OppOrtunit1es for saCalv onnlnv ING
it at interest ample he should not fail TO make
use Of them. Mr. Boutwell, in his speech at the
Stock Exchange, made public pledge that he
would not let the specuatOrs use him. No one can
complain that in to-day's transaction he has not
kept his word. He has done well IN this instance
and safely repeat himself, The market was very
steady to-day. The quotation from London came rs
In the forenoon and 10 In the afternoon, which,
with the Improvement OF a in consols gives sub
stance to a rumor that cable advices have been re-
ceived to the effect that further ad-
vance may be looked for tomorrow in the
Bank Of England discount rate. This improve
ment In the foreign price was reelected IN a
much Grner feeling in home prices but without
much advance. The latter are close upon
the former that there is very little margin for rise
The London market Will have to recover all It's
ground lost in the late agitation before there can he
much, If any, change here. The sagacty OF Secre-
tary Boutwell, In stopping the speculative operators
by his proposal not to cancel bonds contributed TO
this steady feeling. The following were The closing
street quotations this evening:-United States sixes
1884, registered 12o 1908; do, coupon, 100 I2O4;
hve-twenties, registered 1l5ls 1l5. do do cou.
pom. 1862, 1875 1855; do. do, coupon, 1854 1855
1151s; do. do, coupon, 1865, 1863 ll6h; do. do
coupon, 1865, new, 117sS NIX; do. do, coupon
1867, 1l7Is 117%; do. do, coupon, 1865, 1l79l a
fprft
do, coupon, lOs]k 1885; currency bonds, 1905
1864
The money market to-day was without essential
change. The expectations Of five per cent rates ON
call have been disappointed; but the iuctuation TO "a
lower rate than six per cent last year aid not begin
before the LIST Of June Money Is very generally
employed ut SIX and seven per cent on governments
and seven on miscellaneous coilaterals. Commercial
paper steady IN the vicinity OF eight per cent
for choice double name acceptances, with extreme
quotations at and nine. There is preference
for longer dates OWING the desire 10 earn full IN
terest in the approaching period of easy money,
when rates call are likely TO fall below the legal
figure.
Foreign exchange experienced sudden and sharp
advance under the demand for bills, and prime bank
put their rates to 1lO for short sight and 1895
for sixty days sterllng-a difference by the way be.
tween the two grades not consistent with the re-
ports OF easier feeling in the London money mar
ket. The yielding in the price stimulated buying.
The range in quotations was as demonstrating,
sixty days commercial. l0S1S 1OS5s; good to
prime baukers' lo9 a 1925; short sight, ITO
a l1oi4; Paris, sixty days, 5.20 5.164 short
sight, Bio a 5l324; Antwerp. $40 5lG14;
$50 5.16'4; Hamburg, 351s a 35ys;
Amsterdam, soh 4osS; Frankfort, 4o4 4oss
Bremen, IS 1874; Prussian thalers. 7o,s ~.
Cola weaker and declined from l3ssS TO 1917,
with the bulk OF the business IN the vicinity of 1887.
The better feeling IN London and the advance OF
per cent in bonds there led TO the change. IL was
also the OF the third OF the series Of govern
ment sales OF go,j the effect OF which must IN the
long run be inimcal to an advance in the premium.
Cash gold was in good supply and loans were made
for carrying at rates from to per cent per annum
up to Clearing House time and at per cent to nat
in the afternoon. The Scotia took $4,000 specie.
The range of price was as follows:-
10 A. M............. 13ss 3P. M........... 1881
1915 A. M..."... 1855 3:l5 7. M........... 13sz