The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-07-02
FINANCIAL and COMMERCIAL.
Beginning of the July Dis
bursements.
Continued Fluctuations in the
Stock Market.
THE JULY DEFAULTS.
WALL STREET,

WEDNESDAY. July 1-3 p. M
The character OF the days business turned
upon the disbursement Of interest and dividends
due and payable this date. Notwithstanding the
excited anticipatiOns in some quarters OF numer-
Gus defaults In these payments, but lew were an
nounced, these being on the Atlantic and Great
western first mortgage consolidated bonds, both
mere and IN London, the coupons of which 1t ID
proposed to iund until the net rentals under the
lease TO Erie can be applied to their payment;
Che INDIANAPOLIS Bloomington and western Rail-
way and the California Pacific, the latter upon It's
extension bonds, although the interest was
promptly paid upon other issues The Assistant
Treasurer paid out $5,sl2, 600 gold on account OF
tine July interest on government bonds.
MONEY SHOWED INCREASED BASE,
returning to the former rates OF and per cent
on governments and first class railway securities,
with per cent "a the figure on miscellaneous
stocks, discounts ranging at 5A to 6l per cent on
prime commercial paper The higher call rate on
stocks Of a miscellaneous character is explained
ny the fact that the stock market Is generally
recognized TO be at present subject to bear tnnu-
ences exceptionally well organized and directed,
and without any corresponding bull antagOnsm
to maintain control. Thus, while all the natural
causes look to the effect OF increased value In
railway property-viz., abundant crops both OF
cotton and grain-with promising foreign markets
movements hi,her, while the low stocks Of all de-
scripuons OF goods in the interior gives assurance
Of ample freights hence, yet, added to
the weakness of newly awakened
confidence, which Is easily shaken after the
serious shocks 1t has suffered during the past few
months, there is also the influence Of powerful
and ingenious bear party engaged not alone in
direct attack upon values in the open market,
but by all other means which ingenuity can sug-
gest, an endeavor to sap the very foundation up
which such values rest-viz. general public conf
dence We have habit here OF exaggerating mis-
haps In commercial and financial circles beyond
their due Importance, but II any one will
COMPARE THE LIST ON THE REGULAR CALL
OF our New York Stock Exchange with that Of Lon
don he will find, IN respect to the inherent value
OF the securities permitted to be dealt In here as
we'll as the legitimate promise which gives them q
hopeful value, that we far more conservative
in our stock operations than our often as
sumed exemplars 1t was this that en-.
sbed to meet the sudden stringency
occasioned by the panic Of last al because OF the
rapid boarding which 1t induced), by the issue Of
bank credits, all Of these resting upon securities
dealt 10 at the New York Stock Exchange. and all
OF which have since been wiped OUT although we
have never since had what would be called more
than comparatively active market-never ram
pant one-for these securities. Hence the prevail
ing ease in money, which is free from the neces-
sity OF much sitting In the ordinary securities
offered Tor It's The question Of surrendering
circulation is one which Is now being very
ACTIVELY DISCUSSED IN BANK CIRCLES,
and the views concerning the policy OF resorting
co such step are, OF course, radically opposite.
The argument In favor OF such q course that OF
the banks VINO had resolved on it-viz., that cir.
culation did not pay-ls con.radlcted by commu-
ncation received, signed Cashier" in which this
assumption is clearly demonstrated to be false
one the other position, that circulation is ex-
tremey profitable, 30 often claimed by the oppo.
nents of the national banking monopoly and the
advocates OF Tree banking. well as those
theorists who clamor for uniform circulation OF
legal tenders, is thus set FORTH
Much Is being said and written on the course OF
action likely 10 be adopted by the leading banks Of
the country, evidently creating an impression that
to retire bonds and give up circulation Is 'tne
thing To do" IN regard to which, as IN other mat
tiers, figures won't lie. Let us suppose bank with
q capital OF $1,000, 000 and what Is the result
They have deposited at Washington 100000
bonds upon which they receive At least five per
cent. eofL $4,000
Premium on same at say ten per cent 1850
seven per cent. 5000
Total. SlO55O)
Less tax ON circulation, one per cent 5000
1850
Retire circulation and sell SqO ~ five nor cant