The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-08
WALL STREET NOTES.

A SURPRISE FoR TEE GOLD MARKET-PAvno
THE WAY TO RESUMPTION BRIs-
rows LATE ACTIoS-EFFEcT OF ScREAsKD
RAILROAD FARES.
Advlces from Washington. received on the
street early yesterday. stated that secretary
BristOW claims the right, under tne provisions OF
the Specie Resumption act, 20 increase the bonded
DEBT 10 any amount necessary to carry out tne re-
qulremenn OF that act. de says ne has alreaoy
sold I'VE per cents in the purchase OF silver bull
lion ana for coin, the amount thus disposed OF
amounting TO between So 600 900 and sll 00O oOO."
The Treasury now holds between $4,000. 900 and
$u.0Oo.0OO In silver bullion and silver coin. ono
million silver bullion was purchased on saturday.
This came u on the street with something OF
the force o. surprise the practical step thus
taken IN the direction OF resumption righteninR
the bulls In gold TO such an extent that the price
speedily went on from 1l7X TO 1l6H with sales
lilo below the latter figure before the close. The
authority for this reported action Oft Secretary
Is contained In the following language, being q
part OF
SECTION THREE OF THE FNAEoE BILL
OF last session.
"And to enable the Secretary OF the Treasury 70
prepare ana provide Tor the redemption In this
act authorized or requlred-t g., the substitution
demption OF greenbacks IN coin-ne Is au-
thorzed to use any surplus revenues from TINS
to time In the Treasury not otherwise appro-
prtated and TO issue, sell and dispose or at nos
less than par in coin. either OF the descr ipuons
OF bonds OF the United States described In
the act OF Congress, approved July ID, 1870, en-
titled AN act to authorize the refunding OF the
rational debt' with ike privileges and exemp-
tons, to the extent necessary TO carry the aot
into effect, and to use the proceeds thereof FOR
Inconsistent with the provisions OF thls act Sfs
hereby repealeo.n
TIE closing sentence or this extract from the
law OF 1875, 1t VIII Do seen, enectuaiy repeats the
section OF the law OF 1870 known as the Funding
actn which proposed TO fix limit TO the puollo
debt in the following language :-"NOtnlng In this
act snail he so construed as TO autnorlze any IN.
crease In the bonded deDt OF tue United States."
UNDER THE LAW AS 1T now STANDS
the Secretary may, IN his discretion issue s. AZ
or per ceat bonds 20 the amount required to re-
deem the entire outstanding greenoack circuIa-
ton. now ABOUT $780, 900, and 10 substitute
silver Tor about s42.0OOOOO fractional currency
There is point in this matter, however, con-
corning which the general puollc would like TO be
authority to sell per cent bonds not for the re-
demption OF per cents, TO tne extent Of
80 00O 900 or 1000 900 lor the purchase suvers
as asserted, now, wnen and where did he dispose
OF them and at wnat prlcef He
AUTHORIZED To PLACE THEM AT PAR,
but the law certainly never contemplated that
the Secretary should dis ose OF them at private
sale at par when they we're selling to per cent
above par In the open Market the c.oSing ngures
last mt being Ia per cent for registered aud ~
per cent for coupon over the clio sing figure OF aoid-
Precedent, as estab isned by the action OF iormer
Secro tares in the matter OF gold, would SUCCESS
that sales or bends made under the law or 1918
should be similarly conducted and open TO pubho
competition. The government wOuid stih retain
It's privilege of rejectng all bids Mt up TO par IN
gold, while pos 'esslng the advantage Of securing
such premium as might be ouered
THE NEW DEAL IN RAILROAD FARES.
The increase Ia passenger rates 10 chicago bg
the Baltimore and ONO aud pennsylvania roads II
operating favorably uDon the business or lines
furtner north free Distribution or traffic.
Lake Shore reflects Its snare IN tnls improved con-
dItlon of things IN continued steady advance
we main tatned. Erie has been arrested In In
decline apparently from similar cause.