The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-19
MONETARY.
OFFICE NEW ORLEANS BULLETIN, T,
Tuesday Evening, May Is, 1876.
NEW ORLEANS CLEARINGHOUSE
CLEARINGHOUSE.

A better demand for Money is noticeable
at the banks and more inquiry upon the
street. The movement appears to come from
the general trade, provision and produce
dealers chiefly, with few applications from
factors, but is not yet sufficient to affect bal
ances at the banks in any considerable de-
gree. The prospect of increased activity,
however, appears to be encouraging, and
bankers anticipate at an early day sufficient
demand for Money to produce at least an &C
tive and stronger market.
| Gold continued 10 advance to-day CORE
spending to the rise in New York. The anti
cipated squeeze appears to be developing.
Private advices from New York, forwarded
some five days ago, express apprehensions
Of the formation Of a new clique in the Gold
Room and an anticipated advance in rates.
| The movement in Foreign and Domestic
Exchange was limited, the former ruling a
shade higher. As to the latter there appears
| to be disinclination on the part Of buyers
to pay the rates asked, and some of the banks
are shipping currency by express.
Stocks continue quiet with scarcely any
demand except for few favorite shares. No
transactions are reported in City Bonds In
relation to city finances, it will be seen from
the proceedings Of the Council, published in
another column, that the plan for sale of the
wharf revenues to private parties assuming to
pay the wharf bonds, ETC., received the ap-
prevail of that body, aud the plan for the pre-
MUM bonded fund was referred to Commit
tee of the Whole.
Some excitement was created on the streets
this morning by rumor that certain foreign
holders of Old City Consols were about to
commence proceedings against the city in
the United States Court, praying for an in
junction temporarily restraining the city from
paying interest upon later issues. Comment
upon this subject would, pelhaps, be prema-
ture, as no such petition had been filed in
the clerks Office at 3 P. NJ.
State Bonds were active, and nearly f9
cent higher than yesterday. Metropolitan
Police Warrants were sitter and City Scrip
shade weaker. Other securities were re-
ported unchanged.
The publication of the Cow rnor's letter to
the Attorney General informing the latter that
caused more than Usual sensation in financial
circles. 1t will be observed, on reference to
the letter, that the Governo Or apprehends that
the provision of the law !" declaring some !
eighteen different series of bonds questioned |
and doubtful" and prohibiting the issue of !
consolidated bonds in exchange for such of !
these bonds as may be still unfanded until |
their validity shall have been determined by
the courts, will work hardship to many innocent |
holders Of valid bonds. The Governor there !
fore requests the Attorney General to institute
q test case to bring the legality of these obli-
cations before the courts, and to afford every
facility to any bondholder bringing suit, so
that early decision may be arrived at.
A large number Of the bonds, the funding
Of which has been thus suspended, is held
abroad. We are not advised of The precise
sum, but understand it is of sufficient mag
\ it,de to render it probable that the taint |
east upon them and the probable anxiety of
price, will cause a heavy decline in the for
sign market, enabling spectators to buy
hem up at a great depreciation. On the
,ther hand it is calculated to check the issues
If the consolidated bonds, and by diminish
ng the supply materially enhance their mar
zet price. Hence, while it actually nflicts
lponethe innocent holders the hardships the
Governor apprehends, it gives an unexpected
md material advantage to all others, and es-
,ecially to the holders OF the consols.
Under such circumstances it is quite nat
lral that while the latter should regard the
MEASURE with favor, the former should pro-
est against it as unequi.able and upjustif-
bile, contending that no subsequent legisla-
ion can reverse the fundamental clauses of
he original funding act, and that if any il
egal or doubtful State Securities have been
unded it has been by the legitimate action of
he States official, and that innocent holders
ught not to suffer therefrom. Holders of OLD
onds abroad have been advised by cable not
0 sacrifice them and formal protest will be
lade by their representatives tomorrow.
We continue to quote frst-class sixty days
aper and collateral loans at 8@9 a cent per
mum; AL do at 10612, and second grade at
SAILS. EirSt-claSS mortgages still rule at