The Sun.
London, England, 1870-02-02 00:00:00

THE SUN, LONDON, WEDNESDAY EVENING, FEBRUARY 2, 1870.

FOREIGN NOTES.

PROTECTION IN THE 'UNITED *TATES.

The Yew York limes says that boots and shoes, which
used to be very cheap in the United States, have now
become dear, and the cause is the old burden 'of taxation.
It can be demonstrated by examination that
ate th ewhole
nation pays a tax of 7i per cent. on the aggreg cost ot
all the boots and shoes that are manufactured. The
taxes eat out the means of every individual, and if
their object is for revenue they fail in it. The American
tanners do not require protection, as the advantages of
their business are great. The great expense in manufac-
turing leather is not labour, but material and machinery,
and in these they were beyond competition. At this time
the very unpleasant spectacle is seen of hides and skins
imported from South America to New York, carried across
the country in bond, tanned in Canada, and then exported
to England. So much for the effects of inconsiderate
taxation on one important branch of industry.

and the other day he escaped from his prison in the
settlement of New Caledonia. After three or four
days he was recaptured, in a state of complete exhaus-
tion. He had not tasted food for fifty-two hours,
and though kind treatment was accorded to him, his
mind gave way under his sufferings. lie is now
more than half mad.

RE-ADMISSION OF VIRGINIA.

(From the Anglo-American Times.)
Virginia has been re-admitted ; the Bill passing
through Congress after a long and exciting debate.
The PRESIDENT is only too glad to have the State
admitted on any terms it will accept to oppose
the measure ; and we now learn that it received
his signature last Wednesday. When Congress
re-assembled on the 10th instant, Senator STEwAn-r,
of Nevada, moved that the Virginia Bill be
taken up, whereon what the American papers
describe as a spicy lebato ensued. Mr. SUMNER
asked for delay, to which Mr. STEWART objected,
accusing SUMNER of having voted against the
Fifteenth Amendment, and so far proving the
assertion that on the production of the journal Mr.
SUMNER'S name was not recorded on the passage of
that Amendment. The debate in the Senate made it
evident how far the Chamber feared that Virginia
might follow in the wake of Tennessee, where it is
asserted two-thirds of the members of each Legislative
Assembly are well-known rebels, unable to take the
reconstruction oath of 1862. Attorney-General Iloart
had given it as his opinion that the Test Oath could
not be required from the Virginia Legislature ; but
this was called in question on the ground that the
Reconstruction Act rendered a person ineligible
for a seat in any of the Legislatures of any of the
States which had seceded who could not take the
oath. On the other hand, the impolicy was urged
of now testing members who had been elected wit h-
out such test. If Virginia were admitted the adop-
tion of the Fifteenth Amendment would be rendered
certain ; if not, Virginia would be thrown back into
rebel -hands, and the Amendment might be lost.
A Senator denounced Virginia as the most per-
fidious of all the rebel States, whose admission he
would postpone for the next decade, mild only the
Fifteenth Amendment be secured. The measure was
debated again and again, and finally was passel,
the Rouse Bill being amended in the Senate so as
to enforce the Test Oath for public officials, at the
same time that numerous conditions were introduced,
one of which prohibits distinction on account of coloar
in schools and public places. Mr. BINGIIA3I endea-
voured by a surprise to carry through a bill for
the immediate admission of Virginia, and though
defeated, his amendment eventually passed the
House. A curious error was made during the pro-
ceedings which followed. A resolution was offered,
to reconsider the vote, which was lost by a tie vote,
the Speaker casting his in Mr. BINGHAM'S favour.
It was afterwards discovered that Mr. HOAR'S vote
had not been recorded, and that the motion instead
of being lost had in truth been passed. Just ten
years ago the predecessor of the Roll Clerk, who
was new to his position, made a similar blun-
der in his first attempt to take a vote, that error
not being discovered for several days. Mr. BING-
HAM was defeated, but on the 11th he again brought
up his resolution, when he yielded to the Recon-
struction Committee, seeing it to be useless to press
for the unconditional and immediate admission of
Virginia. As the Reconstruction Committee Bill
appears substantially to be that passed of which we
have this week received intelligence by cable, we
give it here in extenso:—
" Whereas, The people of Virginia have adopted
a Constitution Republican in form, and, by its pro-
visions, assuring the equality of right on all citizens
of the United States before the law ; and
" Whereas, The Congress of the United States
have received assurances, and are assured that the
people of Virginia, and especially those heretofore
in insurrection against the United States, have re-
nounced all claims of any rights of secession in a
State, and that they are now well disposed toward
the Government of the United States, and will sup-
port and defend the Constitution thereof, and will
carry out, in letter and spirit, the provisions and re-
quirements of the Constitution submitted under the
Reconstruction Acts of Congress, and ratified by
the people of Virginia; therefore,
" Be it enacted, &c., That the State of Virgiala
is entitled to representation in Congress as a State
of the Union under the Constitution ratified on the
6th day of July, 1869, upon the following funda-
mental conditions: .

"1. That no person shall hold any office, cavil or
military, iu said State who shall not have taken and
subscribed to one of the following oaths or affirma-
tions, viz. : Ido solemnly swear or affirm that I
have never taken an oath as a member of Congress,
or as an officer of the United States, or as a mem-
ber of any State Legislature, or as an executive or
judicial officer of any St.tte to support the ConsLi-
.ution of the United States and thereafter engaged
in insuriTcCon or rebellion against the same, or
given aid or comfort to the enemies thereof ;' or,
do solemnly swear or affitm that I have been re-
lieved of disability 1.;), an Act of Congress as pro-
vided for by the third section of the Fourteenth
Article of Amendment to the Constitution of the
United States.'
"2. That the Constitution of said State shall
never be so amended or changed so as to deprive
any citizen or class of citizens of the United States
of the right to vote or hold office in said State who
are entitled to vote or hold office by said Consti-
tution, except as a punishment for tuch crimes as
are now felonies at common law, whereof they shall,
have been duly convicted under laws equally ap-
plicable to all the inhabitants of said State ; or to
prevent any person, on account of race, colour, or
previous condition of servitude, from serving as a
juror or participating equally in the school fund or
school privileges provided for in said Constitution ;
provided that any alteration of said Constitution,
equally applicable to all the voters of said State,
may be made with regard to the time and place of
residence of said voters.

"3. That all persons who shall at the time when
said Constitution shall take effect, hold or exercise
the functions of any executive, administrative, or
judicial office in said State by the appointment or
authority of the District Committee, shall continue
to discharge the duties of their respective offices
until their successors,or those upon whom such duties
shall under said constitution devolve, are duly chosen
or appointed and qualified.
" Sec. 2. And be it further enacted, That the
election of United States Senators by the General
Assembly of said State on the 19th day of October,
1869, shall have the same validity as if made by
previous authority of law."
According to the Cable the Senate added to the
conditions required by the House, the latter sanc-
tioning the Amendments, whereon the Bill passed
through Congress, as the message says, by a strict
party vote. "The conditions require the Virginia
State officers to take the test oath that they are not
disqualified by complicity in the Rebellion, or else
that Congress has removed the disqualification. If
any officer does not take the oath within 30 days of ter
the passage of this law his office is vacated. Falsely
tAing oath is to be treated as perjury, punishable
by fine and imprisonment. The Virginia State Con-
stitution is never to be altered so as to deprive
negroes of the same rights of suffrage, office hold-
ing, and school privileges as whites, or to require
different qualifications for office holding or voting
on the part of negroes from those required in
whites." A remark made by one of the Southern
Senators during the debate is worthy of attention.
Mr. WARNER said that his State, Alabama, " by
reason of her early admission and representation in
Congress, was nearly five years ahead of her neigh-
bours, Georgia and Mississippi, in which States a
less enlightened policy in public affairs had been
pursued. On behalf of these States be asked " that
some definite measures should be promptly taken
for their reconstruction." He advised Congress
to abandon its prescriptive policy, as barren of
good results, and apply itself to the suppres-
sion of lawlessness and crime ; going to the South,
with a halter in the one hand, to hang the mur-
derer of to-day, and universal amnesty in the
other, to pardon the political offender of the past.
Substantially we believe Senator WARNER to be
right, holding that Congress would do more good by
exhibiting less anxiety to make a State Republican
than to re-establish law and order on a firm basis.
In It Congress, however, may fail in doing the
migra• ion of the races may achieve. Two streams
are flowing ; for the whites are leaving for North-
ern climates better suited for their manual la-
bour, and the blacks steadily drift South. In a
short time therefore for practical purposes the races
will be separated ; mud the negroes where they con-
gregate in overwhelming numbers must secure
the
control of the State. For instance the migration
of the African is from Virginia towaris Louisiana.
and there is an influx of European labour and capi-
tal into the former State, which may quickly change
it into something more resembling Pennsylvania and
Maryland.

The entire number of sheep in the United States
is over 23,000,000 One half of these are kept in seven
States, Ohio taking the with 6,730,126 head, and
producing nearly one-sixth of all the wool in the country.
)4.ichigan shows third in this list.

MONEY AND BUSINESS.

(From the Springfield Republican, Tan. 15.)

The stringency in the money market consequent upon
the shifting of the business of the country from 1869 to
1870 has given way during the past week to a greater and
more wide-spread case than has been experienced for some
weeks. The banks at Boston, New York, Philadelphia,
and Chicago report an increase in their reserves, and loans
at all these points are more easily supplied. The Now
York banks at present hold in reserve eighty-four millions,
the largest sum that has stood to their credit for over a
year, exceeding the legal requirement of 25 per cent. of
their loans by twenty-eight millions. This abundance of
money is occasioned in a -great degree by the dullness
of trade, and will probably be somewhat drawn upon
by its revival. There is little likelihood, however, of
any embarrassing stringency, especially at the East,
unless the present flattering aspect of national finances
should changa for the worse. The imminency of
specie payment has a wonderful effect in confining
money to legitimate commercial ventures, and driving it
out of those speculative fields which absorb so much at-
tention and capital in inflation times. The business of stock
speculation in Wall-street, for instance, has fallen off, as
fir as shown by the books of the Stock Exchange, from
19,713,702 shares in 1868 to 10,573,053 in 1869. It is esti-
mated that the number of brokers has also been reduced
one-half by the starvation process, and those who remain
get a very scanty return for their operations. The amount
of capital thus thrown out of employment is immense and
its presence is felt when applied to more legitimate in-
vestment, as a relief to the loan market. In regard to the
business of the past year fuller and more accurate statistics
show that failures throughout the South and North have in-
creased, but at the South have decreased, making an aggre-
gate of 2,799 against 2,608 last year; the amount involved
was $75,054,000 against $63,774,000. Profits have been
steady but small, except at the South, where the sudden
recovery of business furnishes another proof of the prin-
ciple that devastation from war, though apparently of the
most destructive character, is really very temporary,
affecting as it does only the circulating capital of a coun-
try, leaving intact the fixed capital. The land with its
fertility, natural or artificial, the highways, most of the
buildings, the people with their skill in labour, these ele-
ments of production remain to replace what has been de-
stroyed, as they would have replaced it had it been eaten
up and worn out in the ordinary course of annual con-
sumption. Gold during the week has been invested with
unusual interest, from the efforts of certain parties to get
their living from speculation in it. That the Government
would buy the West Indian islands and impair its credit
by shouldering their mortgages, that the Bank of France
was short of specie and had authorized Belmont to buy
largely, and other flying rumours, were industriously
pointed out by interested augurs as birds of evil omen,
when they were little more than canards. They
served, however, to raise gold on Friday from 121 to
123. The clique of heavy operators found little sympathy
in the street, and met eonsidarable opposition from the
stockbrokers, who unloaded liberally to keep the premium
down. On Saturday Mr. Doutwell telegraphed an order
to sell on Monday $1,670,000 extra coin, and invest the
proceeds on Tuesday in bonds. This bear movement
succeeded for the time being, but on Monday, when the
gold came to he sold, the bids were for nearly five times
the amount to be sold, and ranged from 121.35 to 122.37,
causing tho premium to again advance to 122/, On Tues-
day it ran down again to 1211. The Gold Board and Gold
Exchange Bank troubles have broken out again. The
bank requires that brokers during each day shall give
cheques for the balances due the bank, but does not itself
give cheqnes for balances due the brokers until after the
whole day's business has been "cleared." Trevor and Col-
gate on Monday refused to give their cheque for $500,000
to the bank without an immediate return, saying that they
did not wish to be bothered with injunctions in getting
their money back. After a stormy session of the Gold
Board the firm was allowed to have its way, but for that once
only. On the following day, however, Marvin Brothers
refused in the same way to give their check for $900,000.
Although they eaimed that they were only doing what
Trevor and Colgate had been allowed to do, they were ex-
pelled from tho Gold Boarel.! This circumstance has given
rise to a large number of transactions without the aid of
the bank, or ex-clearing house, as the phrase is. Much
regret is expressed that the clearing-house system was not
suffered to die in the agony of the September panic. Go-
vernment Bonds are about 2 per cent. higher. The rise in
gold stimulated a greater activity, and the small supply of
bonds begins to be sharply felt. The 100 millions taken
by the Government, and the prospect of a continued de-
mand from that quarter, the demand for them by persons
who wish to invest their January dividends, and the steady
drain of them to Europe, are elements in the demand con-
tinually operative, and in a measure cumulative. The
outstanding bonds of the Government in round numbers
amount to $2,100,000,000. About $1,000,000,000 have
been taken by European capitalists, while $805,000,000 are
of registered tissues. About £75,000,000, also, of small
denominations are scattered over the country, having been
purchased in exchange for the 7.30 bonds. There are,
therefore, only about $220,000,000 of bonds left available
in the country as against $550,000,000 to $700,000,-000 at
this time last year, from which foreign investors can be
supplied. North Carolina new bonds have broken down
to 34k. Other Southern State bonds have fluctuated, but
ou the whole have not much varied. Speculation in rail-
way stocks revived with the speculation in gold, and the
rise has been quite marked. New York Central has been
in demand, and rose on Monday 3 to 4 pre cent., but has
since fallen off somewhat. The general list is Ito 2 per
cent. higher. The Kansas Pacific Railway, during Decetn-
ber, earned from freight $145,323, from passengers
$63,530, altogether $65,853 over its working expenses.
Breadstuffs continue dull and irregular. Christmas week
was a dismal one in England, a great rain storm sweeping
off much grain and many cattle, damaging also the fields
of winter grain, and bringing up prices of wheat ls. per
quarter. In provisions the last stronghold of war prices
seems giving way, viz., hog products. At New York
prices have fallen within a month, and mostly within a
few days, from $32 to $2B for mess pork, $29 to $26.50
for prime mess, from 19 to 16/ cents for steam rendered
lard, and from 15k to 14 cents for Cumberland bacon.
Butter and cheese are steady. Cotton has been coming
down to the sea in greater quantities than the Liverpool
or home demand could dispose of, and quotations are
lower. The India crop is also reported to be larger, and
the prospect of its coming through Suez better. Prices
have been almost miraculously sustained, and must
be quite sensitive to depreciatory symptoms. Wool
is higher for low grades and Texas. Tobacco is being
exported more freely than last week, but the home market
is quiet. Seed leaf has been in better demand, and sellers
have come nearer to buyers' views. The sales at New
York include 50 cases of Connecticut (crop of 1868) at 50
to 60 cents.

(From the Wall-street Journal.)

FRIDAY EVENING, Jan. 14, 1870.

Business throughout the country continues restricted,
and failures are heavy. De Bost Brothers, jobbers of
ladies' dress goods, 89, Worth-street, N.Y., aro announced
as having failed; and George Underhill and Co., jobbers
of woollen goods, are also reported to have suspended.
Howard and Co., a large firm in the jewellery trade, at
619, Broadway, have stopped payment ; tha American
Watch Company and other similar large establishments
being among the creditors. It is reported that the credi-
tors of Richard Patrick and Co. will grant an extension,
and the firm will probably resume business. R W. Martin,
}nn, and Co., stock dealers and brokers, 26, Broad-street,
New York, are announced as having failed, but it is ex-
pected that they will speedily resume. Money on call is
easier, and loans have been readily made all day at 6 per
cent., with exceptional transactions at 5 and 7 per cent.
Discounts aro also easier, although somewhat unsettled by
the continued failures. Prime double name paper passes
readily at 8 to 12 per cent., and prime single names at 12
to 20 por cent. Gold, spite of every effort to drive up the
market, continues heavy, and has varied to-day from 121 i
to 1211, at which price the market closes.

Railroad Stocks have fallen off, and the market, with
few exceptions, is heavy. Closing quotations for mort-
gages.
N. Y. Central 6s, 1883 87j
N. Y. Central Gs, 1887 86
N. Y. Central Gs, It Est 83
N. Y. Central Gs, Sub'n 84
N. Y. Central 7s, 1876 98
N. Y. Gen. 7s, con. 76
Erie Ist Mort, Ex 92
Erie 7s, 2d Mort, 1879 B9l
Erie 7s, 3d Mort, 1883 B7
Erie 7s, 4th Mort, 1880 7Bl
Erie 7s,sth Mort, 1888 7l
Long Dock Bonds
Buff. N.Y. &E. Ist M,'77 —
Hud. R. 7s, Ist M,
lied. It. 7s, 3d M, '75 9B
Harlem Ist M, '6B '72 9B
Mich. C. Ist M, 69'72 117
Mich. new Ist M 85,'82 —
Mich. So., 7 p. c. 2d M 92
N. Ind. Goshen Line '6B
Mich.S.&N.l.S.F'd7p.c. 97
111. Cen. 7 p. c, '7O 116
Alton & T. 11. let M 93i
A!ton &T. 11. '2d pfd 8U
Alton & T. 11. 2d M. Inc. 71
1.1au.& S t.J LandWrnts lOa
flan. & St. J. Con
Clli. & N. w
1:i. B. & Q.,eslt, S
s 1 M 105
( S.
& N. W. Con Cony B7
Chi. & N. AV. Int B Bl
& N. W. Ist M 9l
Quincy & Tol, Ist M, '75 70
& So. lowa Ist M 7O
Gt. West. Ist M, 'BB B5
Gt. Western 2d M '93 77
Tel. & Web. Ist M Ex 9J
Foreign E \ change is dull:and quotations generally arc
nominal.

Tol. & Wab. Equip 73
Mil. & Pr. du Ch. Ist M —
Gal. & Chic. Ext 101
Gal. & Chic. 2d M 9l
& R. I. Ist M 101
Chi. R. I. & Pacific 7's 94
Cleve. & Tol. S. Fund 93
N. J. Central Ist M 102
N, J. Central 2d M 94
Pitts. Ft.W., & Ch. Ist M 1011
Pitts. Ft. W., & Ch.2d M. 941
Pitts. Ft. W., & Ch. 3d M. 91
Cleve. & Pitts., 4th M 7ll
Chic. & Alton, S. F. Inc.
Chic. &Alton, S. F. lstM. 971
Mil. & St. Paul Ist M 9l
Mil. & St. Paul 2d M B2
Marietta & Cia. Ist M B7
Morris & Essex Ist M b
Morris & Essex 2d
Joilet & Chic. Ist M._
Chi. & Gt. East'n lstM 75
N. Y. &N. H. G 5,,,,, 9G
Dubuque &S. City,lstll. 92
Peninsula Ist 11
Ohio & Miss. let M 9ll
Ohio & Miss. C0n,,,,,, 761
Tol. P. W. Ist M. E. D 77
Atlantic & G. W. 2d M.
Del., Lack., & W., 2d M. 92
Lake Shore Div. Bonds 85
Cleve, P. & sh. N.B —

Do. O. 8...
Union Pacific Gold 8... 81
Central P.llll. Gold 11... 911
Pacific 1111. guar. by Alo. 90:1

Sixty Days. Three Days
London Bankers ... loBi -10 S-8- 1091,-1091-
London Prime Commercial 108 —lOBl
Paris, Bankers
Bremen, Bankers
Hamburgh, Bankers 35; -35 i -
Frankfort, .11
0 .. 4Ol-401
_., 7o' 71-}

Berlin and Uulogwi
Antwerp
Amsterdam, Bankers
Swiss 0.24-5.181

The following are the quotations for specie:—
Amer. silver... 96f to 97f I Eng. soya 486 to 488
Mox. d011ar5...1031 „ 101 j2O francs 385 ,t 387
Eng. silver 470 , 480 ( Thalers
Five francs .... 96 „ 97 j
Government Bonds are irregular, but there is some
demand for export.
Sixes, 1861, registered ..... 117 j to 118
Sixes, 1881, coupon , . 11.8.4 to 118 k
Sixes, 1868, coupon ..
U.S. 6s. Pacific Railroad
Five-twenties, 1862, registered ll3f to 114
Five-twenties, 1862, coupon
Five-twenties, 1864, coupon ......... .„ ll5l to 115
Five-twenties, 1865, coupon
Five-twenties, 1835, coupon, new
Five-twenties, 1867, coupon
U.S. 5-20 Coupons, 1868 lll to 114}
Ten-forties, coupon .. ll2l to 113
Ten-forties, registered
Oregon War Loan, Sixes 1881 — to
Miscellaneous Stocks do not show much animation, the
transactions being principally confined to Pacific Mail,
which has fluctuated between 40 and 41f.
N. Y. Cent. & Hud. Er. 911 Pacific Mail 4oi
Erie
Reading
Mich. Central ll7k \V. U. Telegraph
Illinois Central
Cleveland & Pittshrg. 90 Mariposa Preferred
Chi & North-West .... 731 Ohio and Mississippi 251
North-West Preferred 86f Boston Water Power l4i
Canton 53 Cumberland
Rock Island
Cleveland and Toledo M & St. Paul
Fort Wayne BB IM & St. Paul Preferred 861
Express Stocks are heavy, and there is little business
- -

_ .
doing.
Adams 621 to 63
American Mercitants' Union 36i to 37
Merchants' Union, old Stock..
United States
WVlls, Fargo, and Co

53/ to 54
20k to 21

Messrs. Drexel and Co., the Philadelphia bankers, report
as follows on Friday, Jan. 14 :—Pennsylvania Railroad
Shares, 544 55 ; Sixes, Ist Mortgage, 97 974 ; Sixes, 2d
Mortgage, 96 964.