The Sun.
London, England, 1870-01-15 00:00:00

MONEY AND BUSINESS,

(From the Springfield Republican, Tan. 1.)

This is holiday week, and except for dealers in fancy
and gift goods has been dull. The only business iu the
Money Market has been in preparation for the payment of
dividends and other squaring up of balances for the be-
ginning of the Now Year. Monday was deemed the dul-
lest day in the whole season, and the whole week, being
kept sacred also in foreign markets, presents very few
features of interest. At Chicago the review of the Money
Market on Saturday seemed more hopeful. Orders for
currency from the interior had fallen off and exchange had
risen,so that small amounts of currency were being shipped
to New York. The state of the banks, however, continued
very painful, they being able to supply only their regular
customers, turning a deaf ear to all others, though they
came offering prime collateral. The deposits in the banks
were 50 per cent. below what they were in June. The
holiday improvement in general trade was quite marked,
but probably temporary. At Cincinnati the banks are
experiencing less pressure, and think they have passed
the snug point. Mercantile paper was in much request
from outside capitalists, a fact that indicates a stock of
money seeking investment. General trade is iu a much
better state at the East than at the 11 est, where the con-
tinued decline in the price of wheat exerts a very depress-
ing influence. This staple has not only got down to specie
prices,but is going down below them. The enormous crop
in this country and the at least average crop in the great
wheat fields of Europe could not but make it a drug, for
wheat is one of those commodities of which the demand is
capable of much less variation than the supply. When it
is scarce and dear, people must and will have it, reducing
their expense if necessary in some other direction ; and
when, on the other hand, it is plenty and cheap, people can
do no more than supply the same appetite which before
they refused to stint, and will spend what they save in the
price of flour, not. in more flour, but in other articles of
consumption. A large crop, therefore, produces a fall in
price, without a corresponding increase in the demand. It
is not therefore wasted, but must wait longer to be die-
posed of. The Mark-lane (London) Express of December
6 was looking for an improvement in the price of bread-
stuffs, with the freezing up of the Baltic, but thought
that at that time there was no inducement for foreign
houses to ship grain thither, as it was cheaper there
than almost anywhere else on the globe, California
perhaps excepted. However this may be, we may be
thankful to a good harvest for bringing us nearer
to specie payment, inducing as it has such an export of
wheat and cotton as 'to stop effectually the outflow of gold .
Inflation prices giving way to gold prices produce again
declines. Action and reaction tend to one and the same
resuL, to force prices down, or in the pernicious and de-
ceitful phrase of the advertisements, to a "shrinkage of
values." As to what advantage we can derive from such
a state of affairs, wo quote from the Chicago Tribune an
opinion that is current in ono form or another in most of
the western papers, and which coincides fully with the
Republican's demands for a free banking law :—" Thus
agencies more potent than Acts of Congress, and more
comprehensive than the financial plans of politicians, are
forcing our financial affairs along the road to specie re-
sumption. These agencies, however, will not finally ac:.
complish specie resumption for us, unless Congress this
winter takes some positive step toward giving us a
currency on a sounder basis than the present by an Act to
make the national banking law freo, basing the security of
the currency on the gold value of the bonds deposited
with the United States Treasurer, and, at the same time,
providing for the gradual retirement of the greenbacks.
Unless something to this effect is done, the influence of
these abundant crops will have been expended without
permanent benefit." Gold has been of little interest during
the week. It has once been a fraction below 120, but main-
tains itself in unstable equilibrium just above that figure.
The Secretary of the Treasury announces that he will
hereafter accept no bids that are more than half a cent.
below the market prices, which is supposed to mean that
he will accept such as aro above that figure. One of the
evidences of the almost utter prufitlessness of goad specu-
lation at present is the exceeding delicacy of the subter-
fuges that have to been indulged in to pay even office
expenses. On Friday, for instance, operators borrowed
gold ou Government collaterals, sold it, let out the pro-
ceeds or miscellaneous collaterals, and therefore at a
fraction higher rate of interest, and on Monday gold being
dull through the absence of many dealers, quietly bought
back their bullion, till a slight reaction in the price closed
the performance. This much stirring of the pot, in order
to be able to skim off a small fraction of a cent as profit.
The assistant Treasurer at New York has disbursed about
$3,000,000 of the January gold interest, and is also paying
the currency interest on the Pacific Sixes. Government
Bonds have improved somewhat. The Financial Chronicle
urges the necessity of revising the banking law at once,
even if the funding of the debt has to wait. The difficulty
of funding k 4 per sent. loan at par before the 6 per cent.
Five Twenties have not reached that point, and the in-
expediency of attempting this final funding prematurely
are much dwelt upon. Aud, indeed, if our Government
Securities improve as rapidly for a year to come as they
have for the year past, time is the cheapest and safest
broker in whose hands we can leave them. To make this
more evident, wo present in tabular form the present
quotations of bonds and gold, and those of December 30
1865, as taken from the telegraphic reports of that date,
to the Republican

1869. 1868.
Gold. MI - 13-14
Coupon SiseP, 1861 11:44 1141
5-20's, 1862, . 113 ' 11U

„ 1861,

, 1865, 11* 1071
” ~ .120 W, 1141 1101
„ 1867, 114 i 1111

71 1868,
10-40's,
At London, 67's

1141
109
85

111/
105/
74

The rise in price has therefore boon about 14 per cent in
New York on some of the securities, as reckoned in gold.
We can afford to wait till the terms of a now loan grow
easier. Some of the changes in the quotations of stocks
are rather more startling. New York Central has fallen
from 153 to BG, and Hartford and Erie from 25 to 8. State
Bonds have not changed noticeably. The holders of
Tennessees propose that the State authorities "appoint
a committee of seven, of which we suggest that the Gover-
nor, Treasurer, and Secretary of State shall be members,
and that three bo named by a majority of the assenting
bondholders, and these elect the seventh ; this commission
to receive from the State a transfer of all the iudebte tnt.ss
of all the various railroads, to be held in trust." It shall
collect the interest regularly on the bonds of the
solvent roads and sell out the insolvent roads at auc-
tion. Stocks during the past week have been quiet.
A now consolidation just broached, is that of the Great
Western Railroad of Canada with the Michigan Cen-
tral. The former road runs straight across the Canadian
peninsular from Niagara Falls to Windsor, opposite De-
troit, and with its connections has 334 miles of track. It
is an English road, but is about to pass into American
hands ; in fact, has already been taken possession of by the
Mulligan Central. Its capital is $17,000,000, and its stock
is quoted at 75. Some think that Joy, president of the
Michigan Central, will endeavour to bring up the price by
a new issue of matured stock. The dry goods market shows
considerable firmness, and agents have apparently found
no difficulty in maintaining the advance made by them
on leading cotton goods ; indeed rates are quite firm at the
higher prices, and a further rise would be considered more
probable than a decline from current quotations. This
strong tone imparted to the market at the close of the
season, when business is necessarily dull, has been a very
good feature, and has undoubtedly done much to encou-
rage jobbers and manufacturers, and will start them with
good spirit upon the new year. Brown and bleached sheet-
ing and shirtings have shown considerable activity.
Prints, ginghams, and cotton flannels are still rather in-
active. Woollen goods are unsettled.
(From the New York Tribune.)
FRIDAY EVENING, Dec. 81, 1869.

Gold sold at 1201, and closed at 1201 to
oi
clearings of the Gold Exchange Bank were
Topheen el at 1 19 t
80,5.55,000, and the balaness $2,247,642. The Govern-
ment received bids for $1.000,000 gold to-day, but the
prices were unsatisfactory, and awards were made for
bids of over 120 only. In accordance with the Secre-
tary's orders, $20,000 was awarded at 120.01 to
120.02. This action stimulated the market, and gave a
firm tone to the prices for the remainder of the day.
Government bonds were strong under an active invest-
ment demand, and prices were from Ito per cent.
higher than yesterday. The offerings wore moderate,
and no large amounts could have been purchased at the
advance. State bonds were strong. Railway bonds wore
in active demand, and were sparingly offered at quota-
tions. The street has been unusually inactive to-day, and
a large number of investors have been purchasing mort-
gage bonds of completed roads. Michigan Southern
sinking funds sold at 97 ; Union Pacific 6 per Cents., 84;
North Western sinking fund, 96 ; Rock Island 7 per Cents.,
97; New Jersey Central, new bonds, 98 ; Chicago and Al-
ton firsts, 100; Ohio and Mississippi firsts, 94; St. Paul
firsts, 92; Morris and Essex Construction Bonds, 861.
Miscellaneous and Express shares were dull and steady;
the offerings were light, and the sales were not sufficient
to make qu„tations. Railway shares were strong, and ad-
vanced from 1 to 11 per cent. from the lowest plan! ions
of yesterday. There were no calls of stocks after the noon
session of the Government Beard, and the street was al-
most doses tod bpforo 3 o'clock. Ihe Long Room remained
Open until 31., o'clock, but the transactions were without
speculative interest. There was a good demand for Michi-
gan Southern, North Western, St. Paul and Rock lelaud
shares.

~ 115 to 1151
~ 119 to 119 i