The Sun.
London, England, 1869-03-04 00:00:00

THE SUN, LONDON, 7 11(711SDAV EVENING, MARCH 4, 1869.

CONGRESS.

THE SENATE.

On the 3d inst. Mr. Ross introduced a bill to en-
courage the growth of fruit trees, and Mr. Conk-
ling one to encourage the building of steamships.
Mr. Trumbull, from the Judiciary Committee, re-
ported back his bills reorganizing the Supreme
Court, and relating to judgments in capital cases.
The Patent Office Appropriation Bill was reported
—also, the bill for the erection of a bridge across
the Delaware between Philadelphia and Camden.
Mr. %Varner, of Alabama, offered a Suffrage Amend
ment to the Constitution. The Diplomatic Appro-
priation Bill was considered, and Mr. Buckalew
moved to strike out the appropriation to carry out
the Slave Trade Treaty, but this was not agreed to.
Amendments were adopted increasing the salary of
the Minister to the Argentine Republic, and appro-
priating $l,OOO to repair the Protestant Cemetery
at Acapulco. Without finally disposing of the bill,
the Senate took up the Suffrage Amendment, and
various amendments were offered and ordered
to be printed, after which the Senate adjourned.
—Oa the 4th, the credintials of Senators-elect
Tipton, of Nebraska, and Stewart of Nevada, were
presented. Mr. Edmunds introduced a bill for the
better security of printing United States notes, &c.
Tile Suffrage amendment was considered. Mr.
Cattell introduced a bill to provide for the conver-
sion of registered bonds of the United States into
coupon bonds. Mr. Osborn introduced a bill for
a line of mail steamships from Fernandina, Florida,
and Savannah, to certain European ports. An
evening session was held, at which no business of
general importance was transacted. —On the sth, a
bill to protect the fur-bearing animals of Alaska
was reported. The bill to c trry out the provisions
of the extradit ion treaties was pa-sed. The Con-
stitutional amendment was considered, and debate
upon it had in evening ses-ions.—On the 6th inst.,
Mr. Morgan presented the resolutions of the ``ew
York Chamber of Commerce against secret gold
sales. The bill to repeal the Tenure-of-Office Act
was discussed ; also the Suffrage amendment, and
amendments were offered to the latter. Mr. Ed-
munds offered a joint resolution providing that
the votes of the St.nte of Georgia for President and
Vice-President shall not be reported the same
as those of the other States, but with a proviso
that " Were the votes presented," &c.—On the Bth
a number of railroad bills were reported adversels .
Mr. Morgan introduced a bill to secure copyrights
for painting and statuary models. Mr. Wilson,
frem the Military Committee, reported adversely on
the bill in relation to the grades of General and
Lieutenant-General and Admiral. Mr. Edmunds'
resolution in regard to the electoral vote of Georgia
was agreed to. The Constitutional Amendment
was discussed and considered in evening session,
which wos continu-d throughout the night, termi-
eating half an hour only before she session of the
9,h, the debate being kept up on the proposed Con
amendment.—On the 9th bills were re-
ported for he relief of certain drafted men and oiv-
ing full bounties to coloured soldiers who enlisted
as slaves. The consideration of the amendment
w. s r som-d, and passed finally, so amended as to
include Mr. Morton's proposition, giving Congre-s
power to prescribe the mole of choosing Presiden-
tial electors. The Amendment, which returns to
the house for concurrence, prohibits any distinc-
tion in exercising the franchise or holding office in
the States on account of race, colour, nativity, pro-
perty, education, or creed. The vote on the Amend-
ment was 40 to 16. The following Republicans
voted no—Anthony, of Rhode Island, Corbett, of
Oregon, Grimes, of lowa, Edmunds, of Vermont,
and Fowler, of Tennessee.

HIGH PRICES IN AMERICA.

(From the Anglo-American Times.)

The Nation, on February 11, returned to a sub-
ect which has greatly occupied its attention—how
the high prices in America are maintained. The
statements of that paper are entitled to respectful
attention, however startling, for we know no other
more carefully written ; yet we find it difficult to
credit the truth of the conclusion at which it ar-
rives. Its opinion may be given in six words, " High
prices are due to speculation." " Speculation never
was so intense, so powerful, so wide spread, or so
dangerous to the public welfare as at the present
moment." Not the fitful fever of thoughtless
individuals risking their earnings on the ups
and downs of the Stock Exchange, nor of
professional speculators, living precariously by
forestalling the natural course of the markets,
but by a body of sudden growth as if by concert
organized, bold, able, and unscrupulous men of
wealth and prominence, who appear to control rail-
roads, banks, crops, real estate, gold, and Govern-
ment Bonds. The price of these they daily ad-
vance without reference to value or to the natural
tendency of the markets, holding posses ion by
main force until the public are compelled to pay
the price they demand. The public thinking the price
too high abstain when possible from buying ; the com-
bination say prices shall go higher and refuse to sell,
whence a dead lock, each striving to starve the
other out. Such a state of things extending over
so great a country we hold to be almost impossible,
and sure to end, even if successful for a short
time, in a result disastrous to all concerned. 'rhe
technical and suggestive term f. r such a combina-
tion is a 's corner" which means narrowed to the
point where two lines converge, and when men
maize a corner "of the Republic, we are re-
mindt d of BUTLER'S expression of "the United States
making a corner against the world." Let any one
try to realise the assertion of the Nation, and they
will see the almost impossible magnitude of such a
conspiracy. Of many staples, the United States i-
the grtatest producer and extorter ; in two, th
amount is prodigious, cott.,n and corn ; in mans
immense, tobacco, petroleum. rice, and dairy pro
duce ; yet ~rend a, is he scale on whicu such pro-
ductions are-rsised they furnish hut an item of th,
operations of the s,,eculat,,ri. The railroads of th-
Union exceed in mileage those of Europe ; is.
the telegraph it is the IT„ite i States against the
world ; in personal I.roperty the amount is too
large for men readily to undets•and it; so also in
manufactures, hankie,, mining, and joint-stock
enterprises of every description. Then folovv the
Gold, the Government Bonds, Federal and State seeu -
rities, yet we are far from having ex haust d the range
over which these operations are said to extend
Grain is bought up and stored for higher prices as
it comes to market, and both it and flour are accu-
mulatingin stock, t hough vessels lie idle, and the P. o-
duce Exchange is almost deserted, and this after a

inagnificeet harvest, while prices have scarcely de-
clined from the famine rates of last spring. For
weeks cotton has almost ceased to be an article of
trade, prices having nearly &mid. d within the year
in the face of a good crop. In Liverpool this staple
is two or three cents cheaper than in New York ;
Manchester mills are on half time, and ships that
have sought a freight of cotton at New Orleans or
Savannah carry back lumber instead. The stocks
are advancing as wed as the price, and the trade is
at a standstill. The railroad properties, though ma-
terially reduced in value by the waste, mismanage-
ment, and fraud of the last two years, have been
doubled and trebled in stock without an additional
dollar having been expended on the roads, yet the
advance on a year ago is from 25 to 75 per cent.
Still the prices tend upwards. and even the garnhleis
ask how much further can they go. " Most prudent
investors," says the Nation, "have sold out their rail-
way stocks, and purchased other property; never was
there known so little investment demand for securities
of this class ; never so little faith in their honest
management. The last quarterly statement of the
National Banks shows that they hold scarcely one-
half the aniount of Government Bonds that they
held a year ago ; it is notorious that many holders
have been sellers; Europe is at present unwilling
to purchase more, has indeed not purchased any
for serera' months past ; the amount of bonds held
by sot c sal itive dealers is very great, and there are
no buyers at present prices ; yet the prices keep
advancing still." We think the Nation is.wrong in
supposing that Europe will take no more United
States Bonds, or is unwilling to do so at the
higher rates, as the present rapid rise fully
proves. What Europe wants is confidence in
the security, and this is strengthening. Indeed we
are inclined to think that the speculative dealers are
right in holding for better prices in Federal Bonds.
Even the premium on gold, at that time 4 or 5 per
cent. higher than in December, has been influenced
by speculators, though more directly affected by the
export'demand than an% thing else. Tha next subject
discussed in this article is real property in New York;
the rents of tenements for business purposes having
declined, as the demard for them had slackened
owing to the dullness of trade, yet the prices of
real estate are advancing rapidly, and the transac-
tions are so large as to recall the Bombay mania.
The Nation accounts for the ability of the specu-
lators to carry on operations of such mag-
nitude by the increase of the currency, which has
multiplied ten times in amount since the war, though
two or three itnes would have sufficed. One-half
not finding legitimate employment is forced, on
speculators, who thus use it. The essential difference
between what is going on now in the United States
as described by the Nation and a mania, is that in-
stead of the people following the lead under a
general delusion they oppose it as a conspiracy
against themselves. Instead of the feverish acti-
vity pertaining to
a mania, dulness is the prevail-
ing feature, then being no genuine buyers. What.
goes on among the speculators is as if the London
Stock Exchangepassed shiresand Bonds from jobber
to johber,or Mark-lane transferred produce from mer-
chant to merchant, each transfer being accompanied
by and recorded as a rise in price, while the
public looked on, and abstained from buying except
when compelled. The only sensible reason for all
this is the abundance of money, which in itself
shows dulness of trade, and if trade be dull, prices
should decline. Abundance of money has generally
produced the same results. The holder is eager to
employ it to the best advantage ; where much of it
competes for employment, the security is less closely
scrutinised, and the speculator can the more readily
get the advances, if he keeps his securities at the
highest figure. The cause is due, then, primarily,
to the 'effort of the capitalist to employ his money
at the highest rate ; but if the Ration be right, and
we say again it is a carefully-written paper not
striving for a sensational effect, it will inevitably
end, if continued, in the irretrievable confusion and
ruin resulting from sudden panic and collapse.
Panics generally result from periods of abundant
money, which capitalists in their eagerness to em-
ploy lend on bad security ; but it is instructive to
see how the kern shrewdness and business aptitude
of the American people protect them from the
machinations of the speculator. If this little game
had been carried oil in England, undersimilar circum-
stances of an inflated currency, numbers of old
maids, half-pay officers, and clergymen would
be rushing into pork and corn, to realize
some good things
p
under such leadership. The
would be left up to
his neck in a grain
" corner," and the old woman smothered in cotton,
while the speculators would be working as eagerly
to break down the market as they had been to build
it up, so as to profit alike by the rise and the fall.
In the United States, however, the speculators and
the lenders are likely to be the smothered parties,
and this is so remarkable a fact that we thus fully
allude to the article in the Nation. It may be taken
also as a reason for dealing with caution in Ame-
rican Securities on this side.

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MISCELLANEOUS NEWS.