The Sun.
London, England, 1869-05-24 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, May 8.)

Money is higher at New York, and the condition of the
borrowing market is more changeable and uncertain than
for several weeks. Seven per cent. in 'gold interest is
freely raid, and commercial paper brings from 7 to 9j per
cent. Various causes have been combined to produce the
situation, but the stringency is mainly artificial. An at-
tempt to force down the price of stocks, begun two or three
weeks ago, when money was plenty and cheap, is now
continued and strengthened by the pressure in the money
market—the " bears" holding on to their funds, with which
they will buy in again when they have sufficiently de-
pressed Weeks. A speculative movement in gold is also in
progress, and that also can ho more successfully conducted
with a short supply of money. The maturing of many
notes during the first days of May, and the payment of
interest on mortgages and other real estate transactions,
afford excuse for putting the screws on the money mar-
ket, and supply a plausible excuse for the stringency, but
there is no doubt of an abundance of money at moderate
rates if it suited the plans or the pleasure of those who
control it te put it on the market. The New York
bank statement of Saturday showed a strong condition of
things, with i ontinnally increasing receipts of currency
from the country. In the West, where the speculative in-
fluencos which control the New York market do not exist,
money is easy and abundant. The grain trade has been
unusually dull since the opening of navigation, and the
banks seem likely to carry the usual supply of money into
the summer months, without the usual spring activity. At
Chicago, singularly enough, there is little or no specula-
tion afoot, and the call for money at the banks is light
and readily supplied. But little currency is sent into the
interior in paymeut for grain, and the quantity now in
store at Chicago will probably grow steadily less until the
receipts from the new crop. Government bonds are steady
and firm, with a good demand and a scarcity in New York
for the earlier issues of Five-twenties, which have held
steadily up to the highest figures. The London market
has been a little lower, and the two markets are now
almost at an equality, leaving little or no margin fur
shipment. The amount of the foreign May coupons
which have been reinvested proves considerably less
than at first expected, although the foreign brokers at
New York are buying up odd lots of Governments
and laying them aside for future employment. The
future course of governments will quite likely continue
upwards—indeed so far from the present prices being
high, they are below those which - really first-class
securities ought to command. Before the war, United
1 States Six per Cents. having two years to tun. wore selling
at 120 in gold—equal to about 160 in currency at the pre-
sent premium. The certainty that the bonds will' be
• promptly paid in gold at maturity adds to Ateirprospective
increase in value, and it would not be surprising if before
many months gold and Goliernments exchanged places,
and resumed the relations which they held before the war.
Mr. Boutwell's May statement of the national deb,. is ono
of the most favourable and encouraging ever issued, and is
everywhere received with satisfaction and approval. The
nominal reduction of the debt which it exhibits is
$6,400,000, while the real decrease of the interest-bearing
principal is $13,500,000, the difference being in the increase
of interest during the month of April, which is now added
in and charged up in full to the close of each month. The
net reduction of the direct debt of the Government since
it reached its maximum in August 31, 1865, has been
$281,195,686, and deducting the issue of Pacific Railroad
I Bonds the net reduction of, all the debt has been
$228,531,686. The May statement of the debt is in detail
as follows: