The Sun.
London, England, 1869-07-12 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, June 26.)

The stringency in the Money Market, unusual at this
season of the year, is unrelaxed and unchanged except by
slight and temporary fluctuations. The peculiar situa-
tion is attracting very general attention and comment in
financial circles, and in all quarters there is solicitude for
the future. The scarcity of money is an encouragement to
the Wall-street speculators, and an undefined dread of a
"lock-up" of greenbacks, at some unexpected moment, or
of the springing of some new and unknown strategy upon
the market, tends to increase the contraction and check
all permanent investments. The smaller the amount of
money, the easier it can be controlled, and the reduction
of nearly a million a week in the loanable resources of the
New York banks, for the last month, is a fact more plea-
sant to the speculators than to their helpless customers.
The causes of the scarcity are still variously stated, and
no two authorities agree in their theories. The de-
mocrats and inflationists arraign the Secretary of the
Treasury, as the cause of all the woe, and bitterly up-
braid him and his actions. The aggregate reduction
of currency, during the first part of Mr. Boutwell's admi-
nistration was something over $10,500,000, and since
June 1 the process has boon going on at about the same
rate. Something of the money pressure may be due to
this influence, but it is scarcely possible that our circula-
tion should be restored to a sound basis, and a return to
specie payments effected, without producing a sensation
somewhere, and the present situation of affairs proves
nothing except that there is an executive officet•'at the
head of the Treasury Department. Mr. Boutwell, how-
ever, shows no disposition to establish settled opposition
between the Government and the bankers, and has accord-
ingly crdered that, after July 1, the sales of gold and pur-
chases of bonds shall be reduced one-half—•to two millions
of each per month. This will tend to an even and steady
state of affairs during the summer, and afford ample time
for preparation for the more active business and em-
ployment of money which will come with the autumn.
There is a greater supply of money in the westward
markets, and the flow of money will soon be reversed
—from West to East. The Chicago banks are loan-
ing money freely, and the country orders for cur-
rency have greatly fallen off within the last fortnight.
There is no excitement and scarcely any change in the
Market for Government Securities, which hold up firmly
under the scarcity of money and the weakening stock
market. The Assistant-Treasurer at New York bought
$1,620,000 in bonds on Wednesday, at 115 31.100 to 115
52-100, and will buy $1,000,000 on Tuesday next, which
which will complete his purchase for the month, and will
bring up the total amount for the four months of the ad-
ministration of its proportion for an average of 1 per cent.
per annum of the total debt. Hereafter, however, until
further notice, only $2,000,000 of bonds will be pur-
chased monthly, or $1,000,000 on each alternate Thurs-
day. There is talk in some quarters that Mr. Bout-
well is bound to atone for all the neglects and omis-
sions of his predecessor in office, and that he should
proceed to augment the sinking fund by the purchase
of bonds equivalent to 1 per cent. per annum of the
total debt, since the passage of the Sinking Fund Act
in 1862. This would require about $70,000,000 in gold,
which the Tribune says the Secretary can spare just as
well as not, his coin surplus, June 1, having been some-
thing over $105,000,000, and probably not much re-
duced since. The Independent, also, which has "full faith
in the purity of his motives," approaches Mr. Boutwell
from an opposite quarter, and urges him to the same ac-
tion, telling him that if he don't increase his weekly pur-
chases of Government Bonds after the close of the present
month, " the mercantile community had better prepare at
once for financial earthquakes, and the Secretary may as
well make up his mind before Congress meets in Decem-
ber that he will be required to vacate his place by a loud
call from the people." The Secretary, however, appears
willing to take the risk of the situation, and understanding
the Sinking Fund Act to require only that he shall set
aside 1 per cent. annually during his own Administration,
he will wait the authority of Congress before attempting
to correct the failures and omissions of Mr. M'Culloch's
regime. The current finances of the Government are in
good condition, the receipts both from revenue and cus-
toms being large, and the expenditures not above the
ordinary amounts. The next statement of the debt,
which will close the fiscal year, will be a favourable
one, and is already awaited with a good deal of inte-
rest. Gold is declining quietly and unobserved, and the
market is almost entirely free from speculation. The boar
movement is undoubtedly in anticipation of the July in-
terest, of which over $30,000,000 will soon be put upon
the market, and which it is important to take at as low a
figure as possible. The chief feature of interest connected
with the gold market market is the continued increase of
importations, and the augmented balance of trade against
us, while the premium declines, and the foreign shipments
of specie amount to only a nominal sum. For the first
five months of the current year we imported, at Now
York, nearly $40,000,000 worth of merchandise more than
last year for the corresponding time, and for the same
months our exports, specie included, were over $28,000,000
less than in 1868. Tho trade of all the other Atlantic
ports has been similarly unfavourable, and the shipments
of cotton and Government Securities have done but very
little toward restoring the equality. The last monthly
circular from 11. Clews and Co., New York bankers, says
of this balance against us and its future effect on the gold
market : —"lt would appear then that we have outstanding
a heavy amount of postponed indebtedness. It is the
very general testimony of foreign bankers, that the im-
porters have freely deferred their remittances, probably
under the usually fallacious hope that gold may decline
after tie" payment of the July interest. Their payments,
however, cannot be much longer postponed. Foreign ex-
change now rules at rates close upon the specie shipping
' point; the supply of cotton held in the South has been re-
duced to a low point, and is little more than will be re-
quired for home consumption ; while our surplus of bread-
stuffs, if sent freely to Europe, would realize comparatively
little at the now reduced prices. Thera remains there-
fore but one circumstance which may prevent free ship-
ments of gold during the summer and fall months, viz.,
the continued large export of bonds, a contingency too un-
certain to admit of definite estimate. The bears have been
masters in the stock market for the past week, though their
authority has not been wholly undisputed. The general in-
flationtnd watering of stock, actual and prospective, has
nearly expended its effect, and the speculative tide now sets
the other way. The Vanderbilt roads are the strongest,
and the western roads are also pretty firm, under the in-
fluence of a good business and a handsome increase of
receipts over last year's figures. The returns from all the
leading railways are favourable, and the summer travel
will swell the receipts to still higher figures for the next
three months. Tho July dividends will nearly all be
larger than those for July, 1868, and there is no doubt
that, despite the slight failing off in the market quotations,
the stock of the roads is actually more valuable than it
was a year ago. The Southern State Securities are get-
ting in bad odour at the stock board. Tennessee announces
that she cannot pay the July interest on her bonds, which
amount to $1,100,000, and the report that Missouri had
decided to redeem her bonds in gold turns out not to be
true. South Carolina, however, promises to pay her
$700,000 July interest promptly on maturity, and
will raise the necessary funds by taxation. Dry
goods have been very active, and have advanced
to a state bordering on speculation. The heavy
dealers in staple fabrics, cottons, and domestic goods,
have been steadily increasing their stocks, in anti-
cipation of the early fall trade, and there is no apparent
probability that prices will be any lower at present. The
result, however, depends considerably on the state of the
money market and the abundance of capital, for with a
tight market, and no money available, a crisis might be
forced, whioh would cause a general tumble in the prices
of, cottons and all other goods. The prospect, as far as it
is visible, is strong and confident. The activity in cot-
tons has produced a corresponding movement in woollens
and flannels, both of which have advanced slightly. In
grain and breadstuffs more business has been doing, and
prices for flour and wheat have appreciated considerably
at New York, and somewhat less in the Western markets.
The foreign demand stimulates the movement, and prices
will undoubtedly be higher; until the new crop is delivered
in market. The weather for the last few days has been
quite unfavourable for the growing crops, and the effect is
perceptibly felt in the quotations. Live stock, as is usual
at this vegetable season, is dull and heavy, with little
doing either in the Eastern or Western markets.

(From the ►Wald-street Journal.)

Friday Evening, June 25, 1869.
Money on call is easier, and although the arket is
active, borrowers are freely supplied from 7 per cent. cur-
rency to 7 per cent. gold. In discounts there is little doing,
the rates being 9 to 12 per cent. prime paper. Gold is
strong, in sympathy with the business in Foreign Ex-
change, having opened to-day at 1371, thence rising to
1371, and closing at 1371. At the 13th Treasury sale of
gold on the 21st June the total bids submitted were for
$3,870,000, at prices ranging from 136.03 to 136.76. The
whole amount, $1,000,000, was awarded to Marvin,
Brothers, and Co. at 136.76. At the 14th Treasury sale
yesterday the bids were for only $1,625,000 ; the gold was
awarded in $25,000 at 136.59, $lOO,OOO at 136.61, $lOO,OOO
at 136.63, $lOO,OOO at 136.65, $lOO,OOO at 136.67, $lOO,OOO
at 136.71, $lOO,OOO at 136.65, $lOO,OOO at 136.70, $lOO,OOO
at 136.87, $lOO,OOO at 136.68, $5OlOOO at 136.62, $25,000
at 136.62.
The Philadelphia Public Ledger, June 25, says—" There
was no marked movement in Government Bonds yester-
day. The market has been exceedingly dull here for all
i•lasses of our national securities since their decline from
the highest point three or four weeks ago. Holders here
were then sellers, and while they are not disposed to con-
tinue sellers at the present lower prices they are not
buyers, restrained probably to some extent by the Wall-
street stringency in money, which to a considerable eldest
controls all stock prices. There will probably be soma
improvement shortly. The July dividends upon the stocks
of the United States and the bonds of the Pacific road in
gold will be larger than last year, and the currency divi-
dends upon bank stocks, railway bonds and shares, and
various other investments, it is thought, will also be in
excess of the corresponding dividend period of 1868. At
the earn time, it its believed that the currency balance in