The Sun.
London, England, 1869-08-16 00:00:00

MONEY AND BUSINESS.

(Front the Springfield Republican, July 31.)

With the advent of dog-days the continuance of large
greenback disbursing transactions on the part of the Go-
vernment and an encouraging Bank statement, the money
market has continued easy throughout the week. Bor-
rowers have found no trouble in having their wants sup-
plied at 6 to 7 per cent, on prime security, and the loans at
even a less figure have been large. Tho New York City
Banks foot up for the week an increase in loans of
$2,633,600 ; in deposits of $5,190,559 ; in legal tenders of
$2,412,156 ; a decrease in circulation of £67,639, and in
specie of $970,026. As compared with their status at the
same date of last year, they had over thirty millions less
of deposits, eighteen millions less of legal tenders, and
have out over twenty millions less of loans and discounts.
Their circulation has increased $2,316, and they hold
about ten millions more of specie or an increase of 50 per
cent. The last item is somewhat relied on to keep the
money market easy through the fall campaign. Discuss-
ing the legitimate functions of a banking institution and
its influence on the money market, the Financial Chronicle
thus indicts the country banks :-There are not a few na-
tional banks in the country whose officers almost reside
permanently in Now York, and use the money of the
bank in Wall-street to much better purpose, so far as pro-
fits are concerned, than if they soberly and quietly sat
still at het& and lent it to tLeir neighbours in the legiti-
mate way of loans and discounts. We do not refer to
speculative bank officers, but those sharp, shrewd, austere
men who never speculate, but always in a tight money
market have largo sums to lend at the highest rates. Ilow
far the recent prosecutions for usury will check this trad-
ing in money we cannot tell; but there is no doubt that
the vast sums which have been lending in Wall-street of
late at usurious rates were not wholly derived from our
city banks or from city lenders. A goodly proportion of
the amount, we feat, comes from country national banks,
which are technically said to be " run in Wall-street."
We do not hear much about the usury trials. It is
said that the case of Van Buskirk, who buys and sells lot
Lockwood and Co., will be carried up to tho higher court
in order to test the constitutionality of the law. The de
fendant alleges that if the Government can buy and sell
money at a premium, a private citizen can buy and sell
the use of money at a premium. We suspect it will be
much easier to prove the inconsistency than the unconsti-
tutionality of the law. Governments are still advancing,
and will continuo, without doubt, under the present policy
of the Government. Ono of the pleasantest features of
the week deserves a second notice, viz., the proposition
from those cautious Frankfort bankers to loan us
$300,000,000 at five per cent. The fact that such an offer
came unsolicited was very flattering to Mr. Boutwell's ad-
ministration, and at the same time justified him in suppos-

ing that by waiting a longer, giving a chance for
competition, he could have all the funds needed, oven at
four, or four and a half per cent. interest. In fact the dif-
ference between the price of bonds abroad and at home is
now very slight. Reckoning gold at 136, and au American
Five-Twenty Bond is worth but 90. in New York, while it
has been quoted within a few days in London on the
rising side of 83. It must be remembered also that on ac-
count of the exchange the bonds are at par in London
when they roach 91. At the last purchase of $3,000,000
on Wednesday, the largest part was bought by Jay Cooke
at 120.11. This late was a trifle below the quotations for
the day, and there is said to be a generous disposition
among the more responsible brokers to favour the Govern-
ment by meeting its demands for securities at the very
lowest possible rates. There have been intimations that
the extra purchases would be discontinued through August
on account of the heavy expenses that must be met during
the next few months. Some oven thought it was about
time for the secretary to begin to save up a little pin-money

for Congress. Reports were current at New York on
Tuesday, however, that the purchases of bonds and sales
of gold woula continue. The amount in the Treasury has
been as low as 525,000,000, which is considered a
small coffer for ordinary business. Careful estimates
put the reduction of the debt during the present month
at 9,000,000 dollars. The London Star, commenting
on Mr. Boutweli's policy of buying bonds, ventures
only to say that it is a "somewhat bold experiment."
Struck with a sudden sympathy for the American tax-
payer, it then suggests that we use the surplus money
that is now going into the sinking fund, in paying the
ordinary expenses of the Government, in order "to lighten
the burden which the people have borne so long without
a murmur." Taxation, to be sure, is grievous, but the
almost universal applause which meets the present dis-
posal of the cash in hand is evidence that the people, who
have been so long patient, now prefer to see the debt
diminished, rather than to fold their hands at the last mo-
ment and let it involve them in national bankruptcy. In
view of the high price of Five-Twenties, occasional by

his continued call fox them, the Secretary has directed
that national banks be allowed to substitute Ten-Forties
in place of Five-Twenties as capital deposited with the
Government. This permission will doubtless be largely
availed of, and already has had the effect to further acce-
lerate the previously large business in the Exchange of
short for long bonds. On Tuesday these two classes of
securities were quoted respectively at 12-1 i and 1101, and

on Wednesday 124 and 1121, approaching each other
❑early two per cent. Southern State Securities have been
more active during the week, and North Carolina New
Six per Cents. have advanced from G to 8 per cent. within

a few days. The recent decision in that State by Chief

Justice Pearson that a Railroad Loan Bill must be sub-
mitted to a vote of the people is said to rest on the not
very evident ground that such a loan disturbs the propor-
tion fixed by the Constitution, which the capitation must
boar to the property tax. Gold has been interesting, not
for its present movements, for it has been comparatively
quiet, but in regard to its future status. During the
present week it has risen from about 135 to 1371, but
it broke down on Wednesday to 1351. The occasion of this
fluctuation was a rumour that large amounts would be
exported and the final discovery that the rumour had
no foundation. Some of the New York papers have
engaged in quite a lively skirmish, using mostly such
harmless missiles as unsavory epithets, over the ques-
tion of the future export of gold. The bulls rely upon
the large amount of foreign debts that they claim are rest-
ing on the merchants, for an increased export of and con-
sequent call for specie. On the other hand the bears claim
that the present fair supply of bullion is sufficient to
satisfy all legitimate needs, and charge the others with an
attempt to throw gold up to 140, which it has not been
since last October. The shipments of specie have been
increasing through July, but aro yet regarded as small.
The amounts exported for the first four weeks were as
follows :—For the week ending July 3, $852,957 ; July

10, $908,734 ; July 17, $1,762,546 ; July 24, $3,082,015;
total since January, $21,294,741, against nearly $59,000,000
for the same time last year. This increase of export has
some good features, for it immediately reacts by easing
the London and other foreign money markets, lowering

the rates of interest and stimulating further investment in
American bonds, bearing as they do high rates. So
speedily does this adjustment follow that, in consequence
of the heavy shipments of last Saturday, being known in
London via cable on Monday morning, a further reduction
in the Bank of England rate of discount from 3 to 2i per
cent. was immediately foreshadowed, as was learned in
Now York from private telegrams on Wednesday. The
stock market has boon excited over the fluctuations of
Vanderbilt stocks, but has nevertheless been uninteresting.
This continual bobbing up and down of Now York Cen-
tral and Hudson has become exceedingly tame. On Wed-
nesday, the former, which has been up to 216, dropped to
210, on a rumour that the grand conclave of railroad
giants at Saratoga would postpone consolidation after
all. Hudson follows the fortunes of its leader, and varies
11 or 12 per cent. in as many hours. Wall- street is
quite befogged by these changes, and very likely
pays a pretty penny for the show into the pockets of the
Commodore. Harlem bounded up 9 per sent. on Satur-
day. Meantime the neglected Western roads are making
flattering exhibits of their earnings. For the first six
months of the year ton roads, centreing in Illinois, did a
business of $2,781,365 more than in the same time in 1868,
and in June alone earned half a million more than in June,
1868. The income to the stockholders of Michigan Cen-
tral last year was '420 per cent. Dry goods are usually
quiet, and for most fabrics prices have not changed. Prints
are most active, and the fall styles will be in the market
by next week Light ginghams are still in good demand.
Muslin delaines are attracting more attention, and the
assortment of new styles with dark shades has been largely
increased. Foreign goods are slow, the market being so
full of British and Continental fabrics that buyers can
take their time. Provisions have been dull, holders steady,
and buyers reluctant. The advance in moss pork was not
justified, and fell off, though the tendency in pork pro-
ducts generally seems to be upward. Butter is firmer, but
cheese continues to droop, Wool has been in increased
demand, and prices have steadily advanced. Tho Pacific
Railroad is the occasion of a good many commercial expe-
riments and theories. It has been urged, for instance,
that the Eastern States would now have to send their
butter to Europe instead of to California, as the Mississippi
Valley will now supply the Pacific coast. An ambitious
Chinese firm attempted to send 30 tons of tea direct, in lead
bound pound and two pound packages, to Chicago, but
the Pacific Railroad was going to charge $230 per ton
freight, or for every pound of tea about 23c., since half of
the tonnage was load. This rata was too high to justify
the sending of tho tea to Chicago, and it was despatched
over seas to New York.
The following letter has been addressed by the Secre-
tary of the Treasury to the Comptroller of Currency,
July 23d :—" Referring to my letter of May 14th ultimo
I have decided to permit the substitution of Ten-
Forties and Five-Twenties, or the exchango of any gold-
bearing bonds now held as security fur circulating notes
on the basis hitherto adopted ; the Ten-Forties to be re-
ceived at eighty-five per cent. of their par value, and all
other six per cent. gold-bearing bonds at ninety per cent.
The Six per Cent. Currency bonds issued by the United
States to tho Pacific Railroad will not be received as
security for the circulation of national banks ; and the ex-
change of gold-bearing bonds is subject heretofore to re-
vision if it shall be found that such exchanges are so fre-
quent as to become onerous to the Department.—GEOßGE
S. BCUTWELL, Secretary of Treasury." The Comptroller
of the Currency has given notice accordingly.
.4 Messrs. Drexel and Co., the Philadelphia bankers, report