The Sun.
London, England, 1869-06-07 00:00:00

MONEY AND BUSINESS.

-411.
(From the Springfield Republican,- May 2 2-.)

The call for money during the week has been only mo-
derate, and, as a consequence, the supply has ;been abun-
dant and the rates easy. Six per cent. with Government
security, and 7 on good paper, have procurceloans with-
out difficulty, and the situation generally has; been quiet
and uneventful. The fluctuations in gold, and the irre-
gularity and uncertainty in stocks, havo checked the tend-
ency to speculation, and the demand from that source has
been smaller than usual. Permanent investor's also hold
off until affairs appear more settled, or a legitimate em-
ployment for their capital is offered. The tiow of cur- •
rency is still from the rural districts to New York, and the
weekly statement'of the banks shows an iucroase of over-
five and a half millions in deposits during the Aveek. The
loans have increased only one million, so that their posi-
tion is stronger and their ability to supply their customers
with funds greater than a week ago. Tho in:heathens fa-
vour continued ease in the market during the sunnier,
unless some artificial combination is effected to force a
stringency. At present, however, the speculators have all
they can attend to in the fluctuations of gold and stocks,
and the Summer vacations and holidays will soon draw
the buds and bears of Wall street to their cone try 18.3-
tnres and watering-places. The supply of money iu
the Western netreet is more than is needed, a tel the
Chicago banks are complaining of dull times. There
is no activity in the breadstuffs market, and the ap-
proach of harvest tends to check speculation in the
sleek now on hand. The country makes no deniand
on the grain centres for money, and there are conse-
quently few borrowers. Gold keeps steadily advancing,
amid rejoicings on one side, wailings on the other, anthill
sorts of expressions from the speculators. On Wedues- '
day the price reached 144, the highest 'since September,
1868, and an advance of over 9 per cent. since the first of
May. Nobody doubts that the rise is engineered by specu-
lators, and even the few' who regret the fact unite in the
general satisfaction *when ono of them comes to grief, as
has the heavy German house of Schepeler and Co. This
extensive concern, one of the heaviest foreign bankers in
New York, failed on Monday, for a large amount, vari-
ou ly stated at from $1,500,000 to $2,000,000, and during
the rest of the day the gold market was excited and un-
settled in consequence. Other failures were 'feered, and
expected, but, except two small houses, none occurred,
and the creditors of Schepeler and Co. are all sound, and
able to sustain their losses. The Schepeler house stood
well at New York and in the European markets, and de-
spite one or two cases of rather sharp practice, just before
their suspension, will be aided by their associates and go
on in business. The public, however, have no reason to
be discouraged or dissatisfied with the increase in the pre-
mium on gold. It simply means that the financial condi-
tion of the country is coming to be better understood, and
that gold is no longer to be in a great degree ex-
empted from the operations of an inflated currency, and
enjoy immunity as the cheapest commodity iu the mare
ket. If the price of gold were controlled Ike the
average price of other articles, it would be nearly or
quite 200 per cent. The real lesson of the situation is
thus clearly and concisely stated by the New York
Eeening Post :.L-"Were the price of gold raised to, the gene-
ral leVel of prices, without serious disturlance to trade in
general, the expo.t of bonds and the increase of our debts
abroad would be checked, foreign markets for surplus crops
and manufactures would be opened, and greater stability
would soon be given to the financial condition of the coun-
try. Wo could then ificasiffe'Our'mcauS and face our 'difli,-
culties, without the., thin disgrace which now blinds so
macy to them both ;' and.the, country would see the 'essen-
tial trutb, that the really weak point in the situation is our
inflated currency, and that until that is disposed of neither
the credit of the nation nor the industry of the people can
be established iir a satisfaCtory condition." -An incidental
advantage resulting from the rise in gold is secured by the
Government, which is now selling gold at a million a week,
and purchasing bonds with the proceeds. The higher the
premium' of course the more bonds it -will buy, and of.
course the difference is profit to the Government. Imports
continue-heavy in New York, and the receipts bf the Tres-
' suey for customs are large. The exports of specie have-
-been limited during the week, and the coin halaece in the
Assistant Treasurer's hands keeps constantly up to high
water mark'. Government Bonds have lost their old
characteristic.of declining with every advance of gold,
and now do exactly the opposite. Secretary Boutwoll got
116; to 1161 for his million on Wednesday, and the demand
has been 'uniformly strong and ectivee London prices
have also appreciated, and the reported threat of the.
great Bank of England to raise its rate of discount
to-10 per cent., if necessary, to stop the speculation in
foreign securities, hes had no depressing effect on the
price of our Five-Twenties abroad.- That plethbric in-
stitution may drive Spain and the begging German pro-
vince (rem out of its markets, but it can hardly. extinguish
or ( xpel the faith in a good bond of the United. States
baring six per cent. interest in gold. Secretary Bona-.
well has removed all doubts of his iute ntion in paying
Governments by an explicit deelerition that he is going to
enforce the long-neglected Sinking Fund Act, and that
be which are applied to that purpose. will be legibly
stamped, .for the purpose o`. distinguishing them from all
other bonds, and preventing their stile iu the Public mar-
ket. It seems that the S ecret try lies hid no doubt or he-
sitancy in adopting this policy, and that all reports to the
effect that he was confused and, perplexed into his sense
of duty were altogether unfounded. The course of the
Secretary meets witli all sorts of criticisms from the emi-
nent financial doctors, who speak through the press, each
one of whom is the sole discoverer and possessor of the
only absolutely perfect and adequate policy, Whatever
the discussion of their sapient theories may amount to, a
few facts, which are quite apparent, afford considerable
aid in judgment of the Secretary's action. All the Demo-
crats, papers, and politicians, with scarcely an exception,
oppose it. The G.overnrnent is not speculating is its own
bones; those which are now purchased wi:l not again
be for sale the re-issue of bonds being expressly fer-
bidden by the law of 1847, and punishable by fine and
imprisonment. Mr. Boutwell is only, -executing a law,
enacted by Congress in 186!, and neglected ever after by
Secretary M'Culloch ; if the law is unwise or undesirable,
Gen. Grant's view of the case is correct, that its faithful
enforcement is the best and speediest wayeto secure its re-
peal. With these facts to sustain its present course the Trea-
sury Administration can well afford to wait the results,
and by them stand or fall. A reduction of the debt
.513,000,000 per month is an assurance of integrity and
'ability which appeals more 'strongly to the popular appre
ciation than any finely-spun theories on abstVact prin-
ciples of finance. The New York Stock Market has been
uncomfortably disturbed by the failure of a young and
growing firm of brokers, in consequence of the flight of its
junior member with nearly all its funds, and the situation
of gold and Governments has made the speculators rather
timorous. BUsiness is fair without special excitement,
and. prices of standard roads- have been well 'sustained.
The Vanderbilt roads have steadily appreciated under:
rumours from Albany that Governor Hoffman would soon
sign one or the other of the scrip and consolidation bills,
that he would sign both, that ho would do it forthwith,
that he had already gone and done it, &c.,—the whole
course of affairs showing, if not actual collusion of the
governor with his confreres of Watt-street, at least a very
close mutual understanding. New York Central sustains
every rolvince in prices, and is steadily above the "80's.'
Harlem, Hudson River,, and Lake Shore, of course, go
along in the ascent. Rumours aro afloat of another
grand outpouring. of water in the Vanderbilt roads,
Lake Shore, Toledo and Wabash, and others, which will
enormously swell the aggregate of their capital. In
which connection it is interesting to know that since
July 1, 1867, twenty-eight of the leading railroads of the
country have. increased the total of their united capital
from $287,036,000 to $400,681,000 or over $1.13,000,000.
If there is no limit to this process, and every expansion
will be legalized by corrupt legislation, there is no reason
to expect that the railroad companies will change their
policy. The reports of nperpetual lease of the Pittsburg,
Fort Wayne, and Chicago Railway to the Pennsylvania
Central aro confirmed on good authority, and there is no
doubt that a largo Increase of capital is contemplated. The
terms of rental will probably be 12 per cent. annually on
• the present capital, or 7- per cent. on the new' capital—
s2o,3l2,soo - free of Government taxes and all contingen-
cies. The Pacific Mail Steamship Company has declared
a quarterly dividend of 3 per cent., payable June 1, and
its stock is among the foremost in the market. Trade in
dry goods is light, and, wholesales and jobbers ;are com-
plaining of a dull spring, and one heavy Broadway house
went under last week in consequence of losses in outside
speculation to make up for the depression of business.
The tendency of_ prices is also downward, and the pros-
pects for the future are not particularly bright. Cotton in
the Southern markets has improved a little, but the de-
mand fcir staple manufactured goods is small and easily
supplied. Wool in the seaport market is dull, bnt reports
of business in the interior manufacturing cities are more
favourable. The flour and breadstuffs market has been
more active, in consequence of favourable advices from
Europe; and the reports of a large harvest in prospept,
stimulating the desire to work off the present stock.
New York .has begun to receive shipments by the canal,
and, the supply on hand will doubtless coma forward
rapidly,

(Front the ►Fall-street Journal.)
• Friday Evening, May 21, 1869.
Money on call shows rather more activity, but dealers
find no difficulty in supplying themselves at 7 per cent. on
stocks and bou,lB. Discounts are active, at 7to 9 percent.
for first-class paper. Gold is decidedly lower on the re-
cent advance, having opened this mot ning at 1431, and
subsequently declined to 1114, closing at 1411. :This fall
has been in some measure aided by the Secretary of the
Treasury, wh) has issued proposals for the sale of
$1,000,000 gold on each Monday, until further notice, ad-
ditional to the usual Thursday sales, making a total sale
of $2,000,000 per week. At the fourth Treasury sale of
gold yesterday bids were filed for $2,100,000 ; the highest
bid was 143.91, and the lowest 143.52. The awards were
inciao as fellows :—sloo,ooo at 143.91, $250,000 it 143.85,
$250,000 at 143.81, $50,000 at 143.81, $50,000 at 143.80,
$250,009 at 10.79 i $50,000 at 143.77, Govennuout bouds