The Sun.
London, England, 1869-08-30 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, Arty 14.)
Tho even tenour of the money market has been dis-
turbed by hardly a ripple. Commercial paper was scru-
tinized a little more closely on Monday on account of the
failure of Bowers, Beckman, and Co., one of the oldest and
most reliable dry goods commission houses in New York,
with liabilities of between one and two millions. The
reason of the failure was an expensive attempt to run cer-
tain woollen mills which the firm had advanced money
upon and subsequently had thrown upon their hands. The
firm is noted for its integrity. During the crisis of 1857
it suspended and afterwards paid its liabilities to the last
cent with interest. Even now it promises to pay 100
cents on the dollar. A Boston gentleman offered to loan
them a sum sufficient to keep them up, but they declined,
preferring to suspend. On Wednesday money was rather
more active, ranging from 6 to 7 on Government coils-
terals. This was taken to be an indication that the an-
nual "grain movement" had commenced and was drawing
monetary lubrication from the metropolis of the country.
One would suppose that, with paper money so plenty
as to be worth but 73 cents on the dollar, there would
be currency enough in the country to float the most abun-
dant harvest that ever burdened the prairies. Whatever
reality there may be, however, in this annual pantomime
on the financial boards over the necessity of shipping
money West to move the crops, the experience of the past
does not justify apprehension of any such extended de-
mand as will overbalance to any great degree the Govern-
ment disbursements. The West, moreover, has but little
money deposited in the Now York banks, and is therefore
powerless to embarrass the latter to any great extent. Go-
Ternments have been lose active than for the previous few
weeks. Mr. Boutwell's demand for them is becoming a
matter of course, and the transactions for the rest of the
month are so well understood that the trade is settling
down into a steadier routine. Ten-Forties continue to
climb slowly, and most other descriptions are more or less
inclined to buoyancy. The policy of the Government in
buying Five-twenties continuos to meet general approval,
but, like every new thing, exc:tes much "suggestion."
The Financial Chronicle wants to know if the Secretary
isn't pushing his policy too far in spending for long
bonds the money which he may need in the fall to sa-
tisfy the on-demand liabilities that may bo presented
for payment, such as the Three per Cent. Certificates,
of which the New York Banks hold $35,000,000. The
same paper quotes one of the "oldest and most experienced
bankers of Wall-street," who alleges that the Treasury is
actually increasing the public debt by paying now, on de-
mated, $1,200 for a bond that 18 years hence will bring
only $1,000; the demand notes being left meantime un-
paid and morally under protest. If this is the way in
which the "oldest and most experienced" Wall-streeters
are in the habit of thinking, the country ought to hail
with delight the advent of new generations. The ques-
tion is, whether the Government shall redeem securities
which may be, but in all probability will not be, presented
to-morrow for payment, or will it redeem bonds which are
drawing six per cent. interest and will draw it for 18
years? As for the payment of $1,200 for a $l,OOO bond,
the most venerable spinster that over clipped a coupon
knows that the $1,200 means $BBB in gold, and that the
$l,OOO means $l,OOO in gold. Tho Secretary thus buys
bonds that would otherwise run for 18 years at 12 per
cent. below par and saves the interest besides. Shall
the Secretary save money to pay off a short three per
cent. certificate that will probably not be presented for
payment, or square off a debt at 12 per cont. below its
face, which draws six per cent. interest every day till it
is paid ? The market for Southern State Securities is
unsteady and feverish. Tennessee seems to have a
bright financial future before her, with a large party
in her next Legislature who will press the repudiation of
a portion of her debt. Gold has had a dull week, droop-
ing in spite of tho efforts of the bulls to induce a belief
that a day of retribution was ahead, when specie would
have to go a voyaging over seas. Private telegrams from
Europe ou Monday gave assurances that heavy rains had
inflicted great damage on the cereal crops, causing a sharp
upward turn in the price of grain in Now York, and en-
couraging the hope that our foreign bills would be met
with shipments of breadstuffs instead of the bullion, in
which we depend for the resumption of specie payments.
Gold declined a half or three-quarters of 1 per cent. The
reports of bad weather were probably exaggerated, for the
advanced prices were not well maintained, acrd gold re-
covered somewhat on Tuesday. The small amount of
grain bills offering for foreign exchange on Wednesday
ocdasioned some surprise and disappointment, after the
rumoured large purchases for export. Foreign exchange,
however, was easy at 110 to 110} for sixty days on Lon-
don.o"erviTho stock market has been rather unsettled dur-
ing the week, but on the whole without remark-worthy
features. Considerable interest is still felt in the fate of
tho Chicago and North Western Stocks, which have been
rising steadily, and the control of which is the great prize
now displayed before the eyes of the athletes that indulge
in this sort of sport. Some think that Uncle Daniel Drew
is working himself up to his fighting weight again to try
for this championship. On the other hand, the stockholder
professes to know that Mr. Keep did not instruct his widow
to hang on to her north-western investments, but that he
sent for Mr. Drew and offered to sell him his whole interest
outright, desiring to leave his property in such a shape that
his family would not be obliged to lie awake at nights over
a possible whim of the stock market on the morrow. He
offered the stock at a low rate ; no lower, however, than it
would have sold for if he had precipitated his whole
two millions on the market. Mr. Drew bought it, not
with a view to becoming the president of the company,
to which office it is said General 11. 11. Baxter, formerly
president of the Now York Central, will be elected.
Henry E. Pierson, of Brooklyn, is also a candidate. It is
very important that some ono should
these ds
who will not bo perpetually quarrelling withcontrol
Vanderbilt,
as Drew
possibly might be. By the consolidation of the
Buffalo and Erie, and Michigan Southern and Lake
Shore Railroads, the consummatiou of which was
readied last week, Vanderbilt now has a line from New
r-I'oark to Chicago. To feed this out will be the business of
the North-western Company, and the latter should be con-
trolled by men who will aid the commodore in every effort
to
cheapen freight and make perfect connections, and at
thesainete iiemaintain a sufficient independency to keep the
line from becoming a mere puppet in his hands. The directors
of the New York Central and Hudson have again been in ses-
sion at Saratoga. Pacific mail stocks had a grievous fall on
Wednesday on account of a reduction in the freight business
of the steamers, the traffic being offered to the Pacific rail .
road since the reduction in its rates. In dry goods pre-
monitions of a good fall trade begin to appear. Shootings
and shirtings have been steady, buyers being rather cau-
tious, while holders were equally firm. Prints also have
not been much called for at the present high rates, but prices
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