The Sun.
London, England, 1869-08-09 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, July 17.)
Time has been when the advent of dog-days so reduced
the transactions of the money and stock market that a
report could be almost dispensed with, or at least made
up of a general criticism of the weather. But the appli-
ances of modern (regarding as ancient everything that
ante-dates us three years) business aro so perfect that,
though the bulls and bears frisk about in their native pas-
tures and forests for a brief vacation, by means of the
bulegraph they still continue their financial operations in
Wall street. In thes9 warm days business loses some-
what, but not so much as formerly, of its acceleration.
The present facility in the working of the machinery of
commerce is well illustrated by the new species of paper
called a " cable transfer," by which a Now York broker
who owes a debt in London cr.n pay it within four hours,
by ordering the equivalent of the sum which he deposits
in New York to be delivered to his London creditor by
his trans-Atlantic agent. It is the postal order system
made universal. By such devices as these is the money
market kept in work, even when everybody is apparently
lying idle. For the past week money has been easy with-
out exception at six per cent. on Government collaterals,
and seven for other good security. The continued pur-
chase of bonds by Secretary Boutwell is doubtless the main
cause of the let up from the stringency of the past few
weeks. The indictment of brokers for complicity in
the recent outrageous look-up of funds has also had
a good eff ct Several have been brought to trial,
and have all, or nearly all, pleaded guilty. This is as far
as the matter has gone thus far. The panic among
the usurers at this sudden baring of the arm of the
law seems to bo profound. The Independent pro-
fesses to know of one instance in which the extor-
tioner sent back to his customers all the extra in-
terest that he had compelled them to pay—too late, how-
ever, to save his head, for his indictment papers had
already been made out. Another incident of the raid is
the capture of one of the directors of the Milwaukee and
St. Paul Railroad. His fellow-directors look at the mat-
ter in a purely business aspect, and do not afford him a
single crumb of sympathy. It is thought that the enforce-
ment of this law will result in a combination among the
influential lenders of money to throw out the higher-priced
and moro mercurial railway stocks as security for loans.
Such a movement would diminish somewhat the risk
which is always au element in the rate of interest, but at
last accounts no such conspiracy had been formed. The
penalty in New York for charging over seven per cent.,
whether the crime be proved by the admission of the defen-
dant or by other evidence, by the law of 1837, is a fine of
not over $l,OOO or imprisonment for not more than six
months, or both. The rates for three months' mercantile
paper, with two or three reliable signers, vary at New
York from nine to twelve per cant., and at Boston, where
usury is unknown to the statutes, from seven and a half
to nine at the banks, and from one to two per cent. per
month with private capitalists. Another cause for confi-
dence in the continued ease of the money market is the
New York City Bank statement for the week ending July
17, which shows a gain in legal tenders of $3,156,978, in
specie of $788,538, and in deposits of $5,234,462. The
loans have increased $5,234,462, and the circulation has
decreased $99,508. The net reserve has been increased
by the addition of over $3,000,000, and now amounts to
$24,762,622 in excess of the 25 per cent. required by
law. Governments continue to rule strong and steady,
the transactions for the most part of the week being
large, and the premium advancing. The Secretary
bought $4,000,000 of Five-Twenties last week, $3,000,000
this week, and will again invest to the extent of the for-
mer sum next week, the plan being to buy $3,000,000
every week, at least through July, and $1,000,000 regu-
larly every fortnight. The offers usually amount to three
times the sum desired, which is a good evidence of the
un-M'Culloehian publicity of the transaction, and the
price paid on Wednesday ranged from 119 85 to 120 40.
Some (short-sighted individual inquires what right the
Secretary has to spend so much of the public money in
premiums, and whether or not the premium is a part of the
debt. Several clauses of unrepealed laws authorize this
manipulation of the public funds by the Treasurer, and
the practice of buying up the debt at a premium is well
established by precedent as well as by sound economy.
As to the second part of the query, the premium is really
the most profitable part, literally the redeeming feature of
the debt. This inclination among holders of Five Twen-
ties to exchange those securities for Ten-Forties and Cur-
rency Sixes has been still further exemplified the past
week, and had a tendency to bring nearer together the
prices of the two classes of bonds. It is true the increase
in the premium of Five-Twenties has been nearly double
that of the rise in Ton-Forties, so that apparently the
quotations are further apart. But even with this differ-
enze the long-time bonds have kept up closer to the others
than they have been wont to do in similar seasons of
fluctuation. Within two weeks hive-Twenties of 1862
and 1864 have risen four and a half and four per cent.,
Ten-Forties two and a half, and Currency Sixes two per
cent. Tho market abroad scents to be less active than at
home, though American securities touched 88 in Lon-
don on Tuesday. Southern State Securities, which
seem to be the only State bond that suffer the igno-
miny of continual fluctuation and quotation, are as
dull as ever. Those hol or them who are in want of
money, or do not share the sanguine hopes, of a " regene-
rated South," are just uneasy enough to keep the market
depressed. The tendency of gold has been down all the
week, declining about one and a half per cent., the index
now hovering over the small fractions that lie between
135 and 135 i. This depression, it is feared, is not per-
fectly healthy, and many apprehensions are felt of a rise
consequent on increased shipments to foreign ports, Many