The Sun.
London, England, 1869-11-29 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, Nov. 13.)
The ease of money on call and its stringency on time
begin to excite considerable apprehension, which has been
heightened in New York by the failure of two or three
small firms, and of Bininger and Co., the famous wine mer-
chants, who had almost reached a centennial of prosperity
and stability. The stringency, however, arises from
causes that are comparatively incidental in character, and
not from any deep seated evil sufficient to induce a general
panic. The small supply of small notes, for instance, has
rendered payments at the West very slow, and clogged
the channels of circulation to a very appreciable extent.
The actual supply of money being measured by the ratio
between its quantity and its efficiency, any diminution of
the latter element, any lingering in the performance of its
errand as a medium of exchange, unless the lack in effi-
ciency be made up by an increase in quantity, renders ine-
vitable a falling off in supply as compared with the de-
mand. This is undoubtedly the effect of the present lack
of small bills, which, though it seems an insignificant
matter, should never be allowed by the comptroller of the
national currency to again interfere with the market, since
tke remedy is so completely in his power and so easily
applied. While the supply of money is thus in some
measure curtailed, the demand has undoubtedly been in-
creased. This is the busy month, and Cincinnati, Louis-
ville, and other pork centres, and in a less degree the grain
marts, require considerable remittances from New York-
At the metropolis capitalists are full of funds, but defi-
cient in faith. And just here lies the damage that was
done by the gold panic of September; the unsettling in the
value of gold was of little consequence compared with the
exhibition of gambling then made, which disgusted and
frightened from the legitimate loan market the honester
class of capitalists, while it encouraged the meaner class
to keep their money well in hand and loan only call, that
they might have their bowls right side up when the next
shower of porridge fell. The discouragement of confidence
on the one Land, and the encouragement of (begging his
pardon) Shylockism on the other, are, in a measure, re-
sponsible for the present quotations of time loans at 11 to
2 per cent. per month, the very fact that the interest is
reckoned by the month illustrating the desire to shorten
the absence of the capital from the sight of the lender.
In spite, however, of all these causes, the financial
outlook, on the whole, is flattering. The New York
banks owe $180,829,891 on deposits and $34,136,240 on
circulation, in all $214,965,181 against $211,919,712
last year; but they hold $74,103,929 in gold and green-
backs, against $68,357,867 last year, so that the excess
of assets over the 25 per cent. required by law is
$20,362,646 against $15,377,914 last year. It is encourag-
ing to get so near specie payments that rumours of the
speedy consummation of that end are probable enough for
speculative purposes, though the degree of probability re-
quired in that business is little enough. Still it must be
remembered that such a result, if brought about by Go-
vernment interference at all, rests not with Mr. Boutwell,
but with Congress, possibly with the Supreme Court. if
gold falls as steadily for the next six months as it has for
the past two, we shall have arrived, at the end of that
time, at specie payments, whether we will or no. And
even if it should fall only half way down in that time, we
could jump the remaining gap with comparative safety.
Meantime schemes for getting back by mysterious bye-
paths are proposed on every hand. The World suggests
that all stocks in the New York Exchange be at once
quoted and bought and sold on a gold basis, and the
Financial. Chronicle, in two and a half broad columns,
thinks the fluctuation in cotton might be arrested
in a similar manner. These suggestions develope a
love for machine ciphering that should have been
allowed to work itself out on the slates of the primary
schools. Of course greenbacks fluctuate just as much,
and no more, than gold. When one limb of the ba-
lance goes up, the other goes down, and any change
of quotations, or mere names, from one side to the
other, wouldn't have the slightest effect in bringing things
to an equilibrium. We can rid ourselves of fluctuation,
not by any change in the language of the market reporters,
but only by the rough hand of legislation, on the one
hand, or, on the other, by waiting for the laws of com-
merce to bring about national stability through easy and
gradually lessening oscillations. The price of gold has
steadily declined with the exception of an advance, subse-
quently lost, on Tuesday, which was said to be due to the
rumours of the ill-health of Victor Emmanuel. How even
a fatal termination of that illness was to affect the solvency
of Uncle Sam or lessen the relative proportion of gold to
greenbacks in this country is not plain. We suspect the
brokers take a professional pride in responding quickly to
the diagnosis of potentates, however small their political
significance. The Government sales on the same day
effectually checked the upward tendency. The rumours
of specie resumption also produced, in a slight degree,
the effect desired by their authors, the boar-ing of the
gold and bond market. The object of the specula-
tors, who are "short," is said to be to depreciate the pre-
mium of these lines of investment and then to buy in,
preparatory to cornering the market in December,
when all corporations, trustees, dm., will want to buy
bonds so that they can make oath that on December
31, the capital held by them was invested in the un-
taxable United States Bonds, thus eluding the demands of
the assessor in March, 1870. Governments have been
steady, declining with gold, but not to the same extent.
On Wednesday the large offerings to the Government,
and Mr. Boutwell's refusal to take but $2,000,000, pro-
duced some disappointment, and holders throwing a large
quantity upon the market induced a temporary decline.
The Government paid 112 95, the cheapest rates at which
it has yet been able to make a purchase. Stocks have
been rather more buoyant, and Vanderbilt Consols have
somewhat recovered the effects of the announcement of
their marriage. Wednesday was a bearish day, however,
and part of the advance was lost. The Erie ring on
Tuesday signified its intention to issue $5,000,000 of Nar-
row. Gauge Stock, with which to lay a third rail according
to an agreement with Lake Shore. As Lake Shore was
supposed to be hand in glove with Vanderbilt, this
announcement created no little surprise. By some it
was regarded as a renewal of the Fisk-Vanderbilt war-
fare. The call for more money is regarded on other
grounds as a new evidence of Erie squandering,
and it is questionable whether the Farmers' Loan
and Trust Company will allow this new issue to be
squandered. The Times says:—" As the deplorable
affairs of the Erie Road now look, $70,000,000 of com-
mon stock, or 700,000 shares, would seem to be a sufficient
increase on $16,500,000 capital, or 165,000 shares, since
Gould and Fisk, jun., took charge of the concern." The
accounts from the western linos denote an improved
winter traffic and general ease in the finances of the roads,
so much so that the December dividends on both classes
of North-west, and the February dividends on both classes
of St. Paul and Lake Shore, are deemed reasonably cer-
tain. The dividends of St. Paul Preferred is in the nature
of annual division ; it is reported as likely to be 8 per cent.
in cash. The half-yearly dividend on the Lake Shore of
4 per cent. cash has already been voted by the directors,
preliminary to the consolidation of the Toledo and Wabash
on Dec. 29. The grain trade for the past week has been
large. The snow squalls foreshadowed an early closing of
the Erie canal, and the grain has poured through that
avenue in vast quantities. The crop is so large, however,
that any amount of drain seems to have no effect on the
vast aggregate of breadstuffs at the West. The eastward
movement of flour and grain from Chicago, Milwaukee,
and Toledo, for the week ending November 6, was 110,158
barrels of flour against 103,355 last year, 1,293,418 bushels
of wheut against 993,120, and 490,978 bushels of corn
against 461,135. Rye, oats, and barley fall behind last
year's amount. There is a considerable complaint, both
here and at the great hog points West, that hogs are not
well fatted. There was the same theory, promulgated
early in the season, that the wheat crop was lacking, and
also of a short corn crop. Present prices, as compared
with opening prices, is the best comparison perhaps to
guide to a prudent course in regard to the future of the hog
crop. Prices of hogs, compared with the other articles of
consumption, aro too high, and a decline may be looked
for. Tho tobacco market is dull. The stock oflfooinv grade
is is either all out or held at high prices, while the assort_
mmt of fine Connecticut is large. The consumpt
description is limited, yet prices are exorbitantly high, and
sales are made with difficulty. It is therefore evident that
whatever the new crop may contain of fine tobacco, prices
must bo low in order to effect sales. Of the present crop
all accounts seem to agree,itloni bem
he great bulk contains a super-
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atobacco,
consume,w hi c h the
and i t
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wouldooeulldd bring osneleymbaesbtrhoouugghht
about active inbbyusaineesesaleof th e present crop
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into the market a good export demand. The
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