The Sun.
London, England, 1869-05-24 00:00:00

MONEY AND BUSINESS.

(From the Springfield Republican, May 8.)

Money is higher at New York, and the condition of the
borrowing market is more changeable and uncertain than
for several weeks. Seven per cent. in gold interest is
freely paid, and commercial paper brings from 7to 9 per
coat. Various causes have been combined to produce the
situation, but the stringency is mainly artificial. An at-
tempt to force down the price of stocks, begun two or three
weeks ago, when money wee plenty and cheap, is now
continued and strengthened by the pressure in the money
market—the "bears" holding on to their funds, with which
they will buy in again when they have sufficiently de-
pressel stocks. A speculative movement in gold is also in
progress, and that also can be more successfully conducted
with a short supply of money. Tho maturing of many
uctes during the first days of May, and the payment of
interest on mortgages and other real estate transactions,
afford excuse for putting the screws on the money mar-
ket, and supply a plausible excuse for the stringency, but
there is no doubt of au abundance of money at moderate
rates if it suited the plans or the pleasure of those who
control it to put it on the market. The New York
bank statement of Saturday showed a strong condiron of
things, with continually increasing receipts of currency
from the country. In the West, where the speculative in-
fluences which control the New York market do not exist,
money is easy and abundant. The grain trade has been
unusually dull since the opening of navigation, and the
banks seem likely to carry the usual supply of money into
the summer months, without the usual spring activity. At
Chicago, singularly enough, there is little or no specula-
tion afoot, and the call for money at the banks is light
and readily supplied. But little currency is sent into the
interior in payment for grain, and the quantity now in
store at Chicago will probably grow steadily less until the
receipts from the new crop. Government bonds are steady
and firm, with a good demand and a scarcity in New York
for the earlier issues of Five-twenties, which have held
steadily up to the highest figures. The London market
has been a little lower, and the two markets are now
almost at an equality, leaving little or no margin for
shipment. The amount of the foreign May coupons
which have been reinvested proves considerably less
than at first expected, although the foreign brokers at
New York are buying up odd lots of Governments
and laying them aside for future employment. The
future course of governments will quite likely continue
upwards—indeed so far from the present prices being
high, they are below those which really first-class
securities ought to command. Before the war, United
States Six per Cents. having two years to run, were selling
at 120 in gold—equal to about 160 in currency at the pre-
sent premium. 'l'be certainty that the bonds will be
promptly paid in gold at maturity adds to their prospective
increase in value, and it would not be surprising if before
many months gold and Governments exchanged places,
and resumed the relations which they held before the war.
Mr. Boutwell's May statement of the national debt is ono
of the most favourable and encouraging ever issued, and is
everywhere received with satisfaction and approval. The
nominal reduction of the debt which it exhibits is
$6,400,000, while the real decrease of the interest-bearing
principal is $13,500,000, the difference being in the increase
of interest during the month of April, which is now added
in and charged up in full to the close of each month. The
,set reduction of the direct debt of the Government since
,it reached its maximum in August 31, 1865, has been
$284,125,686, and deducting the issue of Pacific Railroad
Bonds the net reduction of all the debt has been
$228,531,686. The May statement of the debt is in detail
as follows: