The Sun.
London, England, 1869-12-14 00:00:00

MONEY AND BUSINESS.

(From the Sprineield Republican, Nor. 27.)
The situation in the money market has not materially
changed during the past week, and presents still the same
elements of caution, expectation, and resultant strength.
Money is abundant at the financial centres for all legiti-
mate purposes, but the inevitable tendency of events to-
ward specie payments, the uncertainty as to the action of
Congress on the subject, and the possibility of a decision
by the Supreme Court on the Legal Tender Act, and which

will undoubtedly be adverse, all combine to render banks

and capitalists cautious and circumspect about investments
or entrance on extensive financial enterprises. The ruling

rates of interest at New York and Boston are from 7 to 8

per cont.,, and good customers on first-class security get
accommodation for less. Ths last weekly statement of the
New York banks shows a reserve of $27,929,071 in specie,
and of $19,455,121 in legal tenders, an excess of over
$21,000,000 above the legal limit, and all the while the
surplus is rather increasing than diminishing. The de-
mand for specie for export is falling of, and the remit-
tances of money to the interior are smaller than usual.

There are some calls for currency from the South and West
to move the cotton and pork crops, but only enough for
actual necessity is demanded. One New York bank shipped
the other day $275,000 to Louisville, Ky., and $50,000 to
New Orleans, while another has a standing order for
$50,000 daily from New Orleans. Small bills aro becoming
a little more plenty with the banks, and the inconvenience
of their absence will be guarded against in future. The
western market is still suffering from its chronic stringency,
and there is no very cheering prospect of relief. Tho
city merchants are obliged to sell on credit, and the coun-
try morelaants are compelled to both buy and sell with-
out the cash. The low price of broadstuffs undoubtedly is
the efficient cause of the state of the Money Market at the
West, Mid- as the East yields in turn to the influences
tending toward specie payments, we shall undoubtedly ex-
peri4te in greater or less degree the same effects. The
law of facts and the force of events will bring us to this
experience -if the acts of; Congress do not, and there is no
good reason for attempting by legislation to hamper or',
obstrueThae natural results of the business of the country. ,
The present situation Of the Money Market will most
likely be without.; essential' change until the meeting of
Congress, and the deVelopment of its financial policy. The
country no-ve waits for more light, and when that is ob-
tained it will take courage and go ahead. The Gold
Market has been calmlY subsiding, and on Wednesday
went deiwn to I`2Ssx.tho'lowest,pe.int since the spring of
1806. ' 'sitAkeried:, again, and after the
GoverOitent ba4t.sekrii:4lo6o,boo for 1.24:, it' dropped
,to,l244o,lli;Vlt4iet-'.WaS witleOtit life .or excitenient.
T legt4iie 4i;&d.:tni• gold is' not largo, and there is
no deSire on the part of speculators to risk any more in
the pools just at present. The shipments of specie from
New York during October were less than the imports, and
our foreign trade for the same month presents a very gra-
tifying exhibit. The total of our exports, exclusive of
specie, from January 1 to November 1, was almost as large
as the total last year, inclusive of specie, and the returns
for November will show a still greater gain. The following
tables present a comparison of the aggregate imports, ex-
ports and customs at New York, for the ten months ending
Nov.l, as compared with those of the corresponding periods
in the two preceding years :
Year Imports. , Exports. Customs.
1867 $223,401,888 $195,270,663 $101,878,476
1868 218,869,427 202,612,630 99,660,324
1869 268,653,975 189,323,541 109,887,984
The cash duties paid thus show an increase this year of
over ten millions, and in the month of October our ex-
ports of domestic produce were four and a half millions
greater than in the corresponding month last year. The
currency value of all our exports, exclusive of specie
since January 1, is $171,573,476, showing an increase of
over $32,500,000 over the first ten months of 1868. When
the difference in the premium on gold is taken into con-
sideration, the amount of the exports will be seen to be
much larger than appears from a mere comparison of
their values. The tendency of our foreign trade and the
gold market is on the whole favourable, and the state of
affairs healthful and encouraging. We are accumulating
strength, and with a prosperous business and a wise
administration of our finances, may be able next year to
keep at home tile gold which we prod ice, and finally get
back some of, that which we have been sending abroad so
liberally for the past few years. Governments have a
downward tendency, though the movement is not very
marked, and they hold their own very well in the general
depreciation of all paper certificates of value. The steady
reduction of the debt, which has reached nearly
$75,C00,000 in the last nine months, and the strong pro-
bability that the remainder will bo funded, perhaps at an
early day at a low rate of interest, undoubtedly reduce
the market quotations of the public stocks, although there
is no real depreciation in their value. They are mor
than ever sought for abroad, and the demand for them on
the continent is steadily increasing. A recent private
letter from a well-informed American gentleman in Paris,
says:—" One thing is patent to everybody here, Ameri-
can Securities, and especially Governments, are rapidly
growing in the public favour, and a new funding loan will
go at 41 per cent. with a rush. The French and English
papers are discussing funding question daily, and I have
not yet seen an article (and I have read fifty) in which our
ability to fund our debt at that rate is oven questioned."
In the action of Congress on funding of the debt, the rates
of interest to which it will limit Secretary Boutwoll will,
of course, be governed by the prospects in the European
markets, and a figure near the lowest at which it is pro-
bable that it can be placed abroad will be adopted. It is
more and more apparent that the larger proportion of our
public interest is ultimately to be paid in Europe, and, to-
gether with the current saving to the Government in the
matter of interest, it is also desirable to disburse no more
of our national revenue to the foreign capitalists than is
absolutely necessary. In the prospect of a lower rate o
Government interest, many holders of five-twenties are
selling out and transferring their investment to railroad
and other securities, of which there are a number of vary
good ones now in the market. There is also a good and
growing demand in Europe for our Pacific Railroad Bonds,
which will be more desirable than Governments after the
debt is funded, because of their higher rate of interest.
Secretary Boutwell will buy more bonds in December than
in any previous month—the amount is named as high as
$25,000,000, and whether he sells as much gold, which is
not unlikely, will have $32,000,000 in coin to put on the
market in January, in the shape of the semi-annual
coupon interest. The interest in stocks has been
confined to the western railroads, the Chicago and North
Western and Milwaukie and St. Paul being the centres
of attraction. The speculators are discounting in ad-
vance on the December dividend of the North Western,
which will be 31 per cent. on the common stock and
son the preferred. The St. Paul dividends will not
be declared until February, but will be the same as
for the whole year 1869. The Erie and all the Vander-
bilt roads have been comparatively deserted by the brokers,
and the entire transactions of the week have been much
imaller than usual. The business of the railroads is gene-
rally improving, and the receipts of the roads for Novem-
ber show an increase in the corresponding month for last
year. The settlement and cessation of the rivalry in
freights between the West and the seaboard is one pro-
minent cause of the inoreaso, as might be expected, when
it has doubled the rates for the transportation of wheat and
raised the price on other articles in similar proportion. One
result of the movement will be to drive wheat and flour
back to the water routes, and strengthen the movement for
congressional aid to the system of proposed canals through
Illinois and Wisconsin, to connect the lakes and the Alissis-
Sippi. There is no important change in miscellaneous
stocks. Pacific mail steamship keeps steadily declining,
and will go lower, unless a speedy announcement is made
of the payment of the next quarterly dividend. A move-
ment is on foot for a watering of the Wells, Fargo, and
Co. express stock to the extent of five millions, in order
to get control of the Pacific Express Company, now
ontrolling the Central Pacific Railroad. A. 11. Bar-
ney, president of the company, heads the hydropa-
thic scheme, which is resisted by a large party of the
stockholders, uuder the lead of Mr. Eugene Kelley.
Meanwhile the stock of the company is down to 19 to
191, and to an outside spectator it would seem that
one of the first things for the company to do would
be to restore its impaired credit and bring up the market
value of what stock it already has, instead of still further
expanding its nominal and unproductive capital. General
trade and business is dull and limited from the same causes
which affect the money market. Merchants and produce
dealers are awaiting developments, as they can better
afford to do, now that the bulk of the fall trade is over.
Prices of cotton, raw and manufactured, are tending down-
'wards, and the receipts at the Southern ports, continuing
large, will undoubtedly prevent any rise at present. The
stock of goods on hand is not as heavy as usual at this
season of the year, but there is uo disposition among menu-
JacturerS to press sales, while in woollens the state of
'affairs is vory simi'ar. The foreign goods importing are
Mostly sent to the warehouses in bond, as there is no
market =opt Ow auction room. Who del:Tool= IA Dread-