The Sun.
London, England, 1869-07-05 00:00:00

THE LOSS OF THE BLUE JACKET.

It appears that the boat belonging to the Blue Jacket,
which was picked up by the ship Antonio Vinent, was
only one of three, the other two being yet missing. A large
sum in gold—the captain says £4,ooo—w as deposited in
each of the three boats. The accounts of the number of
men saved by the Antonio Vinent vary ; but it seems
that there were thirty-one men in the two boats of
which no news has yet been obtained.

711 E ALABAMA CONTROVERSY.

(From the Anglo-American Times.)

Senator SU3INER disclaims, through the New York
Evening Post, any intention of makiug the relations
of his country with England the basis of a political
movement in the autumn elections. No one who
knows the Senator supposed he would, although the
abuse heaped on him here may have misled the
.English into doing him that injustice. Public
opinion on the subject in America remains the same,
and nothing in the way of argument is likely to
change it. English papers notice that New York
is furnishing abundance of parallels to the case of
the Alabama so far as her escape is concerned, but
it is not the mere escape with which Americans find
fault, and the damage, had England not been mali-
ciously inclined, they could well have thrown into
the huge destruction account made out for the war.
A gentleman, by standing on another's gouty toe,
may hurt infinitely more than if he gave the other
a slap on the face; but it is the insult, and not the
pain accidentally caused which demands reparation.
Throughout the States generally, American opinion
remains unchanged on the Alabama question, and
it would be a mistake to lead England into the be-
lief that any decided change had taken place, or
that the calmness of the people is indicative of
abating their pretentions or yielding any point.,
although the nation will not press the matter to a
war, but quietly await events. Touching the finan-
cial effect already produced, a leading New Eng-
land paper observes—
" There is a sequel to the London panic about Five-
twenty Bonds, that. the English newspapers aro not in a
hurry to tell. In the last days of April they stood at 801
in London, but in the first week in May they fell to about
77. Very few of them cams back here, however; they
went back to Germany by the million, and the foolish
Londoners who sold are now buying them back at the
old rate or something above it ; 804 being the last quota-

tion we have seen."
Itis but too evident to all concerned thatheavy losses
on every side resulted from Senator SUMNER'S speech,
and no one attempts to disguise the fact. The main
loss was not in the direction the New England
paper supposes, but in the check given to the up-
ward tendency of United States Bonds. They were
arrested at the very moment when, in response to
Secretary BOUTWELL'S policy, the accumulations in
the Treasury consequent on the buoyancy of the
Revenue Returns and the retrenchments of the ad-
ministration, they would have had a rapid and con-
tinued rise. Supposing that they would (as they
ought) to have gone over 90, and that the European
holding represents nearly £200,000,000, the gain
whielt would have accrued but for the political atti-
tude assumed, equals a score of millions of sove-
reigns. There can be no doubt that numerous
English holders sold out, while ictending buyers all
over the kingdom were dissuaded from investing by
the changed aspect of affairs, and whate zer may have
been the loss to the Republic, which must of course
have been heavier, the loss thus incurred on this
side was unquestionably enormous. The present
aspect is simply this—money in England is a drug ;
people everywhere are at their wits' end to knucv
how to invest their savings, while the best security
in the woridlies in the beapsof American Bonds now
neglected in this market. The position is an
absurdity, but a sad one to both nations ; and if
either can rejoice at the loss inflicted on the other
they may derive therefrom no small amount of
pleasure. It is not the panic through which the United
States Bonds were temporarily depressed whereby
that loss was incurred by the holders of these seen-
iities, but the effectual way in which English in-
vestment in them was stopped. The injury to the
Republic nationally is felt most directly in retard-
ing the rise, for when the bonds go above par, which
otherwise they would have quickly done, a loan can
be issued at a lower rate of interest. Judging from
the tone of the market there appears to be no chance
of a rise at present, for the intelligence from Ame-
rica, as regards the Treasury and the financial policy
of the Secretary, was all that could have been de-
sired, and no more favourable news can be looked
for ; yet there is no response, the market being
glutted with Five-Twenties, while money cannot
be loaned at three per cent. ! Had the Alabama
question been decided on as the party-cry for the next
elections in JOHN BULL'S present mood to respond
with an iron-clad fleet to any threats, the fall in Five-
Twenties would be sufficient to effectually settle "the
bull" speculators. The necessities of the Republican
party, and the chronic hostility of the Irish to Eng-
land, might have led to the war-cry ;' and the cable
informs us that Irish Republican Clubs are being
organized all over the country, in the hope, we pre-
sume, of raising the shout. But the nation will not
give its countenance to such party tactics, refuse-
ing most distinctly to be made a cat's-paw of for
the gratification of Irish hate ; and nothing can be

more pointed than the utterances of leading Ame-

rican papers on this subject. We fear that the true
loss in keeping open the Alabama dispute is not,

and has never, been understood in America. Of
course, it is more or less conjectural, and therefore
cannot be announced as a positive fact. There are
certain intelligent persons who make money by
early and correct information, and, having mas-
tered their subject, act on the conclusion they de-
duce therefrom. It was these who were the chief
purchasers in Europe of 5-20 bonds before Mr.
SumzErt's speech, as they knew that the investing
portion of the English public were moving steadily
in that direction, whose great weight, when it be-
gan to tell, would raise the bonds far above par, and
place the ball at Secretary BOUT WELL'S foot. They
bought with the intention of anticipating the rise
inevitable when the people learnt that the Union
was the finest country in the world to mortgage ;
offering, if the inhabitants were peaceably and
honestly inclined, the best and most reliable of all
securities. That it could pay with ease these per-
sons knew; and they saw that this fact would be-
come more apparent every day; that the inhabitants
were wearied of war, having but just reaped a har4
vest of its baneful horrors, they also knew ; and that
these inhabitants were honestly inclined was un-
m!stakeably shown by the fate attending the re-
pudiation cry and those who raised it. Never before
bad men speculated on what appeared to be so dead a
certainty, but " a little cloud no bigger than a
man's hand" was in the heavens which they had
not perceived, and they found all their calculations
most effectually marred by a tempest it is idle to
say does not even yet threaten. The movement of
the investing public was turned aside by the storm,
and the impression is now strong in the English
mind that if they build their house on that ground
they are likely to have it shaken down over
their heads by an earthquake ; an impression,
however untrue, most injurious to the finan-
cial interests of the United States. Therein lies the
heaviest loss, one of credit which has been very gene-
rally overlooked, for it is either unseen or not believed
in by those who desire to keep the quarrel open.
While discussing in a general way this subject, we
may allude to a most insolent and pernicious error
so repeated by the Spectator that it evidently de-

sires to thrust the opinion on the public. It states '
that there has been a total change in the tone of
America, caused by the warlike attitude assumed
by England, while there is no change at all, and
that attitude only surprised and amused Jonathan.
We call the error pernicious, for if the Spectator
desired the Republic to assume abullying and threat-
ening manner, this would be the easiest and best
way to attain the object ; while the effect on this
side into impress on England the false conclusion
that she has only to appear ready and willing to
abide the issue of war to ensure a peaceable and fa-
vourable settlement ; the surest means that inge-
nuity could devise for drifting the nations into hos-
tilities. On the other hand, journals of weight in
America with as little taste or truth represent the
English as toadying the American Minister in fear,
and hoping to conciliate him by good dinners and
affectionate greetings. The attitude of England is
simply this. A war with America is regarded as
the greatest calamity that could befall the country,
but it would require very little indeed to persuade
the people as one man that a war with America
was inevitable, that nothing they could do would
conciliate or satisfy the Republic, and that the
sooner they fought the better, for the nation was,
and never could hope tobe more powerful and united
than at present. The moment that conviction is
fixed in the English mind, the storm will burst,
for it will be deemed to be the national interest to
fight at once, and it would be a thunderbolt that

would astound the world ; for those who suppose
that Great Britain is weak are madly ignorant.
Nor ought Americans to cherish the delusion that
the decision of peace or war remains only with
them. Nothing more surely averts war than the
plain, unvarnished truth, than dispelling those illu-
sions through which nations drift inch by inch at
first, but more:quickly afterwards into violent con-
tact, and a review of the Spectator's standing ought
to be cautious how it gives publicity to an impres-
sion so injurious to the honour of the United
States and so untruthful, as that the Republic
had abandoned her position in fear of the con-
sequences, and alarmed by the attitude of England.

MONEY AND BUSINESS.

(From the Springfield Repalican, June 19.)

The stringency in the money market is steadily in-
creasing, and as high as 7 per cent. gold interest has been
paid in New- York this week, though 61 to 7 in currency
aro the more common rates. The pressure is remarkable
at this season of the year, when there is usually an over
supply of money on the market, and naturally creates a
good deal of comment and some anxiety among capitalists.
The political opponents of Mr. Boutwell charge the whole
responsibility of the stringency upon Lim and his admin-
istration of the Treasury, and warn the country that this
is only a sign of the times we shall have, if the secretary
goes on with his sale of gold and purchases of bonds. The
reserve of legal tenders in the New York banks is steadily
diminishing, and the currency balance in the Treasury is
also growing smaller, with a fair prospect of further re-
duction. Undoubtedly the policy of the administration
affmels, at first sight, a ready and easy solution of the
present stringency, but there are other causes operat-
ng, which are also new and quite likely the more effec-
tive ones. The South has drawn from New York auel
the North, during the last winter, a large amount of
money—sso,ooo,ooo, it is estimated—and has kept it. The
opening of the Pacific railroad has called large amounts
of capital from New York to the West, and given it-dis-
tribution and employment. The Chicago Tribune says
that the bankers of that city have drawn not less than
$6,000,000 in currency from New York within the last
three weeks, and sent nearly all of it into the country be-
yond, whence it wi 1 not return. Add to these facts, the
unusual demand for money to move the large surplus of
last year's grain crop, and the wool clip of the present
season, and these are reasons enough for a scarcity of
money and high rates without accusing Mr. Boutwell as
the sole cause of the disturbance. The tightness is, how-
ever, rather encouraging than otherwise. Much of the
money is finding employment in legitimate and reliable
business, and the resources of the speculators are by so
much curtailed and diminished. If Mr. Boutwell will hold
on steadily with his policy of moderate contraction and
the business of the summer realises its present prospects,
we shall have an autumn freer from panics and specula-
tions than we have known for years. With au active finer•
cantile and commercial call for money, Wall-street will
find it impossible to send the whole market "up in a bal-
loon" every few days, and we may hope for a steady and
even course of affairs. Boston has been completely ab-
sorbed in the peace jubilee this week, and takes hut little
notice of what is going on outside. Business has been
very slack, and there is no marked change in the situation
of the money market. The western markets, for the causes
already alluded to, are quickening and active, and money
is scarce and difficult to obtain. There will be no surplus
of capital during the summer months, and the banks aro
already making discriminations in favour of their preferred
it customers. Gold and governments have had no changes
worthy of mentiou. For both the demand is steady
and the price firm. Gold has not varied 1 per cent. from
138, and the market has been entirely without speculation.
The scarcity of money has strengthened the tone of the
Stock Exchange, and has probably been the mainstay of
gold during the week. The demand for foreign exchange
is good, but for specie for shipments abroad there is little
call. Exchange, however, is scarcely up to the point at
which it will pay to export coin, and the shipments, if any
are made, will not be until late in the season. Gold is
now coming into Now 'York over the Pacific Railway, and
it is probable that it will all be sent that way before long.
The last steamer from Panama brought only $75,000, and
it is suggested that the same cause may diminish the re-
ceipts of gold at San Francisco, by diverting the bullion
and crude gold from the mines of Nevada and the interior
directly to the Philadelphia Mint or the New York Assay
Office. The foreign news has been entirely destitute of
elements of speculation, and the market has been undis-
turbed by a single warlike or sensational rumour. The
balance against us in our foreign trade is, however,
steadily increasing, and the conviction that there's a day
of future reckoning is unavoidable. For the eleven months
ending May 31, the imports of merchandise at New York
amounted to $270,120,382 in gold, an excess of over
$166,000,000 in gold over our exports for the same time.

This excessive importation has been exceeded only once
in our history, in 1865, when the figures reached the
enormous total of $281,239,651. The only particular
item of interest in the Government Bond Market is Secre-
tary Boutwell's order to buy before July 1 $620,000 of
bonds, in addition to his regular purchase of $2,000,000,
in order that the Government Sinking Fund may
be brought up to its proportionate amount of 1 per cent. a
month of the national debt during the first four months of
the present administration. The order is an indication
that Mr. Boutwell does not intend to abandon his present

policy of the purchase of bonds—if that can be called policy
which is but the simple execution of the express provision
of the law. The debt statements are the best justification
of Mr. Boutwell's conduct of the Treasury affairs, and the
public are willing to give the policy a fair trial so long as
its results are so satisfactory. The stock market has had
several very bad turns during the week, and the whole

course of its movements has been a decline.

Mariposa

dropped lifeless, on Thursday or Friday, falling nearly 30
per cent. in one day, and ruining a number of its friends in
its fall. Pacific Mail also weakened considerably in sym-
pathy, but held its own pretty firmly, and has since re-
covered its lost ground. All the railway stocks have de-
clined 4 to 6 per cent. on account of the tightness in the
money market, and the prospect is not favourable for an
advance. The prestige of Vanderbilt ,holds up the New
York, Albany, Buffalo, and Lake Shore chain of roads,
and they have been particularly exempted from the de-
pression. The speculative spirit is, however, much less
rampant, and the uniform tone of the market has been
quiet and subdued. Chicago and North-western stock
is in good demand, in consequence of a recent dividend
of 5 per cent., an an increase of over $1,325,000 in its
earnings last year, over those of 1867-8. The business
of the Pacific is beginning to tell on this line, and also
on its rival, the Chicago, Rock Island, and Pacific,
which now joins the Union Pacific at Omaha. The
results in Rock Island have fully justified the expedi.
ency of the sudden issue of 49,000 shares of stock by its
officers 18 months ago, from whose proceeds the road
through lowa has been built. The Rome, Watertown,
and Ogdensburg Railroad has re-elected its old officers and
divided 5 per cent. semi-annually, while the Harlem has
done the same and divided 5 per cent. Hudson River has
also re-elected its old officers. The dry goods business
seems to have touched bottom two or three weeks ago, and
since that time the market has bean firmer and better.
Considerable activity has prevailed during the past week,
and a general advance in prices has been realised. The
manufacturers' demands for cotton have stimulated busi-
ness in the Southern ports, and the quotations are 1 to 2
cents higher all along the coast, while in New York the
appreciation has been still more marked. There is some-
thing of a speeulative movement afoot, and the heavy
dealers in sheetings, shirtings, and E taplo goods are stock-
ing up quite largely. There are indications, however, of
good business in the fall, which will probably enable them
to carry the load without difficulty, while the scarcity in
the market will be gratifying to the manufacturers. The
grain market bears up well under its immense receipts
from the West, which aro almost unprecedented. The
shipment of wheat from the lake ports for the week ending
June 5, were 1,497,000 bushels, or more than three times
as much as for the corresponding period last year, and the
largest on record of any week at this season. Provisions,
west and east, aro dull and heavy, but the live stock mar-
kets at Albany, New York, and Cambridge are active and
higher.

(From the Wall-street Journal.)
Friday Evening, June 18, 1869.
Mono on call continues very stringent, and rates on

railroad stocks have varied from seven per cent. gold to
1-16th of one`per cent. rer day flat, being nearly 20 per
cent. per annum ! and on Government Bonds from seven
per cent. currency to 1-32 d of one per cent has been
freely paid. Discounts are almost suspended, prime paper
passing with great difficulty at 10 to 12 per cent. We
note the failure to-day of a dry goods jobbing-house, with
liabilities of over $500,000. At the eleventh Treasury
sale of gold on June lath bids were opened for nearly
three millions of dollars, at prices ranging front 139 33 to
138 138 90. The awards were as follows:—$165,000 at
139 131 $200,000 at 139 15, $lOO,OOO at 139 20, $1,000,000
at 139 18, $lOO,OOO at 149 16, $lOO,OOO at 139 14, $30,000
at 130 20, $30,000 at 139 14, $50,000 at 139 28, $50,000 at
139 32, $35,000 at 130 33, $50,000 at 139 33, $50,000 at
139 29. At the twelfth Treasury sale yesterday the bids
were for a total of about seven and a half millions. The
awards were as follows :—5250,000 at 137 795, $lOO,OOO
at 137 80, $lOO,OOO at 137 95, $lOO,OOO at 137 96, $50,000
at 137 871, $50,000 at 137 93, $50,000 at 138 04, $50,000
at 137 97, $lOO,OOO at 137 85, $50,000 at 137 97, $50,000
at 137 83, $50,000 at 138 02.