The Sun.
London, England, 1869-10-25 00:00:00

MONEY AND BUSINESS.

(Front the Springfield Republican, Oct. 9)

Money has again declined to the eau figures of C and 7
per cont. on Government collaterals, with an occasional
demand for the same rates in gold. It is now about a
month since it began to be held at higher rates in New
York, though a belief in a coming stringency has been
steadily encouraged by certain parties for a still longer
time. Looking back over the period of turmoil that has
intervened since the beginning of the stringency, and re-
garding especially the means by which it is now being al-
leviated, no fact is more prominent than that the whole
performance is the product of speculation, and that mcstly
in stocks. Stocks have been persistently advanced for the
past few months, New York Central and Erie especially,
and most other roads to a certain degree, for all of Ai hich
appreciation the management or earnings of the road fur-
nished no excuse. The brokers have kept buying stocks
and demanding higher prices for those they had, and at
the same time demanding money. They have endea-
voured to eat their cake and have it at the same time.
And because the unspeculative and more temperate holders
of money throughout the country declined to send it to
New York to be invested in stocks at exorbitant prices,
the New York brokers began to suppose that there was no
money in the country, and that there was actually a scar-
city of the exchanging medium. When the crash came,
however, and they were forced to put their railroad wares
down to reasonable rates, money came in from the country
in small parcels, but large quantities in the aggregate, and
has produced an ease that is as real and healthy as any
that has pervaded the metropolitan atmosphere for many
months. That such should be the result seems plain
enough now that it is all over, but it will be remem-
bered that this stringency that was being fermented in
New York was attributed to the demands for money from
the South and West, while at the same time all confessed
that those demands were light. The lesson to be learned
is, that when the country at largo is prosperous and the
legal currency so redundant as to be worth but 75 gold
cents on the dollar, a stringency is a pretty strong indica-
tion somebody is holding his wares (whether wheat or
stocks) at too high a price—is attempting to carry too
large a load, that sooner or later must bo "unloaded" at
panic prices. Considerable discussion, by the way, is going
on as to whether the recent panic affected business widely
or not. One prominent paper declared that the New York
speculators had a rope around the neck of every business
man in the country, and drew a most dismal picture of the
result of future attempts in this direction. In support,
however, of our position last week that business was
slightly affected, there have come to light too facts, that
the business men of New York have of late mostly with-
drawn from the stock and gold exchanges on account of
their scandalous dealings, and that they have also been
led to depend less upon the banks on account of the sub-
jection of those institutions to speculative influences. The
Commercial and Financial Chronicle, after setting forth
these changes in the habits of merchants, says:—" The
most singular thing about this catastrophe is its local
character and limited extent. Nobody has been prostrated
by it, or almost nobody outside of a very narrow and con-
fined area. Hence general business has not been affected
by it to any serious degree. It is true that our banks
have been more cautious and timid, but their dealers, the
merchants, have been long taught by bitter experience
not to rely on the banks. These institutions have, many
of them, been too busy lending money to the cliques and
speculators in the Gold-room at the Stock Exchange."
Gold has been pretty much let alone since the collapse of
the 24th ult. During the past week it has been down be-
tween 128 and 129, and up again to 130 and 131, the former
being probably a lower point than the-present relations of
currency and specie will justify. It would be a satisfac-
tion to every student of political economy, as well as every
business man, if gold could be for a few weeks freed from
speculative influence., and allowed to assume that position
in the scale of value which the demands of commerce would
confer upon it. For the week ending October 2, only
$262,196 of gold was exported from New York. The gold
that started from Europe the panic week is beginning to
arrive, the first shipment arriving on Sunday, and amount-
ing to $355,000, a second on Monday of $1,100,000, and
another on Wednesday of $BOO,OOO. This is more than
was exported during the whole month of September.
Foreign Exchange is decidedly firmer, and the export
trade in produce will doubtless be directly resumed. The
Government sales of gold on Tuesday were made at from
129.70 to 130.01, one million being disposed of. Affairs in
Wall-street are still unsettled. The Gold Exchange Bank
is in the hands of a receiver and cannot liquidate, much to
the annoyance and distress of its patrons. The Stock
Boards have made arrangements to deal in gold, and the
Gold Board is doing without a clearing house and con-
cocting plans for a new ono. Fisk and Gould have been
exposed by President Grant, in making attempts to filch
from him such financial information as would forward their
schemes of private gambling, and have in turn joined in a
crusade to blacken the name of Abel R. Corbin, whom
Grant has bad the criminal audacity to harbour as a bro-
ther-in-law since last March. Corbin, however, seems
able to preserve his hitherto honourable name from such
fellows as Fisk, and wo doubt not deserves the good opi-
nion of honourable men. Government bonds have lost
caste among American brokers, not having the requisite
instability to. rm,le.r., dsality,ri in
VinintxBfttlg
their present healthy condit.iou. The rates for them seem
to have got down to hardpan, the Government demand for
them being offset to a considerable degree by the willing-
ness of bondholders to exchange them for cheaper and
more profitable railroad stocks now being put in the mar-
ket. The foreign market, therefore, is the truest index of
foreign credit, and in London and Frankfo t our securities
are indisputably advancing, slowly but steadily. It is but
a few weeks ago that we were heralding with sonic flourish
their quotation in London at 83, but now they are above
84, and we take it as a matter of course. At the Govern
ment purchase of two millions in Now York on Wednesday
ten millions were offered at from 115.68 to 118.25. South-
ern State bonds as usually dull. The State of Arkansas,
which in 1837 and 1838 issued bonds to the amount of
$1,772,000 to furnish capital for its banks, and which has
disowned these bonds since the failure of the banks in
1842, has recently issued new bonds in payment of the old,
with interest, and Governor Clayton announces that they
are now ready to be exchanged. This is honourable and en-
couraging for a reconstructing state. The stock market
has hardly recovered from the terrible blow of the panic.
Mr. Vanderbilt by the most assiduous nursing has got his
stock up to 1781 for New York Central, and 163 for Hud-
son. Michigan Southern, and Lake Shore, the foot-ball
over which this tremendous bout of New York Central and
Erie has been fought, is very badly off. On Wednesday
following the Friday, its stock, which has been above par,
sold down to 75, but has since recovered somewhat. It is
difficult to ascertain how much the road is involved in the
failure of Lockwood and Co., whose head man, Le Grand
Lockwood, was its treasurer. The directors have been in
session at New York this week, and have elected George'
B. Ely of Cleveland treasurer in place of Mr. Lockwood,
and Alauson Robinson of New York in his place as
director. It has not yet transpired whether Vanderbilt
or Fisk has gained a majority of the direction. The
New Fork Times has an exhaustive review of the fall trade,
from which one cannot fail to gain a cheering impres-
sion of the state of business throughout the country.
In dry goods the South and South-west were first in the
market, and they were the most important purchasers,
duo to the large compensation obtained for the cotton
crop, which, this year, was received by the planters
themselves. The year before they sold their cotton at
low prices, so that brokers and others availed themselves
of the subsequent large advance. The South was bare
of goods, and were liberal purchasers, not, however, on
a scale that partook in the least of speculation. In
boots and shoes, clothing, hats and caps, and hard ware,
especially agricultural implements, the South is a very
liberal and ready-money purchaser, and what is significant
in every case demands the first quality of goods. The
negroes who now purchase their supplies have outgrown
the planters' notion that any garment or any tool is good
enough " for a nigger." In the language of oue firm :
" Send us on, as soon as possible, twelve cases of brogans,
men's wear, and be sure and send the best quality, for, as
every negro in this neighbourhood expects to go to Con-
gress, none others are saleable." Western merchants are
less numerous than usual in New York this year, but for
the very satisfactory reason that Eastern goods are be-
ginning to feel the competition of Western manufacturers.
The trade in dry goods, for instance, has fallen off 30
per cent., though this will be partially recovered, probably
by later trade. Agricultural implements, too, have lost
most of their Western purchasers, and find a good market
at home, but builders' hardware is still sent West largely.
The trade in mechanics' tools and in table cutlery is very
brisk, and the South gets a very large proportion of these
shipments. Strange as it may appear, a trade is growing
up with Europe in regard to these articles. Owing to the
fact that American tools and cutlery are finished in a
superior manner to those made in England, while, at the
same time, they are tempered fully as well, European
dealers are sending orders here to be filled, and an impor-
tant commerce is being established in this respect. Within
a very short time orders for tools have been sent here from
hardware merchants in Bremen and Sheffield, and the goods
have beensent by return steamer.

(From the New Fork Tribune.)

FRIDAY EVENING, October 8.

Money was easy on call, lending in many cases upon
Government bonds at sto 6 per cent. Op Stocks 7 per
cont. was generally exacted, although houses in first-class
credit had large amounts offered at 6 per cent. Commer-
cial paper continues dull, and is unsaleable except at high
rates. Primo names pass at 10 to 12 per cent., but are not
in demand, lenders declining to make long engagements,
and prefer to have their money on call at low rates.
Sterling Exchange is steady at quotations; London,
60 days, 109 to 1091 ; London, sight, 1091 to 1094; Lon-
don (prime commercial), 60 days, 108 to 1081 ; Paris,
long, 5.181 to 5.171; Paris, short, 5 161 to 5.15 ; Antwerp,
5.20 to 5.181; Swiss, 5.20 to 5.181; Hamburg, 351 to 351 ;
Amsterdam, 401 to 401; Frankfort, 401 to 401 ; Bremen,
781 to 781 ; Berlin, 701 to 701.

Railway Shares have been strong but dull; tho trans-
actions were well distributed, and in the Western list a
large short interest gave a firm tone to the market. Michi-
gan Southern, North-Western Common, and Rock Island