The Sun.
London, England, 1867-10-19 00:00:00

COMM ERCIAL.

Nxw Yoitx, Friday, Oct. 4.
Tho anticipated rise in money has taken place. Gra-
dually, but firmly, it is growing stringent. To-day 7 per
cent. on call was the price, and not freely lent at that,
while bills aro discounted at from 7to 10. There is a
general rise on the produce exchange. Flour, wheat, corn,
oats, are all dearer, and while the Western crops are
known to bo large, they do not come to market as freely
as expected. The high rates in the Western cities for
loans act as a check, but the effects are more felt by
speculators than by farmers. Gold has lately been
excited, yesterday rapidly changing. For instance,
to-day it opened at 145, went up I, than fell
I, and finally left off 1441. The export demand has
fallen to its lowest point, on Wednesday the Russia taking
only $3,000. From the Ist January to 28th September the
whole sum has been $42,177,117. The customs continue
to give large receipts and to place Mr. M'Culloch in a
strong position. For the week ending last Saturday the
receipts at New York wore $2,970,000, making up so far
for the year $94,639,655. The gold payments on the Na-
tional Debt have been to this same period, 28th Sept. last,
$43,258,765. California has sent to New York, up to this
period, $22,635,470. American silver is at 5f to 61 cents
below the price of gold. Mexican dollars from 102 to
1024 in gold. Foreign exchange is quiet, with little
doing, though there is more demand for bankers' bills.
Of the compound interest notes amounting to $80,000,000
outstanding, $18,000,000 mature during October,
$20,000,000 in December, and the remainder next year.
Mr. M'Culloch's order, directing 3 per cent legal tender
certificates to bo exchanged for these notes, has been dis-
approved by many, though the Secretary considers that he
is left no option by the Act of Congress. The following
is the notice, dated Ist inst.: -"Notice is hereby giver,
that the Assistant-Treasurer at New York is prepared, and
has been instructed, to issue three per cent. certificates, as
authorised by Act of Congress, approved March 2, 1867, in
denominations of $5,000 and $lO,OOO each, in redemption
of the Compound Interest Notes maturing in October and
December next. The accrued interest on all notes pre-
sented for such redemption will be paid in currency."
I send you a copy of the Act, which will enable your
readers to judge for themselves :
"An Act to provide Ways and Means for the Payment
of Compound Interest Notes.

"Be it enacted by the Senate and House of Represen-
tatives of the United States of America in Congress as-
sembled, That for the`purpose of redeeming and retiring
any Compound Interest Notes outstanding, the Secretary
of the Treasury is hereby authorised and directed to issue
temporary loan certificates, in the manner prescribed by
section four of the Act entitled An Act to authorise the
issue of United States Notes, and for the redemption or
funding thereof, and for funding the floating debt of
the United States,' approved February twenty-fifth,
eighteen hundred and sixty-two, bearing interest at a
rate not exceeding three per cent. per annum, princi-
pal and interest payable in lawful money on demand; and
said certificates of temporary loan may constitute and be
held by any national bank holding or owning the same,
as a part of the reserve provided for in sections thirty-ono
and thirty-two of the Act entitled .‘ An Act to provide a
national currency secured by a pledge of United States
Bonds, and to provide for the circulation and redemption
thereof,' approved June three, eight hundred and sixty-
four: Provided—That not less than two-fifths of the en-
tire reserve of such bank shall consist of lawful money of

the United Statesj. And provided further—That the
amount of such temporary certificates at any time out-
standing shall not exceed fifty millions of dollars.
"Approved, March 2d, 1867."

The large 'St. Louis Flour and Commission House—
Messrs. Lamb and Quinlan—has failed. The Croton
National Bank of this city has been shut up by the Comp-
troller of the Currency, and it is feared the loss will be very
heavy. The deposits amount to between 300,000 and 400,000
dollars. Its note circulation amounts to $ 80,000, which
is fully covered by Government Securities, so the chief

losers will be depositors. The cushier of the Atlas Na-

tional Bank of Providence, Rhode Island, has lent the
money in his charge to a Wall-street speculator. Thu
cashier of First National Bank at New Milford, Connec-
ticut, has decamped. The former bank loses $40,000, the
latter $50,000, and the Secretary of the Treasury, wilee.
attention has bsen directed to these repeated instances of dis-
honesty, is about to inquire into the condition of the Na-
tional Banks throughout the country. There has been an
over-issue of the fractional currency notes, to what extent has
not yet been ascertained. Government securities are de-
pressed, 7-30's showing weakness. The banks are large
sellers, and there are more than usual sinister rumours

from Washiegton, coupled with lower prices from
Europe, to depress the market. The miscellaneous
market is active, railway stocks especially so, a
largo business being done in the low-priced West-
ern Securities. The Erie Railroad election will take
place next Tuesday. The Erie has experienced a strong
re-action from the decline I reported a fortnight ago, and
so also has the Now York Central. The Express Stocks
are dull, closing as follows:

Adams - 58. to 58}

American . 571 to 59
United States s6i to 57
Wells, Fargo, and Co ssi to 55'
Merchants Union ($35 paid)

Mining stocks aro negleotod. Petroleum stocks are firm,
with a fair amount of business doing. The following aro
the latest quotations in railway stocks : —New York Central
109 f, Erie 641, Hudson 1284, Reading 101, Michigan
Southern and Northern Indiana 811, Illinois Central 121, Cle-
veland and Pittsburg 78f, North-Western 424, North-West.
Preferred 66k, Canton 43f, Rock Island 1021, Cleveland and
Toledo 127 k, Fort Wayne 991, Pacific Mail 1404, Quick-
silver 25, Western Union Telegraph 351, Mariposa Pro-
ferred 17, Ohio and Missouri Certificates 26k, Boston Water
Power, 18, Cumberland 29k.

(From E. F. Satterawaite and Co.'s Weekly Circular, 0ct.16.)
By the Cunard steamer Russia we have advices from
New York to th 3 Ist ins,. An increased supply of Go-
vernment Bonds, especially of the later issue, coupled with
a tighter money market, had occasioned a slight fall in
quotations. In Railroad Shares there had been consider-
able activity, but in few exceptions prices ruled lower.
The market for American Government Bonds in London
has, during the past week, been a steadily declining ono,
though the total depression is not more than to 1 per
cent. Large supplies have been received from New York,
sales there being induced by the stringency of the money
market, the Bonds arriving at a time when political and
financial distrust deters buying.
Five-T wenty Bonds are now quoted ex the Ist Novem-
ber coupon; they close 68} to I and those of 1865-66 f
to for end of the month. .

Erio Shares suddenly advanced 3 per cent., and have
relapsed 1 per cent. ; we are without information as to
what caused the rise in New York.

Illinois remain steadily firm. Atlantic and Great West-
ern Consolidated Bonds have declined j to 1 per cent.

(From Messrs. Bowles, Brevet, and Co.'s Circular.)

Paris, Oct. 18, 1867.

The past, week has been one of much excitement upon
our Bourse, and the alarm and uncertainty, reported in
our late circulars, have in the past day or two assumed
almost the proportions of a panic, prices showing a marked
decline.

United States Bonds are dull and lower, touching on
the 17th.

For the issue of 1862
)7 „ 1865 74j 17 1/
Our advices from Now York are to tho 17th.
Gold
United States Bonds, 1862
The Route closes at 67
The Italian closes at
Exchange on London 25 12k

(From Messrs.Belding, Keith, and Co.'s Circular.)
Thursday, Oct. 17.
The market for American Securities has undergone an
extraordinary change this week. The principal feature in
5-20 Bonds has been a fall of / per cent. since last Thurs-
day, owing chiefly to some considerable shipments from
New York, while gold in that city has varied between 113
and 144 closing on Wednesday at 1431-. Five-Twenties,
1862'5, were quoted on Tuesday at the close 711 1, ar.d
1865's 69k 1. The quotations on Wednesday at the open-
ing were (ex coupon) 681 and 661 1 respectively.
Illinois Central shares have shown no variation. They
close at 77i 78k. Erie shares have risen on the whole
per cent. during the week. On Tuesday they opened al
461. to 471, but have since declined, and close at 44i to
this evening.
The Atlantic and Consolidated Mortgage Bonds have
varied from 20 to 211 with little doing.

(From L. P. Morton and Co.'s Circular.)
New York, Sept. 28, 1867.

Since our last advices the money market has assumed
a very decided activity. In tte West, and in other sec-
tions of the interior, the movement of large crops of grain
at high prices has caused a pressing demand for currency, to
meet which heavy remittances have been made from this city.
At the same time an important amount has been takenlinto
the Treasury upon the sale of bonds and gold and through
the calling in of funds held by the National Bank Deposi-
tories, 4J the roult of the§o Parromits, tho ritto upon

demand loans has advanced from 4 to 5 per cent., to the
full legal limit, 7 per cent.; and, for tho last two days,
loans have been effected with some difficulty, while dis-
counting operations are much interrupted, prime paper
being current at 7 to 8 per cent.

The stringency in money has checked the strong up-
ward tendency in railroad stocks arising from the liberal
crops. Erie has declined 11-} from our last quotation,
69k; while Illinois Central, owing to the satisfactory con-
dition of its finances, has remained steady through the
fluctuations of the general market. The prices of shares
generally ramp from 5 to 10 per cent. below the current
price at the beginning of the month.

The money pressure has caused a moderato realising
movement upon United States Securities; but the steudi-
❑oss of the quotations for Five-twenties at London and
Frankfort, together with considerable purchases of Seven-
thirty Notes by the Government, has held in check the
consequent downward tendency in prices, and quotations
do not vary materially from those given in our last cir-
cular.

The condition of our financial relations with Europe
being at present an element of much importance in esti-
mating the probable course of the premium on gold, and
in judging of the future value of our securities abroad, we
have endeavoured to ascertain, from official records, the
probable balance of our trade with foreign countries, for
the period extending from the commencement of the war
to the present time. The Government returns for that
period are not so entirely complete as could be desired ;
as the exports of domestic produce aro recorded in cur-
rency value, there is some difficulty, owing to the
wide fiuctuatioas in the gold premium, in ascertaining
the precise equivalent in coin of these returns. Our data,
however, are the best obtainable ; and as the gold aver-
ages are made with much care, we do not think the results
of our estimates, given below, can be considered as diverg-
ing far from the truth. From the subjoined statistics it
will be seen that the course of our foreign trade, for the
last six fiscal years, shows an excess of imports over ex-
ports amounting to $256,422,071. These figures, how-
ever, can scarcely bn considered as representing the
whole foreign indebtedness incurred within the pe-
riod. To the debtor side of the account must bo placed
the interest accruing upon European investments in the
United States; which, for the six years, cannot be esti-
mated at less than $120,000,000. It must also bo taken into
account that the imports are, in not a few cases, invoiced
under their true value, in order to save duty ; that during
the last four years there has been alarge increase of smug-
gling operations, especially in costly merchandise ; and
that an enlarged proportion of our imports are now carried
in foreign vessels, involving the payment of freight to
foreign carriers. In allusion to those items, the Secretary
of the Treasury says in his last report : —"But these
figures, taken from the reports of the custom-houses, do
not present the whole truth. For many years there
has been a systematic under-valuation of foreign merchan-
dise imported into the United States, and largo amounts
have boon smuggled into the country along our extended
sea coast and frontiers. To make up for under valuations
and smuggling, and for cost of transportation paid to
foreign shipowners, twenty per cont. at least should be
added to the imports, which would make the balance for
the past year against the United States nearly $100,000,000.
It is evident that the balances have been largely against
the United States for some years past, whatever may have
been the Custom-house returns. On no other ground can
the fact be accounted for, that a very large amount of
American Bonds is now held in Europe which are esti-
mated as follows, to wit;—United States Bonds,
$350,000,000; State of Municipal Bonds, $150,000,000;
Railroad and other Stocks and Bonds, $100,000,000. Total,
$600,000,000."
Perhaps the secretary's estimate that 20 per cent. should
be added to the imports upon these considerations may
be regarded as excessive; although the well-considered
views of a Minister of Finance must be awarded their due
weight. It may, however, be very safely estimated that
the combined items of under-invoicing, smuggling, and
transportation, require an average addition to the imports
of 7 per cont., which, upon the $1,942,147,510 of imports,
for the six years since the commencement of the war,
would amount, in round numbers, to $145,000,000.
Adding this amount to the excess of imports over exports,
and to the interest accruing upon foreign investments, wo
have an adverse balance, accumulated within the last six
years, amounting to over $520,000,000 in gold.
It would be impossible to estimate from these figures the
amount of United States securities sent to Europe within
the period under review. They certainly show, however,
that the highest estimates may be correct, and yet a large
open balance remain against us.

From an appended statement of exports and imports for
the ten years next preceding the war, it will be seen that
when we commenced the war with a comparative clean
account with the world the balance against us for that
period being only $26,000,000.
The gold premium has shown much sensitiveness under
political events to Europe, and the utterances of certain
irresponsible politicians in favour of the payment of United
States Bonds in currency ; but liberal soles of coin by the
Treasury have prevented an advance from these causes.

Foreign exchange is quiet, and rates weak. Importers
are deferring their remittances in expectation that the
payment of the November coupons, amounting to about
$25,000,000, will reduce the premium on gold. Bankers' 60
clap' awning bills are quoted 1091 to 1091 • ditto 3 days',
1091 to 1008 ; bills on Paris, 6U days, 5.171 ditto 3 days',
5.15.