The Sun.
London, England, 1867-09-07 00:00:00

(Franz Messrs. Bowles, Drevet, and Co.'s Circular.)

Paris, Sept. 6, 1867.
With higher prices than reported in our last the market
continues inactive; and in spite of more confidence in
continued peace, the amount of unemployed capital steadily
accumulates.

Americans have been in active demand at higher rates ;
in 1862's transactions have been large, and wo quote an
advance from 83 on the 29th August to the closing rate
on the sth September. Largo purchases to recover those
who have sold for the decline, together with approaching
maturity of the November coupon, have largely contri-
buted to the advance, which occurs in the face of higher
gold rates from New York, from which point our advicos
are to the 4th.

Gold 1411
U.S. Bonds (1862) 114 i
The Route closes at 69 85
The Italian closes at
Exchange on London 25 211

---
(From E. F. Satterthwaite and Co.'s Weekly Circular, Sept. 4.)
Our advices from New York are per Russia to the 21st
;alt. The Stock Market had been well maintained, with a
tendency to increased values; gold at same time remained
firm. Attention was much turned to the probable results
of the harvest, and though in some quarters from the
intense heat fears were felt that the maize would not fully
expand, yet, on the whole, a large yield of wheat and corn
excellent quality was calculated upon.
Railroad traffics are consequently expected to show im-
provement during the remainder of the year. The returns
for first week in August, so far as received, were showing
a fair increase. The importance of the grain trade to
railroads cannot be overrated, and an evidence of its im-
mense magnitude is furnished by the following extract :
The Buffalo commercial Advertiser notices the enormous
grain trade of the West, and its rapid increase as
follows :

"The unparalleled development of the West in popula-
tion and production will, in the ensuing thirty years, give
a trade between the West and New York equal to up-
wards of $8,000,000,000, to go through the canals, when
they shall be made sufficiently capacious for its accommo-
dation. There will be this amount of trade, aside from that
by the railways. A canal boat, of the size now navigating
the Erie Canal, 250 tons burden, will carry as much as one
railway train of twenty-five cars. From seventy to eighty
boats of this class can be laden with grain and despatched
eastward in each and every twenty-four hours. If the
canals should be ignored, and the entire business now
done upon them should be transferred to the railroads, it
would require four freight trains to be despatched daily by
the Central and forty by the Erio, in addition to the busi-
ness they are now doing. Twenty-five years ago the grain
trade of this city was between two and three million
bushels annually. It now averages from fifty to sixty
million bushels annually, in addition to the flour trade.
The receipts of grain at this port in one day last year wore
upward of throe million bushels. The receipts of grain
here on Monday last were upward of seven hundred
thousand bushels, besides upward of a million of staves
and six million feet of lumber. Estimating the results of
the future by the past, the time is not far distant when the
grain trade at this pint will bo a hundred million bushels
annually. A movement of sixty million bushels of grain
by rail would require 6,857 trains of twenty-five cars each,
equal to seventeen trains daily, by each of the two roads
during the entire navigation season of two hundred days,
and yet the grain trade is scarcely ono-half the tonnage to
be moved."
Business in American Securities in London continues
ou a restricted scale, but notwithstanding that transactions
are comparatively limited, market values are well sustained,
United States Six per cent. 5.20 Bonds of 1862 and 1865
both being firm at a slight advance on the quotations of this
day week.
Erie and Illinois Shares are each iu goad demand, the
latter at an improvement of per cent.
For Massachusetts Sterling Bonds there is a good in-
quiry; also for Pennsylvania Central Railroad Sterling
Bonds, Michigan Central Sterling, and Panama Sterling.

We have to note an inereised inquiry for all classes of
Atlantic and Great Western Bonds, and for Debentures.

(From Messrs. L. P. Morton and Co.'s Circular.)
New Ycrk, Aug. 24, 1867.

Since our last advices there has been a general improve-
ment in the tone of business. Tho prospect of unusually
abundant crops, in every section of the country, has in-
fused a more confident feeling into commercial circles, and
has produced an increased activity in business operations.
The Fall business opens with a steady conservative move-
ment, which, on the one hand, betokens a healthy demand
for goods from the interior, and, on the other, shows au
indisposition to carry heavy stocks during the prevalence
of comparatively high prices. The imports of foreign
products have thus far boon moderate, and the importers
are realising fair prices for merchandise. Tho supply of

domestic manufactures is ample, but probably not beyond
what the country may be found to require.
At this centre money has been very abundant, and the
rate of interest, since our last date, has ranged at 3 to 5
per cent. on demand loans, and at 6 to 7 per cent. on dis-
counts of prime paper. Within the last ten days there
has been an active demand for currency from the interior,
connected with the forwarding of produce, and during last
week the New York Associated Banks lost $6,500,000 of
legal tenders. This withdrawal of funds, however, has net
affected the local rate of interest, beyond diminishing the
amount of loans at the minimum figure.
United States securities have shown unusual activity
and firmness, partially the result of the low rate of interest
on money, and equally owing to an unusual demand for
Five-Twenties for shipment. It is estimated that not less
than $10,000,t 00 of Five-Twenty Bonds, of the issues of
1862 and 1865, have boon exported during the present
month. The high prices, however, are drawing supplies
from the interior, and the market closes less firm. 111°
statement of the public debt, issued August Ist, shows
reduction in the new indebtedness of the Government
of $4,309,510.98 as compared with the preceding
statement of June last. The decrease in the pub-
lie indebtedness since August Ist, 1866, is $121,792,850;
and since August 1, 1865, $215,916,849. Bel°lf
we present a comparison of the details of . the debt,
compared with the statement of August 1, 1866, from which
it will be seen that a large reduction has been effected in
the temporary obligations of the Government, and that
rapid strides aro being made toward funding the short debt
into a permanent form. Of the $799,000,000 of three
years 7.30 notes outstanding August 1, 1866, $348,000,000
have been funded into Five-Twenty Bonds ; While
$118,000,000 of Temporary Loan and $48,000,000 of Com-
pound Interest Notes have been disposed of by liquidation
or funding.
The recent heavy exports of specie have produced e
scarcity of gold in the market, which has steadily forced
up the premium. The Treasury has for several days Ost
sold amounts about equal to its receipts from customs; but
the sales have only partially checked the upward tendency
Below we present a statement, compiled from returns of
the Bureau of Statistics, which shows that upon the trading
operations of the United States, for the fiscal year ending
June 30th, 1867, we accumulated an adverse balance of
about $63,500,000 in gold. The indebtedness was incurred
wholly during the first six months of the year, the imports
for the second half being several millions below the ea"
ports. This large foreign indebtedness must be regarded
as accounting for the heavy shipments of specie during
late weeks, and for the upward tendency of the premium
on gold. The ba'ance has been set off partially by liberal
shipments of securities ; but to what extent cannot be re'
liably estimated.
The late low rate of interest has induced an active specu-
lation in stocks ; which, owing to the prospect of increased
earnings of the railways, growing out of the large crops'
has been very generally in favour of higher prices. The
expectation of a more active demand for money has,
within the last few days, somewhat weakened the coon;
deuce of holders of stocks, and with a predominance
sellers prices have declined. There are no indications of
the prospect of any bona fide effort being made to effect II
change in the direction of the Erie Railroad Company'.
Reports as to the condition of the cotton crop are UP° t
the whole favourable to a large gain upon the yield of 1553
year. The ravages of the worm in some parts of 'bolas
have necessitated a limitation of estimates for that sec`-i°/1;
,
but it is now very generally admitted that the Soutlic..,,:
supply is not likely to fall below 2,500,000 bales, and 0'
possibly reach 2,750,000 bales.
Foreign exchanges show a steady tendency towel
greater ease. Rates are too low to admit of bankers (ire;
lug against account ; and bills are generally made eget°
the current exports.