The Sun.
London, England, 1866-12-24 00:00:00

AMERICAN SECURITIES.

In our last we drew attention to the good return, in the
shape of interest, together with ample security for capital,
which investors might obtain from Government or first-
class railroad securities of the United States. Our remarks
were then directed to the sterling bonds of the Pennsylvania
Railway, but there are very many good Mortgage Bonds,
having principal and interest payable in currency, which
not only pay well as a present investment, but hold out
prospective advantages, from the almost certain decline in
the rate of exchange, as the contraction of the circulation
progresses. Take, for instance, the Third Mortgage 7 per
cent. Bonds of the Erie Railroad, than which nothing more
certainly secure as a good mortgage on a large and valu-
able property can be desired ; the last quotation for these
bonds at New York being 97 to 98, $l,OOO Baud would
cost, at the present rate of exchange, say 151, as nearly as
possible £l4B, and the interest coupons $7O por annum,
yielding at 2s. 70. per dollar (about their present value)
£9 3s. 9d., is equivalent to 6i per cont. ; but not the least
attraction in these bonds, in our opinion, is the high pro-
bability of a steady decline in therate of exchange, andeon-
sequent enhancement of the interest receivable, for should
the rate fall to 120, the annual income would be £l2 per
annum, or rather moro than eight per cent., whilst should
the views of the Secretary of the Treasury, and a return
to specie payments bo accomplished, the income within
two years would become nearly 10 per cent., with, of
course, a corresponding increase iu the value of the prin-
cipal.
There are other securities of a similar class to which we
may take another opportunity of referring, but in men-
tioning these we would only remark, that we do so as all
the mortgage bonds of the Erie Railroad are, in our
opinion, as secure as the Debenture Bonds on the best of
our English lines of railway ; for it is a notable fact, that
while the Ist, 2d, and 3d Mortgage Debt on the Erie Rail-
road together amount to only $13,000,000, the annual gross
revenue is about $14,000,000. The interest on $13,000,000
is $910,000, so that this $910,000 has the first claim on
whatever net revenue there may be on $14,000,000.

(From L. P. Morton and Co.'s Circular.)

NEW YORK, Dec. 8.

Financial affairs appear to be settling into the steady
inactivity which usually attends the close of the year. The
bowl market is quiet ; but the rate of interest, not-
withstanding, continues firm at 6 to 7 per cent. On
demand loans, and 61 to 7 per cont. on discounts.
The recent crisis in the money market is naturally suc-
ceeded by a dullness in speculative operations, under which
the prices of stocks have still further declined. For the
moment there is a comparative scarcity of legal tender
notes among the banks, which partially curtails their
ability to lend. A relief from this state of affairs is anti-
cipated from the disbursement, by the Treasury, of up-
wards of $10,000,000 of interest upon Seven-Thirty Notes,
on the 15th inst.

The favourable exhibit of the condition of the public
finances, presented in the annual report of the Secretary of
the Treasury, has had the effect of stimulating the de-
mand for United States Securities. Five-Twenties of
1882;have ranged at 1011 to 1081, with no foreign move,
ment of importance, and close at 1081 to 1081. Consoli-
dated Five Twenties of 1865 have been especially in
demand, and have advanced from 10.31 to 1691, closing
at 1081 to 109.
In railroad shares, the course of speculation has pre-
dominated in favour of lower prices. Erie has fluctuated
between 71 and 73}, and closes at 714 to 711. Illinois
Central has ranged from 117 k to 119 k, and closes at 118
to 1181.
State Stocks have been more active, but generally at a
slight decline, except Missouri 6's ; which, with large
transactions, have advanced 5 to 51 percent. upon our last
quotations, closing at 92 to 921. Tennessee 1890,
close at 91 to 931; Virginia 6's, 60 to 62 ; North Carolina
6's, 73i.
Increased exports of cotton from the Southern ports, and
an expectation that the Treasury will sell a moderate
amount of coin, have strengthened the downward ten-
dency in the premium on gold. Yesterday the 'price
touched 1381, and closes at 1381.
Foreign exchange has ruled dull throughout the week.
At the close, owing to the anticipation of liberal receipts
of cotton bills from the South, the rates have declined
per cent. Bankers' 60 days sterling bills close at 1091 to
1091; do. throe days, 1091 to 1101 ; bills on Paris, 60 days,
5.161 to 5.15 ; three days, 5.13,1 to 5.12 i.
Cotton has been quiet, and without change in quota-
tions. Mid. uplands close at 33} cents.