The Sun.
London, England, 1868-07-27 00:00:00

THE WAR IN PARAGUAY.

The mails from the Brazils and the River Flate
per the Estramadura have arrived. At the seat
of war in Paraguay nothing has taken place to give
hopes of a speedy peace. The Allies are yet
unable or unwilling to attack llumaita, which they
say has only a garrison of 3,000 men. Marshal
Lopez has much strengthened his position at the
Tebicmari, which the Allies have not yet seen. In
the Chaco, Timbo, well fortified, keeps the Allied
fleet in check, and the communication with Hu-
maita, through the Clmco, has not as yet been in-
terrupted. According to Brazilian accounts the
capital of Paraguay, Asuncion, has been de-
serted, and the Government offices and the
while population of that place transferred to
Lucpie, a very small village, abput six miles
from Asuncion by order of Lopez. But the fact is
Humaita still holds out, and the Allies d ire not
either advance into the interior, nor allow their
steamers to go up the river beyond their base of
operation. At Corrientes a revolution took place,
changing the existing Government. General Ur-
quiza, the prominent candidate for the Presidency
and Governor of Enter Rios, has called out all the
fighting men of his province, under the plea of
putting down the revolution in Corrientes ; but
the National Government have ordered General
Urquiza to disband his troops, as the Government
fears a collision with their Allies, the Brazilians.
At Buenos Ayres every one was occupied with the
Presidential election, which was to take place on
the 12th of June. Dr. Quintana has laid on the table
of the Chamber of Representatives the following
bill :—" The provisions of the Protocol, of the Ist
May, 1865, to the treaty of Triple Alliance of the
same date, are not sanctioned." In oonsequence, in
a secret session of the Senate, it was decreed that Dr.
Don Lorenzo Torres, a personal friend of Lopez,
should proceed to Paraguay and offer an honourable
peace. The monetary crisis at Buenos Ayres and
Montevideo was not over, and discount at Buenos
Ayres was 24 per cent. The failure of an army
contractor has caused a panic, and the bills on the
Imperial Treasury were very difficult to negotiate, so
that the Government will have to send gold to the
commissariat department. At Rio de Janeiro
there was a very hostile feeling against the
Ministry. A special messenger from the Allies'
head-quarters at Paraguay had arrived at Rio with
the news that a diplomatic, conflict had arisen be-
tween the Marquis de Caxias and Mr. Washburn,
the American Minister to Paraguay, in consequence
of the former refusing to allow the United States
gunboat lVasp to pass upwards to receive the latter
and his family.
_The Marquis offered to send up
an ironclad to bring him and his family down to the
Wasp, but this was declined, and the dispute has
been transferred to Rio for settlement. Some of
our readers will be glad to know that all the Eng-
lish in Paraguay were well ; none of them in the
camp, but all in the interior and quite safe.

MONEY AND BUSINESS.

(From the Springfield Republican.)
FRIDAY EVENING, July 1.0.

Monday was "quarter day," and the approach of the
bank statements made money somewhat higher towards
the close of last week. Call loans at New York went up
from five to Seven per cent., but only for a day. The re-
view over, money returned to its usual rates, and is now
easy at 4 per cent. on call at Now York, with good paper
in demand at 5 to 6. At Boston everything is quiet in
loans and discounts. Speaking of the quarterly statement,
the Wall Street Register of New York—which has just
been greatly enlarged—characterizes it as " highly objec-
tionable on every account, as it is liable to produce, four
times a year—and last spring, it will be 'remembered, ac-
tually did produce —an artificial tinanc:al disturbance and
money tightness, while the banks aro busy swelling their
reserves and contracting their loans, in preparation
for what is, after all, of the most trivial use whoa done."
This is fast getting to be the general feeling of the bank-
ing and mercantile interests throughout the country. At
San Francisco, money—gold and silver—is still abundant.
Loans cot-I'4llle to be made at 12 per cent. par annum,
and for short loans at 1 to 11 per cent. per mouth. There
is not commercial paper enough to employ anything like
the amounts offering. .Sack is the generally favourable
monetary condition of the whole country. It is agreed on
all hands that th ,re is no reason to apprahmd any tight-
ening of the market for the rest of the summer months
Money is not; however, se free as to invite its use
without any geed reason. The statement of the city
banks of New York for :\l-ond,y show that they o..ved
5101,321,312 on d .p 3.2.; Cagt 5211,3)2,207, Jan 3 2,
and 533,1;66,397 against 531,013,721. The Philadelphia
city banks owe, this week, on deposits, 538,528,200 against
837,532,427 last week, ane $10,625,426 on circulation
against $10,630,307. Perhaps the present condition is
better than that of a month ago, whon it was a perfect
drug. Abroad the santa features are observable. The
accumulation continues at the Bank of England and at the
Bank of F:-ante. English capital, available for invest-
ment, is pretty much at a stand-still. Call loans rule
is
England at 1 to 11, and even short paper is taken at that
rate. The unfortunate experience of every kind of cor-
porate industry has created an extraordinary distrust of all
securities except Consols. Railways are not looked at, and
foreign loans on the most flattering terms do not suc-

coed in drawing off any appreciable amount. Money re-
mains idle, but without the temptation to invest, on ac-
count of the disappointments and deceptions of the past
three years. The latest quotations of exchange are as
follows :—London, GO days, 1101 to 1102-; London, sight,
110 i to 1101; London, Prime Commercial, 1091 to 110 ;
Paris, long, 5.131 to 5 121; Paris, short, 5 101 to 5 10 ;
Antwerp, 5 161 to 5 15; Swiss, 5 161 to 5 15; Hamburg,
36} to 361 ; Amsterdam, 411 to 412-; Frankfort, 41 to
411 ; Bremen, 791 to 81; Berlin, 71i to 72.
Gold has varied during the week only by a fraction.
The resolutions of the Democratic Convention had a slight
effect, on Tuesday and Wednesday, to push up the price,
but the truth is, gold does not know which way to go. If
the repudiation proposed should take the form of flooding
the country with currency gold would go up boyond
account, and would indeed be about the only thing wo th
owning except real estate. The probability of this kind
of repudiation being accomplished therefore would tend to
send gold up. But, on the other hand, the payment of
the bonds in Legel-Tender simply would destroy one
of the few uses which gold (being demonetized) now
serves, and would therefore tend to lessen the demand
for it. The shipment still continues large. Govern-
ments might be expece.d to keep down under the in-
fluence of the hostile resolutions, b,th of a Republi-
can House of Representatives and of the Democratic
Convention. When each party is trying to surpass the
other in offering violence to the national credit, the chances
of the bondholders would seem to be slim. Yet on that
very.account it is possible that the debt is really in less
danger. One party being just as good (just as bad) as
the other on the question, it may result in both parties
letting it handsomely alone. The action of Congreas cer-
tainly has taken some of the wind out of the Democratic
sails, and it was unquestionably in this view that many
voted for the Price amendment. It was none the less an
unworthy trick, and must in the end hurt rather
than help the cause in aN hich it was employed.
Tho Now York World even has the amazing and
amusing impudence to claim great credit for the De-
mocracy-on account of the service they have rendered
to the Government Bonds. " The platform of the
National Democratic Convention, when read and under-
stood to-day, has given great strength and firmness to all
Government bonds, inasmuch as the principles of economy
and adherence to the written law which the Democratic
party inculcates, will undoubtedly strengthen the national
credit, and if carried into practical operation by the advent
of that party into power, will gradually advance the price
of all Government bonds to par in gold before the maturity
of the priuclpal, thus rendering the question of payment
in greenbacks of no moment to investors. The Six per
Cent. Government Bonds, principal and interest payable in
currency, issued to the Pacific railroads, are selling now at
103 and interest, showing plainly that the greenback
theory, even if it were to become a fact, would not
lower the prices of Government bonds, for if a six per
cent. currency interest bond sells now at 103
and interest, equal to 100 just before the interest
is paid, certainly the six per cent. gold interest bonds, to
be on a par with the currency bonds, ought to sell at 10
and interest in gold, instead of 1084 in currency." The
last touch is really too " killing," considering that the rea-
son why the gold interest bonds are selling down so low
is to be found. wholly in the -violent and unprincipled
attacks of the Democracy. However the holders of Go-
vernments may have reasoned aboutthe matter, and what-
over the cause, the bonds certainly advanced on Wednes-
day, notwithstanding the adverse result of the Democra-
tic ConVention, rising still more on Thursday. The ac-
tion of the Convention had been so long anticipated that
all its effect had already been included in the estimate of
this kind of property. It is true, however, that the
amount sold has greatly fallen off since the Price resolu-
tion, and that a most promising advance has been checked.
The quotations aro more from rather small operations—
the danger in which the debt stands being enough to pre-
vent buying, even if it is not enough to secure a general
sacrifice.

The export clearances of domestic produce for the past
week at New York amounted to $2.113,799 against
$3,531,892 the same week of last year. The expert of
specieha.s been $3,227,532 against $1,534,861. The Customs
for the week amount to $1,658,097. The receipts of the
Chicago and North-Western Railroad for the six months
ending July 1, 1868, have boon $5,841,623 against
$1,599,859 same period last year. The earnings of the
Chicago and Alton Railroad for June have been $373,460
against $342,357 of last year ; of the CleVeland and Pitts-
burg for the three weeks in June $145,047 against
$131,5551a5t year ; of the Chicago, Rack Island, and Pacific
Railroad for the month $366,200 against $261,567 ; of the
Michigan Southern for the mouth $363,550 against
$301,232 ; of the Atlantic and Great Western for the last
three weeks in Juno $88,395 against $92,501; of the Ma-
rietta and Cincinnati for the month $95,921 against
$96,533 ; of the Michigan Central for the month, $325,501
against $281,977 ; of the Milkwaukee and,St. Paul for the
month $458,094, against $338,395.
Thes'e figures will go a great way to explain the rise in

railways which has continued during the week. The
most marked exception is Reading, which fluctuated vio-
lently during Friday. There was a very sharp " corner "
developed, and the difference between cash and regular
was at one time fully 6 per cent. One ;broker bought

20,000 shares at 103} to 1011, while the vie) at the board
was only 101.. Tha stock fell during the day t) 961. The
affair was very complicated, and the results exceedingly

disastrous to all who warn short. The amount made and
lost during the afternoon of Friday ou this item is esti-

mated at $.).00,000. Heavy " shorts " are alse repertod in
New York Central and Michigan Southern, in the former
case the operators for a fall being the Vanderbilt party.
North-western is still pushing up, the coinanu stock
being as high as 784. This rapid and continued rise is
attributed by some to an approaching corner; but the
general feeling is, that it is idue to a batter apprecia-
tion of the advantages of the investment. The earnings
of the company are prodigious, and its capabilities still
more so; but the great drawback is found in the gigantic
capital and debt of the road. The common stock amounts
to $14,655,741,- and the preferred to $16,768,037, a total of
630,268,037; while the debt, funded and unfunded, is about
$18,000,000. This must require the net earnings of the
road to be spread oat pretty thin to go around. Bock
Island has advanced during the week, selling as high as
108 on Tuesday, and at 1091 on Thursday. Fort Wayne,
which so long had the preference over Hock Island, has
declined to 1071, and is rather shaky at that. Border State
Bonds continue to be pressed for sale, and are consider-
ably higher.
Tho decline in breadstuffs has been going on during the
week, and is only just checked at the close. This decline
has been very marked and significant. Whether the slight
improvement within the last two days indicates that the
movement is stopped or is only a momentary pause must
as yet be a matter of conjecture. The probability is very
strong that it is only the latter, and that the whole
lino of prices in breadstuffs will have to yield still
further. Cotton has worked up despite unfavourable
advices from Europe, middling uplands standing at
324 c. This is owing to the fact that the supply has been
pretty well worked down, though quietly. The present
demand is wholly for spinning. The low grades have
improved most., relatively. The Mston Advertiser says—
" There will be a material decrease in the production of

cotton fabrics the next two months, as at the present price
of staple it is a losing business to manufacture goods, and
agents will buy as little cotton as possible. There is a
generalapprehension that the fall trade will set in early, and
that goods will advance before the new crop of cotton
comes upon the market." In tobacco no change has oc-
curred during the week, and only a moderate business has
been done. Transactions in seed leaf have been mostly
confined to lower grades for export. Manufactured tobacco
remains quiet.

(From the Wall-street Journal.)
NEW Yonx, Friday Evening, July 10.

The Governor of Tennessee is proceeding promptly in
regard to. the default of the payment of the interest on the
State debt. He has called the Legislature to meet on July
27, when arrangements will be made to pay the interest
without delay.
Tho election of president and directors of the "Erie
and Pittsburgh Railroad Company" was held at the (Alm
of the company in Erie, on Wednesday, the 24th instant.
The following named gentlemen were elected ; - Prosi-
dent, Win. L. Scott ; directors, John ff. Walker, Henry
Rawl°, Milton Cartwright, James Pierce, David Dews,
Wm. Williams, Charles H. Leo, Gibson I'. Williams, John
M. Hutchison, Horace F. Clark, Augustus Schell, and
A lanson Robinson.

Mining Stocks are generally dull, the exceptions being
Consolidated Gregory and Smith and Parmelee. For
Grass Valley there is an active inquiry, and 35 cents are
freely offered without bringing out any of the stock (the
par valu of which is $10).
Petroleu:n Stocks are steady, with a good business
doing. in Be lianas Farm and in United States.
The following is the gold movement at New York for
the first six months of 1868 : —Received from foreign
ports. 1n January, $136,571; in February, $115,875 ;
in March, $1,209,776; in April, $871,079; in May, $177,483;_
in June,sB3B,lll—total,s4,o3B,9oo. Received from Califor-
nia—ln January, $1,019,880 ; do. February, $4,132,276; do.
March, $3,670,196 ; do. April, $3,760,410 ; do. May,
$1,216,707 ; do. June, $3;339,765: $21,089,261. Total
supply, $25,128,164. Exported to foreign pJrts: in Jan.,
$7,349,325; ditto February, $1,303,825; ditto March,
$3,691,912 ; do. April, $6,095,179 ; do. May, $15,936,231 ;
do. Jane, $11,823,628: $19,103,600. Loss since Jan. 1,
523,975,436.

• •
NEW YORK RITES OP EXCHA.NGE,
July 9, 18.38.
Sixty Days.
London Bankers
London, Primo Commercial lO9l-110
Paris, Bankers
Bremen, Bankers
framburgli, Bankers 3.3 —361
Frankfort, OM. 4OI-411
Berlin and Cologne
Antwerp 5.15 —5.11
Amsterdam, Bankers
Swiss

Three Days.
1101-1101

Express Stocks are quoted as follows :
Adams
American ...
United States
Wells, Fargo, and Co. ...
Merchants' Union, 33 per cent...,

... ... 53.

46
••• ••• •0411 •••

.
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".
.. 47
~. 24
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24

to 54
to 464
to 48
to 254
to 251