The Sun.
London, England, 1868-01-25 00:00:00

COMMERC [AL.
(From Messrs. Belding, Keith, and Co.'s Circular.)
FRIDAY, Jan. 24,

American Securities have been in greater demand during
he past week, with an upward tendency. 5-20 Bonds, 1882,
have continued about the same in this market, varying with

the cable quotations of gold from New York, and open this
morning at 711 72, or the same as last Friday. In New York
they have steadily advanced, although the price of gold
has with slight variations risen one per cent. ; 5-2U's of
1885 follow those of 1882 at a difference of one per cent. ;

IC-40 Bonds, 1904, have continued at 67t 68f, daring
nearly the whole week, rising ou Wednesday to 68 681;
they open this morning at 671 681, au advance of
t per cont. Illinois shares open at 85 86, an advance
of one per cent. Erie shares have been steady at
48 49, or about the same as last week. The
demand for Atlantic and Great Western Debentures
and Consolidated Mortgage Bonds has continued ; the
former open this morning at 24 25, the latter, after touch-
ing 26 on Monday, or one per cent. above the quotations
for Debentures on the same day, open at 24 25. The Ne-,
York and Peru Ist and 2d Mortgage Bonds of this railway
have also been dealt in to a considerable extent, having
risen fully five per cent. during the week.
Messrs. Belding, Keith, and Co., in their circular of the
21st inst., remark as follows on the national debt of the
United States:—" To illustrate, as seen from our view, it
looks thus the United States Government owe, say,
$2,000,000,000, 500 millions of which is held in Europe.
The American holders bought at par—many of them at
10 per cent. to 15 per cent above par. The Europeans
bought at a discount, according to the price of gold at
the time, believing that gold would go lower, and
they would be gainers thereby ; and any material de-
cline in gold must be allowed by an equivalent fall in
bonds ; or, by means of the cable -(by which a mar-
gin of a half to one per cent difference pays to ship
either way), Europe9.n holders will realise—not all, but
always enough to run up gold or run down bonds, thus
overloading American holders of bonds, and depleting the
market of gold before there is enough to resume specie

payments. What will put a stop to this? What means
is there by which the country can secure a breathing time,
and rest sufficiently to carry the burden of all its bonds on
a gold basis? To us the means seem plain. We believe
a twenty year Six per Cent. Loan for 500 millions of
dollars, issued at par in gold, interest and principal
payable in gold in London at 4s. or 4s. 2d. (;.e.
at the same rate as issued) per dollar, and not

payable elsewhere, would be a means of taking up
the 5-20's held on this side, and thus placing the coun-
try in gold to resume specie payments. Being pay-
able only here, they would not be shipped backwards and
forwards, thus reducing the floating bonds to State and
railway bonds dealt in, which will be quite enough to work
all the changes desired in exchange. To leave it otherwise
is to always be over-flooded on a decline of gold, for if a de-
cline of gold of 5 per cent. takes only $1,000,000 over, it
does not follow that a decline of 10 per cent. would only take
over s2,ooo,ooo—but probably it is safe to count it in
a geometrical proportion of 10 —and to-morrow nine-
tenths of all the bonds in Europe would go back if the
holders could realise 10 per cent. on them more than the
present price. This, or anything like one-half of it, all
very well know is impossible for us to take, and would, if
done, at once put gold to war figures.
"Now, is it best, is it wise, to work against such a state
of things in this way ? Is it not by far better to say, We
owe you, we cannot pay you now, but give us time and a
little more gold, and we will pay you gold for gold,
and 6 per cent. interest. With bonds thus issued those
now out could be redeemed as fast as practicable at
market rates, which would be far below par for a long
time, thus cancelling them, getting more gold, and five
years or less extra time in which to work out and pay off.
As to the rate per cent., some may say, Is it not too much ?
To this we would say, We believe it is not, and that bonds
at any leas than that would not go at par. A 5 per cent.
might sell at 85, but a 41 per cent. would not at over 75
to 80 ; and if ever a full round 100 was wanted for bonds,
it is and should be now-100 received for 100 to be paid ;
and 6 per cant. and nothing less, in our opinion, will com-
mand it.
" Such a plan seems to us the best for the true interests
of our country, and we think will be found on careful
study to recommend itself to all who wish to see it again
on a sure basis advancing in wealth and universal pro-

sperity.
•' We notice that some parties have objected to such a
course because of the great advantage such an arrange-
ment must give to any house having the sale of the bonds.
We do not see that any loss reed be sustained by this, for
the Government can sell exchange as well as gold, and
have all the advantage thereof."
We trust and believe some plan will bo devised by
which the holders of bonds in Europe will be freed from
any apprehensions as to their payment, whatever may be
the political complications arising from time to time iu the
States— a matter which we consider of even gr

r im

portance to the Stat,:E than to the holders of bonds here

(From E-F. Satterthwaite and Co.'s Weekly Circular, Jan. 22 )
By the Scotia we have our usual advices from New York
to the 7th inst. Government Bonds were all strong and in
good demand, especially the 10-40 Five per Cents., which ha(

alvolced one per cent. In Railway Stocks we have t,
note an improvement in Hudson River and Pennsylvania.
Rock Island at one time declined on an injunction granted
by the Supreme Court, restraining the directors from trans-
ferring in the company's books the largo amount of stock