The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-04-30

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menu anu po"er' ----- .-... --- a.
The Public Funds s-Their Steady Appre-
ciatiOn
II would seem, from the tenor of private des-
patches by the Africa to leading banking.houses
in thus city, that we were correct in interpreting
the latest news from abroad as more encourag-
ing, at least, for our financial, if not likewise
for our commercial interests than had been the
advices by the NoUG Scotidn and the first pub
lshed kilograms from the Africa. The very
latest private messages from London ito tie
close of business, April LAY place United States
Five.twentes in that market as high as 6S3, May
coupon of, which substantially restores them to
the figures reported by the America, allowing
Tor the deduction of the semi-annual coin inte-
rest. The very latest private accounts from
Frankfort Ito Sunday afternoon, April 15) give
the ruling price for the avorte American security
there as 732, eX the 1st Of May coupon OIL, or
equal 10 about 694, May coupon off, in the Lon
don market From these dispatches it would
be evident that the turning point in the depres-
sion OF our national stocks abroad has been
literally reached; that the rally in prices had
fairly ana sturoily commenced; and that CONT
dence in their thorough reliability and unri-
vailed lucrauveness, as an investment was In
creasing apace.
Our own market yesterday gave further proof
oil its strength, in the form of an additional rise
OF 458 of one per cent. in the first issue OF FIVE
twentles, with which the foreign buyers are most
tam1' lar Sales were made as nigh as 1867 s0l06@,
or equal to 1925 May coupon Off. AT even these
quotations the available supply was unusually
limited, the recent steadily algmenting invest
ment drain having very effeCtually cleared the
market OF all floating lots. The home demand
is still so urgent that no difficulty whatsoever
can arise in the way of finding eager purchasers
at the gong rates Tor any OF our public stocks
likely to be returned from abroad for realization
here. AS stated in our money column, "thus
far the actual return of these bonds has not
amounted TO single weeks demand from
domestic BUYERS Tor investment, whlle at the
same time, very heavy sales have been ndulged
in, on specua,i ion OF bonds to arrive or, more
properly speaking, OF bonds eXneCted to be
bought back here, II not brought back from
abroad, at lower igurPs.n An effort has been
made within the last day or two to cover these
short sales by purchases in this market. 1t has
been only partially successful, and even thus
successful only at the cost OF an additional rise
i'll the price The market, in lis present temper,
is fully equal to the absorption of all speculative
offerings that may be ventured uDon; and this
too, without arresting the upward course of
values, strengthened as it is by the eXtraordi.
nary abundance OF money, which fails to hnd
profitable employment in any other well.pro-
tected forms-by the progressive improvement
in the financial position of the countIy-and by
the practically permanent withdrawal from the
market OF the Government as borrower.
The comfortable and assuring conuiton of the
national finances is Indicated by the instructions
OF Secretary McOulloch to the Assistant Trea-
public moneys generalyito allow no higher
rate OF interest than four per cent. per annum
on temporary deposits made on and after May |,
until further notice." which proVso is con-
strued as meaning an early abandonment of the
plan of receiving those temporary deposits on
any terms. 1t is lurther indicated by the readl-
ness with which Congress responds to the de-
mands OF the people, Ill making such reductions
OF the legal taxes are compatible with the sol
vency of the republic and It's determination to
discharge it's indebtedness as swiftly as feasible,
by if not before, the full majority of its obliga-
tlons, floating and funded. II is stlll more con-
clusively demonstrated by the unlimited conf
dence of men OF means in the superiority of the
public funds, as an investment OF the very best
class. .. ...... .... ......
From this confidence has sprung the demand
| for the national interest bearing Obligations
which has swept the market clean OF all accu-
mutations; which, in very short period, has
| carried the price OF the SIX per cents OF 1881
| from 104- to 1888; the Five-twenties (orignal
issue) from l039 TO 1863; the Ten-iortes, tive per
cents, from 81 to So; the Seven-thirties, from
Sc 10 1917; one-year Certificates of Indebtedness
| from 97a to 1909, and Compoupd-interest legal
enders 10 an equivalent of their fun par value,
and the whole OF the accrued interest; and
which is likely to carry them to much higher
| figures before midsummer.
In view of all these circumstances, we are
not surprised to learn from Washington that,
| in high legislative as well as II executive cir
cles, confidence is expressed in the entire teasi-
| bility OF marketing five per cent. bonds at par,
IN sufficient volume to provide for all the short
date obligations of the Treasury Department,
and thus effectually relieve the Government
from all sources Of embarrassment, slight or
serious. The revenues of the nation were never
SO marvellously prolific They now far exceed
the December estimates of Secretary McCul-
loch, though they are not ahead of our own
antcipations. The national expenses are being
retrenched with commendable energy The
| Industry and commerce OF the country are unu-
sually prosperous, considered as whole.
The money market is suffering from what the
! money writers call "a plethora" of surplus
capital, which is in great need of secure
outlet to prompt, permanent, and lucrative en-
ployment The disturbances OF Old World con-
Germs make very little, If any impression on
our great national interests. Everything, in
deed, promises auspiciously for the speedy and
successful Inauguration of the funding process,
by which Secretary McCulloch will be enabled
to place the public Indebtedness in manage
able form, on :erms in harmony with the
illimitable resources and unblemished credit OF
the republic. ...
The Great Game of European RecOnstruc
tiOn-DiplOmacy versus War.