, 1866-05-25

amount OF gold sold BY the Treasury Depart
nent during the week Is not known, But it Is
estinated at oycr SO, or, ,ooot 50 thst tha s.
ooo. COG in gold coin shipped, have been sup
piled from the vaulta Of the Asals.ant Treas1-
i1e today ameunt 70 ses shs md Mifs Is eoia eoa
interest paid fer the same period and due
May ], is 51,7o2, ,oo0. Assuming the proceed
Ing estilnste as correct. the amount Of gold
on the market available ior deliveries 6 in
creased abont 81, 1,e5o,ooo beyond that OF Last
week.
In connection with the policy Of the
Treasury Department, and the price OF gold.
the return of ive-twenty bonds from Europe
IN heavy amounts during the last fortnight,
estimated at about &c, 600 oo0, Il viewed by
given rise to considerable newspaper discus
slons Is. that the hve-twentiks returned
from Europe hare taken that course.
giving to TIE depreciation Of United
Correct information would hs7e dis
sipated this popular de1usiou and
rendered unnecessary tho newspaper articles
putting the credit Of the American Govern
ment with quotations from the speech Of
British Chancellor Of the Excheqner, affirn-
on American financial affairs. The return Of
Fire-Twenty bonds from Europe is caused by
the dfminution in the credit Of the FOREIGN
bankers, chiefly German, In this city aud
their correspondents abrosd- It is well
ass1 ss9En these to 9ss @sa xh0 f6af s" aps99E g
years past nearly every German firm
that could sell foreign bill OF exchange in
this market has been buying and slipping frc
twenty bonds to Europe to the full extent Of
theiE credit and ability to sells bills OF OK
change. The result has been an accumulation
OF tive-twenty bonds in the hands Of banking
firms In Europe, held Ike cotton, or any
other products, for market, and for
firms OF moderate standing danger
ously expanded The appreciation In
our government credit has made this trading,
profitable that, since the advent Of peace the
overtrading in the export Of iTe-twcnty
Londs has been enormous. In December last
the American oTertrading IN HEe-twentJ
bonds. and the high price Of cotton, middiings
considerable extent by limited banks and
financial companies. were brought under the
serious consideration of the Bank Of Eng
land. It was then deter ained BY
that Institution sSdtu & to ,;n turn shs "aeFswn
month since December cotton and fivs-twerty
bonds have become less desirable as collater-
ais tor loans, and more inconvenient - carry
Speculative and weak holders were, there-
fore. forced to sell and realize The results,
as matter Of course, were steady decliRc In
the price Of both the articles upon which the
bank screw" was turned Aldd1lng cotton
has tumb1cd from I'D. to lid, aud tve-tweu-
ty bonds from about % to about 6S~ 1t Is
estimated that the decline in the prices Of
the fve-twenty bonds and cotton, held in
| Europe since December Is about el5, ,0301, ,o00.
| or SIS, 600 200 in gold The margins Of the
| oyer.traling firms, who have been shipping
| tlyc-twenty bonds and cotton to Europe for
the last year, have, therefore. suffered Sc
yerely, and what Is of even greater impor-
| IN fhar1 tha rrf,fi4 nF t1saY17s Iva,
and their correspondents has been
Affected to IN extent which required,
rs m impeiatlye necessity. either gold or
three days sight bills as remittances from
New York; The - 'fiaanciering," "a 'k,tins, ''
bill drawfug,a or hy whatever name these
practice: may be called Of the ovcr-trand;ns
t1rnls n Europe. has been cut of By the nc
'fon Of the Bank OF England aud the pros
rect of war on the continent. About
six weeks ago the World stated tho
in Wall street had been notified 5; tho
strong 0rm 1t draws against in Lon
den that all future bills must be- covered the
snmc steamer by gold OF three days sight
e5ise on lirst-c'ass names. This London tlrm,
during financial crisis, generally ptus on its
hillsar time of acceptance notice that they
are ready to discount them at the Bank Of
Eng lands minimum rate. This condition OF
the London money market has compelled
those who are carrying fve.twentr bonds in
| EUROPE ~ SeHu tut1n DECK uGfG lOs tue puf-
pose Of obtaining money for them to protect
themselves against grave cmharrussment5.
The return oftiye.twenty bonds from Europe
Ii, therefore, not in any way connected with
our Government credit. They represent, not
sales by bona .'tde holders, who have bought
them tor investment, but sales forced by the
necessities Of Spectators here and in Europe
who Lave gone cut Of their depth by over
trading in them to an extent from Which
| many Of them will lose heavily. The over
trading Of these fiye-twenty bond spectators
flooded the New York foreign exchange m1r
ket with bills during the spring, 90 that bank
ers' sterling slSty-t1ay bills were selling at
10t1a 1o11;:, until quite recently. The ship
ment OF $4,000. 600 in specie within the Iass,
fortnight Is the first public Official evidence o
this observation-disclosures of the diminished
credit and "hari-up" condition OF osertrad
ing foreign firms, and not in any sense evi
dence Of anything wrong, In the most remote
| degree, ith American financial or commercial
interests. Nor can 1t effect nntavosablv sns
American interest. On april 81, prime ban
kers' sixty-tfay sterling bills were selling q,
l0111a in New York, and gold was selling al
12G331l to 1e1. Tie specie shipment of thi:
week is In response to these figures
| We have given this outline OF the condition
Of the European money markets, in regard .te
tie recent return OF our f!ye-twenty boutls, il
order 10 correct the popular erroneous no
| t3NrS m fbfs m 0f