The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-04-17

PORTLAND.
Wednesday Morning, April RI, 1867.

Ffve-Twenaies at Home aud Ahrond
One day before the stock markets were disturb
eddy the late ripple ofw warlike rumor from Paris
United States tlve-twenty bonds were simulta-
neously quoted at 100 SO in New York. rs IA
in London, Y 3-4 in Frankfort, and "a 7-s in
Paris. The variation in these prices is of
course merely apparent. A difference Of z per
cent. between Frankfort and Paris, or of or 10
per cent between London and Paris is impos-
sible, and since New York has been put in tel
egraphic communication with the great Euro
pean exchanges our own quotations advance
or recede with theirs. With gold at 1873, 1O95-s
in United States currency means SO 3-8 in gold.
The London quotation must also be corrected.
By the rule of the London exchange the value
of United States securities is always computed
in sterling money on basis of $4.444 to the
pound sterling The pound sterling is
really, however, equivalent to $4s4 in Federal
English quotation in order to compare it fairly
with 81 3-S in New York. Applying this COR
rection we find 751-4 equivalent to 50 in gold.
The discrepancy in the German and French
quotations arises in the same way. In Frank
fort the quotations are made on basis of two
and half horins, in Paris on basis of five
francs to the dollar. Five francs are less and
two and a half forms are more than a dollar
The proper corrections give for the real price
of our tiye-twenties, all the world over, week
before last, very nearly eighty-two dollars a
hundred in gold. ~,
This is an advance Of fully five per cent.
within the last five months. If the edvance
were to continue at the rate of one per cent. a
month the bonds would be at par before the
end of the year 1868. The advance will not
perhaps be so rapid, and there will probably be
some counter currents. The experience of the
last few months however, has sutficed to show
that the five-twenties are securely established
in the public confidence. We have passed
through the stormiest period since the close of
the war, We have had before US the prospect
of an impeachment of the highest officer in the
government, the most reckless schemes for in
creasing the public debt, the widest PROPOSE
tions respecting our financial policy, and have
listened to Babelof discord about reconstruc-
ton; but when Congress has stopped talking
and proceeded to legislation, it has always de-
cided calmly and wisely, with prudent bold
ness calculated to reassure all doubters. The
steady advance of our securities abroad and the
rapid conversion of our seven-thirties at hOme
afford the most satisfactory proof of the just
estimate which has everywhere been put upon
the debates and the acts of Congress. If conf
dence has thus increased during the period of
confusion through which we have just passed,
it is not likely to be disturbed by any political
event within the range of reasonable expecta-
ton. ~ A'i'" a"sh4"'th' i3 Do i,d 4no /
The reason why American consols are not
now negotiated at par is of course the inn
mense volume Of the debt. We are trying to
put our whole interest-paying debt into long
bonds. The supply is ample as yet. 1t takes
time to diffuse such debt The absorptive
power Of the European markets has not been
exhausted. The holders for permanentinvest-
ment will get the bonds by and by. The spec
ulators will sell at profit but will not be able
to buy so favorably again. As the supply di-
minishes the price will steadily advance. The
fiye-twenty bonds at par will offer a frst-class
investment to European capitalists. A Euro
pean war will not send many of our bonds
home, for the simple reason that no property
can be safer in time OF war;. A heavy demand
for American produce would check the ex-
portation of bonds, but that result would hard
ly be regarded as misfortune. Meanwhile it
is obviously Tor our advantage to encourage
permanen investments abroad if any, and for
that purpose to authorize the issue of bonds
bearing interest payable in England and Ger
many, as recommended by the Secretary of
the Treasury. i5lfeia.c laJ aias -lii s,sif +