The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-16
Financial and Commercial Prospects.

Financial and Commercial Prospects.
The most notable feature of affairs in Wall
street at the present time is the extreme album
dance and cheapness of money, which causes
loans to be made at three and four per cent
per annum. This is attributed to too great an
extent to the foreign balances held here for
employment These are undoubtedly large,
but not much more so than they have been for
several months past, and although they fur
nish capital they do not provide currency, and
it is the supply of and demand for the latter
that regulate the rate of interest. Apprehen-
sions are expressed that later in the fall strin-
gency will take the place of the prevailing
ease and that INSCRIPTIONS stockjobbing COM
binations will be formed to lock up green
backs. In our opinion there is nothing
in the present aspect of affairs to
justify these apprehensons. The supply of
money at this centre during the remainder Of
the year will, it is more than probable, be fully
equal not only to the legitimate wants of trade,
but to those of Wall street, although 1t is rea-
sonable to look for an advance in the rate of
interest to six and seven per cent for short
time after the full effect of the drain of cur
rency to move the grain and cotton crops has
been felt. The business of the country has
become adjusted to the volume of the circula-
ton, now that contraction has been SO long sus-
pended and greenbacks are no longer boarded
through distrust of everything else, as was the
case for long time after Mr.. McCulloch de-
livered his Fort Wayne speech, while trade is
devoid of speculative features.
The next most notable feature is the return
ing confidence in our national securities, which
suffered check when the project of taxing
the interest on bonds was discussed in Con-
gress and when the democratic convention
framed its platform. The supply of these has
stopped, while the demand goes on undated
and will doubtless increase from year to year,
the natural result of which will be gradual
advance in their market value. Just now the
home investment demand which would have
been felt in July but for the causes referred to
has set in, and large purchases are also being
made on foreign account, one consequence of
which is that the tendency of prices is strongly
upward. With respect to gold it is clear that
its price has of late been depressed
by speculative influences, and that before
the Presidential campaign is over speculation
will turn in the opposite direction, and that
higher price will be the result, while APP
pearances indicate that the market is already
about as low as the bears can succeed in get
ting it under existing circumstances. But as
all violent fluctuations in gold, whether for a
rise or fall, are productive of evil, the specu-
lative manipulation Of the premium is TO be
deprecated.
The general trade of the country is mode
rately good for the season, and the grain move
ment is going forward actively. There is
prudent Discrimination shown by traders of all
classes to do other than conservative bust
ness, and hence trade is on a sounder and more
healthy basis than when long credits were in
vogue. Financially and commercially, there
fore, there is much to inspire confidence both
in The immediate and ultimate future Of dnan-
cial and commercial affairs.
Tue King OF PRUSSIA on TIE EUROPEAN
CRISIS. king William of Prussia, in the
course of his tour of inspection of the forces
of North Germany, arrived in the Hostein
port of kcl, In the Baltic, yesterday. Visit
ing the Kel University the King received an
address from the heads Of the institution, in
which they referred to the peace now preva-
lent in Europe and expressed the hope that it
would remain undisturbcd. The bluff old
monarch replied that he did not "sce any
cause for disturbance" adding that ''the army
and navy-the vigor of Fatherland--have
proved that they do not shun the combat, and
if compelled to enter into conflict they will
fight ii out"
This language is certainly frank, plain, Ger
man, and consequently exactly to the purpose.
King William cannot see q 'cause for disturb
ance," but II the army and navy of Germany
are compelled" to "confiict' they will
fight It out" The questions now remain
r.