, 1869-06-26
M01LlAKK AND COMMERCIAL


FRIDAY EyKx1HG, June Il
buE1ness man cl shss city sends ns Il commaut.
cadon In regard To the effect which the operations
VI the SECRETARY OF The T1eaaurT hare On the
money market, and takes the ground that Mr. Bout
well ought 10 manage The a0airg Of his once keep
Ing IN view tniy the Interests Of the National Treas
uEf, "regasdless Of any OF all other lnteres1a,
We suppose that our correspondent means that
The SECRETARY Ahould buy bonds or sell gold, Or
c1rand Or contract The currency, entirely for the
benent Of the Treasury, and for the profit Of the
government and the Improvement Of its c.edn,
regardless OF the condition OF the money u,arke.,
or the condition OF trade This view OF the Sec
retal5 Position Is perhaps not an uncommon oae
with those who hare not reflected fully upon the
consequences Of f1rh policy. While The orst
duty Of Mr.. Boutwell, Ii undoubtedly to "coasult
The Interests Of lhe government" II must be
borne IN nlnd that the government Ia the peopie,
and that the people arc as much Interested In the
money market a6 they ate IN anything pertalntngto 10
the national nhances. Tue position OF the Secretary
Of the Treasury hes no rCtalte, ot as great nnan-
clal power vested in sinYlc Individual in the
world, and. should the theory ever be put Into
practice tha. thts vast financial power should he
wlelted regardless Of the condition OF the money
markets of the co1ntry-tn other words, regnrd-
Iess Of the commercial interests Of the country
1t would inevitably bring disaster and ruin In
trade, md nnall5 fall With concentrated effect on
the revenues Of the government itself. ANY at
tempt ~ the Secretary Of the Treasury to rcgu-
late the volume Of the cnYTency nccorutng to
Ills notions, to contract when he thinks currency
/. Redundant, and 10 let 1t out again when he
thinks the country needs II, must always produce
violent changes in the usoley market, md result
in disaster. On the Other hand, q disregard Of the
condition Of the money market would produce the
~6Alue results 1t ls therefore, plain that the line
OF the S+cretasy's luty is To 10 nana9c the ua-
tiofal fluids that hl5 operations Ht hare the least
possible entct on finances GENERALLY. Anr TN.
necessary shock caused In the InpleY market, or
my unexpected Turn given 10 anaiss by his opera-
tons. which could have as well been avoided, is
breach Of bis dutT to the people
The programme announced for the future p2f.
chRtcs OF bonds md sales Of gold By tho National
Treasury, md which is 10 60 into effect on JuIy
6 that there nre to bc sales Of one million Of gold
and purchases Of one million Of bonds, On each
hibernate week, thus making the sale Of tEo MILL
Ions OF gold and tae purchase Of two millions Of
bonds Fer menth- As far Is contracting the cur
rency is concerned, this Ia xrea. modlacauou OF
the ed.ct of the fGrtuer order o: sales
and purchases, and, instead OF drawing
Rtx md d half millions OF currency per month
into the Treasury, Will only absorb about |
four iuEdred thousand dossats per month.
Under these circumstances, ana IN con.
nectlon With the return noT OF Currency
III IN the country TO the ctIics which has ]
hoH set II, very ut1eiGpt financial condition
LaaJ M expected for tJu'5 from what has existed
during the most Of the present month.
The demand for money In the local mark ct ia ac-
live, large proportion Of 1t arising from the ne
cessilses Of merchants for exchange to pay !
Ehetern bills falling due. The funds Of the I
grain dealers, however, are beginning to come L. !
now, and help 10 keep up deposits. so that the |
ban&s are toe1nhly easy for money, and are loan
lcg irtefE at 10 per cent to all approved bor-
rowers.
The contaaaed fdEance Ia the price OF exchange |
Indicates that the tide Of trade has turned and |
;hat money IS flowing hack from the country to I
tho cites Sales Wc.e made between banks, to-
day, at &c o0c, and finally nj cec rer sluo1 pre-
mum. At the counter banGers nre selling at 1-lc !
premium, and buying Ut lilo discount for New I
York funds, and i of on But1alo
Dealers quotations Tor buying and selling goy-
ernmens bonds, local stocks, gold aod s:!yer, IN
the market, this afternoon, we're IS follows: