The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1869-05-28

The London Morning Star of May 10, In
IL city article, takes the following very
sensible view Of the financial and trade re-
land, us affected by pending political ques-
lions. 1t notices the pressure of sales in the
stock markets that morning, consols and
ilye-twcnty bonds being perhaps most
affected, and says;
In dve-twcuties the prcssui, continued
undated, the bears taking advantage Of the
bad spirit which Mr.. Summers foolish de-
mands have created, and which II Is for the
| benefit OF certain Of our monetary cliques TO
stimulate. The letter of Mr.. Goodwin Smith
was largely quoted as a proof that We might
fear the worst from the temper OF the pres
cnt American administration. We have no
doubt whatever that the letter Is an un-
fortunate eXaggeration, and that the notion
Of our relations with America becoming so
cmbittercd as TO compel English residents to
quit the country could only have entered the
mind OF a scholar and recluse.
| The two countries have far too much need
Of each other to permit an old story like the
| Alabama controversy to break up their
profitable trade, to bring untold mlscrics
upon both and to heapup debt OF hundreds
OF millions In the course of few years. The
majority Ofthe people on both sides ofthe At
| luullC uIC lOO NlbttO lHtlT ON II
ruin by embarking on strife, and the silly
talk which is heard at present will die away
In few days. 1t has served Its purpose,
however, of reducing fiye-twenty bonds
about enc per cent. additional, and the last
Issue Of 1867 Is one and three-quarters lower.
Altogether, the fyc-twenties have fallen
about three per cent. for the week, and the
ten-forty bonds have also declined TO the
same amount. The rise in the price ofgold
In New York has had powerful effect In
aiding the "bear" o erations here. For ho
week TO Thursday last the increase Of price
In gold In New York has been four and a
half per cent. So far as speculations In gold
are concerned, 1t is probab', enough they
may lead to difficulties In the New York
market; but there Is nothing unusr1l In
such difficulties, and they do not affect the
INC ley market Of this country further than
preventing for the moment gold arriving In
payment Of goods.
II would be most unwlse In us not to take
notice Of the change of the course Of trade
with America which the existence Of the
nyctwcnty bonds has created. 1t Is quite
clear that If Europe is disposed to take bonds
bearing six per cent. gold interest, and pay
able iu gold, in place OF gold itself, the
Americans will only be too glad to send their
bonds. We cannot get both In payment
for the same manufactures, and Europe un-
doubtedy does look with Lyor upon these
bonds. As fast, for example, as the price
falls in London, the firms who have agents
in Frankfort, Amsterdam, and the other
European centres, sell by telegraph In those
markets, and buy in London. We then re-
qulre to send less gold to those towns,
should the exchanges be disposed to turn
against us, as the five-twsntles I'LL upa gap
between London and the Dutch and German
markets as much as they do between New
York and London.
1.-THE Bank of England has resolved to
enter upon contest to put dow the traffic
In fiye-twenty bonds, as distinguished au-
thority has assured us, 1t may expect to
succeed when II has been able TO wipe up
the Atlantic ocean, and not till then. II Is
no doubt very annoying that we cannot look
for our usual supplies ofgold from America,so
long as this traffic continues, but II would
be better for us to make arrangements to do
without the gold than to fight with the laws
Of political economy. We must alter our
financial arrangements to suit the actual
commerce of the world, and not attempt TO
make the world conform to our financial
al arrangements made In 1874.