, 1869-08-19
MONETARY AND COMMERCIAL



Eress w1ll Nl that Il Il The E1ud Intricate AMI tiH-
ucult nnnncta! 1oh It has ever undertaken. The
subject Ia, however, Attracting more and more OF
public attention. II Is The question, and WILL as
sEnc u'orr importance. IS ether question: arts
Ing out Of the Effects OF the var become settled.
In this connection, The Philadelphia inxrie1n
says:
full amount Of the debt If the Treasury Depart
mept wished. which, however, neither Mr. Iout.
well nor hts predecessor have deemed desirable
But the great dlnaeulty In the whole ata1r Is that
II bonded debt at lower ra;e Of Interest Is to
he substituted Tor the 1-2s the whole 1uass OF the
latter woafd have to bc pai Ia fa1l "a gold where.
az the government Is now buying up this very debt
at much less than it, face vuluo In gold, ~ pu1-
ch0sn9 bonds In the market ut the ruling Rates
compelled 10 redeem all these bouds at the full
pr1cs IN order 10 substitute bond ut u different
rate OF interest In Iact, anyone may sec TINT the
government has nothing 10 gain ty tho latter pro-
ccsd UNDER such ctcunssauces-"
NotHithEtandlng that the American SPECIFICS
the above ns tho great dlculty 1t Is not the only
one There Is another, and one that would stll!
remain II the 5-sos were even ut par, md ttat Is
TINT the 10-aes 90 not sell TOR as much rs the
s-eo5, SIMPLY because they ara : per cent,
instead Of abper cent bond. The o-eos arc now
worth In the tpuIkct 70 cents In American gold.
exclusive OF accrued interest, md tho 7o-4os are
worth onlg soA cents In :ol, l,e1cluGlre OF accrued
juicrest. The litYertnce between par cent
b'nd End 6rcr ccat bond Il that tho latter Is
worth 6l ceuts-on Sax cents-the most. In
other words that the t per cent bond
sells as fesen per cent less than the
per cent bonL 1t "a apparent
then, that, even n IN c1chapee could be malc at
tho present market prices Of both the lo4os aud
the aeo's, the government would lose per cent AZ
MI o1set against ia reduction Of one per cent on
the annual Interest This ruc would also appiy
10 any new bond at n lower rAtc OF Interest than
5pcr cent In greater discount than The 10-4o's,
nDd would continue to apply unless the a-Da wcro
nboso par In gold, 20 that tho Investment IN them
woNld return no larger amount Of Interest than In
lu-sos-cr any other new bonus at uny lower ratc
OF tntercst-xould y!e1d Bt rar. II l. regarded BY
,uany nb!c nnnnelcrs ns extremely prohicmatic.l
whether the hs9's Will ever Sell above ra., but that
thcrr is ample room for Ut cuotuoIs nlvUacu
above The rrcsxnt Prices, Is beyond question, rs
the reDnt which they now yield 10 tho foreign
holcr IA greater than in any other fuiiar luvest-
Erpt. II ! foreign holder uoys a.go boal Of. let
Is cay, 15G+, he pays $50 in American gold for
bond for 81, ,G. On lhta be gets annually SOL In
tcrc.t In GOLD, or cI per eont Oh ha investment.
The bond has 1lteeu years ut 70 rlu. apI paid
n maturity 10 tnN IN gold. hc ge:s slio more than
he originally invested, which makes his whole
turn from his investment Of $500 eqoal to * per
cent Per hnnuIu. Now. when II !s considered that
the ordnaEy tntc Of money for buslucas discounts
49, t'eov w. I,l4+,sn e,a.a,. ,rn,c, na,s
.ia,. ror r.,+ nro renr,v ,..-
there seems room, On that Ecc1o q! least for the
o-e0a advancing a1,oye pal. In Iac1, thert can III
no reaso1 for bonds which par such large return
rot advancing above par, except want Of con-
ndence IN the good faith OF the United States Gov-
49,. - -"'t, .,o'snou.
nnnnc. nr,,., .n,s., .. ~, ~. -, -. ~, a
-, ,-,,,. ~, -, r,s ~, 49,, ~. .'I ".'.
,r,cr,s, o+ nv hec,ns. 80 1s,.o, uor,, ,na, -
,ha san,a annr,, ,nr.ras, ~ ,hn,po In rno ,.n.I
t,me hoFerer ami unt,1 nur nat,on,, c,e.1l, 10
tal1,,n,d an tnat ,,as,s. them i. no1htnr can hr
done with the bonded tept. bu. for tho serrctary
Of the Treasury 10 use oil hs surn.us funds in The
purchase OF the ponds 60 1ou1 as tney ara at dis
count
DURING the next year mn ln,nortant struggle viii
taSe Mace between the rrccn1are and H.. .-nta
furrercv The Son,herr STATE. n+e aho,, INV hc1ln.
ming n r,rv cotton ycar The ro,nn NJ ,b,a vcsr,a
entfon rron viii nor nn,v hc ao,,e IN ,tat ~ I,s,
year hui vim BE- added 10 ,arcc surn1ns a, wealtn
ratoinsa r., ihos. S,,,oa tr,n, sho ,ost rn-, -on
- .hs+ ~ s,1,h ~, y. +oe, na ~ o, r.o,'
T,nln- rnsnc,s1 nes,,ons T,hn reo,,n a, M
ccr,h hara a1rn1p srca ,ha W., t,oan IN ,o,n~
~ , -,.t,1,,c crr-nncr nnt ~ snr.,-, .o,o s..na
s,rn. aot r,1, ond G,ntar .n,,,,rn-s -ors -1.So
~ frans,r. the cot,oo t:ss, !, rhc
tn,e1o, 1no,tct4 IN ,,o,a ,tc e,.ro
as Il Is traasacted In the nora
n connection with foreign MARKETS. Sotw,n,
standing Inc f.itrre tn estaa1is, the c1stom ,ait
wear, IT Is probable that tie attempts NAV hc re-
ccHed this yeaI and with better prosorc.s OF sac
cess, Oh account ol the Sreater wealth OF The
Soutu, and also on nceount Of tho l!str1b1.
ton e5 the Limited amount OF national cur
reIcy over greater held OF circulation On
tho other hand, California, whose circulation 1.
almost exclusively metallic Is distressed for wan,
OF mora circulation OF sor2e Kind Gsecnbacks
,aren Al tht,r cnl. va,rc, ami hclov Cnot.a tay,5
IN the naners ao VIZ cses tn onn,r 3" s,nnn.,an: :.
- - ~ -, 1,,, -. - ,-.r ~. ..I,.,.
Thr t,ar a. rot c,-r,1s.. r,o-. trao,r ~
ercr ~, ,,,,1, rno,.s- ~ t.ansan.t
wac .a,, n. a,,,.e, ao-.h,.. r.. ,n,r .r.n
s.oa ~. a,r.o.e.s ~ 49, vo,. ,n,al, to,,,
,sa t-n,r ho,,ren Tna r,lnr ..en, NJ ,tts r,o.nss
,,tna u.nt ~ cn,,forn,, wh,ch ui,h hranrncs IN
cycrr c,nslae,,n,e town In 1he sra,r-.nd whose
oo,oers are, perhaps, also somewhat hostile TO tho
pAtioua1 cur7ency-kceps the State cleared OF
rrreanacks Tne two sys,ec.a, however. must
koon asslt1!latc. Now that California IA placed in
closer &C standardization with OF, the Soath has
new md strong aIy IN her endeayor to &c: a gold
currcucy. II the Southern States shoQll succeed
IN nd6u,ipV cold bass OF prccs and tay,up co,A
for the 1noney nf secour, 3nstead
of creenh,cta. the cnsto,n would nm.
doc,tr-Ily scon snrra1 nycr All tnc o,ocr
60. Nv ~. o.ea- h..S ~ sr,onhs,.s ,-.n
,ha,. 80 ,n,a s,-ras,.,, ~ t,s,,ts-n,. 49, ,ri
.uta ~, NV :. 49, ..e! 80
&C n'a'le ~ ees - A1's f4 " 'As eoNN@4s 'aeA
tasst ,o-,,n-s. nj, s.,,,,,o,
win funds. Ses1,1 all o, he 1sns. are n con.
d,,,an - 1s,-.,s ,,a,aaso o. ,se, asco-n, 1,ss W.,