The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-05-29
American Securities abroad.

American Securities Abroad.
The London Morning Star, Of May 10, in
lts city article. takes the following very SEN
sible view of the financial and trade rela.
tions between the United States and Eng
land, as affected by pending political ques-
the stock markets that morning, consols
and tive-twenty bonds being perhaps most
affected and says
In fve-twenties the pressure continued
undated, the bears taking advantage of the
bad spirit which Mr.. Summers foolish de-
mands have created, and which it is for the
benefit of certain of our monetary clioues
to stimulate. The letter of Mr.. Goodwin
Smith was largely quoted as proof that We
might fear the worst from the temper of the
present 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
emblttered as to compel English residents
to quit the country could only have entered
the mind of 4 scholar and recluse
The two countries have far too much need
OF each other to permit an ! story like the
Alabama CONTROVERSY to br ak up their pro-
titable trade, to bring untold miseres upon
both, and TO heap up n debt of hundreds Of
millions in the course Of a few wears. The
majority of the people OF both sides of the
Atlantic are too wise to consummate their
own ruin by embarking on strife, and the
silly talk which is heard at present will die
away IN a few days. 1t has served its pur-
pose, however, of reducing fve-twenty
bonds abont one per cent. additional, and
the last issue OF 1867 is one and thrce-quar-
ters lower. Altogether, the five-twenties
have fallen about three per cent. for the
week, and the ten-iorty bonds have also de-
clncd to the same amount. The rise in the
price Of gold in New York has had power
full effect in aiding the ''bear" operations
here. For the week to Thursday last. the
increase OF price in New York has been A.,
per cent. So far us these specuutions in
gold are concerned, it is probable enough
they may lead to difficulties in the New
York market; but there is nothing unusual
III such difficulties, and they do not affect
the money market of this country further
than by preventing for the moment gold
arriving In payment of goods.
1t would be most unwise in us not to take
notice of the change of the course of trade
with America which the existence OF the
tive-twenty bonds has created. 1t is quite
clear that If Europe is disposed to take
bonds bearing six per cent. gold interest,
and payable i'll gold, in place of gold itself,
the Americans will only be too glad to send
their bonds. We cannot get both in pay
ment Tor the same manufactures, and Eu-
rope undoubtedly uOeS lOOk With favor upon
these bonds. AS fast, for example, MS the
price falls III Loudon, 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 require to send less gold to those
towns, should the exchanges be disposed to
turn against us as the tive-twenties fill up a
gap between London and the Dutch and
German markets as much MS they DO between
New York and London.
If the Bank of England has resolved to
enter upon contest to put down the traffic
in tive-twenty bonds, as Il distinguished au-
thority has assured US, it may expect to sue
ceed when it has been able to wipe up the
Atlantic Ocean, and not till then. 1t is no
doubt very annoying that we cannot look
for our usual supplies of gold from Ameri-
Ca so long rs this traffic continues, but it
would be better for us to make arrange
ments to do without the gold than to at
tempt to fight with the laws of political
economy. We must alter our financial ar
rangements to suit the actual commerce of
the world, and not attempt to make the
world conform to our financial arrangements
made in 1914.