, 1870-07-23

2k PEI cent. higher In London to-day than
Se..t4uay, and, - FAR ns The markets. are cou-
ccrued. there set 1uH t. bo y gensral reaction
from the prices es abliah ID ~ the prospect Of
war. These change Al lie markets, however,
1, not seem to be caused by any Increased
prospect Of peaca, ~ the latest dispatches
bring us Intelligence OF the actual collision be-
tween tlirmishing parties Of troops
+ Is 7pp.rentt there'ore. tb.t We
cause than dininishng prospect Of war for
the decline in gold and the rise in bonds. II
il possible that the whole effect upon the
prices Of toudE, and gold hA vebcen discounted,
aud this 1lse in oo...is ard decline in gold II
one of the first symptoms Of the reaction.
but there is al>o another view of tie case,
It is uow near the time when the whole vol
ume Of currency will DO required Tor tho
movement OF the czops and it is well under
stood that to get ita large cur-
re1cy BALANCE into circulation again,
the Treasury sill necessarily bo a large pur-
chaser sooa. The probability also is t6at, un-
der the new banking law, vt least thirty or
forty millions Of bonds will be required for
banking purposes This prospect Of large
home demand for bonds has kept them
q little higher in American markets. dur
ing the last few days than in Lon
don. and the home, market now scama
to control the foreign instead Of the reverse
which has always heretofore been tho case
Az far a. the price Of gold is concerned it Is
believed by many th.t had It not baen Tor tho
war the pr1ce would now ba about from los to
1o7; that owing to the passage Of tho Fund
Jug bill aud the authorization Of gold note
banks it would have declined from Iii, at which
i. stood on juno l, to about these figures, sud
therefore that ut ll9 1t il from IL to II
per cent above what it would be
if there were no talk Of var. The European
war, therefore, while. apparently exeres=iuy
L.as & = email effect on tho price Of gold, COM
ing sers potent influence to prevent the in
c1ease IN the gold value OF both the bonds
and the currency Of the United States. The
vital question now is whether this
Influence has spent it. force. or whether
our bonds are likely to be sent back in aay
price Of gold would go much higher than the
highest prlce touched this year yet There il
i some reason to hope, however, that the up
ward reaction OF ~ cents in the price Of
tonds in London toAar, notwithstanding tho
prospect Of immediate hostilities, is the first
recognition Of the superior Inducements for
Investment Afforded 70 the capital OF those
countries by the bonds OF the United States.
In the local money market there il a fair do
1nand for money, but all regular customers
! get what they apply for without difficulty. It
is apparent. however, that the usual summer
| enced this eumnet, as It is nov drawing neaz
the time when money will be- required for the
| movement Of the new crop, and .hcre are no
signs yet Of return Of eut1encS from the
country: On the contrary, currency is 10
ecarce that several Of the banks have beer
| ordering amounts enus here from New York.
E1chlngs il IN better supple and is quoted
at frona 75c to S1.00 per 81 900 OF for sales
between banks. at tie counter BANKERS sol
at from par to lilo premium. and buy Al
! 1-10 discount.
No. wl,eatin this market to. day wss 9l.l7 in
| : 70 r.
Per bushel IN gold, or Just the same gold price
rs On this day week ago when the currency
price Of wheat vas @l.l5, and the price Of goli
| Wae 115.
! The following quotations for gold in New
York and bonds III London, to-day, were tele
| GTaphed to Darratt s. March