Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1870-08-02
FINANCIAL AND COMMERCIAL.
PUBLIC LEDGER OFFICE, /
MEMPHIS, Tenn. Aug. 2, 1870. !

There is little OF interest Transporting
in financial circles. The demand for all
classes of local securities is light. Scrips
are generally weak, and not in request;
cities are quiet, and county warrants
dull. Money is stringent and hard to
obtain, except upon frst-class security.
Gold opened in New York at 1918,
touched l22, and at noon declined again
to 1918. Governments opened dull, with
slight decline. American bonds opened
in London at size for '62s and 67s.
Referring to the effect of the European
war ON American finances and com
merce, Henry Clews & Co., No, ~ Wall
street, in their circular Of July 18th, say (;
The first effect of European war is
felt upon our exchanges. In the present
peculiarly unfavorable for resisting the
effect. From natural canses, the Euro
pean money markets have recently had
hardening tendency; which, with extreme
ease in the home money markets, has
rather favored the return of securities to
this side than otherwise. As usual at
this season, the foreign exchanges are
against us. Oar exports of cotton and
produce are every week heeolaing lighter,
from the working down of stocks; and,
in addition to this inequality on the trad
ing account, we have to remit to Europe,
during the first half Of this month, sew
eral millions of semi-annual interestupo
securities. A condition of things in Eu-
rope, therefore, which is calculated to
induce the calling home of balances held
here, contraction of aud an extensive
realizing upon our securities held there
was calculated, under these circum-
stances, to have very marked effect
upon the home bond market and upon
price of gold The price of gold has
advanced from llll to 1929, and bonds
have declined 3 to 81 per cent while the
decline of Sixty-Twos on the London
market has been 81 per cent. At No pc
riod since the outbrest mas the bond
market here been high enough to admit
Of the return of any considerable amount
of bonds from Europe, the rise in the
gold premium having almost constantly
kept the gold value of those securities a
fraction below that of London and
Frankfort. II this relation between the
price of gold and the price of bonds be
maintained, no return of bonds is to be
expected. In the war crisis of 1866, |
about $l0,000,000 of Five-Twenties were
returned from Europe; but scarcely had
the bonds begun to arrive here before o |
refux movement set in, which resulted |
In our sending Out, within two or three |
weeks, about $1,000, 900 of bonds to |
Europe With this knowledge of the
preference for United States securities |
in Europe in periods of war, there is,
both abroad and at home, little DISPOSE,
ton to run into panic upon theM aud |
although il is poysihle that, in the event |
of the complications involving powers at
present neutral, prices might still further
decline, yet it seems probable that there
would be an ultimate recovery. This
conviction produces comparatively |
steady feeling on the market here, and |
is hH etieptaal stay against panle,. With I
SO much uncertainty Respecting the fu-
ture course Of affairs in Europe, ii is i'm
possible to form satisfactory opinion as
to the tendency of prices of any class of
securities. Moreover, the period APP
proaches when the demand for money
for moving the crops usually proves u1
10 the carrying ofistocks on
speculation. AZ to the market for Gov !
bonds, it can hslsaa,,y be other
wise than unsettled, while condition of
war prevails in countries where nearly
81 600, 600 GOO of ,ha bonds are held
Our exports Of food products win realize
higher prices our securities, being ex-
empt from the influences which affect
the credit Of seme Of the
leading European governments, will ma
iurally stand higher in the foreign mar
lets after the first panicky effects war;
md when the war has terminated, the
population of Europe being oppressed
with taxation and wearied of their liza
,ility to be used as the tools of war, will |
20 the more disposed to seek home
lmid the peaceful pursuits of the United
States, swelling emigration and promot-
pg the commercial development of this
;ouRtFy But it AUST be admitted that,
,eyond these hopeful views, to which our
)OuyAnt peOple naturally lncune, tnere
re dangers upon which it is necessary
o keep close eye 1t is not to be over
ooked that, at present, we are running
trading account with Europe which
equires us to remit nearly 500, 600, 600
f securities per a1num IN settlement Of /,
N adverse balance. This condition Of
hings requires US not only to feel sure
hat our bonds viii not be sen. home
gam, but also to be satisfied that Eu-
ope will continue TO increase its invest
aents in our securities. This is the
Feakest spot in our armor; and, with this
n view, it would not be unfortunate we're
he wer to embarrass our importing ope-
atoms. The large increase Of 90, 500
90 in the deposits is mainly owing 10 an {
ncreasein country balances resting here; G
nd the fact that these funds are liable
0 be called home for crop purposes, to- {
ether with the circumstance Of the La /
ilities being much larger while the legal I
enders are about the same, is not calcu- s
ated to foster confidence in the continu- {