, 1870-08-06
MONETARY and COMMERCIAL.


suceese on the p1rf Of prussia In the Euro
pesh ~ar Las beon locked upon a. the hAr-
was unwilling to engage In tho wx1 1t fiat,
France declared the war, and Any Eeyelse she
might experience would make her more ready
TO negotiate. On the other hand, the power
of France and Prussia il now pzottE evnnly
balanced, each pets as u wholesome check
light the otler powera Of Euzope woull not
etand BY and see either OF the tHo ag.1aaI,xs
iteelf At tho e1pense Of the o:hes Tho
tnccessful country woull become too danger
GUS neishbor for the other. goscEuncuts of
Europe. First, then, Prussiaa H,.cccss wou i
give hope OF early peace, because prus.ik
was hFerse to the var. and second, tho other
powers Of Enrupe would not peraait Prussia
TO push any success sic might gain 20 far ~
to weaken the power Of France. This IL about
the theory on Which it Las been assumed by
many inst Ffussian Enccess meant pence.
1he zane Reasoning might apply to
some extent to French success, onlv
that France would be likely to be nuro
determined to plcss ho1 first success into
conquest, and thus bring On general war. In
ea1lioE peace, ala peace implies great Change
in finances md commerce rise in the gold
price of United States bonds, decline in the
currency price Of gold, = ri4o in the prize oi
eo'ton. and decline in the present wax prices
OF brcadatufIr.
Mr. Boutw eli has bssn interviewing the New
York National Banks with soae project OF
getting them to tako /, 4x, and per cent
bonds, authorized by tbs Funling bull, instead
OF the $40 PER cents nov deposited by the
banks Al security for their circulation. The
New York Tribune states Mr. DoutHcll's pro-
posal to tue banks to be: ITO take QUE
third of per cont bonds, one-thisl Of AZ pcr
cent, and one-th,rtl OF per cent bonds, for
The $250, ,000, 900 Of $40 bonds nov hold by the
hanks for circulation. Tlia would give them
~ per cent interest, bcsiles the commissions
allowed by the Secretary in making tho SUBJ
scriptions f0r the rev bonds"
The object Of rcfunding the debt At ali vas
to reduce lie annual expenditures OF the gor-
erumeot by reducing the annual interest. II
Secretary Boutwell, Proposes to giya the New
York banks commission that would compen-
safe tliotn for the difference ia the iuterost be-
tween ~ per cent and per cent, he not oniy
exceeds bis authority in the Funding til, tns
would not decrease the expenditures OF the
GoVernn1en ut by the operation. Il tho Nov
York bauls are to lose nothing Ly the
exchange Of bonds. it is quite
iuG hy it, aud II the Tribune has reported sec-
rotary bouswells proposal correctly, it can
better ! @ called "fooiing'' than ''fundiag :"
When the Funding blii PASSED our 5-a0s wu1e
worth u 10 gold, aud at the rate of 6
pei, cent interest Oh their par the bouls
pai1 the investor 6.1s per cent interest.
! in gold, and the rate OF interest thuy pay tho
investor il G.GG per cett III gold Tilis aIEauce
in tho tate Of interest on Investments OF the
comparative permanenc} Of national boul= is
! dIs to the greater demand for cash funds In
Eulope. In other wotds, securities Of auy
kind are less in demand than befurc the pros
ent var, aud the deeline III their rrico Ii ouly
| tie result Of the increase IN the interest for
money. Seeius then that the rate OF interest
forthIs class of inEostmenta has actually in
creased, aIr. l'outwoll's agitation Of refund
| ing At lover rate OF iutertst-whlcA il evil
| IDENTIFY isnrtacti-7bis III tue present situation
4 Appears foolish.
| From Wall street ihero cones tlis evening
= Ateiegrartsc rulaor Of great bull comb:na-
ton to put mp the I'rieo Of gold Indeed, cou-
sideEinG Tue enormous export OF nearly nine
! leen millions of epac1o frotn tle pott uf New
| remarkable that there LAS not been eome
! speculative effort to advance the
price Gold has only advanced :
e, i, FE1ara eePa III, in eonss1asnse Of tha
innate effect, but almost everybody gyas pre-
pared TO sec the spectators run tLs prices up,
| temporarily, twice IL much higher II there
should prove 10 be any truth in tho rumor OF
clique to put up the price Of goll, tue en-
dearo5 y I'll, s s9me me little l1s because 1 thc
would naturally weakcn tho price. Tho
gold of its own from which largo sales
might 10 made, Dut the probability Ii that any
| speculative movement for rise ID gold would
cnlminatc. as it always has, befose tho Treas
ury catue Into the marSet, thus leaving th,
weight Ut tho Treasury sales 10 oaly iu,ousity
the reaction, as III the September panic Of last
year.
Iii local finances there is ycry little Change
from the situation Of the last few days.
Eusinces ii u,e banks ID dull, and money con-
tiIues easy. The currency nlosement 10 ths,
country is light set, but It Is enough in exeess
| Of the amount coming in to show
<lsat the Tendency Of the currency il
20 low iu that direction, Tic
fall movement Ut currency 10 move the now
crop Las actually begun, aud, though there
will bc saii.tions III it4 volume, the general
tendency Of shipments Of currency to the
country. and VI receipts Of wheat here. will
he to isr7vase, (not decrease, rs tho t5pas
eircnensis'y made us to say yestorday.)
! Exchange was weaker to-day again, and
sold between Lauks 1t from 80 to SOC per
| a1,G0n discount. At the counter, bAnke1A sell
at lilo premium, aud buy ut lilo discount.
:. The following quotations for gold in New
| secGiyAl bv Darrast H. March.