The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-09-08
TIE VAR NEWS, FROM 4 BUSINESS
POINT OF TIEH.
Why Gold Continues Steady.

The New York World takes the following
view of the strong features Of the financial
situation as affected by the war news:
On Friday night gold closed at sixteen and
q half (l65,) the bias Of information at tnat
time being decidedly In favor OF tbe Frencn,
and our natural inclination to regard 1t as
about time for the tide to turn and the Prus-
slams to meet some reverses strongly as
sisting the upward influence OF the war
news. But on Saturday came news Of such
Prussian successes as lead to very gen
eral impression that the war is over,
and yet the closing price Of gold was no lower
than fourteen and quarter l44,) showing
only decline of two and quarter on such
ly described as astounding. Coupled with this,
under the circumstances, very moderate de-
cline in gold. there meets us. the other fact
that stocks and bonds moved with apparent
reluctance In unison with the news, ana by no
means present even the limited change notice
able in gold. Such state Of finance, upon
such information, Is certainly remarkable, and
seems to imply either that the business mind
Ia not much shaken by the bulletins, or, If
shaken, has had Its eQuanimity restored by
some eXtraneouS stimulants. Those stimu-
lants it Ia perhaps possible to mention, but, be-
fore so doing, the nature OF the news demands
o word.
Marshal McMahon's army was perhaps the
flower Of France. To its complete organlza-
and when, moving out from Chalons, 1t took
the road to Montmedy, 1t was, In all proba-
bllity, splendidly equipped body OF some
thing like one hundred and twenty or one
hundred and fifty thousand veteran French
troops. Public expectation went with 1t,
France followed It with eyes OF trustful afec-
ton, and when 1t was reported that McMahon
was on the march, Prussia, as well as the rest
of Europe and America, no doubt felt that the
chances we're In favor OF the Marshal turning
the tide. That he had turned 1t was, IN TACT,
the first information; but with one flash of the
cable, England and America learn that the
Marshal is wounded, his army surrendered,
and the Emperor of the French a prisoner in
the Prussian camp. Information such as this
ought to have revolutionlzed the leading mar
kets of the world; but the effects are only, as
hereinbefore stated, q fall Of two and q halt
per cent. In gold and sluggish movement In
bonds and STOCKS.
II ia in all likelihood the case that when the
business mind asked itself "What next ~ after
the news. as it always docs ask that question
after any important intelligence, 1t said to IT.
self "The republic" A proclamation Of the re-
public is pretty much synonymous with pro-
iongation of the war; and, with such prolonga-
tion as probable, or even possible, iL is not
surprising trat tne nNanclU tOue sIOulu eXul-
bit reluctance 10 move as swiftly towards
peace as the bulletins would seem to necessi-
tate. Further still, there is sort OF financial
sories deducible from the situation which cul-
inmates In high gold and low bonds; thus. If
France is made to pay the Prusslan war bill,
German securities are relieved from the de-
preston Of immense expenditures; 80 reliev-
ed, they become attractive, perhaps from
the amazing accession OF prestige to Prus-
sIa, even more attractive than they were prior
to the outbreak OF hostilities; being thus
attractive, German money will seek German
securities, Withdrawing from American bonds
TO make that investment; and such q With.
drawal on any even moderate scale brings
about inevitably high gold and low bonds. In
view Of these, and some other contingencies.
coalition. say to guarantee France against
dismemberment, OF an extension OF the field
OF war by division of opinion on the subject
OF such dsmemberment-it Is easy to see why
the financial centres Of Europe and America
discount the war news 50 heavily as our fnan-
cal reports indicate to-day. A great empire,
primus inter pdres for a thousand years, an
empire that has survived Cressy and Waterloo.
Is not, says Business, to be whitfield away into
imnotpnce in a single day.