, 1870-11-22
AND COM MER cIaL.
MONETARY.

MONDAY EVENING, Nov. H.
The Secretary OF tho Treasury has come to !
IN lnrue with the vaFioua Pacific Railroads IN |
regard to the interest on tho bonds loaned TO |
them by the government 10 aid the construction 1
Of the roads. Hc presents the following &C. |
count OF bonds and interest, shorin that |
Sc, 40, ,GG2 OF interest Was due from the com
paniea to the United States oa Nov /:
Bonds Issued IN aid Of the roads. Sass
Interest on thesc paid BY United stated Ssslo,saa
Interest 1e1aid By the companies by
tran. poftation Of tsrots. etc.......'.. S4lzsss
Leaving halance Of interest due to the
Unified e6s
TIE companies decline to make any other
payment On this Acctutng interest than tfans-
portation OF troopA, mails, and government
stores until the matu1ity OF the bonds, and
fall back upon the following section Of the
actau,hosiziug the issus Of Tic bonds:
sTe1eS e I'd 1nen eaaan
sad Ct mpsnJ sha4 pay said ponds At maturity.
and shall Keep said railroad and telegraph line IN
repar and use ana snail a AZ ames 5tsnsns oes
mails, troops, aud munitions Of val. supplies, and
putlIc srorrs upon said railroad for the govern
mcnt thereof, and that the government shau a. all
tines have the preference IN The uEe 81 me
sAu1e for NIL the purposes aforesaid tat falr and
the amounts paid by private parties for the same
kind OF serytce:} and Ill tone.hk1f of tae'1 COM
pentatton for services rendered for the govern
pop. ana 1sR4sa anu iae Whole AMOUNT IS fa
paid. Said company may also pay the United
States. wholly or IN par, n sae same o. oinet
bonds Treasury notes, or other er&dences OF debt
sgasnet tho United States, TO be allowed ar par;
snd after said roa Is completed until SA3ti bonds
y
to The pay.lent thereof.
'At amended ID Of July, 1851
| D% ;En 1nf1r a Ia Fnn
were intended to be simply temporary loaa
Ct the credit OF the United States to aid in
| the construction Of tho railroad, which was N
| enterprise Of too great magnitude to have
BEEN built by unasded private enterprise. IN
this light Of u Temporary losn, they were il
except eoue Of the mountnin sectfons in Cali
FORMS, for which An allowance OF e46, 600 per
mlle vas made These amounts were moro
than sufficient to defny the entire cost OF con
struc,ion Of the road without the companies
ualng any capital Of their own. and It ia noto-
rious that in the Humboldt Valley and in many
other parts Of tho Central pzclfac Road, it was
rurpcse1y lengtbencd by unnecessarily circuit
Gus curves, in order to get in as many miles
Is possible, which is very good evidence that
tho amount OF bonds Issued did, In EfeAs
portion Of all the roads, mora than pay TO.
thei1 construction. With certain prospect
Of repayment OF the loan by the companies
at tho maturity OF the thi1tS year bonds which
they received, this might not seem 20 obiec
tionable. but It is we'll understood that hi
panies to iseue their own bonds II \ frH
mortgage on the road and rolling stock, pl.ces
the debt to tue government in u pnsition Whicl
makes the payment Of it bT the companie
, doubtful As the caae stands now, the gov
ernment has paid for the cost OF coratructlni
) the reads, md has gwen them to the com
! panice, Which are running them 1t : larS
8 profit over and above tho operating expcnses
but cur Of which they decline to pay oven th
interest on their debt to the government !
. the payment OF the interest Ia deferred mt
{ the n,atn7tr Of the bonds, It vii! aleo be C
fe,rcd until tho payment u the bonds b5 Il
s companies, which may be never.
r Considerable o! revolution has t1ken pioc
. in war prospects and in prices since the clos
Q Of last week: bonds Are up TO 50 in Londot
s against B6A on last Saturday, aud gold ha
), declined in proportion Prices. for hzts'
8 s'ul1e have sunk to about Whcse they we're b.
v fore there was any prospect Of 4 wsr betNee
. Ruseia and England, and tho movement I
It grain, which WIZ stimulated By the high prtc'
10 81 last week, NAV even caEEy prices tenfosa
= liz lower than they we're before.
y In the local mar get the demand Tor mou'
20 is more active than at the close Of last wee
!, Some Of the banks even report the mAtk
Is tight, Hlile otho1s Say they ara yet aeeomm
to dating Ill their regular customers. OntsE
:, paper, however; is rot taken p my rs OF !. =
s, facilities arc obliged to resort to tho op
q. | market.
" Exchange vas in better supply to-day til
at tho close Of List week, and sales were M
u, between banks At Soc to Coo per sl.0
1g nrnmiurn. n tho ccunter-bankera sell ut J.
" premium, and buy At par. The eupply Of I
Cd change is such nov that there is no neeess
he for tho shipment Of currency eastward.
The following quotations for govetntnt
20 bonde, LEGAL stocks, md land warrants ia 4
he market, this afternoon, are given by Meas
" Lunt, Preston i Kean, bankers, II Gu
M at-s.t