, 1873-03-28
MONEY And COMMERCE.


very complicated a1ld unsatisfactory condition,
both as regards tho aspect OF National t'ilnncoe
and in tho monetary relations OF Now York VILLA
r,London. One Of tho results Of tho enormous
extension Of railroads. and tho whit number OF
new and uncomploted railroad projects Inst yoar
:, wna tho accumulation OF largo amount Of rall'
xoad bonds In New York lost fall. Owing to tho
cloud of diserodlt which foil over nll American
railroad aeourltioa IN Europe, tho holders Of
i theBo bonds woro unablo to sell them III Europe
| IN markets as they had o1poctod, and
reaortcd to tito temporary o1podiont
of borrowing Of tho foreign bill-draw~
urs in Now York, who. garo tho borrow
crs sixty, day drafts on thoir London correspond
ontu. Thcso bills being sold i'll tho marriott
| placed the borrowers in possession Of money,
which enablcd them to tiao oyor until tho pres-
ent time. But now tho borrowers find thero Ia
but ittlo moro prospect Of aolling tholr railroad
bonds in Europe than thoro was last fall, md, as
thoy had contracted to pay their debtn to tho
I foreign bankers in billa Of exchange on London,
they nro still wanting to borrow sterling bills;
In other words, thoy want to ronow their loana.
The bills Which they lad borrowed bcforo have
gono to London, boon discounted, apd,
In many instances, hayo gono through
Tho hands Of London banlcrs into tho
Bank Of England. Tho not result Of the who'o
!procosa Of borrowing Of tho foreign bill-arawers
lis, that, practically, tho Bank Of England Is car
ryjng largo amount Of unaold raiiroad bonas
for railroad builders IN thia country. This tho
Bank OF England refuses to do any longer, md
yesterday, US D mcauH Of stopping tho praotico OF
Borrowing sterling bills in Now York .ra,sed it's
ratio Of discount from So to 4 per cont. Tho
Bank Of England rnakos no gocrct Of the fact
That this WAS the Of tho riao In tho rate Of
or1 t1,in hmm t1lo cnao II fnnY ba
pccted TINT tho rate will be raiscd from timo to
timo, nnd 1t is not at all improbable
may be advanced as high rs or even por cont,
as It was Inst fall for tile aan,o purpose. Should
thia DO tho case, It will inevitably rcanlt IN mat
ing money very stringent in Nov York, tho effect
of which will bo felt to greater or less extent
all oyoy tho United States. Another oircct will
bo to advance tho price Of sterling exchange, Ind
with u the prize Of ES1; .,roo4 that soorst,rv
Richardson wll endeayor to count toraet tho OBJECT
Of this policy OF tho Bank OF England by isnning
moro greenbacke. Ihoro may Or may not 10
any foundation tor this runner Wo venture to
it, intended purpoao but viii entail other dlsaa-
Tors that would not othorwiao como. It must DO
ouonco Of tic action of the Danl& Of England, it
will not DO for lack Of currency In this country
but from a laok Of available capital OF credit,
which cannot bo supplied by turning United
which would be all the Secretary could do, as he
into % oironlstion than buying United States bonds
in tho market.
road bonds that is affected, but il the Secretary
OF tho Treasury isaueB moro groonbackB, and
thus makes another decided move toward fnaa-
tion OF Tho currency, it can scarcely fail to holp
advance tho price OF gold, and doproclato tho
credit Of tho Government.
But there nro other and equally important in
Iuences at work to CAMEO M advance in tho
price Of gold. In this column Of TIE TRIBUNE
OF Wednesday wo gavo conclusive reasons for an
the next tl,rao months THE facts that the cot
Ton crop Of 1872 only 2,e54, ,s51 bales against
Of 200 Psss IL aS ana n ths nG-
the gold price Of cotton is now Is por cont lower
than it was a year agoo, are Significant, OF IN
unusual export Of gold this spring, aud sum,
US by our present heavy imports OF foreign
goods. Even last year, with an unusually largo
crop OF cotton to he]psattlo tits foreign balance,
the exports OF gold were $25,000,000 moro thnn
wear, and the stock OF coin in this country was
Undoubtedly diminished by that much.
On Jan. 1, 1872, tho total stock Of coin in tht
s15,000, 900, viz: Sill ,492, ,s26 in tho Nstiona
Treasury {this amount including the 1856, ,0i0, ,70(
hold against coin certiacates), s20,oo0,00o in
circulation On the Pacific Coast and say S1o, ,o0O.
it 1s impossible to count up over a100, 100000 ol
coin in tho entro territory Of the United. s.States
OnMonday Of this week thoUnitod States Treasury
bold only 5os 1873 897 Of coin all told (this amount
I .idcatos} Add $50, 900 @ for % coin in oroua.
tion In tho Pacific atatos and for all amounts
held in any part Of the Atlantic StatoB, and ii
makes less than 51oo, ,OoO,0 GOO. Tho Treasury Of
Of coin, being s13,oo0,000 lees than it owned
fifteen months ago, and is in no condition tc
attempt to keep down the market price Of gold
for money should be the result Of tic movements
of the Bank of England, aB indicated above the
currency-iuilationiets would ciamor for tho issue
ofapart ortho whole Of tho eu-caed ''944 900, ,00(
reserve tho issue OF which would only stim.
rlato the rise Of gold, Which tho Troasury would
bo powerlea8 to prevent
Tho possibility Of d crisis in Anancinl AFFAIR."
growing out Of tho circumstances rnentionol
above, and beginning with the inability to ael
railroad bonds in Europe, may look less ! month
hence. but for tho present the facts do no
afford ground for O worry hattering condition O.
thinga this summer.
As far as the West is concerned, it would OK
perienco losa damage than tho East. Tho gols
valuo OF her produce would be fully sustained
and tho currency prices would lieop pace will
capital Ia 80 largely Invested In securities pnya
bio in currency, the loss ~ould be great
coEN ron COTTON PLANTERS.
laoforenceB TO- the subject in the Southern
paleIa WarIAIL Lna EOuCIuHtDE kHEt LueTQ WILL u
q considerable increase III tho broant1, Of Ian
planted in cotton, mud that there will be los
than tho usual amount OF corn planted. Tl
rotton-planters know That they ca,i mako an acr
OF cotton moro profitable tllau Of corr
aud that, with the proAcnt enormous surplua
corn in the West, thoy can buy it cheaper thu
thoy cnn raise it, Tho groatest obstacle to IL
surplua of Western corn in tho Southern State
ia tho Item OF froights. It costs SOM
where from 60o to 75o peg bushel to tuA
O. bushel of corn from Illinois into Georgia at
Alabama, and when the Cumberland aud Tanne
SOC Rivers arc low 1t coats more II roasonab
through rates Of freight could be obtained Fl
corn TO, say, Atlanta and some other contr
points, it would DO of nearly as much honolt
working off tho proaont aurplus Of corn AZ a +
duction Of froights to tho East.
THE LOCAL MONEY MARREV
shows signs Of working closer. Merchants. bo