The sun., 1880-12-13
IN AND OUT OF WALL STREET.


The wonderful growth Of prosperity In
the United States. unequalled In the annals OF
the world. Is exertlng an extraordinary effect
upon every country under tho sun. From
Mexico to Hlndostan. and from Russia to Egypt.
news is constantly received Of the influence
which we are acquiring upon the different COM
mercial and financial markets. Cabinets are
overthrown upon monetary questions which
have been created by our prosperity. and
America has now taken foremost place In tho
list OF nations with high credits. Within week
the directors OF tho Bank OF England have been
obliged to raise their minimum rate OF discount
from 2x per cent. to per cent in order to stop.
or at least decrease. the enormous outflow OF
gold TO pay for our breadstuffs. our meat. and
our securities. In France our prosperity has
been the subject OF Q heated discussion In the
Chamber OF Deputies. and the French Minister
OF Finance thought the crisis so dangerous
as to state that he would raise the rate
| OF discount and Issue bank notes for
Gums less than ono hundred francs.
1t was pointed out by a Bonapartist Deputy that
something must ut onoe be done. and that no
delay was possible. 30 pressing does tho
question appear. that II seems advisable omanv
skilled political economists that France should
take tho initiative In opening negotiations with
the United States and Germany upon the sub
ject OF q bi-metallic currency. 1t 10 already
evident to foreign 1nanoiers that our bonds
can be refunded at q rate OF interest nearer
Der cent than per cent. and they are trem-
bling as the time grows nearer when they can-
not pay for our products In the American Sc
curities which they bought at low prices during
the war and the recent era OF depression. Tho
enormous demand that exists In England and
upon the Continent for securities like the Now
York Central and the Union Pacific stock and
bonds will greatly aid US in refunding our ma
tional debt at q very low rate OF interest.
The possibility Of escaping from these diff
cultios In supplying US with money by making
| silver as well as gold standard OF value has
again been suggested. and the French Minister
Of Finance. In recent speech. drew attention
to the recommendation Of the monetary con-
ference held In Paris during the last Exhibi-
tion. At that time there was no such drain
upon the bullion market. but the conference
| thought 1t necessary to keep up the sale OF
silver as well ns OF gold In the world. although
they did not feel justified in recommending
b-metallio currency. Tho position OF Italian
finance adds another quantity to the equation.
When Italy joined Prussia in 1866 In the war
against Austria, her credit was 30 low that she
could no longer borrow any money. and the
Minister OF Finance issued forced paper cur
rency. by the aid OF these notes the COM
mercial interests of Italy have been so buoyed
up that her artisans have been enabled to COM
pote in the markets OF the world even when
gold was at q premium OF Is per cent. Now
this is no longer necessary. and the Italian
Government intends to resume specie pay
ments. large annual saving will thus be
made but serious Interference with the
finances of the remainder OF Europe must en-
sue. To US. on this side OF the Atlantic. these
III. .haN
over our sentiments Us to the advantages and
disadvantage OF bi- -metalism may be- there can
be no doubt that the rise In the price OF silver
will benefit us.
Under such circumstances. a tight money
market In Wall street must be the effect OF
purely artificial manipulation. That o high
rate OF interest can exist for any long period is
utterly impossible. Even the very persons who
| attempt. by creating artificial demand. to
keep up rates. admit the truth OF the PROPOSE
ton. The failures In the coffee trade were not
due to any tiRhtness Of money. but to IN over
speculation In that pleasant berry. Hence to
twist the bulls upon such u himsy excuse was
| found utterly useless except In the case OF
| Western Union. where there Is every possible
| evidence that Mr.. Vanderbilt is as large pur-
chaser as he was a short time ago seller. The
statement Of the great untaxed that he never
| speculates is thus proved once more to have
been absolutely false. He has been selling
| Western Union over par. and is buying II Mt
| twenty per cent lower II this is not specula-
ton. it would be interesting to learn what is.
Mr.. Gowen has a: last carried out his menace
| OF going to London. He started on Wednesday
| last. and the way in which he is likely to be re-
| ceved on the other side may be seen from the
following extracts from the leading London
| newspapers:
The plan. promoted by Messrs MeEwcn and Read, for
ierredh income bonds thirly cent the inth
IS 10 ~ and 20 came coSspiciousv 10 sfef and the
clique rushed to protect themselves by selling, OF
The break price. checked by the from Amer
Sorla s s hs G.u U Inc had n
through the deferred project NJ doubt, therefore
iheselves On behalf :" the company taking the lead in
have been carried their se in this business has
evdeny led Mr Gowcn TO believc that he float
THOSE Who can swallow the Geierrod income p"I bond
who buy hs sM ar hsy ss
SnS 3 any % rsen sS s.snd,s s. !. Gns % & a
p S sss aTs Mor Ss4 ~ hs sas nile "a 10 a
| the risk oi loss OH the deferred"
The whole project appears to the London
World 80 amazingly foolish that 1t expresses
wonder that Mcssrs. McCalmont could ever
allow themselves to be drawn into giving their
| sanction to 1t In any sort Of way:
Some people explain it by the fact that II there is
change in the Rendnr management, those In
will he sued the fifteen million dollars o unearned
dividends q at have been paid. The continuance Mr.
Gowen at the helm Is deemed eces essary in the interest
| at tue present management. Every nerve. then
be strained TO keep nuntIng ami II Reading could he
saved a we'd lease oi HE obtained it, by tins
deferred scheme it would be godsend ine
ehed persons The cancer o rec kess mismanagen Mt
however has eaten too deeply into the body tie
| cern " be thus easily eStirpated.
The London Truth shares the same view:
Messrs Morton, Rose Co have been right declining
issue the waste paper which II Is proposed to give tn
cundng IN return Tor money that is be de-
voted paving or the Liabilities Of American rA
The deferred bonds be issued II svndcat
who hope to profit 10y the ISSUE and II Is that
they will he applied tor by io's who believe in assur
which the shareholders themselves know g. 10
ilusory. Money is plentiful in America, snd when an
American rai,rual company has tn ufcr eighteen Ter
for money in Europe lathe common Is
enough to enable any me 10 perceive that the security
oercd ter this interest is vRuecss TOcndeavor hnd
ana by an Issue Vi deferred shares
onuh dishonest course; IN act not 10 mnce words,
robbery VI the uII,uspeclins public