Year: 1869

From. tho N. 7. Financial Chronicle. Saturday.


The gratifying advance In govern


ment bonds yesterday, in face OF the
failure Of Mr.. Schenck's public credit
bill, and of Mr.. Hooper's restriction
| bill, is extremely suggestive. AS the
former OF these measures passed both


houses by II large vote, and was only
lost in consequences of Mr.. Johnson's
pocket veto, while Mr.. HOoper's bill
failed only By want OF time 10 pass it
through Congress, the sound principles
embodied in these two measures are
established, and no future Congress
will so far retrograde as TO disregard or
call them in question. 1t lS scarcely
probable that the present briet session
Of the Forty.first Congress will mature
any important financial legislation.
But should they do so, tho laws
passed will be in h&rmOuy with
the dictates of financial rectitude
and national honor, which received so
general adoption by Congress, so hearty
welcome from the people, aud 80
solemn q ratification in the inaugural
of President Grant. Repudiation is
dead. The principal of the public secu-
rites will be paid at maturity In coin,
no further issues OF six per cent bonds
will be allowed, and the National Debt
is to be held sacred. In these facts we
see an explanation of the buoyancy of
the public funds at the New York
Exchange. But we may look little
further and deeper than this. The
question is continually put as to the
permanency of the present advance.
Will it be sustained? To solve the
problem we must look at the condition
Ofthe money market.


1t cannot be denied that for some time
past a feverish, vague agitation has
prevailed, and we have had this week
somewhat violent monetary spasm,
which though brief has tended to dis
turb still more the agitated, timid
atmosphere of the loan market. 1t Is
true there is abundance ofloanRble capt.
that the owners have little disposition
to lend 1t except on call. Experience
teaches these gentleman that call loans
just now are very profitable invest
ment, inasmuch as high rates OF interest
can be commanded and no risk to run.
The amount of loRnable funds CoCcen-
trated at this centre may thus become
an augury of danger rather than
source of relief. If, therefore, the
condition of the currency were
such as to give hopes OF an
easy money market, and If demand
on our New York banks were not i'm
minent for currency to go West and
South, still there is some plausibillty in
the arguments of those persons who
are apprekensive that the usual April
stringency may not be altogether pre-
vented this year. And as such events
are always discounted before hand, the
money market for some weeks to come
will perhaps be found to work rather
spasmodically. If this reasoning be
correct, then the present rise in govern
ment bonds may to some extent be
checked. And at any rate, it is safe to
use caution in our anticipations as to
the immediate future.


AS to the gradual advance of our
Five-Twenties at no very distant day
to prices far beyond the present quota
tions, there is no doubt whatever. The
same causes which have brought about
the present advance, will continue to
gather strength as the policy of the new
administration shall develop ITSELF The
public credit cannot fall to receive per
mauent strength, when Congress, the
people and the Executive are united in
the policy of economy in the admins |
tration OF the public revenues, a vigor-
Gus retrenchment In expenditures in
every department of the government,
and a sacred regard to the public faith.