Year: 1869




During the earlier portion OF the week which has
1ust closed gold was very ntiul the news from
washington with reference to the Cabinet selection
for Secretary OF the Treasury. II was not until
Tuesday or Wednesday that the inability OF Mr..
Stewart TO accept the portfolio was made fully den
mite, and meantime gold underwent reaction from
the low figure 70 which 1t descended when the ap-
poin,ment OF that gentleman was first announced.
The rise was as much as two per cent when IL be-
came apparent that some other than Mr.. stewart
should occupy the position. The effect OF the choice
Of Mr.. Boutwell, was depressing upon the pre-
MUM. but not to the extent that Mr.. Stewards
name produced. Other influences came In TO
check the fall, which would doubtless have
been as great, since Mr.. Boutwell, Is known
10 be thoroughly in accord with the President upon
the question Of the national credit His protection
ideas, too, are OF character to create tendency
TO a lower PREMIUM and IL 10 fair to presume that
he will act in harmony with Congress and tine Presi-
dent In all steps which contemplate maintaining the
revenues OF the government up to point fully SUM-
cient TO meet not only its regular ontays, but lay
aside regular contributions to the und for gradually
paying or the national debt The other influences
referred to originated in the foreign market for our
bonds which declined from the previous high prices
through q misunderstanding OF the tenor and I'M
portance OF the difficulties attending the forma-
tion OF the new Cabinet. In foreign ooun-
tries delay in the organization OF
new government Is depressing influence
upon the public funds. change IN
Ministry OF England for instance IS one OF those
serious events which we are at loss 10 comprehend
with our simpler ideas OF government. The delay,
therefore, which ensued in the organization OF the
administrative bureau at Washington was viewed
IN very unfavorable light abroad and the enthusi-
asm manifested for our securities was temporarily
checked. With this must be considered the damag.
ing enect produced by the failure OF the Hooper and
Schenck bills at the outgoing Of the former admins
traton. The latter, known the Public Credit bnl
was more particularly the cause Of the sudden ad-
vance in London, as It gave legal PRONUNCIATION OF
what only implied the bonds. People diner as
to the real effect OF the bill after all and some deem
that it amounts to nothing owing to OF its provi
sions which virtually declares that the debt shall
not be lGnidaed in gold until the greenbacks at
par IN coin; but despite this fact there Is color Of
good faith in the measure, which had ite eject
abroad. For these reasons decline ensucd in the
foreign market the eject OF which was to stop the
expectation OF bonds and induce reshipments.
Cold under this state OF things, became 1rmes and
remained strong In the vicinity OF l3l1 during the
remainder Of the week. At nrst it ia true the price
showed a tendency 10 higher figure; but any ad-
vance was at once compatted by the 'bears, I" who
sold with the belief that the causes Of depression
n bonds abroad were only temporary and
would be quickly dissipaied by the prompt
action Of Congress in repassng the Public
Credit bill. The growing favor exhibited for our
national securities is demonstrated IN appo
site fact than the decline In consols. These latter
securities are the great vehicle Of investment In
Great Britain, and they rise and fall barometncally
with the prospects OF war and peace In Europe
Whatever smouldering OF disquiet there may
be In the countries across the Atlantic peace regns
supreme there just now, and consols should be at
their highest point Just before the Cabinet dini-
culties referred to they were quite low In conse
quence OF the sudden diversion Of the money In
vested In them to our bonds. which went over by
millions in every steamer. The trouble over
the Treasury secretaryship produced a reae-
ton; bur the cable kilograms OF saturday
show decline again as the encct Of
the revived demand for United States securities.
Not the least remarkable sign of the effect produced
In Great Britain was the meeting OF the Bank Of
England directors TO consider proposition to raise
the rate OF discount, and thus check the demand
which threatened to drain the coin OF the country
In exchange for our bonds. The oilclal rate Is
three per cent 1t is therefore, easy to understand
the temptation which our bonds possess No action
was taken the subject the meeting occurring just
~ the time OF the decline following the selection Of
aCabinet, which doubtless was regarded az the he
ginning OF reaction that would arrest investment,
N 1t did noe cause resnipment OF our bonds.


The money market during the week was very even
the rate call loans remaining steady at seven per
cent, with the usual exceptional transactions al six
The adjustment OF the old system Of quarterly
statements, while It has relieved the market from
tie spasms Of periodical srringency, operates TO
keep the interest rate nearer the nun legal figure at
all times-the banks being desirous OF mainiaininga
strong position in anticipation Of call for any day
winch the Comptroller may select. For this reason
II Is hardly probable that the rate win nuctuase as
low as 1t used 10 during the interval between quar-
Ter days Ia the old system and it Is equally nkely
that IL win not ascend 10 SUPERFICIAL figures unless
through the interpretation OF artificial CRISES The
weekly bank statement as compared win 1T prede.
cessor is as follows


March q. March Ia
Loans. s2o2. .0Ss, $50 dIssgeq
Specie. ...............-... A,4S5.93s l7,:5s.o1l