Year: 1874

SUNDAY, July IL 1874.


Apart from the influences operating upon the
STOCK market the business OF the past week in
financial circles turned largely upon the result of
Mr.. Brstows circular. The exact position in
winch that loan is oiered-viz., including the ac-
count OF ninety days. interest pending the expra-
tlon Of the call-was shown in the Journal OF CON-
me7ce OF Friday In short sum, the product
OF which was profit OF some eleven or twelve
cents In buying bonds in the open market as con-
trasted with a purchase under MIR. Bristow's
proposition. This, of course operated to restrict
oners, which are going forward very slowly II at
ALL or course, it is not to be expected that offers
Would rush IN thus early, and probably the same
experience as that Of the weekly gold sales at the
SuD-Treasury In this city will be found here, that
bidding will be postponed until the latest moment
however much it may be previously considered.
Mr. Bristow has, perhaps,


EXCELLENT REASONS


10 believe that after the late panic such sound
anu exceptionabe security as United states
hve per cent bond would find ready
takers at par and interest In gold the
more particularly that railway credit. with the In
vestment securities it Offers Was being so persist
emily assaed. He has, however, seemed to omit
from his calculation the fact that the movement
OF any considerable portion of $l79 900 OF gold
Wouio provoke disturbance in values tnat might
work embarrassment 10 bidders under existing
conditions, In the development of new quantities
NOT iuly anticipated. The TACT that new govern
ment lives can be bought in the open market
cheaper than OF Mr.. Bristow does not OF course
necessarily argue that the Secretary cannot sell
MS The plethora Of capital abroad, the


UNEMPLOYED MILLIONS
IN the Bank OF England and the Bank OF France
and the hidden accumulatlons Of German thrift
with the value OF the security offered and the high
rate Of interest atthe present time it promises,
would seem to justify Mr.. Bristow's departure
from ordinary business usages But inasmuch as
most of the bonds subject to call are held abroad
and largely distributed IN small lots and our own
people just now want all their spare capital TO ex.
tend their own business operations the chances are
that the government will have again to iall back
upon the bankers and brokers to carry out the
proposed exchange, the time given In this circu-
lar not being extended enough to allow OF any large
operations, and the condition OF the market
not Offering any strong inducement TO attempt
them. There is something, however, in the
fact that these are


THE LAST OF THE FIvES


authorized by the funding act, ana after these
placed viii come the negotiation OF ~ and 4 per
cent bonds. With the many millions OF money
now lying Idle in the productive countries Of the





abroad, one naturally expects that this last
.$179, ,OOO, 900 of United States ives would have
rapid takers, out the fact remains that they are
not to-day selling in the open market, for the Sec
retary is compelled by law to ask for them, par
and interest in gold. This is matter that Is


DIFFICULT OF EXPLANATION,
unless the continued influence Of the bear
party IN stocks and their studied
attack upon American railway credit may
have affected all other American credit abroad.
1t is well, however. to refer to the circumstance
that no absolute indication OF the character OF
the bidding for this loan be obtained until
these bids opened inasmuch as every bidder
would have an interest in depreciating the pros
poets OF the loan, and cOncealing the TACT Of his
being bidder as the fewer the bids and the lower
control.


tfr IN STOCK CIRCLES


the speculative movement was wholly under
$bear" control. The decision in the Wisconsin
case was used with great effect to discourage in
vestment and frignten or such few spectators as
might be induced by their faith in the future the
country to enter the market for short time in
the shape Of a reaction against the bear pressure
which has been so steadily exercised since the
panic. The influence of that decision on the other
side has been surely discounted. If not overdis-
COuuCeu. Ouc pOlul, nOWcVcIs W NC CUusIueTeu
ts that foreigners, while they have less share in
the making OF laws, have largely q better under
standing OF their meaning when they are made
than our people. The average foreigner will have
better understanding OF this Wisconsin decision
than the average shear" on Wall street pretends
TO- The shadow OF the granger will not seem to
him 30 formidable when viewed through


THE BARS OF CONSTITUTIONAL GUARANTEES.
The decision, so-called, simply MEANS ave prefer to
refer this matter the Supreme Court ofthe United
States, as 1t Is o matter OF supreme importance,
Affecting alike the rights OF our own citizens in
their legislative capacity and the rights OF Others
not citizens who nave been induced to invest
money in enterprise here IN the belief that popular
government had been demonstrated to have that
stability which removes all fear OF repudiation."
An able writer on q subject of this character,
whose language we borrow in part TO repeat tns
JudiciOus understanding had on the street re.
spectlng this, and which we expect will Ind belief
on the other side, says Zone point referred to by
the Judge who gave the decision Of the Court is
vhouRnt TO be very unfavorable to the railroad.
We refer to his statement that the charters of
all wisconsin railroad corporations must be
held to contain this condition OF the constitution
OF the State that "they may be altered repealed
by the Legislature at any time after their pas



fact; but what that provision amounts to- or IN
other words what power the State really has un-
der that provision s as we suppose, the very ques
-tion at ISSUE and the Court in no way expressed
an opinion upon It, 1t is believed with reason that
II railroad charter Is granted and capitalists are
induced by it to come into the State aud spend
their money and build and equip the road, that
charter cannot be taken away without Just cause,
unless the State first remourses the parties
making the expenditure.


There may, OF course, in the


PECULIAR sENsTIvENEss


which in the present disturbed condition OF
monetary affairs throughout the world prevails, a
condition that may be described as the interval
between q convaescent turn in some dangerous
disease and the total removal Of all fear OF re-
lapse, be sufficient reason to anticipate an un-
favorable influence upon American railroad securi-