The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-12-06

"
ming and prices of sound stocks were very firm with
upward tendency Money continues very plenty, with
every chance of lining The present tariff operates
powerfully to prevent demand for money for bus mess
purposes Hence the demand for undoubted means of in
vestment. Long Island stock fel,.
Mobile funds are II ! a l2 New Orleans a premium
There will undoubtedly be some attempt at the CON-
ing session OF Congress, to establish kind u gov
eminent paper machine, under the name of Bank Ex-
chequer Fiscal Agent, subTreasury. Many schemes
have already been proposed There is perhaps NO SUBJ
Ject on which people pretend much wisdom, and
possessed Of so little information that of finance. Pre-
sumption always goes hand in hand with gnorsnce &C
cordngy the Regulators of the among
most impudent and ignorant of business ANON, all
the plans proposed hitherto that of Franklin" the
nearest TO that which desirable it entirely ex
cludes all borrowing and all lending No no
needy nancer under its operation obtain the finds
or the property of other people without rendering an
equivalent This fact has caused Franklin" to be sail
ed on all sizes with vruence little remarkable This
psn of all Others has called forth general discuss on
cvncing the fears of the knaves of both political parties
that might into favor and thus off all hope of
their obtaining the proceeds of industry without rec
pense. The most esucal and silly attack made was
in the Journal of Commerce Of this morning. which from
blasphemous beginning drew out TRADE of incoherent
folly, and then objected to the plan as follows:-
ANY exchequer which should go into tactical opera
ton wou dbe dangerous thing whenever fhe
should be accumulated in depose the Administration
would upon emergency always find excuses for using
that specie rather than to impose taxes and the public
would think well of it. Another ready resort would be-
the issue Of certificates of deposte when depcses had
rays oi resort TO tie means Of such esa5lmsnt when
the of the government low. There would be
no check upon the power Congress in thu respect"
We have itacisedtwo lines here in order
tha IF
lows
We should have ten millions of dollars of them. demo-
mutations Of five to twenty dollars, drawing interest
and not payable at time but receivable at all times in
payments to the government. These would constitute
currency unsurpassed and at the trae the nation
would save the interest the kept in crcula
on Such currency would require no exc he and
organization at all The bills sooud be paid Nv
and received By all collectors in the same marmer Thsre
could be nothing so cheap convenient al safe for
the government These should be issued sake
OF constituting national currency but the best
OF orrowing money This plan could never essentially
disorder the currency Let then maintain present
safe position aad consent that exchanges shall be
gulaed by that perfect code of laws which has
tablished for ths very purpose"
Was such contradictory absurdty as this II
there is power to prevent Congress from faying its
faith and using specie deposited with for lfe keeping
what power will prevent from issuing $40 oOO
stead Of of paper money at any
paper money ad H6itSm Who is to know whether FIVE
or fifty millions outstandngf 1t is then gravey al
lodged that giving government which cannot be trusted
with specie to keep the power to raise forced loan by
issuing its paper promises not payable any time" will
"never essentially disorder the currency" Such are
the sagacious remarks and propositions of those who un
dertakc to regulate the currency.
The recent movement of the State Of Ohio in selling
its stock at 81 per cent discount pay its debts proba
bly, Of series of operations In order to understand
it, may recount the bargain made by State with the
Franklin and Chcohe banks for which the recent sale
of stock took place. In March, 1884, the Legislature of
Ohio made the following appropriations =
For the Wabash canal, to be borrowed on any
terms, $500 600
Miami Extension 900 mn
Western Reserve, "a OOO
Muskingum Impruv ement 2cOOOO
Walnonding valley, 10000
hooking valley, 200 OU0
" Subscriptions to turnpikes and canals 4soooO
Topay arrears to contractors, to be Dor.
rowed on any terms for three years, 5el 600
Total 8 per cent, sa,Ie4,Ooo
This money the commissioners had to borrow as the
law expressed it, the best they could After
making application elsewhere, they applied TO the Ohio
banks and finally borrowed from the Chhcoths Bank the
1851 for the CONTRACTOR $500 900 the Frank
lin Bank The banks were to pay these loans in such
currency the State Treasurer would receve.o The
loan to bear six per cent interest payable semannuay
in currency at the State Treasury The principal psya
BILE in New York M follows -
Chiiieothe Bank Loan, Franklin Bank Loan
May ls.f ~, I SS Nc,emsss 1884, 5000
March I, 1888, 100000 December 1, 1912, IOa Goo
May !, 1843, $4,000 June l. 1913, 2oo.Oo0
TOTALS, S5siOO0 $50 nm
To secure the fulment of the contract the part Of
the State the banks authorised in the event of the
commissioners failing make the stipulated Payments to
receive stock to amount exceeding the instaent due
20 per cent and to sell the best terms practicable in
order to reimburse the amount due at the time Each
contract containing proviso that the two last nstaments
In each should be paid the LIST December 1912
rided the charter of the banks should be renewed
The charters both expire the LIST January and the
banks 60 into liquidation. Hence there was due by the