The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-21

active means for applying money to the uses of
trade and speculation having been Withdrawn by
the destruction Of banks, intelligent people began
to apprehend there never would come revival
such as all former periods of abundant issues and
free action of the banks had invariably and prompt
ly produced. II shows that a great change has
taken place IN the speculative disposition or the
speculative power of the people; and this is very
important point to bear IN mind, when we are con-
sdering what this extraordinary state of our
monetary affairs is to lead to-. 1t seems to US to
being the creation of a speculative mania of
the same headlong and reckless character as
marked the years 1885 and 1896; and we know
OF no Iact winch tends to contradict this
conclusion, but the great increase of mill-power
among the cotton workers of Lancashire and Che
shire-al other spinning and 10 I'm manufactures
being comparatively tranquil, satisfied, and unmov-
ed by speculation How far this great increase of
mIl-power IN one important locality is to be justf-
ed by the increased trade which the Indian and
Chinese markets have given TO us, is a question
which time alone can determine. There is, we be-
lieve, doubt that China will take of great adj
dltonal quantity of cotton twist and cotton cloth:
These general views OF our monetary affairs do
not seem to point to the conclusion that we are in
danger of witnessing hazardous expansion of ere
dit and high prices to be succeeded by convusion,
in the year 1874. Are there any special circum-
stances indicative Of the same dangerl Undonbted-
ythere are. and 1.-THE same means ofgivins effectto
action NOV existed, did exist in the year 1893,
to spread that force throughout commerce, mines,
and manufactures, 1874 would resemble 1896 in
what is called speculation. The absence of those
means, and the measured and prudent operations
Of all distributors of the money power now prevail
ing, constitute the safeguard against the calamaties
OF 1857. SO far speculation has shown itself
chiefly in raising the value of shares which has ia
ken money out of one mans pocket, and put it into
another's; 1t v mere change of property, such as
always takes place in dealings of chance. Beyond
this we know of nothing fairly to be characterized
by speculation, except the transactions in cotton at
Liverpool, which are mainly founded on calcula-
ton OF a deficient crop, made at time when the
prices OF that article stood at a comparatively very
low point on the scale. Still the bank never has
made forced issues for government objects without
such conduct producing great arrangement of pri-
ces, resulting in conSyq!sion; Why should not the
same consequences follow the present extraordina-
ry developement of the banks power'
On the whole, therefore, although we began by
saying that proposed to submit such views of our
present commercial position as appeared to us wor
thy OF consideration, without intending TO indicate
the issue, we have no hesitation now in declaring
OF permanence and progressive extentOn to the i'm
provement in trade already witnessed. More. in
formation and experience may be requisite before
any man would be justified in making up delbe-
rate and fixed opinion the matter, but such
impression at present. We hope for free flow ng
trade on moderate range of prices for the year
1874. and believe If they should generally pass be-
mand would soon bring them back to il. Let the
bank accumulate It's metallic treasure, trade can
proceed without it; and let her for the future be
more cautious in venturlng on that of policy
which at one time reduces the treasure to almost
nothing, and az another time draws in hoard Of
fifteen millions sterling.
We are, sirs, obediently,