The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-11-25
MONEY MARKET.
Wednesday. Nov. ~

There general improvement in the stock market
To-day Prices advanced most Of the fancies but the
transactions only toa moderate extent At
board, Harlem improved per cent Long Island, x ;
Canton, Y Farmers Loan, Y Reading bonds, y;
Mortgage Bonds, IN Ohio SIS, '66, . and Treasury
Notes. q. Penn SIS and Reading Railroad closed at
prices current yesterday. improvement doubt
the result Of growing confidence in financial circles and
an improvement in the money market
b. The French ssamship New York for Havre takes out
only $4,000, in Eve franc pieces.
The financial crisis in Great Britain, and the fire.
quent changes made in the financial systems of that
country rapidly reducing the immense influence It
formerly enjoyed in the commercial world and throwing
into the hands Of this government that supremacy
which we have been long striving for The rsvulsion
recently realized In England has been the result of
opposition between the banking and the commercial
interests since the adoption Of the Peel act in septem
ber 1874 The currency of the United Kingdom, under
that act, became established upon pure specie basis
the accumulation OF specie in the Bank Of England to
nearly seventeen millions sterling and the extension Of
Issues, upon that and government securities to
than thirty millions sterling while the sotus circulation
was only about twenty millions, gave the commercial
classes the impression that expansion of credits could
with impunity be brought absut and the operations of
commerce extended to unlimited extent With the
seventeen millions sterling in the vaults Of the bank
and about ten millions Of notes in reserve specu.
laors and all others disposed to imitation, con.
sidered there was sufficient eeway for their ope-
-ations The expansion commenced. and every spe-
ces ospeculaton increased to enormous extent In
the midst Of these movements, the harvests pro-
aouuced deficient, and importation of food and an
expectation of bullion commenced. The bank met the
drain Of bullion by reducing its reserved notes. instead
Of reducing its actual circulation, as its bullion
drawn away 1t its issues in the hands Of the
the public by reducing the amount Of notes on hand
Amidst all the drain of bullion actual circulation has
not been reduced altogether than two millions
sterling With about millions sterling bullion,
the circulation nearly the when the bullion
hand seventeen millions sterling. The crisis was
postponed by these movements but not reduced it
put of but not prevented but the contrary the
vulsion became strengthened and more extended and
finally spread destruction q wider extent Had the
bank been regulated In its movements entirely by the
movements Of bullion, the would have been for
time severe, but IL would not have been so gene
raj Prices would at have been depressed to the
lowest point but the recovery would have been more
rapid and upon more healthy basis.
The attempts made to check the expansion to pro-
dace contraction by raising from time to time the
rate of interest," had just contrary effect to that anti
cpatod. produced stringeucy in the money market
which resulted in q panic. Confidence completely
destroyed and suspension followed suspension in rapid
succession until the commercial credit Of the country
became utterly ruined The distress in commercial Or
Giles reached such point that appeals of the strongest
character made to the until it resolved
upon interfering and tho bank act Of 1914 virtually
anuulled. At the very period In the whole revu
sion when strict adherence to the act was Of such
vital Importance, 1t repealed, and the market
entsrlly relieved The restrictions imposedu the
bank by that act never were necessary than at
the crisis of the revuson and the folly Of the govern
ment in assuming the responsibility Of the remedy will
be demonstrated This movement has established
precedent which will hereafter be made available un-
similar circumstances and lie only another evidence
Of the want of permsnency stability In the acts Of
generally
The result Of the revusion in England has raised up
in this country paper money party somewhat similar
to that of 1910 and sil 1t does not 60 far
commend the establishment Of government bank, but
IL wishes the credit of the to be the basis
Of the currency The effect Of the revuslon in England
upon prices for principal staples viii be very great
and Of very Injurious nature. depreciation In the
value OF our cotton Of three four cents pound
make difference in the aggregate income Of plant
srs OF more than thirty million Of dollars This depre-
citation specualors and capitalists anxious to prevent
ana they therefore wish imitation in the currency In
this country to an extent sufficient 10 sustain the value
Of this great staple The banking system Of each state
will not admit OF any greater expansion and the only
source from which any important addition to the cur
ency could emanate, is the general government The
Wall street organ Of confederscy Of bankers In this
city has repeatedly suggested that issue Of paper in
The shape Of Treasury drafts or notes. be made by the
government for the purpose Of facilitating the nterna,
exchanges OF the country and filing the vacuum IL rep
resents AS existing In the currency.
Another Wall street paper the organ another oiou.
specuators and uancier proposes issue of notes
,ased upon deposit Of government securities funded
Or that purpose, similar to the stocks of this state n
proposes 70 make the government extensive banking
'.abaaers aai Quc.es thu Old Unitei States Bank e.
svlslss OF ga cllFllleaeea dlsyillly Of these
sues above sl others 10 the S'uatry We also notice