The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-07-18
SPIRIT OF THE NEW YORK PRESS,
Leading Editorials from the New York
Papers This Morning.
THE mARKErs ASiH TIE CURRENCY.

from ne Times.
The occurrences Of the past few days in the
produce and money markets show pretty con-
clusyely how completely we may rely, after all,
on the operations Of the laws of trade TO protect
the public against the machinotloys Of the specu.
lators. For many weeks bac, almost all the
necessbrics Of life have been bough. up i'm enor-
nous qulnHtics,iand "heli for o rise. ." bya num-
Der Of large operators Prices did rise accord
ingy, and the consumers, and especially the
poor who have 90 make their purchases from
daI 70 day, suffered accordingly. As is usual
alteI period OF great speculation, there followed
what Is termed o tightncss In the markct-that
Is, dlthculty m borrowing money at all, or al any
but high rates of interest.
The banks found themselves obliged TO con-
tract their loans, partly as measure ofprudcnce,
ana partly Of necessity. The enormous rise in
prices of course called for greater quantity Of
currency TO DO the work Of exchange, and the
rashness of the spectators naturally Inspired
greater caution in dealing with them. When the
price of things doubles, It Of course necds-not
double the quantity of the circulating medium
for the quantity required depends partly on the
rapidity of circulation, or, in other words the
multiplicity of trannctions-but a very much
larger quantity than before, TO enable people to
carry on their business.
The spectators ia this case calculated on
having this required addition supplied by the
Treasury in the shape Of q fresh issue of legal
tenders. But this relief has not come in other
words, the laws Of trade have been left to take
their course. They hoped to be able to borrow
IN order to enable them to continue to hold. and
they relied on fresh expansion of the currency
TO carry the prices up TO the point al which they
desired to sell They have been disappointed in
both cases, and have been LEFT to get out of their
scrapc precisely as they would have had to ret
out of il in the old days Of specie payments.
Like all spectators, they have saddcd them
selves with more goods than they are able to pay
Tor and finding il impossible to borrow money
to meet their engagements, there Is nothing left
but TO sell out Once this process begins panic
Of course sets in, and prices fall with a daily ac-
celebrating ratio. We have accordingly had fall
Of thirty per cent in gold, and from ten to twenty
per cent. within the last three or four DAYS in
nearly every species Of produce.
There is nothing more natural than that, under
these circumstances, a large number of persons
should urge Mr.. Fessendeu TO make q fresh issue
of legal tcnters in order "to ease the money
market.' We sincerely hope he may not issue
another dollar in greenbacks; but if he does do
so, we trust it viii be simply and solely because
the necessities Of the Government compel him.
The sight money market" is the check provided
by the laws of trade for the prevention and pun
tshmcnt of rash and nnscr1puloug specu lation
IL forces those who have been aCCumulating
larger stock than they can use or pay for to sell
OIL, and thus prices fall to their natural evcl-the
level fixed by the real supply, and real demand,
and real prospects of supply.
In ordinary times, when the volume Of the cir
culoting medium can neither be increased or
diminished by the action of the Government
these gentlemen submit 70 the consequences of
their miscacalations with the best grace they can
III the Government were now to commence the
practice Of helping them out OF their difficulties
II would commence stupendOus undertaking.
a fresh batch Of greenhacks would, of course,
relieve the strngency in the money market; but
1t would also give fresh impetus to speculation
When one issue has been made, every one Is
inclined to believe there will be another and
MOTHER and that after each there will be a fresh
Use in prices. So everybody buys aud holds for
rise, until the market again gers "tight," aud
so on in an infinite scrieS-the issue reluired "to
case the market" becoming greater each time,
owing TO the steady diminution in the value of
the paper.
1t may, as we have sad be necessary for Mr..
fessenden TO make some addition still to the
volume of the currency hut it, after this, he can
in any way remove all hope that any further ad-
dition will ever he made to it by the Government,
thus forcing everybody to make his calculations
solely upon the existing financial basis and
solely with reference % the ordinary chances Of
trade, he will confer an inestmablc boon on the
mass of the people.