The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1865-12-14
Financial.

The following is from the New York
Worlds monetary article:
The Presidents Message and the Sec
rotary of the Treasurer's Report have re-
moved from the public mind that dread
of radical measures on the part of gov.
ernment which has tended to depress the
market for United States securities, and
to paralyze the enterprise and money
making capacities of the nation. The
stack; ;jobbing scheme for contraction of
the currency is opposed by the Secretary
and its practical impossibility is demon
strated by the official exhibit of our na-
tional accounts. Mr. McCulloch's report
shows that there will be deficiency of
sll2, 1874, ,947 20 for the balance of the fiscal
year ending next June Goth This sum
must be raised by new loans in some
form. Mr.. McCullochs contraction
policy is comprehended in funding the
legal.tender compound interest notes in
to six per cent. bonds, and at not less
than par. The last issue of five-twenty
six per cent gold bonds wore knocked
down to SO by the $50 100000 exchange
operation recently negotiated, and they
range now about 994 The deficiencies
of government will require the negotia-
ton of loans for 100000 before a
single step can be taken toward contrac-
tion by funding the compound interest
notes into bonds Mr. McCulloch's con.
traction project must DO postponed,
therefore, probably about six months In
the meantime, S75,000,00O will be ad-
ded TO our paper money Issue, at the rate
of three to four millions per week in ma
tional bank notes already authorized by
existing acts of Congress, Furthermore,
the Comptroller Of the Currency recon-
mends in his report that Congress shall
mass a law to authorize the issue of $780,
600 900 more. AS this recommendation
TO add 500 100000 to the amount of ma
tional bank notes is published under the
official sanction of the President and
Secretary of the Treasury, it is reasona-
BILE to assume that Congress will pass the
enabling act required
The summary of our financial future
is. therefore, as follows First, no con-
traction of the currency can take place
until after Sll2,OOO,000 in new loans are
negotiated to pay for government ar.
rears probably not before next May OF
June, providing the money market is
then in condition Of extraordinary
ease Second, our paper money issues
are certain to DO Increased immediately
s75 900 900 in national bank notes placed
on the market every week at the rate Of
three or four million dollars Third
800 900 900 of national bank notes will
nrobablv soon be authorized by Congress
as further addition to our paper money
issues, in compliance with the recommen'
dations of government, The future,
therefore, as far as the next seasons bus
mess is concerned, promises not only not
one single step. towards contraction Of
the currency, but, on the contrary, in
creased paper money issues, with in
creased bank expansion based thereon
In other words, the national banks can
proceed with impunity 10 increase their
loans to greater extent than they can
find borrowers in the country, The city
national bank that discounted last
Spring S500,O0O in one note for first
class dry goods firm, can, with equal
prudence aud more safety, this Spring,
discount one for $1,000 900 to the same
parties. In plain terms, this bank, by
the stroke of pen, and in the space Of
halt minute, last Spring, created $500
600 of practical lawful money, by dis.
counting the note for that amount, and
il can, with equal ease and more safety,
nroceed to create double, or million
dollars by the same process and II the
same space of time, in view OF the future
financial course of events.