Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1865-11-28
FINANCIAL & COMMERCIAL.
MorpAr-Errr,rs. NeEr27. Ise5.

L11HH
Every succeeding day in the approach
the meeting of Congress heightens
the interest among business men in relation
to the great and indeed all-imPortant ques-
ton of the finances, and its discussion is
heard upon all hands. The almost univer-
sal desire, if we may accSptas authority the
action of Bank officers, chambers of Com
and Boards of Trade, is to return the
business of the country to a specie standard
carry the prices of commodities back to
a coin valuation, and the almost unanimous
sentiment is in favsr of a contraction of the
circulating currency as the only feasible
means of attaining the desired end. 1t is
well understood that Mr.. McCulloch is com
mitted to this policy, and it is thought a
matter of certainty that he will ssk of Con
gress such legislation as will enable him to
carry it into effect. But there are a large
number, not few of them among those who
acknowledge the necessity of contraction if
we are TO return to a healthy condition of
trade, who are apprehensive that the pro-
cess of contraction viii be so violent as to
crush trade, and insteud of producing that
normal condition sought, will bring about
disorder, and perhaps ruin. We see no rea-
son for any such fear either in the language
or past acts of Mr.. McCullOch, which nave
been rather conservative than otherwise
Moreover, whatever Mr.. McCulloch might
desire in this matter, there are alI-impor-
tant considerations which he cannot over
look, and which will act as asure prevent
i've of extreme measures. Within the next
three years the Government has to provide
for something over one thousand millions of
its debt, including the 1905, and this must
be done either by redemption or funding
In order to fund-this debt, or any consider
able part Of it, it will be necessary to main
tain the securities Of the government at par,
and a system of severe contraction would in
all probability prevent this, because cur
rency would become more valuable than
the bonds, and the wants of holders would
from time to time force securities p o the
market in order to realize upon them, and
necessarily at a sacrifice. On the other hand
should the necessity Of redemption present
itself, and It'll a condition that the Treasury
cannot lose sight of the revenue of the gov
eminent must be maintained at at least the
present figures to meet such necessity, and
in order that it may be so maintained there
must be no measures that will in any de-
gree eurtail the industry of the country or
impede industrial development. These are
simple propositions that Secretary Mccul-
loch cannot be blind to, and they will have
their due weight also upon Congress. But
a system of contraction regulating itself to
the necessities of trade, taking out of circu-
latiOn only the surplus currency that now
goes to the service Of speculators in manip-
ulating " corners " and maintaining " mar
gins - upon all sorts of property, to the IN
questionable detriment of legitimate busi-
ness, which is alone the life of a healthy
dcvelopment-such a contraction viii work
universal good. There is no ground for be-
lieving that Mr.. McCulloch and Congress
will adopt any other course, but business
men may as well make up their minds that
greedy speculation is to be hereafter the SIX
cePtiOn, and not the rule, as heretofore.
The money market is quiet. IND presents
no new features. Bankers meet the calls of
customers, but are not disposed to expand
their discount line. Currency balances do
not materially improve.
Exchange continues close and firm. the
demand, though moderate, fully keeping
pace with the offerings. Rates are steady
at par buying and 10 premium selling.
The features of the New York market to-
day We're an advance on gold and a decline
on government securities-neither however
of a very decided character. Governments
continue to be pressed for sale, and are IN
favorably influenced by the apprehension of
Mexican complications. Gold closed at
l474. Railway speculation DROPS. The
New York weekly bank statement exhibits
nothing of decided interest. There is a mod
crate increase in loans, but it IS largely over
balanced by the increase in deposits. The
changes of the week are however very tri-
fling.
In this market to-day business in coin and
governments was light, prices ruling as fol-
lows: