Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1865-12-10
FINANCIAL.


OFFICE MEMPHIS DAILY APPEAL,l
december 9, ls5.
On Change.
There is a general movement Of the public
mind towards a contraction Of the currency.
The fearful tariff OF prices which our expanded
circulation fixes upon the articles Of Necessary
consumption, givesa dangerous popularity to
al schemes which gravitate towards the specie
basis The financial disasters which have over
taken other countries, in attempting too alb
rupt g return 20 a metallic currency, warn MS 20
accept such schemes with grave cirruulspec-
lion. High prices are an evil, but II, under
their impatient g0sdings, we seek a premature
emancipation, we expose ourselves 10 the dan
ger Of enfv e~utailing the evil in a more aggra-
waited form.
There lisa popular delusion that contraction
tends to lessen the general sum OF our Habiii-
lies. The fact is thatit 10 does not subtract one
dollar from the public debt. II simply converts
currency into bonds. It is only the exchange
IF ZONE form o~fliablity for another, and the lat
ter. it, may be observed, Is ia one respect a more
onerous form. since it superadds the elements OF
an aceruiugi interest
what argument, then, can be urged for its
adoption The argument That the larger the
DESCRIPTION of currency into bonds, the greater
will be the appreciation Of the remaining cir
c~ularion.
Is this reasoning sound2 Al all events is il
not circumscubed in It's scope . Wouid 1t not,
/ ncarrIed ont m practice, beyond certain limi-
latious. provoke reciprocal em3arrasSments,
which would Beutralize its power for good:
Suppose the suggestion ola radical contraction
were adopted. and the Government should call
IN st once, the entire excess OF its circulation,
and fund lt in Understanding bonds. What
results would logically arise from such a
course9 II would bring stagnation upon the
ebb and Cow Of commercial tides It would
crystalize the money market Into an implaca-
Die glacier; IL would wither ina lis germ, the
southern enterprise which now begins 30 put
forth ia uHid bloom and in general terms, 80
would impress a partial paralysis upon the in
dusfrial activity ofthe whole nation. Our own
history is not barren Of precedents, which elo-
queutly enforce this teaching, and those who
hunger for a radical reversion to a specie clrcu-
LATHAM, would DO well 10 canvass its admoni-
lions
A further result. which would accrue from
such action, would be a heavy depreciation OF
National securities. Another avalanche OF
Government bonds, suddenly precipitated upon
a market already oversuocked, would bear
down The Interest bearing securities, TO The hu-
initiating depth OF nominal quotations. This
consideration will probably prescribe the ac-
ton of the present Congress, and restrain il
from the adoption Of a radical policy.
In truth, the fiscal Affairs ola country IN a
state OF profound peace. do not demand a vio-
lent manipulation. They contain within them
| selves. the elements Of their own conservation.
Their natural tendency, is 10 organize them
selves on a self-adjusing sliding-scale, which
moves in response TO every impulse Of contrac-
ton. OF expansion, which the needs Of the
country give forth.
The policy Of a wise huancier, is 10 make
haste slowly, with strict reference 10 these
[ spontaneous Suggestions, ana not 10 impose
I upon them, any arbitrary impulses, either OF
repression or expansion.
The heroic system OF medicine, which for
merIy aspired TO dictate terms to disease, has
long since exploded, and the skillful physician
! ofthe present day, plies his art, in rigid sub
lection 10 the pointings OF nature. Medicine IN
this. furnishes an analogy 10 finance, which the
! latter can only disregard, at the expense Of its
essential integrity.
Let US hope that Congress viii act In accord
ance with the tuition OF this wholesome anal
I ogy, and assist as toward a specie basis, Ger
tainly, but always with due regard 70 the self
respect OF the Government, and the permanent
Interests Of the Nation.
Exchange.
The fortitude with which New York sight re-
sists the Impulses, which threatened on yester-
| day, 20 drive IL into a more implacable tone,
excites some surprise. Tine demand continues
I Ia unabated volume, and the supply remains
scant, aud precarious, but this condition Of
matters has not yet asserted ITSELF in a harder
tariff OF rates We renew in consequence, the
quotations Of yesterday-buyiBg az = discount,
seUina AZ = per cent. premium. The offers Of
New orleans sight, remain In unimpaired ex-
eess. and rs demand Of yesterday manifests to-
day no symptom Of enlargement Transactions
la il therefore, have been comparatively dun,
and is rate as before, is i per cent. discount
Time BsIls-
Unlike is siaht Exchange, Time bills upon
New York are Offering in heavy amounts The
I chronic distemper Of The Cotton market, how
ever, and It's steadY downward tendency, cause
tie Bankers 20 Manipulate Time bills, very
gineerIv. Their movements therefore evihoe a
growing Inactivity, but Interpretations remain
unchanged, Fiye-day bills are still taken at =
per cent discount: Ten-aay bills at Fifteen
day bills az I pei cent; and Tbirty-day bills at
"a per cent discount
The same depressing sympathy with Cotton,
remarked upon In connection with New York
hme, affects IN "A similar manner. the move
nent Of New Orleans Time. Only Transactions
loi small amounts are reported in them, at IN
changed figures; Five-day bills att per cent