The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-14

night, destroyed over one hundred houses, entang
loss estimated At over half million dollars Kr
Another sale Of government cotton took place yeser
day at Ill Broadway at which twelve hundred bales OF
Islands, Georgia and Now Orleans kinds were dis
posed Of advance in prices the last previous
SALE Best quality Of islands brought one dollar and
sixty-v cents per pound good middlng Georgia sixty
six cents and good middling Orleans sixty cents
Agenune volcano has been added TO the other institu
tons and wonders Of our great Pacific States San
Francisco despatch says that Mount Hood Oregon has
been IN state Of eruption since the 23d Of last MONTH
The stock market heavy and unsettled yesterday
morning. but buoyant in the afternoon Governments
were firm. Gold closed steady at I44T
The depression In gold extended 70 most kinda Of
chandiss yesterday, and the markets wero generally
heavy and prices were either lower tended downward
Imported goods generally quiet Domestic produce
was irregular Cotton was very quiet Groceries were
steady Petroleum was dull and lower On Change
-four was active and higher for ali brands Wheat
nrm with fair demand Corn was depressed by heavy
receipts and lower Rye, oats, barley and malt were
without material change Pork irregular and decid
eddy lower. Lard nrnsr Othcr descriptions were
without noticeable alteration whiskey was steady
Secretary McCulIoch.s speech ON tho
Finsncia Condition Or the Country.
The Secretary Of the Treasury, Mr.. McCul-
loch made q speech at Fort Wayne, Indiana,
on Wednesday, on the subject Of the national
finances. He took the ground that the present
currency, which he terms inconvertible, was
necessity OF the war; and that now the war is
over, and the government having no necessity
to be a borrower, "this currency ought to be
brought up to specie standard; and he saw
no way of doing it but by Withdrawing por-
ton Of it from circulation" He said che had
no faith in prosperity which was the effect Of
deprecated currency, nor could he see any
safe way to tread but that which leads to spe-
Gle payment"
This is an important declaration coming
from the Finance Minister of our government.
He avows himself in favor of contraction of the
currency on the ground that we are in an un-
healthy condition-living under fictitious
prosperity. The Secretary does not prove
this--he merely asserts 1t. He does not seem
to take into consideration the extraordinary
developments in the country within the last
four years, and the greater demand for money
10 carry on its business. Nor does he appear
to reflect upon the capacity of the country to
advance rapidly to such degree ofprosperous
trade as will require all the present amount Of
currency.
Our present financial condition, and what
effect it is going to produce upon all our indus
trial pursuits, commerce and the value Of every
thing, is question every one is ready to ask.
It's Importance is not to- be overrated, and
the time has come when the subject begins to
press upon our attention and will require an
early consideration.
Gold and currency to-day bear the relative
value OF one hundred TO- one hundred and
forty-ive, or about that. While tho war
lasted, and particularly near the close of
II, when great events were hanging In a
balance, the value ductuated greatly. This was
the natural consequence of the feverish state Of
the public mind, which hope and fear and the
uncertainty of events produced. As soon as
the war was closed and hope was in the
ascendant The currency became appreciated,
till the difference between 1t and gold was
much less than at present. Many, who did not
understand the laws governing the value Of
paper money relatively to that Of the precious
metals, believed we were going to return
within . short period TO specie payments The
extraordinary decline Of gold or appreciation
of the currency at that time was rs nuch the
result OF an unhealthy excitement ~ the great
rise Of gold or depreciation Of tho currency had
been under different state Of things. Those
who we're ignorant Of the subject, therefore,
were much disappointed when a reaction took
place and gold went up again to shorty
fvc." .How is it," they ask. shat
gold went up when we supposed it
would 60 downs-when the vestiges OF
war are being cleared away. the army is
being disbanded, the expenditures Of the gov
eminent are being rapidly and greatly reduced,
and the restoration Of harmony and prosperity
are progressing 80 hopefully" The answer is
q plain one The redundancy OF currency or
paper money d the cause of its depreciation.
II is the same with everything else. Cotton,
provisions and manufactures, all things, arc re-
duced in value in proportion to their abundance.
The precious metals are the standard Of value,
and are admitted to be so throughout the world.
When the war compelled the government from
necessity to increase the volume Of paper
money the relative value Of that money and
gold was disturbed. To the extent Of the dis
proportion created we anticipated the future
productions Of the country and the healthful
wants of commerce. Hence, now the excite
snient of the war is over, and the country is re-
turning to lis normal condition Of trade, gold
and the currency are settling down to their
relative value, irrespective ofexiraneous causes.
Whether the relation they hold TO each other
to-day is the true one, or that there must be a
greater or less disproportion, we are not able
to say. We think, however, IL will not settle
down to greater II our finances be managed
judciously.
The imitation and fluctuations Of the currency
have disturbed the original value Of everything.