The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-11

The Financial Situation ana the Cur
rency.
The decline i'm gold, or, in other words, thu
appreciation of the currency, progresses steadi
~. There are spasmodic fluctuations in Wal
street every day OF so, and sometimes every
day, from causes that are local or; incidental
and through gold and stock operations. Bal
the cause of the steady approximation Of paper
to specie is general, and lies In the extraordi-
nary productions and business Of the country
and i'll the demand for large circulating
medium. The expectation of gold has been
less, too, Of late, and consequently the accu
mutation in the country greater. So far IL
falls of its own weight The expectation OF
our productions, and Of cotton especially, has
answered the purpose Of gold in paying for
our importations. II is q pity the crazy poll
,ucians at Washington can not soc the import
ance Of promptly restoring the Southern States,
OF paci:ying the country, and thereby increasing
the production of cotton and other things in
the South. That is the true way to bring about
specie payments. Gold has touched 12924 in
its decline, and that not spasmodically, but
steadily. This may be seen by going back to
last summer and by looking at the quotations
from that period to the present time. Almost
every one in the financial circles of this city is
satisfied now that this decline will 60 on grad
ually if not prevented by the disorganizing
radicals in Congress.
The question of providing for the Treasury
notes and bonds that will become due during
the next two years, and other questions relative
to our finances and the currency, must come
up at an early day. The subject will be
brought up on the discussion of what is termed
"the Morrill, bill-that is, the bill Of the chair
man of the Committee of Ways and Means and
the Secretary of the Treasury-and on the sub
sltute of Mr.. Thaddeus Stevens. The substi-
tute dffsrsfrom the bill materially, and in one
particular.of great Importance to the business
of the country. II authorizes the funding only
ofinterest bearing nOios or Othcr interest bear
ing representatives Of value, and not OF the
non-interest bearing greenbacks The original
bill favors q contraction Of the currency, and
gives the power Of contraction to dangerous
extent into the hands of the Secretary OF the
Tr.~-sry, &is -,,b.tit.ato withholds authority TO
fund our greenback circulating medium.
The authorities at Washington are founder
ing about in q sea of uncertainty on this very
important matter of the national finances and
currency, and appear TO be governed by no
fixed or settled principle. This Is injurious to
the business interests of the country and
our credit both at home and abroad.
We want some fixed principle and
settled plan, especially with regard to
the currency. With all the prospects Of
increasing development in the trade and pro-
ductions Of the country people begin to heel
tate and exhibit doubt as to the future. They
want to know what they are really worth,
what the government is going to do with the
currency, and, consequently, how FAR they may
extend or contract their business There Ia
reason to fear disturbances or even paralysis
Of business If the present uncertainty should
last We should know positively what the
amount of the currency or circulating medium
Is to be, and upon what principle 1t is 70 be
established or regulated. No Secretary Of the
Treasury or any other individual should have
it in his power to tinker with such an impor-
tant matter according to his own theories.
The country needs stability In this respect, and
the people will demand it.
The laws OF nature and Of trade will operate
in regulating the currency and In bringing us
back to specie payments as gently and almost
MS imperceptibly as the dew falls from heaven,
while any sudden and injudicious action
on the part Of government will operate
like disturbance in the natural elements and
produce a storm. Commissions would follow
rny violent or great disarrangement OF the
present volume of currency and established
values as surely as thunder storm follows a
disturbance in the equilibrium Of the elements
above US. The country will grow up 10 the
present currency If there be no extension OF II.
There ought TO be no more national bank cir
culation authorized. On the contrary, measures
ought to be taken TO curtail the present circu-
la,ion by gradually substituting greenbscks
for it. Then, il anything be done 70 hasten the
approximation Of paper to gold faster than the
laws of nature and trade would bring 1t about,
let the currency Of the government be with
drawn in 30 slow manner as not 10 be felt.
For example, II we take the difference between
gold and paper to-day as thirty-three, and the
government should withdraw carefully and
almost imperceptibly an amount Of currency
that would make decline of four per cent y
year in gold, that might not disturb the bust
ness and values Of the country. We should
reach specie payments in eight years by such
process. But, If the country be restored to
peace and harmony, and its wonderful career Of
prosperity be not arrested by political agita-
tors and disorganizers, we should arrive, pro-
badly, at that desirable object much sooner
without any Legislation whatever on the sub
ject
Amusements.