The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-18

will he BY the above that prices arc very far
below the point they touched little less than three
vsan ago. when their earnings Car less than they
are now and volume OF the currency consderA
bly, smaller.
the gold market is arm at the decline. and shows
tendency towards partial recovery. The opening price
was 1874. followed BY an advance to issk.
. resp.s 70 las and = reaction TO l3sA
again, tho closing quotation There only
light borrowing demand for coin, and loans were mse
wihoa, interest and by paying three per cent FOR carry
Ing Little apprehension Of further decline ~
expressed by Importer and others, and .
hopsfal feeling exists among mercantile in
qnsncc. The gloomy feeling which, for time past
ell within the last few Days prevailed commercial
circles wS due mainly to uncertainty regarding
che financial policy OF Congress and dis,rust Of
che Immediate action a the Treasury Depart
ment The recent letter OF the Secretary or
che Treasury to the President of Buffalo bank bsr
however. sxersed reassuring erec accepted as
. sgn that he has the Of his ways aud
possd follow the only course respecting the currency
which 10 consistent with the interests OF the country
The circulation should be lef undsturbed plain
legal tendon are Concerned, and whatever contraction
does take place should be In The form Of CON-
% nd interest notes The authority, therefore, 20
tract Unlsd states 81 the rate Of four millions
month sbould be Withdrawn. We observe, however,
chat resolution to this OBJECT offered by Mr. Baker
defeated In the House Of Representative to-day. Mr.
csos also offered . resolution In accordance with the
views Of this journai-uamoy 70 the eject thai the Com
mes Banking and Currency be instructed 10 inquire
snso ,hs expsdency Of providing by Law Tor the with
drawsl OF ths currency issued By the national banks
fast s.tbs may BE- done without, injustice to the
banks and Of supplying Tie place with legal tender
issued by the government OF the Unl,ed
The resolution vas. however rejected by close vote "
~ 10 g.
There y obviously nothing 70 be gained by currency
contraction. and therefore why should when
ueedful that production should he stimulated
snIy the devastated South but all the county
60 repair the ravAges OF the Moreover undue con
Traction would by checking industry seriously impair
sho revenues Of the government and prevent the
funding oe seven thirty notes, Of which there are
svon hundred millions approaching maturity
by inspiring false hopes In the minds Of their
holders tha, they would be greatly benefited
by holding them for redemption In currency Tho
purpose which tho Treasury must have view Of
exchanging these notes before maturity for nvet~eny
bond. would DO thus defeated. II necessary that con
ndence IN our monetary system should b inspired In
fhs South and that the people should be told tiai
sh~rs II no danger Of the financial revuisson
81 shs North Of which some % them stand
an fssr Before the present session of Congress
IL over trust that the legislation VIII b such
n 20 inspre confidence in tho stability Of real
vsucs aud the abundance Of money. In The course Of
fmr the trade u the country will demand all the
rrney ~e have and while the country prosperous
sepcss our Injunction 70 'qe ven enough alone"
Tue foreign exchange market has been duIl and
rather hssvylso far decline Of u In the drawing
rates indicates hesvisess but iss UNDERGONE nrm and
she supply d bills b light Bsnkers bills on England
., sixty days vss quoted shs close 81 ioeS loeH
= Tires days iios nov; commercial bills 100 iog
hssds ., SIXTY days AIN ssisx; ss three days ole
sais% biIs "a psrlIs 70 ": - Brsusa Tst .