The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-10-09
Finance and Currency,

rfOm He LTVOWtc.
The commercial and financial horoscope of
our country presages serious trouble. These
are its leading features:-
l. A plethora of what is with questionable
propriety) called money, and (still more mac
curately) capital.
2. Loans on call at short time go begging, and
are to be obtained at low interest ION call - or
short time on almost any sort of collaterals.
3. Stocks OF all kinds selling at enormous
prices, and generally rising in market value.
4. The premium on gold advancing, and
nearly up to 90 per cent
8. Gold flowing hither from Europe, though
our imports of goods enormously exceeds our
exports OF products-the gold, with the accruing
commercial balance against US, being invested
in stocks and bonds. mainly those of the Gov
eminent. In other words: we are drawing bills
against the industry of our children and grand
children, selling them at rs per cent discount,
and spending the proceeds in wines, silks and
other luxuries which "perish IN the using.h
6. High prices for labor for products, for
almost everything, rendering ours the best
tne 9 10 IN and tse 1e
tastes and luxurious habits, all seem to fore
shadow grand crash, which no skill in fnan.
ciering can long postpone, il there be not
radical change in our financial and commercial
policy.
That change we think the Secretary of the
Treasury might and should inaugurate. II he
had any earnest, vital faith In the doctrines of
his Fort Wayne speech, and his annual report,
we believe he would do 1t. After long and
patient waiting and hoping, we have been driven
to the conclusion that, though he clearly appre-
ciates the present perllous position of the coun.
try, he will do nothing whatever to improve it
that he is one of those dispensers of fine
phrases in praise of virtue and morality whose
words are in perpetual conflict with their deeds
Is this uncharitable? Look at his expose Jus
issued, and Judge -
The primary impulse TO the present imitation
OF nominal values IS given by the great disparity
in value between $1,000 in gold and the same
amount in illegal tender" Men buy stocks ION
time" calculating that their price will be en-
banced by further debasement of the cur
rency. In other words, speculator bargains
to take and pay for so many shares of Erie,
Central, or some other stock, at given future
day, on the strength Of his expectation that the
currency will then be still further debased and
the currency price of this stock consequently
enhanced. In other words, he bets that our
illegal tender" will have less actual value 80 or
go days hence than at present.
This debasement is effected in two ways:
First, by making illegal tender" and bank notes
more abundant; secondly, by making gold
scarcer aud its requirement more difficult.
Whatever tends to lock up gold tends to depre-
ciate our actual currency.
Look, now, at Mr. McCulloch's latest expose,
just issued, and note these items of his account
CURRENT
An1ount in Treasury. Public Debt.
Com......... S86 9O9 Coin Int - 81, $40 os5 94l
Currency.,.. 1883 1853 Currency do. $50 $50, 100
Total, NJ. $l2S 21s. .767I
silver hoarded-for what2 The debt is being
Teduced at the rate OF $20,000,0 900 per month.
Ihe current revenue largely exceeds the car
rent expenditures. The current receipts of coin
| very largely exceed the current demands there
| for, as is proved by this accumulation. What
possible reason can you conceive Tor lSeening o,S
hand this enormous hoard, subject to embezzie
ment, burglary, and all other mischances
| when its instant use in reducing the prlncinsi
of our debt would diminish the annual Interest
payable thereon by at least five millions of
dollars?
Were the Secretary to use this coin forthwith
| in the purchase and extinction OF public debt
| he would, 6rst reduce the premium on gold-in
| other words, diminish the debasement OF our
| currency-thus bringing us ever so much nearer
| to healthy, natural prices; secondly, he would
! signally appreciate our public debt, and compel
| foreigners who hencetorth buy 1t to pay some
thing like its actual value; thirdly, ii would
| arrest speculation and diminish importation:
| fourthly, IT would enable the Secretary to renew
his loans, when he shall be called to renew
| them, on terms far more favorable than he can
otherwise hope for. By buying up and extin-
! gushing nearly one hundred millions of public
debt, he inevitably appreciates what remains,
| rendering its holders more reluctant to sell and
| Others more eager to buy securities which are
seen to be steadily rising in value. And, by
continuing to buy up and extingush, so fast as
he can, with either coin or currency, the Secre