The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-11-27

IAoh0AuB MOuey aG present, and what
ever business Is done in this line is
transacted chiefly to accommodate cus-
toners who can produce satisfactory
paper, rather than with reference to
prohting by Investment. The money
market has been made close by the OBJ
erations of the Treasury Department.
in drawing heavily and suddenly
upon the National Bank Depositories
throughout the country. Such Of those
banks outside ofthe city as kept their
accounts here drew down their balances
and thus currency balances have run
1 down, while the balances in the Treas
ury have run up. This is one of the
mysteries connected with Mr.. McCul-
loch's. movements, and to his opera
uons, first In making money very
plenty, and secondly, in making il
very scarce. Is attributable the un-
settled and pantcky condition of busi-
ness. It may be pleasant for Mr.. Nc
Culioch to scare speculators, but the
business community cannot see any
fun In It. Let us see how he has been
playing with the currency lately. At
the dates annexed he held in the Treas-
ury In paper rmoney asifollows:
Ist I Of 5g.2g7749 48
stof Govenb s0siS9I5 67
Thus, we find in two months he dis
| bursed S26, 900 of the balance held
sept. LIST, In addition to two months
surplus receipts on account of internal
revenue. What he did with this mon
| ey cannot be particularly stated, ex-
cept that in addition to paying of the.
temporary. loan, it is understood he
bought up 1905 and compound interest
notes. The disbursement of this cur
rency gave great ease to the money
market, encouraged speculation and
/ prices of the very securities Mr., Nc
sCuIlochwas buying. For these he paid
| POS per cent. above current rates
Meantime he suffered balances on de-
pos1t with the National Banks to accu-
mulate, inducing those institutions to
loan loan 1reely, and TO buy GoVernI1ent
securities at advancing rates. Thus
during the months of September and
| october Mr.. McCu1loch encouraged
speculation by Initiating the currency
70 the utmost extent of his power, and
this was in continuation of his policy
ne hoarded gold, causing the price to
advance To over I150. Having got the
business of the country on to this high
level, with a superabundance Of money
at cheap rates, he turns suddenly
around, sells gold which he held
ward; buys s., ,OOO, 600 of bonds. ma
turing In 1858, at equal TO I4O :,
| draws simultaneously. :. and heavily
upon. the National Banks, and retires
about Sl6,000,O00 greenbacks. These
operations! disturb the money market,
dePress values, cause general distrust,
| ana spr1ng the whole business commu-
nifty to the verge of a sweeping panic.
Now, If this contraction were to be per
manent, and If values were to be Kept
| down on their present level, there
would be some compromising results
rom Mr.. McC9lloch's smashing opera
| lions; but this Is not the case. The flow
of money is disturbed, and practically,
for the time being people find difficulty
| IN borrowing; but there is not, nor can
not be any real security. The present
volume of paper money is over $780,
OVO,OOO, and while this is outstanding
Ehere can be no permanent scarcitY
Therefore, we shall have a reaction IN
the money market, a reaction in the
general markets, and a more active
speculative mania than that expert
enced In September and October. thus
business jumps from one extreme to
another, panics following limitations.
and limitations succeeding panics, until
legitimate business is almost DESTROYED,
and merchants turn to gamblfn9l in
stocks, or something else, to keep
themselves employed, and with the.
hope ofmakipg q good turn, now and
This islthe result of placing in the
hands of foneman discretionary power
that enables him to control the finances
Iof the country at his Will, and to nbull"
or bear" the markets at his pleasure.
The Irst business of Congress will be,
or should be, to call Mr.. McCulloch to
a strict account for what he has DONE,
and to lay down an aopenl policy9 for
the future that will be understood by
the people, to which the Secretary Of
the Treasury will work, and to which
the people will be able to adapt their
business. Mr.. M0Culloch may argue
that by having discretionary power he
can make money for the Government.
BE has not given the country, however.
any satisfactory evidence of this9 II
by initiating the currency and putting
\ up the price Of securities that he desires
to purchase; paying l40 for 6 per cent.
bonds that dc, not mature. for. one and
two years; boarding gold when it is
high and selling it when. it is low; If
this IS the way discreet etfonary power is
| to be used and secret policy operated,
the country will conclude that there
has been enough of IL! But even were
it otherwise-were the discretionary
power so used as to make money for
| the Government on the private sale and /
4 purchase of bonds and notes and gold,
this sresultWould beas nothing compared
with the interests of the business COM
mnnity, which are now, entirely in the
hands of one man. The Government
belongs to the people, and the latter are
therefore entitled TO know, definitely,
the npapctal policy SO that. they may
govern, themselE Ives Rccofdihgly. In
this way only can there be any degree
| of steadiness in, our markets, pending
the return of specie payments. Whether
the currency be contracted at the rate
of four or eight mil lions per month,
4 does'uot ma tterJ11ear SO much as that
the financial operations of the Govern
| ment be conducted in accordance with
some settled policy. If the currency is
to be 81, ,000, 600 less on the first of each
month thandtwas the month preceding,
people will understand that and calcn-
late with accuracy its effect. IT gold Is
to be boarded in the Treasury and used
only. to pay interest on the public debt,
4 people can adapt their business to that
state of things. But IL gold Is to be
hQaEded this month, and secretly sold
month and contracted next, all secretly
and at the discretion of the Secretary
of the Treasury, no business man can
/ tell what changes q day or q week may
bring about, The only parties sure to
lpronf by the ups and downs are those
speoulaeoFs who have the means of get
ting news In advance fromFEhe Tteasu4
ry Department.. .
CoNsERvXz1vE peopis are loud in
/ their denunCiatio ions against everything
that looks like carrying religion into
politics, Bnt they are by no means
4 equally sensitive when efforts a Fs made