The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-21
FINANCIAL AND COMMERCIAL
SUNDAY, Jan. 20, 1851.

narrow policy or the Secretary Of the Treasury IL rs-
garded have exerted unfavorable effect upon secur
ties Of all kinds and the bears have proAted largely
BY the still larger osses OF the bulls As the longest
lane has q turning, however. II IL probable that
affairs ON the Stock Exchange will soon take
. turn in favor Of the bulls but meanwhile
they arc holding stocks heavy loss otherwise have
realised heavy losses b sales voluntary forced The
banks and private lenders who have made large advances
70 the holders Of heavy blocks Of stocks are disposed
accommodate thsm 70 the best Of their ability - mea-
sure self Defence forced sales would have the effect
OF further demorazIng the market Tho 'shorn inter-
est outstanding large, but the bulls appear unable 10
take advantage Of In the present angud state Of spec
ulation, and therefore tho prices sink as It were by
default Yet during the past few days there has
full supply Of money available for the Stock Ex
change although the legal Of interest," with excep-
tons at six per cent, Ii still maintained. Money
has been unusually active for the at the West,
and this has checked the drain from that point towards
this centre while the shipments Of currency Southwark
have been larger than expected, although less
heavy than would like to make believe The time
has arrived whom return flow from both sections
may be looked for and increased from this
may be relied upon The contraction OF United States
notes, however at the rate OF four millions month,
has severely affected the money markets all the
country, and much by imparing confidence 10 the
minds Of lenders in the stability Of current values
by the material operation Of the process. This has
produced depression Of trade and cessation OF manu-
factures which in their turn have thrown labor out
Of employment and reacted unfavorably upon
immigration and the Industrial interests Of the country
generally In all OF which there turks element Of dan
ger which cannot be ignored with impunity. Wall
street has merely reflected the feeling and condition Of
the country during the last few weeks and things will
rapidly 90 from bad to unless Congress repeats
the authorizing the Secretary Of the Treasury to fur
Their contract legal tender notes. including compound in
forest notes. unless TO very moderate amount they
mature. y
Another cause OF the prevailing dulness and
tanty in trade s the taxation 70 which the
people subjected and which is undermining
tiona enterprise II giant Is hampered with fetters
he becomes reduced to the level Of q pygmy in
strength and usefulness and this s something OF the
condition to which the Secretary OF the easurys policy
would reduce this great nation he permitted 10
ercse unbounded sway its destiniaa Congress must
therefore, take the reins hand with firm grasp, and
nothing OF material consequence be left to indvd
ual discretion he must he indeed blind follower Of
narrow theory who would urge attempt TO resume
specie payments in the present c0nd Of the 6nances
whom nearly seven hundred millions OF three years
sevcn-thrty notes mature within the next year and
quarter all Of which, If not previously converted into
Gve-twenty bonds, redcemable in currency on de-
mand and when moreover according to the Secreary's
own estimates six hundred millions Of American securities
held Europe liable to be returned here a any
time for sale, the proceeds Of which would
have 70 DO RENTED In gold to the Old
World. Whore. then, IL the policy OF forced
resumption OF specie payments Aud yet the
Secretary had the hsrdhood to prophesy the day Of
resumption in his last rcport-a piece OF temerty in
which no prudent far-sighted man would have In
dulged. Tho consequences Of q forced resumption Of
specie payments, assuming such TO be possible, are
easily foresesn. The speculative holders Of large
amount OF our bonds In Europe would combine 10
turn them for sale here and acting In concert With
number Of private banking houses on this side they
would drain the country Of s coin and compel another
suspension II specie payments. The general eonse
quences could BE- easily calculated and the operation
would be . very profitable one for those engaged
In H. Prices would huctuate wildly, gold would rise
70 higher premium than was over imagined possible
while the country remained in state Of peace and tho
spectators who foresaw what Was coming would make
rich harvest Of PROFITS who the people At largo would
be sorely Impoverished aod de!uded Yet men high In
ONCE to b found who advocate course which
would bring TO this and who would they could jeop
ardize the vital interests OF tho nation in order u wit
ness the triumph Of their theory, whatever the conse
quences might be. Such men In times like these are
dangerous TO the nation and there Is only ono way TO
deal with them, namely, BY rendering them poweress-
II would have been better for the country II paper
issues had not been freely resorted to during the
But we must accept the situation Is and having estab
lshed new state OF things based upon certain volume
Of irredeemable currency would be far damaging
to contract the latter niudciously Than IL ever 70
food tho country with greenbacks. The people have
adapted themselves to the currency is and the cur
rency as II was only be restored with safety by the
operation Of natural laws
The gold market was strong during tho week under
the influence Of political affairs and advanced from 134l
on Monday to 1879 Friday, while the closing quota
ton on Saturday 1867. Owing TO the large out
standing "short" interest there brisk borrowing
demand, aud loans we're made without inter-
est, and at g = per cent for carrying Tho
speculative depression 10 which the premium had
been subjected during November and December
favored an improved turn Of the market, and
the reaction Is likely TO continue for . con-
siderable length of time TO come. Not a few Of tho
most important OF the bears who cannot cover their
shors without heavy loss coniesting the rse but
those entitled to no more sympathy than the bulls
whom similarly involved. Both sides are equally indif-
ferent 70 the welfare Of the nation and greedy Of their
own gains gambling In gold being looked upon In the
same light gambling In stocks What the commercial
interests Of the nation most require in the standard OF
values Is sabity Dut with an nredeemao'c currency,
enormous foreign Indebtedness and political comp
cations liable to create disturbance a time this is
impossible All business therefore or less specu
atvs and until the resources OF the country further
developed and the South practically restored 70 the
Union, there s no prospect OF more settled condition OF
financial affairs, and il policy until the Treasury
and the country at large sally stronger 20 bear the
evils that have rather than ny 10 others that We
know not Of. The coin demand Tor customs duties at
the port amounted to ooo and the disbursements
At the Sub Treasury account Of interest on the gold
bearing debt to $0oS, 000
Tho foreign exchange market nrm and the sup
ply Of bills limited. The receipts Of cotton bills from
tho South have been vcry light while the commercial
Indebtedness Of tho country 10 Europe s rather heavy,
owing 10 importers having deferred remttances
in consequence Of the duness Of trade The drawing
rate for sixty days sterling saturday, quoted by the
best bankers, was 1929, but second hand good names