The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-11-12
The Treasury and the Money Market.
A.. NJ " 1Sa,oe


From the ~ Y. Times.
All the reports from Washington about the
actual or proposed measures of the Secretary
OF the Treasury for the relief OF the money
market may be simply resolved into these
faots:-
Firstly. The law of 1864, authorizing the
Secretary to borrow one hundred and fifty
millions in money and issue therefor oerti6-
Gates payable ten days after notice, with cur
rency interest at 6 per cant, also authorized
him to issue fifty millions in addition TO the
four hundred millions of greenbacks then ex-
listing, if il were necessary to do so in order to
redeem these ten days certificates; and the
issuing of these additional greenbacks was au-
thorized for that specific purpose only. The
Secretary did borrow the one hundred and
fifty millions, and has redeemed all those GER
tifcates and therefore the law in regard to
the issue of the additional fifty millions is en-
trely imperative.
Secondly. The law of Congress which autho-
rized the Secretary to retire ten millions of
greenbacks within specified date, and then
four millions month, did not authorize him
to reissue any part of the greenbacks which
he might thus retire. The Secretary did re-
tire about forty-fo millions under that act.
There are about 20 millions of those thus re-
deemed not yet destroyed; and the Secretary
has declared that contingency might arise
wherein he should use some or all of them,
and look to Congress for justification in doing.
But he has as yet seen no necessity for their
reissue, and we believe has no expectation of
any contingency arising wherein he will be re-
quired to reissue any part OF them.
Thirdly. The law authorizing the Secretary
to issue seveDty-five millions of three per
cent. certificates for the express purpose Of
redeeming the compound interest notes ma
turing was fully avaied of, and the certif-
Gates were employed in their redemption.
mil of hos thraa MT rfi otay
have been sent In and redeemed. The Secre-
tary at first decided that the law did not au-
thorize him to reissue those that he had re-
deemed; but it Is understood that now, on
reexamining the terms of the law, he has con-
oluded that he has power to reissue what he
has redeemed-so that not more than seventy
five millions be out at one time. 1t is under
stood that the Secretary authorized Mr.. Van
Dyck to receive any part Of ten millions of
the Five-twenty bonds in exchange for 3 per
cent. ertifcates-provided in his judgment
the stringenoy in the money market warranted
that unusual course, and If it could be done at
satisfactory prices. But it is also understood
that Mr.. Van Dyck does not regard any such
contingency as having yet arisen.
The Secretary has, for some days past, sus-
pended his sales of gold; but his reasons
therefor have been: Firstly, because of the
sudden decline of the premium to about 32
per cent; and, secondly, because of the ex-
trems stringency of the money market-parties
having paid as high as per cent. per
annum, and ! to ! per cent. a day for the use
of money. But within the last two days
money has been offered at 6 per cent. per
annum, while gold has advanced about three
points. The reasons lately existing against
Treasury sales of gold do not now exist; and
they may therefore be resumed at any time.
The real cause of the trouble in our money
market now is the decline in prices of produce
and merchandise; and unless there arises
something to induce an advance, the strin
genoy must continue with more or less severity
until values reach a healthy basis. The
change from the standard of coin values t
greenback values, on the passage of tn,
Legal-tender act, inflated prices largely, anc
now things must return to the old and legii
mate standard before any permanent regula
tion OF affairs is reached or any permanent re-
lief afforded