The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-06-18

N Suari IN wall Strect-Who - 10 D""o'
There is an extraordinary and unprece-
denied state of things in Wall street. At this
time of the year, according to former expert
ence and the natural course of monetary
affairs, money ought to be easy, if not abnn-
dant, and ought not to be worth over three to
four per cent. Usually it accumulates at this
centre in the month of June. But instead OF
that there is great stringency in the market,
and money was worth on Wednesday quarter
per cent day, or at the rate of ninety per
cent year, and on yesterday, though there
was some relief, it was worth eighth per
cent a day, which is at the rate of forty-five
per cent year. At this time Of the year it
ought not to be worth more than at the rate of
three to four per cent per annum on govern
ment securities. The question arises natu-
rally, What is the cause of such an unprece-
denied and artificial state of thingsp And
this is very important one to our merchants,
who are the chief sufferers. There are two
causes-one, the combination, tacitly or other
wise, of stock spectators, who extend their
operations and use every other means To lock
up and make money scarce. This is, how
ever, temporary cause only and the result of
Wall street gambling. The other Is the large
sales of gold by the Treasury Department for
currency and the consequent accumulation of
the circulating medium in the vaults of the
Treasury. Instead Of the government having
only eight millions or so of currency on hand
it has twenty Eight millions. This amount is
virtually locked up and enables the specula-
tors, under the scarcity, to get complete con-
troll of the money market. Mr.. Boutwell, may
have no intention of playing thus into the
hands of spectators and expressing the mer-
camille interests, but that is the effect Of his
operations.
We have on several occasions commended
the policy of the Secretary in disposing of his
surplus gold, but it was because we supposed
he would with the proceeds buy up and cancel
the interest-bearing debt. We did not imagine
he intended merely to change the gold into
currency, and thereby to accumulate and con-
tract that, to the manifest injury Of trade and
to the advantage of the stock and money gam
blers of Wall street. 1t is intimated that he
wishes to accumulate large amount of cur
rency in the Treasury for the purpose Of
taking up with it the three per cent certificates.
These certificates operate as currency, mas
much as they take the place Of greenbacks in
the bank reserves and set free corresponding
amount of currency for general use. The
boarding of currency for the purpose of taking
up the three per cent certificates or the with
drawal of these certificates is contraction, and
can have only the same disastrous result as
Mr. McCulloch's monthly withdrawal of green
backs. The country is not in a situation to
admit OF contraction in any shape or form. 1t
would paralyze business, lead to speculation
and gambling and cause bankruptcy. If Mr..
Boutwell, is one Of the on-to-specie- payment
theorists, and wishes to force resumption in
any such insidious manner, we give him warn
ing that, like his predecessor, he will fail and
have to take the back track. The only safe
course to pursue is to sell his surplus gold,
and with every dollar of the proceeds to buy up
and cancel the Understanding debt. Yes, let
him use even the surplus currency on hand for
this object, and then we shall have an easy
money market, gold would decline under the
continual stream poured out of the Treasury,
and the annual burden of the debt would be
forever lessened. This, and this alone, is
the true and safe policy for Mr.. Boutwell, to
pursue.