The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-24
The Te,ograph-A Financial Revolution.

Louis.
The Te,cgraph-A Financial Revolution.
While financial writer's and political econo-
mists are puzzling their brains and debating
about what is the best form of currency, and
the proper volume Of it, to suit the demands of
trade, the magnetic telegraph is beginning to
work out great revolution both in the inter-
nal financial operations of different countries
and in those which may be termed interna-
tional Indeed, we are on the eve of the great
est revolution ever seen in the history of the
world in monetary affairs. Theories based
upon the state OF things before the telegraph
came into operation will have to be abandoned,
and statesmen, fnanciers and writer's on cur
rency must construct others adapted to the
changes which this mighty agent is producing.
In former times specie was shipped at con-
siderable cost for freight and insurance, and at
some risk, to settle the balance of trade
between countries or sections Of country, or
bills of exchange have been used at great
loss to those who needed them and great
profit to bankers, exchange brokers and the
countries having the balance Of trade in their
favor. In times before the telegraph, rail-
roads and steamship communication were
known the loss on one hand and the profit on
the other OF exchange, even between countries
comparatively near each other, were large.
Five to ten per cent was not unfrequently the
rate, and sometimes even higher. And so, as
we have seen not long ago, currency had
different value Of two, three or more per cent
at different parts Of the country, according to
the scarcity or abundance of it and
the demand for it. Financiers, great
trading communities, and even gov
ernnents, have made this subject of
exchange a study for the profits to be gained.
This has been so especially with the Bank of
England, the financiers of London aud the
British government. From the time of Queen
Elizabeth and all through the succeeding his
tory OF England the great object Of the British
has been to control the exchanges of the
world to their own advantage. 1t is this
which more than anything else has made Lon
don the moneyed centre OF the world, given
the Bank OF England its enormous wealth and
power and makes all countries tributary to
the vast riches of England and her metropolis.
| But, as was said, mighty revolution has
| commenced BY the rapidity of communica-
| ton exchange has been tending more and
more toward equalization between different
countries aud sections of the same country.
| Where five or more per cent was formerly the
rate, one or two is now deemed high enough.
This, however, is only the beginning. The
time is near at hand when almost all the
balances of trade will be settled through the
telegraph, when the great financial centres,
such as New York and London will be the
clearing houses for the transactions Of the
world, and when comparatively small
amount of money will be required to adjus
the differences between one part and another.
Clearing House of this city, where the balance
of the business OF the banks is struck every
day, and where transactions to the amount Of {
hundred to hundred and fifty millions
week are adjusted by few millions Of cur
rency or specie. With such system applies
TO the whole country, as 1t will be in time
with the constantly extending use Of the tele
graph. much less currency will be needed
All the large commercial or financial opera
, tons will be made through the telegraph with
out the movement Of money, and by simpl
0 deposting balances at moneyed centres, whic
can be used through the rapid agency Of tele
graphic communication as readily as if in til
d hands Of parties.
' We have referred to some of the effect
\ already produced on the exchanges. Here "
+ may notice, too, the proposal of the Bank
l. , England to pay the dividends on British col
q soils through the use of the telegraph, thu
!, avoiding the old, cumbrous and inconvenieI
mode of making payments at one spot an
It recurring the personal appearance of the bonc
, holders or their attorneys at that plac
y Another proposition is to transmit money orde
7, = at cheap rate through the postal telegraI
1t system, as organized under the control
government. This will be carried out, undoub
"a edly, not only throughout the different parts
~ England and other countries, but between d
nc ferent commercial nations as well. The oce