The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-09
FINANCIAL AND COMMERCIAL.
WALL STREEf,
FRIDAY, July B--6 r. M.

1
FRIDAY, July 8-6 r. N.
wall street still continues to discuss the Currency
onl' ana, curously enough Is greatly divided as to
us enect pom the finances. There seems to be
great deal OF misunderstanding as to the real
effect OF unlimited issues OF national bank
notes, and bank expansion Is confounded
with currency expansion. The more the
banks expand under the national bank system the
greater the contraction OF the real money Of the
country. IL was bank expansion that brought on the
panic OF 1857. Congress has done the country
no good by authorizing the increase OF ma
tlonal bank facilities. Yet, when SO much
was threatened, the public are to be con-
gratuiateo II Is no worse. General Grant ought,
however, to carefully consider the Currency bill be-
fore giving 1t his signature. Should he withhold his
sanction and throw the whole question over to the
next session OF Congress he would not be doing
amiss and the people would endorse MIN. The bill
30 far Is triumph for Secretary Boutwell,, who is
mild contractonist. In pursuing his idea of bring
ing the country to specie payments has 1t not oc-
Cured 10 him that in place OF pressing measure
which Ii to cancel forty-1ve millions OF three per
cent certificates 1t would have been better to have
Kept on IN the old way OF using his currency
balance to redeem and cancel the six per
cent fve.twentesf He would by so doing
save the country twice as much interest. President
Grant ought to take this idea into consideration in
preparing veto OF the bill. 1t seems that the bill
works even greater contraction than at first sup
posed. correspondent who Ii prominent autho-
rity IN the street writes U.S.
In referring TO the three per cents ana bank re-
serve you say "The blu proposes Violent contraction
Tor the three per cents count as reserve In the
banks to the extent OF three.fths OF their AMOUNT
You Will hnd by an examination or the law, that
the banks are allowed to keep threen OF their
entire reserve IN them, not simply to count three
nfths OF the three per cents as reserve. 70 Illus
trateThe circulation ana deposits Of the New York
city banks alone amount to about $780, 900, 0O0 ON
which twenty-five per cent reserve would be
$32, 100000. OF which they are permitted to keep
Gates.
GOLD EXCITED
The gold market was reverish and excited, In con-
sequence OF reported further complications In the
hostile attitude OF France and Prussia ana the price
ran up to 112H. Later in the forenoon there was a
reaction to 111H, gold showing constant tendency
to decline under the anticipated contraction to result
from the operation Of the Currency bill Were 1t not
for the foreign news gold would have gone down be-
low ITO since the passage OF the bill AT noon there
was return to l12z, when 1t discovered at the
Sub-Treasury that the competition for the
governments gold ELECTED bids for q total
Of six aud quarter millions. In the afternoon Ave.
twepties and rentes came better from London and
Paris, which was interpreted as the index Of q less
warlke situation, and gold again went OF to nix,
closing 111X q 112. The government gold sold to.
day was the coin interest belonging to the sinking
and special funds. The bids ranged from Ill to
1915 and the awards made at 11l.90 to 1925.
The currency proceeds Of the sale, viz 1884 ss8.
will be reinvested in bonds on Monday. The course