The New York herald., 1870-01-02
FINANCIAL and COMMERCIAL.
WALL STREET,

FINANCIAL and COMMERCIAL.
WALL STREET.
SATURDAY, Jan. l, 1870.
The first day OF the new year has been observed
as close holiday, all the various boards having I'D
journed over from Friday to Monday.
SPECIE PAYMENrs-CoNGREss.
The table OF gold fluctuations which we gave yes
terday Ia suggestive In showing the gradual appre-
citation OF the public credit. 1t Will be seen that the
gold premium has followed the course of curve,
which mounts at a steep angle during the years
1858 and 1864 and then begins to decline until at the
present time the end OF the line Is about level
with point corresponding to the summer or 1862,
or six months after the suspension OF specie pay
ments This Is OF course only the genera, direction OF
the curve In Its detailed sinuosties 1t is much moro
complicated. The great question Is how long Will IL
be before the curve finally reaches and remains on
the horizontal liner The word remains is used be-
cause the experience Of countries which have gone
through crisis similar to our own teaches US tnat
as gold approaches par 1t underg0es q series Of
shorter aud shorter vibrations until 1t finally be-
comes quiet, just as an india rubber ball. dropped
perpendicuary on the ground, bounds up several
times, rising less distance each time, until 1t
finally settles still. THIS experience warns US that
this, like tue crisis OF fever Is the most dangerous
moment; for values will undergo so constant Q
variation as to derange all business. The lesson OF
the past should not be lost Congress II that body
In determined on taking measures to bring about
sDecle payments. The measures OF Congress should
be mild and inclined to assist the convalescence OF
tho patient rather than to work any sud-
den cure. The dangers OF q return TO
specie payments have been largely dis
counted during the past season. The failures
among importers nave been unusually numerous
and the situation has warned others that q gen.
orally conservative policy In business has been the
result The mercantile wrecks OF the past season
are about all that may be looked for to ensue from
the steady tendency OF gold to par. continued
decline In gold Will OF course deprive many mer-
chanH OF the incentive to business and great deal
OF capital will be kept out OF such enterprises as may
be impaired by fail In gold. But In our domestic
trade and enterprises the prospect r not dscour
aging for the reason that their depends upon
our domestic currency. The dulness now prevalent
over the country Is usual at this time OF the year,
ana IL the renex In a measure Of the depression In
enterprises connected with gold which. while indie
pendent, affects domestic markets by SYM
pathy. Our domestic prices are due to the
great abundance OF currency. SO far as we
can judge by the tone 0f legislation In Congress
there Ia not the least disposition to contract that
currency. Our internal trade therefore, Is secure,
even with q return to spe.ie payments As a
correspondents writes us, "Specie payment is only
another name for inaation; for II we render green
backs and gold convertible at par would there not
DC added to the currency &C least o,00O.o0O to
5000 900, 600 gold coins ALI the present banking
reserves OF greenbacks would be set free.
The decline IN values would at once be ar
rested when people reflect that the amount
OF paper money being unchanged the decline
OF the premium on gold only brings us
nearer to the addition OF huge volume to cur
rency; and also that all bonds and stocks paying
currency dividends must ultimately greatly advance
because OF the greater intrinsic value OF the divi-
dends and the great gold imitation OF the currency"
The inference therefore, is that those who are max
Ing contracts or laying out plans for the future OF
their domestic business sOnld be careful bear
mind that the imitation which has with the war
has not been the result OF the gold alone, but
| Is more properly due to the greater abundance OF
| the circulating medium. 1t il the plentiness
| OF money which makes prices high. Who
| does not remember the anecdote told or
Washington and the Natural Bridge IN virginlas A
visitor to the curiosity being told that the Father OF
| his Country had executed the remarkable feat Of
tossing dollar over 1t, rejoined, every possibly,
because dollar would 60 further In those days
than now" The fact IL that money Is becoming
| cheaper every year, what with the product or our
| mines aud the expansion OF the bankis2 system.
Travellers tell us that living In Europe, which used
to be held up TO us as the paragon OF economy, ls
now dearer than IN the United States. or course
much OF the rise IN prices in England ana France is
due to the fact that since the they had all
| our gold coin in addition to their owI, and tnat
money in those countries IS nearly twice as plentiful
us was before the rebellion al our specie to
| them.
GOVERNMENT BONDS IN EUROPE.
The favor manifested towards our government
! securities by Europeans has been frequently re-
marked; but late number OF the Iaoestor's Guar.
| dtdn, financial paper. published In London, ex
| hlbits new and very striking phase OF it. Those
! who are familiar with the details OF speculation
know that IN the ordinary OF stocks all advance
Of per cent gives the operator pronL realy OF
ten and an advance Of ten per cent q prodt OF one
| hundred per cent his margin being usually one
| tenth OF the par value Of the shares invested IN.
The application OF cuts principle to speculation in our
| government bonds seems 10 be the basis OF the
| formation or company in London bearing the
simple name OF ''rhe Common Fund. proposed CAPT.
tai one hundred millions. The projectors are so con-
faent OF our ability redeem the debt in full that
they expect to realize enormous profit on the rise
OF our bonds frOm s. to 100. An ordinary invest
mcnt would of course net only fifteen per cent on
TINS appreciation OF our national credit. But the com.
pany intend TO earn 15O. The details given IN the
paper referred 10 are as folows:-
The company thus singularly named Is likely to
attract 10 Itself grea. attention. well IRON the un-
usually large amount OF the capital with which It
proposes TO operate rs from the vastness OF the OBJ
ect II has III contemplation. The company lS formed
III London and Incorporated under the Companies
ACT having Offices IN Paris aud Berlin with view to
business chiefly ON the Continent. where the bonds
OF the United States TO which the operations OF the
company Will be primarily directed are principally
held. The proposed capital Is one hundred mi-
lions, IN nve millions Uf shares OF $50 EACH al,
amount regulated that OF the United States bonds
understood to be held III Europe. The startling
character OF this scheme has caused TO seek what
ever Information the promoters would give. From
TINS II appears that the leading idea OF the intended
acton OF this company is manly based the fol-
lowing letter as to the exact time when the whole
of The American debt VIII ne en- tlrely paid OFF,
TREASURY DEPARTMrsT.l
WAsHfHGrON, August IL, 1e6y (
DEAR SiR-n answer to the inquiry the probable
surplus revenue OF the United States which
picabe Tor reduction OF the puDc debt, will ask your