The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-03-23

Commercial and Financial.
THE B. FINANCIAL SITUATION.

GOmmeEclaA ana FINANCIAL
THE FINANCIAL SITUATION.
Il 9Ilhi all ~ l'l So Ea.auaaU ir
An Interesting glReVieWsSThe Recent
iDeCline,in'G Gold and the Causes
:rti' Prospects Of Resumption. !.
.EFaV Rssry ORetrS a CSSS., Monthly Rtritl0.
rE9is2'':E .r4 NEW YoHK, March Is,
TIC discussion IN Congress of measures
relative to funding and tho currency has
Ibecn the occasion Of much irregularity In
ImonetiiirIyl and financial affairs, The bills
introduced have been Of q character cal:
culated 70 fundamentally affect the money
market aud the market for securities; and
the varying prospects Of their adoption
i have been attended with much speculation
and dcrane cement or prices Speculative
combinations appear tohaVe BEEN formed
lby parties more or less intimately &C.
ougintedwith. the progress Of the schemes
at Washington and with the means en-:
pIoycd for securing their adoption; and
| thc operations OftthGSoI cliqucs. have been
productive divide fluctuations In the gold
premippl.i On the ono hand, measures
appear 70 have been Droached IN Congress
for tho purpose Of breaking down the price
Of gold; and, on tie other, the spccula.
tive movement has contributed to cncour.
ago the Introduction Of ,extravagant and
unsettling proposals looking 70 the re.
sumption Of specie payments. Tho SENATE
has slioYnoa, disposition 70 be precipitate
inIiIs financial measures, and Wall street
has lost It's composurc and followed with
linrretsaSoning excitement the constantly
varying proposals at Washington. Out Of
the general confusion mn idea has sprung
un that, In some, unknown manner, we
have suddenly come to verge closely upon
the specie basis :. although It Is difficult to
see whit, beyond The lall In gold 70 close
upon 110, there Is to suggest such M
Tic, public credit has certainly i'm,
proved; for our six per cents now range
close unon par In gold, which, ofiilselG
unqucstionably justiics a lower premium
on gold. Bat the Treasury Is actually IN
| a less favorable position f6F rcsumng pay
lnen6 upon lis notes tlfan It was one 9r
two years ago; tho policy Of marketing tts
surplus gold having placed in the hands
Of tlip public the coin which Is needed as
reserve, against tic demand obligations
0f, tLe. Government. The coin now actl:
ally owned by the Treasury Is barely !
per. cent Of It's demand notes; and this dis
posal oF the reserve neccssitNtes either
retraction Of Mr.. Boutwells policy Of sell.
| ing his surplus specie, or u very severe
contraction OF. the legal tender circulation.
The latter appears TO be hcpolicy chosen
by, the Secretary, and to, secure Its en-
forcCment he has The backing Of q we'll
disciplined. party support, bent upon ma
king The programme q party issue. The
provisions in the Senate Funding Bill, au'
thoriziig tho Secretary Of tho Treasury
to exchange -Four per cent bonds for
United States Notes, without limit, Is one
1 means designed, for efEccting the contem'
pIated contraction; and the ninth clause
Of the bill, authorizing an unlimited Issue
OF new bank currency with o concurrent
cancellation Of IN equal amount Of legal
tenders, is q second means for accomplish
ing that object. Party influence was free
1 IL used TO secure the passage Of the bill IN
tic Senate; and there is good reason for
expecting that tho same appliances will
be, employed In, the House. A previous
knowledge, by few capitalists, Of tho dc.
| fails Of Ills scheme and Of the coerclye
measures 70 be employed for ensuring It's
adoption, was at tic basis Of the persistent
speculation for depressing the gold pre-
MUM; and the future course ioE the value
not merely Of gold, but also Of securities,
and even Of all commodities, must very
materially, depend upon the chances oi
this policy becoming law. It seems
scarcely conceivable that tho House, with
It's stern opposition to contraction, and It's
leaning towards initiation, can be brought
round 10 such radical policy even by
the seyerest exercise Of party discipline. b
Should this policy hG adopted, a serious
prospect will confront the country. Any
well.consilercd measures for funding the
debt at q low rntc Of interest arcto bc well
coined as great point gained toward tho
permanent adjustment OF the finances
But measures looking 70 rapid anu arni-
trary contraction ot The currency as =
means to resumption, are tobe deprecated
MS involving o gratuitOus arrangement Of
bnSincss which The public Will not be like
| " 10 tolerate, and which, therefore, must
| iail ofrcalizing tho objcc: contemplated.
Until the doubts suggested by tho spending
financial measures arc cleared up, business
cannot but remain In an unsettled and ie-
vcriSh condition. Capitalists feel that we
haye reached an important crisis In the
financial affairs Of tho country, and TINT
4 the decision Of Congress upon the bulls
| now under consideration must determine
whether We take a new lease Of initiation,
or E.c make d fair start for tho goal OF 70.
sumption. While 1t Is to be hoped That
\ tic latter may bc the result, yetit Is equal
Undesirable that the measures may bG nat
Iiral and easy In tlieir operation. and that
saiety may not be sacrificed 10 haste.
Government Securities arc fcverish aud
unsettled. Tho heavy fall In prices since
/ tie date Of our Inst Circular has been q
natural result Of the decline in the gold
premium. Although prices arc unusually
low; yet there Is little dispoSltton to buy,
cithof on speculation or for investment, so
.Ilong as the funding measures now pend
ling ih0 Congress remain undetermined.
\ Should Congress adopt bill making 1t
practicable to dispose Of bonds, bearing q
lower rate Of interest, ut par in gold, the
older issues OF Five-Twenty bonds must
be called in at an carly day. In that
event the Five e-TwentIcs would be worth
r,ar in gold and accrued interest. But, In
order 10 determine what would be their
4 market value, It. Is, necessary to estimate
what would be the prizes Of gold under the
circumstances. Such an important tinRn-
ciol achievement would, Of course, act
favorabty on the public credit; and, pro-
vide there were Rt the time no countcract-
ing circumstances, gold might still further
yield, and the price Of gold, plus the &C.
crued interest on the bonds, would repre-.
sent the value of those Five.TwentiCS on