Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1871-08-03

ment. But since the five per cents
failed, there is loss of faith in long
time, and the classes of bonds at
and A per cent. have not been
printed. ....s- ,---
To promote this scheme Congress
adopted a resolution declaring the
five-twenties payable in coin, it being
regarded that the terms of their is
sue did not provide this. This, how
ever, could only promote this meas
ure through the general improve
ment of our credit by this raising OF
our obligation for in z fact any
doubt OF the coin payment of the
five-twenties would have worked in
favor of their exchange for the five
per cent. coin bonds. .-- ,..
The Treasury operations in the
sale of coin and purchase of bonds
have been directed to the same pur-
pose of floating the new five per
cents. The Treasury coin has been
used in such way as in the opinion
of the Secretary would most depress
the premium on gold, and the other
operations have been directed to the
end of making an easy money mar
ket. All this in the summer, when
there is a reduced demand for money
in regular trade, has resulted in re-
ducing the current rate of interest
on business loans in New York to a
very low figure.
But all these operations have failed
to float even the five per cents, and
this has made the bonds at lower
rates unmentionable. The Treasury
administl alton has to bear the effect
of the total failure of a scheme which
it put forth as its great financial meas
ure, and the public credit could not
but suffer from the general convic-
ton among the most intelligent
practical financiers ofthe country that
there is want of sound intelligence
in the management of our finances,
and practice of charlatanism.
With this reduction of the public
burden by the sheer force of the
printing machine, time and shuffiing,
there was also promised a gradual
approach to the conditions which
would make coin redemptive or the
currency practicable. Has this been
fulfilled ? We suppose it is gener-
ally thought that a stock of coin is
one of the conditions prerequisite
to resumption. How do we stand in
that respect2
On the 30th June, 1870, the stock
Of coin and coin certificates in the
New York banks was $32,0O0,OOO
tho amount of coin in the Treasury
5000, 900. AT the same date this
year the stock of coin and coin certifi-
Gates in thebanks was $16 900, 900 OF
coin IN the Treasury SIG, 800, 900, be-
ing loss in the year of $15, 400, 900
The movement during the present
calender year is still more unfavora-
BILE. The exports of coin from New
York from January 1st to July Isl
were S44,73O,41s, against $17,1S4,,
$50 for the same time last year, be-
ing an increase for the six months OF
$27,542,73s, and at a rate of about
double our, product of the precious
metals. During this time Congress
has authorized the issue of $50,OO0,-
600 more of bank currency.
+ From this it appears that while the
great financial measure of re-funding
the loan at reduced interest has to
tally failed, the collateral operations
to promote it have worked badly
and that we are further from the con
ditions which make specie redemp
ton possible than a year ago. Afte
all, the only real and working finan
cial policy of Secretary Boutwell, il
to take the coin received for customs
and hold it hanging over the marke
threateningly, and to pour it out a
the bung in such quantities as viii
regulate the market according to hi
notion. This policy appears to in
telligent business men only dis
turbing one, making all monetar.
movements and speculations hang OF
the probabilities of his course. ANT
the only effect of this artificial de
preston of gold by threatening i
with the Treasury pill, has been tt
stimulate its expectation.