New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-10-26
THURSDAY, Oct. 2S-P. N.


The attempt to relieve the necessities OF the
mercantile community by extraordinary issues OF ire
deemable paper money has proved failure thus far,
and there Is no good suppose that the system
or rather lack Of system, of Secretary Boutwell,
will prove any efficient In the
future than in the past. Consider, for
instance the recent performance OF the Secretary in
putting ahoat in single week 900 Of gold and an
equal Of greenbacs by way OF bond purchases
The believers in Mr.. Boutweps financial genius expected
relief to the merchants and traders from this
operation, and We were not without hope that such
night be the result Has 1t had any such eiTectl On
contrary it only Afforded relief TO the Treas
y Ring OF stock gamblers and those their confidence
The funds thus set loose have been taken up in stock
sDeculatons and prices have advanced that to-day
tie whole amount facilities lOOoOOOO the
Treasury programme officially announced) given to
tie public has been absorbed in stock gambling with
certainly per cent added for any who will take
Ito trouble make the calculation will nc once see that
tie aggregate advance In few leading stocks since Mr.
Butwelrs last splurgo viii amount to at least
Sb,OOOOO0, ami probably $20000OOO IL nearer
tie mark. OF course it requires that
AMOUNT Of additional capital to handle these stocks and
mercantile paper stands in the market just about as 1t
dn before that Is 10 to II per cent for the first
gnde and running up to "a per annum or per cent per
ninth, for paper ordinarily considered good" Where
tlen, comes in tho relief 20 legitimate business
1t Is all sham. There Is no such relief
We notice that certain Administration jour
ns urging the Secretary the sOO0OO0 OF
grenbacks about which much has been said Of Late
Thy admit the lack Of authority in law for such reissue
butseem regard that serious obstacle, since
ther aege, the would be used for the purchase
OF onds and would thus stop interest considerable
sun now running at per cent gold.
The GOODNESS with which it Is proposed to violate law
ofC0ngress which stands in the way OF their scheme for
iuatng currency is notable; but then. have they
the precedent OF the Syndicate for their Jusibcaon
Aid even the example Of higher in authority
tan Secretary Boutwell, for brushing aside tramplng
u,on laws which to forbid the carrying out
movements deemed necessary TO continue the Admin
iAration in powerl But nothing OF the Illegally
o. the proposed measure 10 viii not II resorted to, effect
tie Ostensbe object put forth for its justification, viz
tie relief OF the business community from the payment
oexorbtant rates Of interest. The whole amount would
b, absorbed q few days by the Wallst. Spectators
who would further initiate the stock market till the s4
10000 would DO represented In the increased prices
which operators would put upon the securities valuable
ana vaueesa OF the street. OF course the added vol
ne Of currency would be required to handle the stocks
4 the advanced prices, while the mercantile com
nunity would reap no benefit IN the way
q cheaper rates Of interest There those who
h as that the Government ought TO take OF
the brakes and allow the National banks TO issue az
promises 10 pay On lutJ tdH V @os eiIS
people bave all the money they need" say these enthu
aasc nnaters. They do not stop TO consider the mpor
ant fact that these irredeemable promises arc not
money, and that the Of them we set
iGoat, the further of from cur
.ency which really represents and fills the office of
money We mean OF course currency redeemabe in
gold and silver on demand. But the rate going
ahead in the wrong direction, specie payment 8 appa
rently further of than three years ago, If
such paradox be admissible. Should the Government
insist upon so unwse measure adding sA0O00O0 70
tie enormous volume Of over sO0OO0OOO paper currency
already in circulation, il would require wiser hnancer
than Mr. Boutwell, to predict the future premium
upon gold while should the widest speculatons
In worthless wildcat stocks OF all sorts. The mining
board would reappear in all its glory and we might ex-
pect to see reenacted the exciting Of 1884, when
securities" ucuated anywhere from to IS per cent
in single day The effect OF expanding the currency
proposed in the absence OF the baancewheel OF specie
redemption, may be stated by simple question in tho
rule OF three thus II 100000 In currency thrown
suddenly the market increases the quotabe value
s2OOOOOO0 what would be the effect Of $4,000
COO so added volume OF currency to say nothing Of
the indefinite expansion involved what Is popularity
called free bannng"l
We do not desire TO be understood fayoring monop
oly in the business Of banking and whenever the coun
try shall conclude that it Is time to resume specie pay
reuts and thus make currency dollar represent real
issue, while surrounded with all possible safeguards
against Oyerssue and with abundant security for the
redemption circulating notes. left to free competition
as banks OF deposit now are.
Today there seems have been some heavy "washed"
Transactions, which may account for the advance in
prices Tie market led by Pacific Mail. Western
Union, and Northwest Common in each OF these the
transactions having been very large. Northwest adj
vanced from 7Cf s0. Western Union from 7sk to sOt
and Pacific Mail from 91s TO 1919 IL IL stated by
he bulls IN Pacific Mail mat the Company has sold
he 27OO shares OF the stock which 1t
led AZ par realizing therefor S230O0O and that holds
pOO shares OF Panama Railroad stock. for which Is
BID 81 100000 and s earning more than IL per cent
psr annum exclusive Of the Government subsidy They
further state that they purchased Holidays line OF
STEAMERS on the Pacific coast. paying therefor $4,000
In tho remainder OF the list the advance
VIA less decided. though Lake Shore. OHIO and
Mississippi Northwestern Preferred, Rock Island, Wa
bash, and c. c. and c. froms to II per cent on
Moderate dealings. About p. n. the market, which
had been feversh though firm, suddenly developed the
utmost activity and buoyancy and under Hood OF ru-
rn,rs the highest prices recorded AS stocks be-
cane buoyant so the volume of business increased the
mket closing strong the highest prices made to-day
Tie opening highest, lowest, and closing prices OF