The New York herald., 1872-10-08
The Money Market-Legitimate Business
and Speculation.

and Speculation.
for purely speculative purposes-for gambling,
in fact, in stocks and gold-were applied to
legitimate mercantile and other business, we
should hear little Of tightness in the market
and see trade much more active. We have
heard complaints that the removal Of the
cotton crop and other agricultural products to
market has been retarded for the want of
sufficient means being forwarded from this
financial centre. This arises, as we have said,
from money being used in speculative opera
tions, thus leaving scarcity for regular busi-
ness purposes. It will be said, doubtless. that
it is reasonable to expect people will use their
money in any way that promises the greatest
profit to themselves individually, regardless of
the public generally or other interests apart
from their own. It is questionable, how
ever, whether our capitalists are not
in the end sufferers more than gamers by de-
to promote the trade Of the city and country.
We refer particularly to the banks, or the capi-
talists who are managers and directors in these
institutions who are tempted to use their
money and to make loans to stock and gold
jobbers with view to obtaining large and i'm
mediate profits. This may be fair enough as
far as the right of any man to use his capital
as he may please goes, and there is certainly
no law against it but it is probable that those
interested in the banking business, and, con-
sequently, in the prosperity of the business
community generally, lose in the long run by
such diversion of money from legitimate
trade to unhealthy speculation. If the banks
and bank officers would resolutely refuse to
speculate themselves and to aid others we
should hear much less Of locking up money,
cornering stocks and gold and of those fever
ish excitements in Wall street which stop trade
and demoralize the community; and, no
doubt, their profits in the end would be
greater.
This evil leads to another. The National
Treasury Department is induced to step out of
its proper sphere to relieve business men from
the consequences of these periodical specula-
tive excitements in Wall street. This is all
wrong and contrary to the proper functions of
the Treasury Department, though the relief
temporarily afforded may be acceptable and
an advantage TO business for the time being.
1t is power which the Secretary of the Treas
ury ought not to hold, for he may use it for
political ends, may use it ignorantly and pro-
duce disasters, or may keep the whole financial
system Of the country in an unsettled condi-
ton. II the government were empowered by
law to regulate the financial transactions of
the people and the money market, as the Bank
of England is to certain extent, and there
were q systematized plan for that purpose, we
might know on what ground we should stand.
We do not say that this would be desirable.
1t is o question we do not propose
to discuss now. But 1t Is clear
that the arbitrary and capricious action
of the Treasury Department with the money
market and business Of the people is fraught
with danger. It must always be a disturbing
element. because II is not regulated by law or