The New York herald., 1873-10-13
The Great Need of the Future a More
Yielding Currency.
ELASTICITY AND RESUMPTION
The Lowest Gold for Years Railroad Bonds
as an Investment Fluctua-
tions of the Stock Market.
COMMERCE MAKES A GOOD EXHIBIT.
WALL STREET,

|
SUNDAY Oct. IL, 1873.
Areylew OF the events OF the last week add but
little TO the facts and conclusions with which the
public has been made familiar. Viewed as a whole,
however they AFFORD a clearer insight and give
more hopeful aspect TO the situation than we have
had since the beginning OF the crisis. On all sides
there are signs OF recovery. Those who went
down IN the crash are beginning to resuscitare.
The banks which banded together for mutual pro-
lection already discussing the proprety Of dis
solving their peculiar clearing house copartnershp
and reassuming their individual interest, although
the question is still an open one whether the hour
Is just now ripe for the change The mercantile
community are receiving larger accommodations in
the way otdiscounts and enjoying greater facilities
In their collections
TRADE IS IMPROVING.
The arrival Of gold from England, while we can
not directly trace its ultimate influence there or
here, has quieted to considerable extent the ap-
prehensions OF the agricultural community, and
there is less OF a disaster predicted as conse-
quence Of blocking the crops. True the South,
with her great hoard OF cotton, is still suffering
from the inability move the millions OF bales now
awaiting a market and representative bankers
and merchants now in New York from Will
mington, Charleston, Columbia, Augusta, Sa-
vannah, Mobile and New Orleans who frankly de-
clare that II they are unable to obtain the desired
relief at this point the commercial community or
their section will be obliged TO invoke the direct
aid OF English gold but it is to be hoped that even
this contingency will pass away. The dry goods
trade in better condition. Manufacturers
oil around us-in New York, Philadelphia, Pitts
burg and elsewhere-report
FREER FLOW OF CURRENCY.
The stock market, too, has become more quiet.
As enervescence subsidized 1t left a sediment OF
lptr md .dppa
something like a real basis for renewed conf
dence; and this confidence manifested itself
during the closing days of last week, not in the
volume Of business, not in the work OF the Great
operators, but rather in quiet, reasonably fuctu-
atng speculation wherein business was done a
safe basis, and the changes OF price from to or
per cent offered probable profits to both the
.'bull'' and the ''bear.n II this condition Of affairs
can be maintained, If the investor can realize
that in sending forward his capital he win not be
fripped by some sudden .'corneri or unnatural
spasm, money will undoubtedly flow into Wall
street more abundantly than it has done for many
years. Already business is being again done
margins and with proper securities brokers
enabled to obtain more or less OF favors from
their banks and some among the former are free
TO confess they have handled
MORE OF GREENBAcKs
during the last ten days than in any similar period
IN the year. Meanwhile the premium on currency
has declined from / u to about Il per cent, showing
that the enforced contraction resulting from the
Withholding and boarding OF currency has been
checked and that we are on the eve OF healthier
movement. II is, Of course, a serious evil that the
government has been forced TO draw for its
current expenses on the So, 900 900 reserve, even
TO the amount OF three or four millions of dollars ;
but, after ALL the Treasury has only done with its
greenbacks what has been done by nearly every
bank in the country with certified checks and loan
certificates. 1t has simply bridged
A TEMPORARY DIFFICULTY
by pulling out that which must be speedily re-
deemed. The seeming imitation by the govern
ment has not therefore been dangerous, inasmuch
as it has been infnitesimally small in
comparison with, and so thoroughly out OF pro-
portion TO, the vast contraction from which the
country has suffered. And 1t is by no means
among the improbabilltes that the very expert
ence which has been thus compelled will direct the
attention OF the next Congress to the i'm
p0rtance or some measure whereby greater
elasticity shall be secured for our circu-
lation. A currency that is nedged around by
legal restraint that hardens at season OF the
year when IL should most yield and be most use
fu to the masses, tnat plays the tyrant at one
time and the drudge at another, Is not adapted to
the changes OF American commerce and popula-
industries, the development OF States and COM
munties within period OF even five years, pre-
sent new phases TO the political economist, and
new combinations in the financial Kaleidoscope or
the country to which no fixed rule OF q preceding
time can be successfully applied
FRESH CONDITIONS
are thrust upon trade, obligations exist, and
additional demands are made which require en-.
1arged executive administration and that which
should spring alone from the adustaOillty OF the
law to the fact. How this result is TO be effected
remains to be determined, but the plan repeatedly
urged upon Congress in these columns and else.
where-to wit the mobnization OF United States
bonds--is that which seems to possess the least
Objectionable features, nasnuch rs IL would en-
able banks and individuals alike TO effect what
practically would be temporary loans from the
government on the basis OF its own securities
without adding dollar to the Indebtedness and, in
fact, at saving OF interest upon every bond thus
pledged. Men are talking about specie resump-
fion as II this 10 be the cure-all for financial
evils; but the grander work TO be done Is that
which concerns the great volume of currency
with which, even after the return OF hard
payments, the country will still be compelled to
Sdeal. 1t Is one thing to fix values on q certain
yDasis; another thing to secure at given times In
Sbe year immunity from stringency. And this can
I've done only by the cooperation or the govern
nnnt itself, In common purpose having for Its
underlying principle 1.-THE greatest good to the
greatest NUMBER
THE MONEY MARKET
during the past week showed the two extremes or
w per cent per diem and per interest In currency
snd coin. Discounts ranged from IL to "a per cent
Per anuum, with but little doing. Foreign ex-
change declined TO unusually low point. and
while gold continues come this way Tor The pur
chase fprcvisions for Europe this department OF
the market VIII doubtless continue to show weak
ness.
NHE PRICE oP GOLD
~ likewise unusual and unprecedented haying yes.