The New York herald., 1873-11-09
THE MONETARY SITUATION.
The Outflow Of Specie fro A.
England Hither.
MATERNAL CORR 'AsrTrON.
Suggestions Respe zsing Bank and
: CnrrenHy: Reform.
STOCK EXCHANGE CENSURE

STOCK EXCHANGE CENSURE.
Yesterday waS without It's anticipated sensation
Of panic In th. London market, the feeling there
on the contrU y, showing a marked Improvement,
with armey' and more confident tone IN respect
10 prices The expectation OF further advance III
the BanR,of England rate was not responded to by
she Board Of Directors, and it may have been be-
causesof the over-discounting of the situation, in
the assumed fcregone CONCLUSION on Friday. that,
with its dissipation yesterday, the market reacted.
Its not certain yet, however, that it will not
Fer the purpose oil checking the outflow of specie
IN this direction, the action OF the hank. thus far,
grave as has been, has failed the shipments from
Liverpool Yesterday being reported at s3s5,0oo.
suspension Of specie payments, sncn as would most
likely follow iurther advance OF the bank rate to
ten per cent, and consequent suspension OF the
Bank act, rs likely enough to prove the only effec
tual means Of checking this new trade movement
seemingly so anomalous, OF specie hther, from a
creditor TO debtor country.
OUR FINANCIAL CONDITION ALIKE PAST PRESENT
AND PROSPECTIVE,
and our relation TO the rest OF the world in a none
tary sense has been brought into full review in
England by the incidents OF the past lew weeks.
Nor Is there any disposition to ignore or bclttle
the important 6gure we have attained IN the solu-
lion OF the current monetary problem. The errors
30 manifest In our financial system, as wen In
respect 10 our currency and our banks, as in the
evils OF over.fpecuation and the many other Ills
that af1ict Es in our domestic and foreign ex.
changes, have been pointed out kindly, as truth
would permit but unsparngy, all with reference
to this late reverse movement in gold and
its effect upon the English market survey
ing tits entire field as above sketcled,
NJ well as the situation in France,
the Londsn Economist OF October % reaches
the following Observation-Disclosures resumption
would augment difficulties. America would
compete with us Tor the store OF specie in the
world; the present panic would have caused infn-
itely greater demands us il The currency had
been metallic. all other things being as they now
are. The gold wonid not then have been article
OF merchandise but means OF payment. When
the American standard again consists OF gold
shall be always liable TO have supply Of gold
interrupted by her wants, and even TO have gold
taken rom London TO supply them. We may cx-
pect France to help us IN Keeping the gold store Of
the world; II is suitable TO er character quiet.
accommodating naten; but we cannot expect Amer
lea to do So she is the country which surpasses
AL others in the means OF employing money, and
in the hardlhood, not to say the recEessness with
which sne uses them"
A COMPARISON.
1t Is worth while in this connection to draw at
eention to the act that IN France, with but noni-
nal premium on gold, the Bank OF France IS unable
TO resume specie payments for the mere want OF
gold, while here in this country. Notwithstanding
the steady and rapid accumua ton Of specie IN the
parr Of the government through customs receipts,
the government Is also unable to resume, while the
premium, IN the lace even OF the recent heavy
eeipts OF coin from England Is stil considerable and
nuc uating. The reason In each is simple one,
Y
sumption which those people who measure the
question wholly by the Indicator in the Gold Room
Tan to understand. The Bank OF France
has means oi compelling gold into It's
Golfers. With premium 0i only seven OF e.ght
mills on gou, notwithstanding Its suspension OF
specie payments, because NJ the favorable exhibit
0I France nation IN her debit and CT edit ac-
count with the rest OF the worio the bank III yet
unable to exchange its paper Tor lod. T,ls
country, compelled to exact the payment OF Gus
toms duties III CON " meet the payment o. inter-
est on the pubic debt, largely ne d abroad. giv4s
coin thus an exceptional vaiue oveg and alo owe all
other iorms OF Currency which rs still further en-
habced by sim lar necessity on The part OF cor
poratioDs for us use IN the pay ment OF interest,
Also uue abroad upon various securities OF greater
or less value, and its necessary use In the Sc te
BeEt o the oaance o. u ade usually ainst at
tile nj ol every year. 1t Leing only exceptionally
IN our favor just at this iime. Il Will
readily be seen rom this exhiui Of the rastIng
DIFFICULTIES IN THE WAY Or REsUAPTIoS IN THE
TWO COUNTRIES.
How futile It rs lor us 10 sit oly watching the
gold indicator IN the expec ation tiat the present
now oi Brush god VIII use tie iudex hama TO
retire too and resumption be thereby reached.
Even II this result, 20 unliaeiy, should ha9pen re-
sum, ,stIon would not iolow, Will 4 ever occur
ntil such time as the eXceptI,na demand old
Is reduced eItner by the ase our ot.er ex
ports or the deci vi imports mat tue balance
OF trade. including the In crest due on Donds aed
abroad, Is In our lavor hat ts naegeat value
over paper is but nom nal and merely matter OF
credit, Lot oi use: Inc question 0, early resunp-
ton beng thus disposed % the next important
question We nave To n-lder Is
THE CURRENCY QUESTION.
What will constitute the Des meilum OF domestic
Xefl sAtl Ft.lv
tlon Y And even mere our English eXempars are
disposed to heip US to solution 81 ms p,oolem by
Presenting US with the following ruism, not ut
tered here however, Tor the isst me .-.Conduct-
ing larger .rade W tn an deuuc4 1urreGcy is tic
Sine ssaae as conducting an & egaa trade S,,a dnln
money-that IS, = high rate o interest anu a loy-
eled SCALE q Prices People nave TO pay more ior
sell, aud the consequent suffering TO trade IS al
ways CONSIDER able
ln,s Is the argument already so strongly urged
9pon Congress IN iavor OF all elastic currency.
There are seiy Iew who dispute the necessity Of
this reform. the only argument being upon the
manner OF reaching II. The sua ject iz one ,hvoiv
ing loo many relations ior any single opinion TO
prevail, but the general thought on the SUBJECT
appears 70 nave aareed upon the main points that
II should have for us coDcpmtan a nee banking
sSs'eu, an, tae sane or sana, gooa security Una.
20 be ieIt that the time has about arrivea wnen
some measures iooklna 10 the retirement OF tue
including, however, the substitution Tor II Of
fresh currency, slmllar IN amount aud equally Sc
national bank issue now is. 1his redemption of
the greeDback currency Is regarded as almost
NECESSARY CoSDITiON PRECEDENT
so Q resumption o specie payments, while 10 is
held equally firmly that IL should not take the form
OF contraction. The sue gestion, which comes rom
California, Oi a new silver coin. with sufficient
gold IN II that would render IL Improbable tor
MORT or Manufacturing uses, is a good one II IL
we're wise pecy to begin the work OF gold resumr-
tion BY an attempt at silver resumption Tue pro-
idea being that as Tar a the mere token ~ con-
cerned Il il Q matter OF niinerence, or, az most
couyeu,euce. What Is wanted Is the APP
proximatIon Of paper va.ues to gold values;
reforms In banking and currency 10