The New York herald., 1873-12-22
THE INTEREST WE PAY.
How Long Can We Sustain
the PressuroP
THE COURSE OF MONEY.
TEE GOLD AND BOND SPECULATION.
WALL STREET,


board speculation was active, and the transac-
tions were large In both the high and low-priced
securities. Later, however, the confident under
tone yielded, ana signs OF weakness developed
themselves ON Friday, which were not counter
acted until near the close, when the usual pro-
cess OF realizing took place and materially stiff
ened the market. In the absence OF any Otner
potent influence the gradual outlay rom the
$4,000, 900 reserve afforded abundant excuse for
the general buoyancy, but as a matter OF fact the
entire issue Of this reserve has been already DIS
counted by the leading operators, and they are
dependent practically on their own manpulations.
It is predicted by these gentlemen that prices will
go higher in January; yet, alter all, much depends
on
THE ACTION OF CONGRESS-
in developing financial policy. What this action
Is likely to be Is at the present moment probiemat-
ical, the great number of schemes for relief now
before the body being calculated to confuse judg-
ment and lead to general and, perhaps, not sat
isfactory discussion. 1t is gratifying to observe
however. that most OF the leading members OF both
houses have planted themselves firmly on the con-
scrvave side Of the question, and give no favor TO
any proposition looking to the permanent enlarge
ment of the currency. Indeed, Senator Fenton, in
his speech last Wednesday. met the issue squarely
when ne took the broad ground that ''innation is
the treacherous quicksand upon which all OF our
towering tottering pyramid OF Indebtedness
restsn It iG estimated that
THE AaaREaATK BONDED INDEBTEDNESS
OF the country-natiOnai State, local and indivf-
dual-d0es not fall much short of $l3 000 600 900;
that the railroad bond and mortgage indebtedness
is equal to 5000 0O0 and that outside OF current
business obligations, such as bank loans, discount
and other business paper, the amount Of interest
annually paid by our people, at home and abroad,
.unnN rl.~
startling enough in their magnitude to compel
pause before any attempt is made to swell the
volume and add to the distress which sooner or
later must come upon the country. day OF pay
ment is Just as certain as law OF nature and
when 1t arrives even the vaunted prosperity OF
the country will scarcely suflce to sustain the
tremendous burden. We may
TEMP0RIzE WITH THE SITUATION
as much as we please. but so long as expansion OF
credit continues to be fostered by redundant ana
increasing irredeemable paper currency we shall
be marching forward with steady and emphatic
strides q condition OF stringency and ultimate
ruin. 1t has been well said that paper money is
not temporary resource that we can take up and
lay down as we choose Violent contraction Is as
dangerous as innation. Both shock values. But
when, has recently been the case, great result
Is worked out by events, and an end has been ap-
preached through certain conditions enforced by o
CT sis. surely 1t would seem to be the part OF wis
dom to retain as much possible OF the good and
refrain from plunging again into excesses that
must cventuate In catastrophe Already the people
are loaded down with pledges. Aud what have we
done to redeem them? Nothing-absoutely moth
ing. At this very moment We are publishing, with
unblushing effr0ntery,
FoRTY-FOUE MILLION DOLLARS IN LIRs.
not one dollar OF which ought in law to have been
put forth. Secretary Richardson may see ft to
restore them hereafter and keep the legal tender
currency OF the country within its prescribed
limits Of $356 000, 900. We believe that to be his
purpose. He inherited from his predecessor
comparatively unmanageable legacy, and the diff
cult,es OF the task were increased by panic that
has not yet worked out its results. The trade OF
the country daily tells its own story in the
diminished receipts from internal revenue and
customs, and
THE SECRETARY FRANKLY C0NFEssEs HIS INABILITY
to cope with the situation. He confesses like
wise that .sthe public credit can only be main-
tanned by keeping the receipts OF the Treasury
fully up to the expenditure for ordinary expenses
for interest on the public debt and for the pur-
chase Of bonds for the sinking fund to the extent
provided by law.n But every dollar added to the
legal issue above referred TO- matter what pres
ent relief it may bring is . step towards the prec-
pice. II is q fresh draught Of fatal poison-death
TO buslness-death to character. The larger the
increase OF paper money the greater the departure
from the standard OF real values. Speculation may
gain from the sudden fluctuations OF prices, but
production will suffer from the consequences or
this erratic course Shams may win for time,
but the smash VIII come and the prudent and the
reckless be forced down in common ruin.
THE MONEY MARKEr.
Money was by no means regular in its rates on
call loans, the range being between per cent and
lie per diem, and the average being about per
cent. Many time loans were not renewed, which
caused more active inquiry and the demand was
still further enhanced By the necessity OF periectmg
settlements at the close OF the year. Nevertheless
the supply OF funds at this point is large and
being increased, while the condition OF the banks
is unusually nattering There are those who augur
from this state or anairs much easier condition
after the 1st Of January. The discount market
has been undisturbed, and rates Tor prime
paper are ~ last quoted-to wit from
TO II per cent. few mercantile
failures were reported during the week, but they
were not of character to AFFECT prices. Foreign
exchanges were strong and the highest rates OF
the season were reached, but towards the close
the demand OF bankers, which doubtless resulted
in anticipation Of rcmittances on account OF the
bonds OF the loan OF 1868, sackencd, and the ad-
vance was lost.
THE GOLD SPECULATION
was more active than usual, and under the spur OF
small CLIQUE manipulation the price moved up
az per cent. The two extremes OF the week were
llox and 1873. The decline commenced on Friday
aud was helped by free sales but the yester-
day there were snndry signs OF stinening process
chief among which were ontspdc bids at = aud
u better than the last rates.
The fluctuations in the gold market for the week
werc:--
MONDAY DAc. IIOs. III. 1IOs. 111s