The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-14
FINANCIAL and COMMERCIAL.
THE CONDITION OF AMERICA
HOW LONG Can WE STAND IT?
Why England is the Banker Of tho
World.
GOVERNMENT BONDS.
Interesting Statistics Concerning
English Vintage.
Immense Growth in the Rail-
road Interest.
IMPORTS AND EXPORTS.
The Course of the Stock
Market.
Interesting Statistics Concerning
English Vintage.
Immense Growth in the Rail-
road interest.
AND EXPORTS.
The Course of the Stock
Mark ct.
WALL STREET, /
SUNDAY. JulV Ia. 1874. I

Activity continues Its reign In the gold market,
fortuitous circumstances making 1t perhaps moro
legitimately lively than any other ON the street.
Innately strong as the pool Ii supposed 70
be- its diplomacy has been greatly fortified by the
considerable outgo OF gold coin during the week,
the stiffness OF exchange and the known weakness
In specie Of the Federal Treasury. The facts con-
nected with the history Of gold for the last Eve
years are beginning to permeate business circles.
Thoughtful men are commencing to analyze, con-
trast and compare; to watch the weakening pro-
cess that has been gradually going on under our
own eyes; to look at England with her $7s.Ooo.Ooo
coined in 1872 ana $400ooooo coined during the
last six months Of 1871 all OF which, with the ex-
ception Of the amount sent to Germany,
has entered into healthy circulation; to
watch France, so small in comparison
with the United States, paying, with magnificent
credit to herself mighty war debt to her victor
that would have shaken our people to the very
core had we been so forced; to see Germany with
patient power absorbing gold from England,
France and America coming and distributing and
applying this wealth to the building OF railroads
and the development OF
GREAT GOVERNMENTAL ENTERPRISES
All these facts come within the purview Of the
true fnancer and it Is but natural that he should
ask himself, whittier are we Of America driftings
He can point with certain degree OF pride to an
increase in population; growth In our material
resources; to large and increasing exports; to
mines OF silver that enhance the value Of American
merchandise" quoted abroad. and TO network
OF railroads elsewhere unequalled. On the other
hand and as an onset the one great, unanswerable
fact win perpetually stare him in the face, that
people we are swimming In debt. with but few
American bonds commanding par or 500
in gold abroad with nearly every railroad
on the Continent borrower, with the Treasury Of
the Union holding less than ten millions of dollars
in Its vaults after the payment Of its accrued in
terest and little more than gold enough now accu-
mulasing from customs to meet the payments on
public interest. There Is no use In putting wry
face upon the matter. These are facts, and 1t Ia
only the blind or reckless man who will not recog-
nize their bearing upon our future. The same
financial principles that apply to . private firm
should be used in gauging
THE LIABILITY OF A GOVERNMENT,
and when the creditor discovers undue imitation Of
paper and utter ooseness In dealing with the most
substantial OF assets 1t il but natural that looking
to the future, not merely for himself but FOR his
children and for the protection Of the wealth he has
spent years to accumulate, that creditor should
be solcitous, II not alarmed. Another thought
in this connecton-England has q territory
not so large as some OF our States. Yet
england is the banker OF the world. From Rome
to Hindostan, rom Russia to Egypt, there Is
scarcely q country or q company that has not
sought the aid OF English capital Magnificent as
we OF America boast ourselves to be, we have fol-
lowed In the same groove, and, notwithsta nding
the immensely OF our so-caled capital" have gone
a-begging. And whyf Because England has
learned the lesson that America never should have
forgotten, to wit-That the presence In the coun-
try Of
ENOUGH GOLD TO MAINTAIN PUBLIC FAITH
on q substantial basis secures, besides, strength
that attracts and fastens the confidence OF the
world Withdraw English gold, reduce that market
to the condition OF our own, with its paltry ten,
twenty or thirty millions, and Chrlstendom would
witness decline in consos-that sheet anchor of
Great Britain-and q lapse OF credit that would
shake the financial communities OF Christendom
like an earthquake Let the United States take
the contrast to heart. We may not be Immediately
over volcano, but 1t may not be many years be-
fore Its rumblings will become significant and
there will be witnessed field Of commercial over
throw under Its scope OF destruction and more ter
rIble In its results than those which attended
the colapses OF 1887 or 1857
THE HIGHEST POINT IN GOLD
reached during the week was 11eK per cent, being
an advance Of per cent. The direct cause Of the
same was doubtless the strength Of foreign ex-
Cnauge at Va oV-uSy esCIilnS sAu IOE sight,
and the large specie export OF 1000 o00 Of which
1000 was In gold coin. 1t is understood that
rurther important engagements have been made
for the ensuing week.
THE BANK STATEMENT
The bank statement Of the past week Is less
favorable than that Of its immediate prede.
cessor, showing, as 1t does, q decrease Of
$s72,275 in the legal reserve. The reserve Of 25
per cent, previously reported, amounted to
$la,sosOoo. Yesterday it was $l6435,725. The in
crease in deposits was $s,547, 500; In circulation,
$4,000 The specie increase was $1,loe, coo; in
legal tenders, $1el 900. The total increase Of La
bilities, therefore, was 50, sos 100. As compared
with that OF last week, the statement appears as
folows:- -
Loans 1885, eO5 500 $2Ss. ia 500 Inc. Lies, 100
Specie 3355l,40O 34,65S,0o0 Inc. 1,10e,600
Circulation 27276,2O0 27291, 800 Inc $1,000
Deposits 232, 1888, 400 23SyIo900 INC. oo4I,500
Te0al tenders l0. 10000 46,3ZJ,000 Inc. 1917