The New York herald., 1873-12-15
What We May Expect
from Initiation.
WHAT WE n Fed
Gratifying Condition Of
the Banks.
THE STOCK MARK E T..
A General Glance at the None.
tary Situation.
WALL STREET,

WALL STREET, !
SUNDAY, Dec, IA, 1873.
The week upon which we are about to enter
promises to be OF unusual interest to the world Of
finance, inasmuch it is likely to develop the
strength OF the various parties in Congress who
ut work upon the knotty problems involved in the
management OF our currency. While we have faith
in the announcement OF distinguished official
high in authority that there will be imitation be-
T0nd the expenditure OF portion or the whole
Df the residue OF the $44 0OO 900 OF there
are nevertheless evidences OF determination on
the part OF certain Western ana Southern members
TO press to the uJtermost propositions looking to
the further issue OF irredeemabe paper money.
They may not result exactly the friends OF these
schemes desire; but their influence will be felt in
Wall street from week to week. and just SO long
rs men be found to put in bills and make
speeches. Fortunately Tor the country
THE SENATE
seems disposed to be conservative and resist the
dangerous efforts to expand the currency tnat are
put forth in the other house, and the sooner final
action is reached and the subject Is disposed OF
the better will it be for all concerned. II the re-
suit shall be the adoption OF measure that Sc
cures uniform and sound currency, representing
par in gold, and that adjusts itself readily to the
demands OF commerce and population, all will be
done that can be done safely in amending the
pensaton. The past week has likewise been
largely replete with interest, the various markets
having exhibited unusual buoyancy, with an under
tone that points to even
HIGHER PRICES.
This is the result OF imitation. 1t is the premoni-
tory indication OF the disease we may expect to re-
appear II the process goes 1t lends brilliancy
Tor the moment to every speculation; but it means
for the 1uture, misfortune. Every dollar Of fresh
Issue, much as the government may for the moment
need it, is step further from the solid basis to-
ward which we have been gradually but surely
tending. Mere paper currency is not wealth, and
that which it may purchase represents only value
that tumbeS and depreciates the instant it Is
measured by gold The currency OF the South dur
Ing the war; the currency OF Cuba to-day, are Illus
ratlons in point. And no greater inlquity could
be perpetrated by Congress at the present time
than to yield to the crazy demands Of mass OF
people and hood the country With its
"LAMPBLAcK AND RAGS"
tt is not tc be denied that the use OF some
$17Ooo.0oo OF the s44 Ooo COO has produced
new conditions in Wall street ana sustained the
market 1t has afforded substantial reason Tor
the sharp advance in prices, and helped to swell
the gains OF money in the banks, and as values in
this locality in obedience 10 mysterious law
Of sympathy we see situation full OF temporary
encouragement. How long will it last? Have the
President and tary Of the Treasury persuasive
influence with Congress sufficient to enable them
to preserve the consistency OF their present and
former declarations? VIII the country stand
taxation that may augment the revenue by
$42, 900, 900 per annum rather than again set
THE TREASURY PRINTING PRESSES
In motion? Does the policy OF the administration,
which favors the resumption OF specie payment at
the earliest day possible, possess enough OF sup
port in either house to VIII? Ii these questions
nrc answered in the Affirmative it Is not dil cult
to discern Drawer ana gfander future Tor the
country. 1t Is easy to extract comfort even from
the past financial crisis. Our paper currency VIII
become as potent as an English bank note. Prices
Will gradually come TO represent real values, Ad-
dltiOna purchasing power will be given to the
earnings Of the producer. Labor may command
lower prices, but these will enable the manuiac-
turer to work more cheaply, the merchant to sell
more cheaply, the contractor TO build cheaper
houses, The owner to give his houses at cheaper
rents, and SO on through all
THE ROUNDS OF SOCIAL LIFE
there will follow natural and healthy reduction.
Then, with a currency adapted nicely to the wants
Of the people, fairly disfiou ted-"eastic," In the
sense OF adaptabllity, TO the varying requirements
OF localities and seasons-we may reasonably hope
to pass through another decade without another
panic IT. on the other hand, inhaion continues
to the present volume Of circulation there Is not
hnancier in the land who VIII not begin to trim his
sails TO meet storm, the mutterings OF which will
be heard in the very hour such a measure is
epacted--a storm, too, 1ercer, more terrible anu
disastrous than any known TO tie present genera
tion OF men. Reviewing briefly
THE CURRENT EVENTS
of the week, it is gratifying to record the prompt
recovery Of the banks and the holding by the
eral Institutions Of larger amount oil money than
they have reported at any time since the panic.
The statement published yesterday shows an ex-
cess OF nearly slo00oo00 over and above the legal
reserve and gain Of ss,ooo,ooo over the amount
reported the previous week. Tho loan certificates
have likewise been cancelled, until they now rep
resent only s46o0,o0o. The following is COM
parison OF the averages OF the past two weeks:--
Dec @. Dec. l3. Differences
Loans. 1884, Ol4 100 $25 l6l 100 Inc. So l47 100
Specie...... 2l32o,300 22,4sl,2 200 Inc. 1,le0,e0O
Legal tends a7,732,500 4l,5I9,l00 Inc. SS46, 900
Dep0siis... 1s2143l 100 100, 600 Inc. $685. 900
Circulation. 27,lS8,400 27167.5o0 Dec. $4,000
The following shows the relation between the
total reserve and the total liabities:-
Dec o. Dec II. Differences.
Specie $21, ,320, 800 24sl 300 Inc 81 16O 300
Legal tends 37,732,60O Al, ,57p 100 Inc 3,s46,G0O
Tot. reserve. 1902 800 ac6o 900 Inc 5Oo7 500
Circulation. 27,lS6,400 2T,167.5OO Dec ls 900
Deposits. 1872, l43, 100 200 Inc 036 QOO