The New York herald., 1873-12-18
TIIE MONETARY SITUATION.
A Chapter on Our Current Financial
History, Designed Especially
for Real Estate Owners.
The Situation in Congress and the POsSibili-
ties That May Grow Out Of II.
Secretary Richardson and Comptroller
Green as Exemplars in Office.

more just and correct understanding OF the value,
character or bearing OF pending financial proposi-
tions now before Congress can be obtained than
the real estate market, nor OF a general plan OF
financial reform best adapted to the sterling wants
OF our people, that shall prove OF permanent ad-
vantage TO them, and not be a mere temporary re-
lief for present ills. Notwithstanding the large
speculative movement therein, there is o substan-
tial basis OF value in real estate, readily recog-
nizable-at all events, in this sneighborhood-which
saved 1t from the tremulousness that overlook all
other values during the recent panic. There has
been, too, a conservatism in dealings during the
past few years here, especially in what may be
described as first class property, that has contrib
uted largely to bring about its appreciation TO
specie level in respect TO its latest formal capital
ization, that viii save 10 from much shrlnSage in
the event Of gradual specie resumption. Not this,
however, nor any spasmodic EFFORT at speedy re-
SUMPTION which could only end In failure, seems
TO be the prospect at the present writing. more
formidable disturbing experiment in financial
legislation threatens to again unsettle existing
steadness in values, and
INPLATIoN FRESH ISSUES OF PAPER MONEY, LOOMS
UP, A SHADOW OF THE NEAR FUTURE
promising new speculative era with its sham
appreciation to be followed, OF course by the in
evitable reaction that sooner or later must come.
when we will have reached the limit OF these paper
issues, and find that further watering OF the
rency In spite OF compliant Bench 10 sustain its
legal tender quality, will exhibit palpable depre-
citation that no ignorance of the national laws of
trade can hide sophistry can explain away.
Mr. Fullerton, an accepted authority In matters OF
finance, in his work ON the "Regulation OF Cur
rencies,n uses the following emphatic language
We quote:-"There is not single example on
record OF the power OF creating money out OF
y
reign State, through any length OF time
or through any season OF public Diff
Guilty, without having been abused.n "The
temptation to substitute issues for taxation, to
relieve the wants OF the Treasury by interceptng,
through the depreciation OF the currency a portion
OF every payment in It's transit from the pocket of
the debtor to that OF his creditor, becomes too
strong to be resisted, and the iniquty is probably
perpetrated with the general acquiescence OF
community who are scarcely aware o: its ten
dency The career OF debasement once entered
upon, IL has pause till there is scarcely any value
left to be destroyed Yet it is in this course
precisely, upon which we entered heedlessy,
under the pre- ssure OF great crisis, that we seem
TO be pressing eagerly forward, Indifferent alike 10
tne warnings tnat come to us from every side and
= THE TEACHINGS OF SAD EXPERIENCE.
Nor are tDssa Warnings ia. .e G.serlnces only born
Of knowledge that is acquired too late for appli-
catlon-the 81 told you so" OF chronic croaEers.
No, years ago the HERALD warned the leaders Of
the dominant party, and from this same standpoint.
ef the real estate market, while they were yet en-
gagged in jGbation over the wonderful results they
had accomplished in their peculiar financial policy,
oi the false economy involved in Its pursuance,
They were told that to tax people so soon alter
the termination OF great internecine struggle,
which mad Frustrated many Industries lot involved
In the prosecution OF that struggle, while it had
overstmulated others that We're in great
measure its outgrowth and dependent upon It, Tor
the expenses incurred before an interval OF peace
had allowed trade to resume legitimate channels
oi enterprise and given time for healthui recu-
peration in all branches OF national industry,
not only an error OF judgment, but opposed to all
the theories OF government that have IN view
peoples weLare--a sort OF demagoglsm and
charlatanism that, armed by display OF a reduc-
ton OF the national debt carried on rapidly and
30 early after the war, TO enlist
THE NATIONAL VANITY
In support ot the party in power, and deceive the
world abroad into the belief that our great civil
war had only stimulated, not retarded, our
national prosperity. Thus IN four years and four
months. beginning May, 1869, and ending Septem-
$323,253, 500 OF fve-twenty bonds not yet due, at
cost OF $3.50, ol2 S32 In currency; being premium
OF nearly s4o,0oo,O0o In the lawful money OF the
United States that so many in and out Of Congress
proclaim TO be the best currency in the world,
stolen from the people TO maintain a ruling
majority in that Congress- and superfuous tax
upon the legitimate Industry OF the country at a
time when it needed encouragement, not restric-
ton, to the extent OF 1923, 100000. Why wonder,
then, at the great revulsion or 1873 which, post
poned Tor several years by expedient RELIEF afforded
from time 10 time hy the Treasury, came at last
RELIEF and 1t TOO was engulied in the rum which
followed naturally as the night the day upon the
discovery that much of our great prosperity since
the was sham, mockery, defusion and
snare reared upon the baseless fabric OF redundant
Issues of irredeemabe paper cemented by false
hood in word and IN act; monument OF fraud,
ignorance and reckiessnessY
And the question now is, and it is asked from
this standpoint because here we have
SURE FOUNDATION,
shall we seek to rear again this shattered column
upon its bed OF sand. or delying down until we
"a fha txyf1
pillars OF honesty and industry, apply ourselves
with renewed faith in our powers and restored
confidence in our future to build temple
wherein all men, OF every cline, may enter with
out fear ana where frugaity and perseverance
shall be the stepping stones to the high piacesg II
is certainly not too soon for US To set about It, for
OF q surety we have fallen upon evil times and
the evil example that Congress has set seems too
likely to be followed elsewhere. Thus we learn
that the Board or Apportionment Of this city, at
its meeting on Tuesday last, adopted resolution
authorizing the issue OF city currency TO the value
OF GOO 600 OF bonds. city paper currency Truly
with gold, legal tender notes. national bank notes
and city currency we are not likely soon to suf-
Jer again from an insufficiency OF circulating
media. Apparently with view TO justify this new
departure in
THE ECONOMIC ERA OF CITY FINANCIAL MANAGE
we have also letter from Comptroller Green to
Mayor Havemeyer, under date OF December 10
complaining OF the nonpayment OF assessments,
and vaguely hinting that the Bar OF this city, the
courts and the legislature at Albany are In league
10 embarrass him (the Comptroller in the dls-
charge ol his duties. Hence, we lave the infer
ence TINS little experiment at imitation, the Comp
kroler not being abe TO raise a loan otherwise
Inere appears here to be striking similarity be-
tween the cases oil our pattern Comptroller and
our eminent Secretary Of the Treasury Both
claim tnat they are overborne by events which
they found 1t unable TO control aud both show tha
same want OF resignation IN not making way Tor
abler men, VINO have q superior aptitpde
for controlling events. The Secretary, however
shows the highest appreciation OF the sitnat,on
by quietly pointing out to Congress thar
having taxed the people almost to a state of hank,
Tuptcy TO pay OF a debt not yet due, IL must tay
them still further to pay the current expenses
OF the government or make public confession that
II did not know what IL was about when it under
took TO pay of the debt by seeking new loan now
Mr. Richardson, whatever his other errors acts
wisely In opposing imitation, to which Congress
seems TO lean, and which Comptroller Green has
grasped at to get him out his little dilemma. IL is
THE REFUGE or CowARDIcE
AFRAID 10 bear the responsibility for the ills II has
accustomed. In the days OF Ianmany we heard
nothing OF this conspiracy on the part Of lawyers,
courts and legislators to cheat the city out OF it's