The New York herald., 1873-10-18
Further Shipments Of Coin from England,
with a Fresh Advance OF the
Bank Rate Threatened.
FOREIGN EXCHANGE BETTER.
A Timely Explanation in Regard to Our
Balance Of Trade.
Resumption from a Busi-
ness Point Of View.

People are gradually reaching q better under.
standing OF this recent Wall street panic. That 1t
was really only Wall street panic, notwithstand-
Ing that it had its incidental effects outside in de-
partments OF business where Wall street and it's
temptations are not supposed to enter, albeit they
do, is being more clearly demonstrated every day.
And, now that we out OF the woods, as 1t were,
or in other words got into the high road again,
there is a disposition TO quarrel with the means
whereby we reached this position or safety. When
the crisis was upon US and the banks had really
either to go under and leave us to our own devices
or organize for the general good, we recognized
the truth Of Old Abe's observation, ''That IL is
BAD TINE TO SWAP HORSES
when you are crossing q sJream.n Then we ac-
cepted the action of the associated banks OF this
city in pooling their assets and organizing Joint
stock protective union for the occasion that rem
dered this necessary. Now, we are inclined to
ashland the inquiry is pertinent, too-why did
the banks permit themselves to get into such a
position as to render this proceeding necessary for
the safety OF some OF themY This is an evil in our
banking system-that any bank should be per-
mitted such latitude in its operations as to give 1t
an opportunity to reach such a condition OF weak
ness. Where was the Comptroller OF the Currency,
whose watchlu eye is supposed to be fixed upon
every national bank in the country, that he was
not around examining into their condition before
this panic came to see il they were short in their
reserves? He has ordered now examination
OF their condition just before the recent Wall
street furry, but the responsive inquiry comes,
very naturally,
CUI BoNo9
There is a wonderful likeness between sucA a
purpose and that Of closing the door of the stable
after the steed has escaped, unless the Comptrol-
Ter means to forfeit the charters OF those banks
who were not within the pale Of the law when this
late crisis occurred. This is an age OF reform; let
us have bank reform well as currency REFORM
and we will reach specie payments the sooner.
NOW That General Grant has started out q new
and revised edition OF Adam smith 1t would be
Well for hum to give little attention to this mat
ter, and by further thought upon the subject he
might find it good policy to recommend more
frequent examination OF the banks to see that
they preserve their reserve intact under all clrcum
stances; and to this end it might be also well to
recommend in connection with Tree banking
law, as he proposes, that interest on bonds n.y.
pothecated as a security or currency be paid over
to the Sinking Fund sucn bonds, however to be
always redeemaDle at the figure OF their hypOthe-
cation on return Of the currency issued upon
them.
RETURN TO CURRENCY PAYMENTS
by the banks IS certainly desirable just now as q
means OF restoring general confidence, although If
continuance oil the preferred accommodation
given TO commercial circles is dependent upon the
New York, however, suffers the discredit OF being
behind other cities in this revival OF confidence.
while the banks show TINS dlstrust OF themselves
or the people in them, while with confident ex-
preston on their part in the resumption OF cur
rency payments many temporary boards would be
broken up and the money restored to circulation.
nightmare yet Oppresses our people. The banks
can dissipate 1t when they are ready. Are they
readyY
1t was propheticaly asserted yesterday. from
opinions expressed on the London stock Exchange
ENGLAND would adj
vance Its rate oil discount This is not unlikely in
view Of the continued heavy shipments Of specie
to this country, f500 600 being the latest re-
ported amount shipped from Liverpool 1t is
AN OLD POLICY OF THE BANK OF ENGLAND
stances, and was done IN 1886, when 1t drew forth
the following comment from the HERALD that is
largely relevant now
Form the New YORK HERALD, Oct II, 1861
Many specaIstons are INDUCED in respecting The
export specie from country 10 the United staes
their money here not all the banks in existence
ven their n sending i out England ana the United States
one country The money market of London acts New
demand 6uin Englsnd the spec is equally rife in
ssslristys N n'Iss ssgana
Ssre 'i S,he BUSINESS the snsian@ snd
ae a % se o
Increase speed in public ntercoarse Steam power M
s SSn
Bank m ma a
from four to FIVE cen-namely, increased demand
for the article % r.; steam power rapidly increasing the
ing every year.
At this time, however in obedience to the icono-
elastic spirit that was noted yesterday,
THE BANK OF ENGLAND DOES NOT CONTROL THE
MONEY RATE IN LONDON,
which, in spite OF the advance to six per cent by
the bank and the threatened iurther aAvance was
yesterday four and half per cent In the open
purpose on the part OF the Bank OF England to ad-
vance its rate, we find It's corrective in the more
liberal feeling Of the open market where the Joint
ss shs Bank q England 'ns snoas ssr win a. IN n
gaining the control OF the entire market, IL might
cause the return OF large amount OF American
securities here at time when we not in con-
diton to take them up, still there is also curious
result OF this struggle. Is the Old Lady OF Thread
needle street TO lose her prestige like our own
Vanderbilt or is this despotic mistress OF the
world OF finance to find that her children have
passed beyond that period when they held on to
one.
THE BALANCE OF TRADE.
Much comment has been excited by the recent
EXHIBIT OF the Board OF statistics, Washington, in
regard to our foreign trade, as 1t came upon many
~ surprise In view OF the recent decline in gold
the late reference OF President Grant to the same
subject. The Erening Telegram furnishes the fol-
lowing explanation OF this anomaly
tl0g0oO00 against sS1 0OoooO In 1872 sA 1"ae . w.
The figures are as fouows;-
Domestic Hr-
1m,..,. po,s, Specie Foreign Err
Specie and bullion 1879 s7 ss M s.s spSzzs, ,s
Merchandise 1874 64l, ,92s H S Ssg III AZ ssi
Specie and bullion, 1871 l374S6ss S7Ss ss0 soa s1
Merchandise, lU2... s6.s9A077 t2S4s7i3i hse9 as
Adding together the exports and re- exports no IN.
cess Of The specie exports oyer the specie imports and de.
Of s Ind
verse balance OF the year II sppencd hcweyrr
achange in the tari6 which went ON thc T., ~
July 1872 Large amoant Of goods in warehouse on the
year causing reduction during the year Of S4t 0 ar as
the qua ttv stored in warehouse. "
This amount should be really charged 10 the previous
year so that while the adverse balance Of appears
10 be $i0000V tor 1873 IL IL actually only absut hal
the nm