, 1873-07-18
money AND COMMERCE



1n the opon marriott Mt from IL to 15 por cont.
FIuch Of this Is mado by merchants in good
standing, but who arc porlapa Obliged to bo large
borrowers, partly OIL account Of tho dIsappoint-
pnont In tito spring tratlo, and, In come casos,
p1ocauao their busIuosB is good deal expanded
Notwithstanding tho evident Improvement in the
prospects for comparatively onsy money mar
Lot this fall, d majority Of money y-lcudors SOON
disposed to koop their funds moro cloaoly In
Land than usual ut thta season Of tho yoar, and,
'fhile they offer money freely on collatorals, arc
s'nusnally discriminating iii regard to tho dis
topnt of paper without.
Now York exchange Is firm ot from 25o to TOO
t,or 81, 900 promium.
THE "ouEAp GOLD" THEORY.
Tho financial crotchot tccontiy announced by
Grof. A. l.. porry, aud subsequently, by Mr.
fAmasa Walker, Tint tho value OF greonbaoks Is
foaly doprecatcd moro than is shown by tho pro-
atiium on gold, BeemB to have taken hold OF the
dancios OF good many amateur 1nancleEs and
alnanoial writors. In recont number Of tho
0dew York Findncicr q correspondent argues In
alohalf Of this notion with much pfausibility,
That tho excessive volume Of paper money In
luis country checks tue export Of all commoditos
G1cept Hpoco. Tho basin Of his argument Ia
taken from an oBsay on money by Joseph Harris,
sldster Of tho British Mint, book published In
u757,-nfneteon yonrB beforo Adam Smith pub
iishod his aWoalth Of NationH," in which Mr.
1inrrin Anticipated some Of Mr. Smiths propopi-
tious,-as follows:
Any artificial methods Of increasing tho quantity Of
8lo money In circulation boyon lie natural bounds
vim be attended with pernicious consequences. As tho
vauea Of all things arc measured by money, It is
.n'csnt!y ns,fe.t thst their pliess will be II esr
culation II this quantity bo greater In proportion 10
is trade Of The nation than n foreign oo.tntr'os
I3tcign markets.
Assuming this to. .bo correct and proceeding to
epply it to tho prices Of c1portab1o commodities
il tho United States, tho correspondent Of tho
Ginancicr argues Ms follows:
The money value NO receive from other countries
FOR those commodities IL unqueationaby determined
BY thC foreign standa.d but their prices here aro
ent check their salo for export and force tho OK
e'ort demand 3l upon go'd. which tlns becomes the
s;od or silver ah!pped from this country.
:. There aro two points which soem to DO entire
lY overlooked In tliR Limo Of argument:
Ftrst-The e1portablo surplus OF any OF our
domestic products is simply the excess over what
market for this surplus It is comparatively
vorthloss, md tho value Of the whole quantity Of
sach particular commodity in tho country depre-
t|RtcB In proportion to the uno1portod aud un-
eaablo eurplus. II, therefore, our paper money
standard hns tho effect to prevent or check the
export of tho surplus it must also depress tho
rtarkot yaluo Of the commodity In our own mar
1.ats, and this B Just the reycrso Of whae Joseph
~ tho case. Therefore. their argument about
tie oxcoBB Of greonbacls checking exports Of
a'foluctn, and mnling gold the cheapest COM
,auodity, npsots itself.
yates Of tho "choap gold > theory tin. the fi1ed
volume Of, say, $3.50 100, 900 OF paper money, al
>rayh represents the sanle amount OF circulating
a,anable capital. Tho fallncy Of this is shown BY
,t,oney tluctuatos in accordanco with the aggra-
Late volume Of real money or circulating capital
IL tho country, Whom gold flows out Of tho
country in settlement Of the balance Of foreign
,ancob, but in fact it is tho valuo ot papor
,honey that depreciatoa, because there is lcss
1eal money for tho paper money to represent.
Tho error OF the position takon by McRsrs.
Terry aud Walker. Walker is in ntnalastakng
l'ational bauls notcB, for money, whom,
III fact, tloy arc commodity, tho ynlue Of which
j. regulated by tho necessity for them. and
IL measured in the real money Of tho
If speco In our country as compared with anotl,-
II docs not change, except in tho small degree
u cover tho expense Of transportation. Any
s'ritor, on finances who let's 60 of this funda-
laontal principle will inevitably find that his log
y: will lead him into al sorts OF yagaries, and
finally land him in some absurd position.
CIRCULATING NOTES.
:. Tho Philadelphia Ledger Gays that Col.
rhomau A. Scott, President Of the Texas Pacific
HALLWAY Company, sailed for Europe on Satur-
1ay to nogotiato a75 900, 600 1oau for that on-
torwrise. Our informant liuts that ho was Of
ferod 80 for tho loan bore, and expects to place
IL at 90 abroad.
Tho fact that the actual receipts Of tho
Ercasury we're, for tho year ending on tho 30th
pf Juno last, million and q half below tho esti-
mates, is explained at the Treasury Department.
ls owing to the high and fuctuating prices OF
mid in Nav md 1nfn inf7r1 tn
10 dcfcr taking their goods from tho warehouses
until moro favorable money market.
Six pnir, Of dies for tho now trade dollar
were shipped from the Philadelphia mint on Bat-
srday for San Francisco, and four pair for the
tniut at Carson City. Nevada. The work Of COIN
lag tho now dollar will DO commenced at those
llacca as soon ns tho dos aro received. At tho
phiiadelplla mint It has already boon COM
tncnccd, md the first one coined hGB boon sent
20 Secretary Richardson as q specimen.
y 1T ia reported from Washington that tho to-
tai amount Of tho now per cont bonds sent to
Iondon since the formation OF tho present syn
!. THO Washington correspondent Of tho New
York Jou1natof Commerce Haye The Treasury
Department will in tho courso Of fow weoks
1egiu tho issue OF new National Bank currency
i'omptrollor Of the Currency looka for groat diIl-
tulty in tho operation OF exchanging tho old aud
Iew notes on account OF the lack Of . convenient
bnethod Of redemption. A bauk that issuos
locting to 500 it again. Tie notes hnye
to plain, distinctive feature Of differ
l'ncc OIL their faco, and to recover thom
,rom circulation will be q difficult taHk. Tho now
,1otes will have o specal mark upon tho faco, by
1neanH Of which the operation Of assorting will
}e greatly aided. This is about tho A1es eaInoBt
1top in favor OF q central raloomiug agency at
3iow York. The idea has boon recommended All
tlually for several years, but tho moro RECON-
pendation Of the Comptroller Of tho Currency
t.nd little talk in Congress- was tho only result.
tAt tho noxt session OF CongreHa the subject will
eoo taken up by tho Treasury oflclnlB, mud it iY
probable that q redcoming agency will bo estab-
3iHhed.
LOCAL. sToog AND BOND MARKET.
MesBrs. Lunt, Preston d Koan quote aa fol-
lows this D. m.:
EuWnD. Selling.
t-20a Of 'o2. 2.............+..,......l17 1l74
i'-20s 0f "a 'G4........................ 1l7H 1l7H
Dos Of Co.,. ..................,....11aH 1lBX
k.20s Of 'G5, Jan. and July. y..........1l7X 1l74s
t-20a Of 'G1, Jan. aud Jniy, ex. Int. LINK 118I
f'.20s Of '08, Jan. and Jnly.-........118 1ls1