, 1874-02-21
MONETARY.

safe and conservative Investments. But, say
these gentlemen, '' it is q new custom among
bankers to demand collateral security OF 80 large
h proportion Of their borrowers. 1t used 70 DO
that merchants and manufacturers IN good
stsading could get from banks all the money
they wanted on their simple notes OF hand, and
ihs change Of policy in this respect must be be-
cauae there is not so much money as there used
10 be-"
While We havs claimed. and do yet, that money
ls unusually abundant in the West, we do not
deuv that it is loaned With more caution than it
used to be, and that, while there are yet plenty
Of merchants Who can borrow all the money
they ask for on their own names,
security is required in more cases
thau formerly. This is all the foundation there
is for the clsiE Of Ferry, Logan & Co. TINT
noceY is tight"
The explanation Of this is, that there is less
confidence in the future expansion and proilts
of trade than there Was before the panic Inc
fEcr is that the ten years up to thetlme OF the
panic we're all era OF excessive railroad e1pan-
sion, a consequent excessive expansion OF trade,
md an excegsire increase Of manufacturing, IN
duced by the Wild extension OF railroads ana tne
fostering influence Of protective 1';,a tafin; H.
There is no question but that many = KINGS az OF
manufacturing have been oyerdone.' Ihefo
has been an excessive increase OF the buildings.
mscbiuerv. and appliances for manufacturing
class Of articles for which the consumP-
tive demand is Limited articles which, Which,
being bought, LAST the purchaser 3 good
many Years. OF this class Of articles are car
pets, furniture, agricultural implements.
watches. iewclry, etc., etc These thirgs OF
course, do rot last lifetime, but the cousump-
tiou is SLOW, and the means 81 production aena naa
OF consumers Of the goods. During the hush
OF or manufacturing M was sustained by the
e1travagaut scale Of living that VAS
preyale1t. Tho manufacturing interests
the extension of railroads also hourlshed:
But when tho collapse OF speculative railroad
schemes came, it was also the signal for the ces-
gation OF this abnormal activity in manu1actur-
inc, Trade III these branches shr1nk to ITS not-
NAL volume. and made a shrinLage Of greater or
leas extent III all other branches OF business.
The point ne make in this connection is that
capitalistg see that nothing, not even Imitation
aud depreciation OF the currency VIII revive fall
road expansion and that, for year OF two at
lcsEt, It could not revive the eztravagent scale
Of living which sustained vast amount Of man
ufactunng and trading which Was part
" Incidental to the rai1rond fe-
ia5acnce ne6; tao Of The tar Hence there is doubt
about the future pro6tableness, e- even the con-
tinuancc. OF many classes Of business, and, con-
sequently, when men engaged in the Thousand
varieties Of this class Of business ask for the
loan of money, they are asked Tor collateral &C.
curitv.
The great bulk Of the business Of this country.
however, the trade in staple articles, IS no" on
sound aud Legitimate basis. Crops OF every klnd
have been good, and large surplus mas 2eoa oeen
prices. The United States, and particularly pa
Tue West. is growing rich. Ihe prot
irs of industry, which constitute loanaolc
:apital, are increasing. Up to about gear and
a Lalf aco great portion Of these accumulated
n,nral prohts we're invested in building new
railroads, but the bitter experience Of the past
wear has made people cautious of what they Do
with their money Conservative. Investments,
aud the requirement OF gFester security snan "a
nreenback currency, such al Mesers. Ferry, Nor
Eor, and Logan demand, would depreciato it.and
start speculation IN commodities, because every
body would prefer to have something else than
The currency, and would prefer to be debtor,
with prospect of paying his debts with less real
yaluo than he contracted for. But this imitation
sud speculation would not increase legitimate
business, and would only prepare the way for
another collapse. .......-......... .....
wur srs.ToRI.L 41UDDLE ON THE FnEE-nASE1SG
QUESTION.
The pt1blic will, we think, ngrce with Senators
Thurman and Conl1ing that the United States
Senate .has been mixing itself ridiculous by its
discussion OF the currency question: The proof
that yery lew persons in tie Senate knew what
they we're talking about is IN the fact tina!
Messrs. Logan, Ferry, Morton, Oglesby, and
others, who have been tearing rhetoric INTO
tat:ers in their demands for more currency. hAva
Ecen among the strongest advocates of free
banking, under the impression that 1t would be
ameau6 Of imitation aud depreciation OF the CUE
rcucy On the other hand we're Messrs. Boutwell,
TreliuehQvscn and others who voted against alr.
Calncron's Froe-Bankilg blll, because they dle
not know hut II might be the means OF imitation
They seem to have no better understanding o1
the currency question than to suppose that t.
give banks the privilege Of issuing circulating
notes redeemable in greenbacks would have
tie SAME effect an lncreaEo OF sreenbackB. 1T
short these gentlemen assume that m increased
demand for grecnbackB for bank reserves aue
FOR tho redemption of bank notes would have
the aa,ne effect as an increased supply Of green
backs without the increased demand.
But es Congress- and tho people get to under
etsnd the proposition to remove the legal re-
str;ction from the amount Of National Bank CIR
cuIation, they will see that it means a very diff
fereut thing from the issue OF more Greenbacks
1t will neither initiate nor denreclate the curreq
cv permanently, but will Increase its value. !
viii not contract tho currency, but viii perni
tlo people to have every dollar OF currency tina
cau bo kept in circulation. It will not Increase
the curreacv beyond what is required the busi
ness of the country, but will DO tue een-ad1ust
inc mesus OF contraction whenever there Is I
niethora ct currency in the great money centres
fIhe ORIGINAL ices the National banking system
vas. first to find market for the Gosornmen
bords, and, second, to provide means OF return
ing to specie p8vlutuA6 ny tA1o sA"01 - -"
creeubacIs, thus throwing the burden Of re
snmption on tllo Nationa1 Banks, and this is W
auestionably the best plan of resu1ning speci
payments.
THE LOCAL MONEY MARKET
remains unchanged Money is still abundant 10
iii approved borrowers, and most OF tho bank
would be glad to get more paper OF sa@'stactof.
quality: or. - IN, no
e1,000 discount to-day.
The currency movements between the city ant
country are now about evenly balanced, and th
movement in any direction is light.
Messrs. Preston Kean d 10. quote as 1oAo"
this P. NJ:
United States Is pf +s1,.- .......1 .129:s !!a|
1I.ted States : o7s of ~ .lU 1o0H
1ytt3 1tat.s < o0a ~ ,C5 12Ok 121
United Statea 5-l0s Of 'C5-Janu- ,o,<
ary and July l4o4 4A'@
United States 5-20s Of 6s-Jsou- .oo
cry and July. ..IS Ios
United States 5-o0s Of '68Janu- ,,,,.<
7ni1. .ll5s< 11Gk
tinted states S. {1ew issue1.... .1l3H 1l4A
United States c71r1eucY Gs......116I lux
Gold (fuu weight) ).......--.......us i1s!a
Gold coupons. .....1L:n t4sA