The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-07
A MERCHANT ON INITIATION.

The following opinions OF a retired merchant ON
the financial question has been given to a
porter or the HERALD on condition that his name
should not be used:-
REPoRTEI-What do you think will be the effect
should Congress pass the bills now being discussed
having in view the increase or the currency
MERCHAST-The effect will be uniavOrabe. Mer-
chants and others engaged In business have, In
measure. refrained from making contracts, fear.
ing that Congress might increase the currency.
The reason is simply that TO make contract
under 5700, 600 900 currency and pay under
ssoo.oOO,OoO he would lose the difference, which.
under ordinary circumstances, would exceed the
profit on the trade The 100000, 600 added TO the
currency will not add to the property further than
raise prices TO represent the addition made to the
currency. And the man who parts with his property
under the S70o 100000 and receives his pay under
the $500 900 Will lose the transaction fourteen
per cent, and this will show itself in the purcas-
ing power OF his money; ana the only way that
business can be done safely will be to buy and sell
for cash. or buy and sell on credit and compel the
person from whom you buy to take the risk OF the
depreciation or The money. Parties having money
on bond and mortgage will find it to their interest
to call in their loans ana invest the money in
property. In order TO secure them against loss.
II gold goes up paper money must go down. cent
necessity must go up The laborng man will re-
qure an increase III his wages, TOR the reason that
the price OF inc articles consumed in his
FAMILY Will go up with the premium on
gold. Parties having money In the say
ings bank will continue to receive interest and
at the same time suffer less by the depreciafIon
OF the money. The farmer has deep interest In
having a currency Of Interchangeable vaue. the dii-
hcnity with the farmer. West, has been the high
price OF labor and articles consumed on his farm
and IN his family, thus adding TO the cost OF
what he produces. And when his product
Ia ..l1
tion with the cheap countries OF Europe It is
true the whole crop is not sent to Liverpool,
only the surplus, and 1t is equally true that the
price obtained Tor the surplus regulates the price
at nome. II we increase the currency we depre-
ciate H. The currency being Of less value, IL will
require additional amount 20 be added
10 the price or everything we buy: conservative
this VIII add to the embarrassment oil the iarmer
his wheat. corn, beef and pork will cost more to
Liverpool market, because tits there sold in com
petition with the like articles produced under gold
crensing the currency
MERCHANT-The debtor and SPECTATOR Having
made his purchase on time, thai which he bought
goes up with the increase in the currency. lie
selIs ~ the high price, pays his debt In the
watered currency and puts the difference IN his
REP0RTEE-Suppose Congress makes the increase
from 70O,O0o,0O0 TO 100000 600, as now proposed,
and stop; what will be the enect on the country
and business generality
MrRcHANr--The effect will be bad. A great
principle Will have been broken and solemn
pledge dsregarded. There IL no excuse at the
IL abundant and interest low. The present DIM
cuties In the agricultural districts VIII be IN.
mess aser nn Tne % taa
cheat. II Is reasonable TO suppose that II a
ton 1t must produce something OF value that
Will command money. There are people In every
o. great y y VINO ws1s e S a1 or
/ New YpEk. where m0Rep n In the QEeNteat abuQs