The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-26
FINANCIAL And COMMERCIAL
Wall Street Thought Directed to the Four
Hundred Million Legal Tender Bill.
CURRENT VALUES.
WALL STREET,
WEDNESDAY, March 25-4 p. \

WEDNESDAY, March 25-4 p. MI
Tne discussion In the Senate to-day on the
financial question developed even more opposition
to the $40o OoO 900 deluge OF greenbacks proposed
by the House than was at first anticipated. Mr..
Snerman's compromise measure OF course met
with severe handling from both Sides as Is the
peculiar heritage Of compromise measures Sena.
tor Schurz proposed an amendment TO 1t reducing
the limit OF the legal tender circulation from
100000, as proposed In the BILL to $685. 900.
IL Is worth while to examine IN this connection
the status Of THIS
ANTICIPATED LEGISLATION
in regard to legal tenders and see what Is its
value. 1t win be recollected thai when the ques-
ton of the legality OF the legal tender issue came
before the Supreme Court OF the United States 1t
nearly failed OF the endorsement Of the Court, and
that even after the Courts reconstruction looking
to an agreeable result such decision in
favor OF the legal tender quality OF the
issue was only given upon the assumption that
such issue was made under the "war power" OF
the government, or, in other WORDS as a revolu-
tionary expedient to preserve the Union, Chief
Justice Chase, who, as Secretary OF the Treasury,
had been the author Of these issues, going urthest
in hus defining their limitation and birthright.
The question now comes up whether this reissue
may not open the way Tor some future sharp stock
operator to raise
NEW CONSTITUTIONAL QUESTION
as to its legality. there being no war now, and,
consequently, no war power to justify it.. Yet 1t
will be remembered that the s44 OOO. 600 was never
formally retired, Congress in its hurry to stop the
contraction policy of Mr.. McCuloch, which was
producing a scare never authorizing the canceiia-
ton Of the amount already withdrawn, which
thus passed into history as this very question
able reserve. 1t would be much better to
avoid all possibility Of argument upon the
matter by getting back to the lowest limit,
or even behind that under the provisions of
Senator Sherman's bill, which suggests reduction
Of the greenback circulation to $500 OOU 1t Is
equally painful to the Wall street reader to find
the same reckless spirit OF miscomprehension pre-
vail In the discussion OF free banking, as with
respect to legitimate authority, has permitted this
1nconsiderate action Of tho House in regard to the
legal tenders.
FREE BANKING IS NOT INITIATION
in any correct sense Of the term. The opponents
OF Tree banking say, suppose we permit every man
who owns government bond to issue currency
upon 1t, we make our currency at once over two
thousand millions. Free banking does not propose
anything OF the kind, and even If 1t did, it Is sale
to assume that when the industrial and CONNER.
cial activities OF this nation reach that point OF
productiveness that We can afford to buy back the
one thousand and odd millions OF our bonds now
Htlu III Europe, we snail De 8De TO unu employ.
ment for all the currency we can Issue upon them.
Besides the advocates OF tree banking as prac-
tlcable system, not the supporters OF that
Understandable germ which is the offspring of Con-
gressiOnal incubation, claim that currency will be
regulated to suit the requirements OF trade
for Its employment, and are willing to relinquish
to the government the interest Of bonds pledged
for It's redemption, provided they have the option
Of retiring such currency when 1t ceases to pay an
average yearly return equal to the interest on
such bOnds-not an introconvertible process, but
simply yearly settlement for the regulation OF the
volume Of currency issues.
IN THE STOCK MARKET
the interest to-day almost wholly speculative,
and directed principally to the two stocks concern
ing which the least Is known as to their actual
vaue--viz, Western Union and Pacific Mail The
first named was rendered buoyant by the anticpa-
ton OF a Is per cent scrip dividend which, how
ever, was not declared the directors meeting ad-
journing without taking action on this matter. In
the case Of the latter there was the familiar
story of an overdue steamer heard from. The rest
OF the market was at first buOyant, following the
lead Of these and being stimulated by the action OF
the House in favor OF imitation; but afterwards
went OF and closed heavy. The table OF sales
printed below will best illustrate this movement.
The following were the highest and lowest prices
OF stocks to-day