The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-30

FINANCIAL and COMMERCIAL
The Government and It's
Currency.
HI o w II o II A Y
The Condition of the Mar
kets To-Day.
MON IL Y e AS Y i.
MONEY e AS Y.
Gold Steady : Government and Rail-
road Bonds Firm.
WALL, STREET.
WALL bTKEET,
THURSDAY. Jan. 29-6 p. M. !

WALL STREET.
THURSDAY. Jan. 29-6 r. M.
It ia gratifying to observe that there Is yet
force in Congress which stands bravely up in oppo-
stiOn to the idea that order to make the govern
ment successful its Treasurer must continue to
pay out greenbacks The subject OF finance IL
necessarily complicated, involves many PROPOSE
tions and in its mystery Is apt to mlsead the
ordinary mind. But let US for the moment simplify
thought, to the end that the public may under
stand the situation. The government is in
THE CONDITION OF A MERCHANT
who has two classes of obligations to meet. First
are his demand notes or due bills, familiarly
known as legal tenders; second are his notes or
bonds which mature at future day. 1t Is with
the nrst, however. that we have to deal. If they
have not gone to protest 1t is because Of the i'm
pllct faith OF the credtor vet the fact Is never
,theless apparent that the government cannot pay
this debt How shall it be done The answer Is
simple enough. First, stop further payment from
the so-called $44, OOO, 900 reserve; second,
CUT DOWN EXPENSES aW
to their lowest possible limit; third hoard gold
and forbid the secretary OF the Treasury parting
with dollar except, as provided by law Tor the
payment of interest on the public debt and the
increase OF the sinking fund; fourth and finally,
separate the government from all responsibility
Tor legal tenders and from everything that savors
OF connection with banking processes. We have
already indicated the method by which this may
be done. The process Is simple one, and is
covered by these points The issue by Congress Of
FOUR PER CENT GOLD BONDS
to the amount OF $400, O0O,O 00 with fifty years to
run. 2. Free banking with exemption from taxa
ton on bonds ana circulation. 8. privilege to
every capitalist in the country buy these bonds
anu issue In bank bills ninety cents in currency on
the dollar to the extent OF his purchase 4. The
government to cancel legal tenders to the amount
OF said purchase. Now for the effect. l. The gov
eminent will become what 1t ought to be. q mere
loaner Of money, not regulator OF currency or
disburser of paper promiseG The banks Will take
ats place as the representatives OF
THE MERCANTILE INTEREST.
On them and them alone will depend the pro-
cesses Of imitation and contraction. These will
naturally obey the laws Of trade. 2. The govern
ment quietly, gradually and without CONFUSION,
will relieve itself, through the new banks thus
formed, OF great existing obligation, and become
simply bondholder, holder OF securities repro
sentlng the circulation of the country. 8. There
viii be interference with existing institutions;
not dollar subtracted rom the present circula-
ton; not bank forced to change its currency,
except as q matter OF choice; not disturbance in
any financial circle. The change suggested is
work OF years-two, three or five may pass before
there are $780, 600 legal tenders retired, but,
nevertheless, every dollar thus withdrawn is an
addition to the governmental strength retire
ment Of government obligations and an addition
70 the Treasury in gold or its equivalent. The pro-
1ect OF Mr.. Maynard, introduced in Congress q day
or two ago, looking to possible redemption OF
$1,000. 900 per month, after a certain time has
elapsed, Is simply q confession Of weakness. It
means nothing but request from tine government
to the people to wait-the talk Of o man On his
bankrupt legs who prays from his creditors "more
timey'
THE MONEY MARKET.
Money continues to exhibit great ease and to-
day was again quoted at and S per cent on call.
Mercantile paper found ready sale at al per cent.
Foreign exchange closed dull at 81 sS1l 81 "a for
prime bankers 60 days sterling and - 81 - s7H
for demand.
Gold sold up to 11lss q 1IIH, but closed at 111,<.
Speculation in this department evidently waits on
the action OF Congress- and until decision is
reached with reference to the purposes Of that
body we need look Tor no more active changes than
may be caused by the temporary operators. The
carrying rates were s, ~, 4, s, and per cent.
THE UNITED STATES TREASURY.
The balance in the United States Treasury
as the close Of business to-day was as follows:-
Currency, $32oo,614; special deposit of legal
post. 200; coin, $685. including coin
certificates $45 100; outstanding legal tenders,
1881, 740, 1877 The Assistant Treasurer paid out to-
day Sits 900 on account Of interest and $63 in
redemption Of fve-twenty bonds. Customs re-
ceipts to-day amounted 10 $26i,0Oo Revenue re-
ceipts were $36S,si7.
GOVERNMENT BONDS
Governments bonds closed quiet and steady
at the following ratcs:-United States sIxes 1881,
registered, 1175s l17H; do. do, do, coupon 11sA
q nsh; do. nve-twenties, registered la: do. do,
1862, coupon, lis l15H; do. do, 1854, registered,
ll6h; do. do do, coupon, 116H 116s<; do. do,
1866, registered 1l6ha; do. DO, do, coupon, HIS
1l7X: do. do, do, new, registered 1863
116X; do. do, do, coupon, new, 116s. a l16S do.
do, 1867. registered 1177s a 1l7k; do. do, do,
coupon, 117H ll7I; do. do, 1868, registered,
117K; do. do, do, coupon 1179x 1177s; do. ten
forties, registered, 1121 lib; do do, coupon,
ia q 114K; do. fves, 1884, coupon, 1l2y. l13h;
six per cent bonds Pacific Railroad, IFS 1l5h
The following is the Clearing House statement
Currency exchanges. $64, 797, 4O7
Gold exchanges. minimum. 1868, 6S3
Colo palances. -............-..--.-... LI67,909
OPERATIONS OF THE GOLD EXCHANGE BANK TODAY.
GOd balances 81, W., 1877
Currency balances 1,430 657
OIO6S Co8IbuCcS <OsooO,OVU
SOUTHERN SECURITIES.
These were dull and steady. We note sales Of
new Tennessee skies, ex coupon, at 63E; North
Carolina skies, special tax, third class, at IL a
nv; Arkansas sevens, Little Rock. Pine Blum and
New Orleans at 10; Arkansas sevens, Central Rail-
road, at II. Beyond these quotations little was
done. The following are the late bids