The New York herald., 1874-07-27
FINANCIAL and COMMERCIAL
The Events of a Dull Week
in Wall Street.
An Engish View Of Cur New Currency
Bid and Its Relation to
Specie Resumption.
THE NEW LOAN AND MR. BRISTOW
WALL STREET,


The financial legislation of the recent Congress
has as IS natural, provoked discussion on the
other side, which, 1t Is gratifying to see 10 not OF
~ adverse or uncomplimentary nature. The Lon
Aon Economist OF July H. IN an elaborate article
respecting "tne act for altering the American
paper currency" congratulates the people of the
United states ION having escaped with little harm
frem great economical danger In which terms
1t refers TO the Presidents veto OF the rst Finance
bill OF the last session. 1.-The legal operation OF
the American constitution" it says "gave the
President the power TO forbid this great evil, and
the good sense OF the American people induced
them to permit him 10 it, though in many
countries IL would have caused half revolution
without doubt, ana even with appreciation" Add
ing, after referring 20 the Dill subsequently
psssed--'In a Parliamentary government such
M House OF Commons pledged at critical
moment TO make money easy would have pro-
ouced much greater DISASTER
rhe Economist then enters upon careful and
exhaustive analysis OF the oil, alike as 1t Affects
banking and currency facilities with especial ref
erence 10 the changes II makes 10 the matter OF
reserves, winding up with the conclusion that its
enect Will net be such, either upon banking or
currency, as 10 be felt abroad. Its
STRONGEST DEDUCTION,
snd one that is already apparent In the steadily
decreasing business in the Gold Room, is:-
Tnat it VIII not seriously impair the natural
progress OF the United states toward a resump-
NOn VI specie payments. AS we have often shown,
under the Old law that progress was steady and
inevitable so long as the same quantity OF IN
convertible legal tender notes Is used IN con-
tnually augmenung country these notes must
constantly tend TO rise in value yearly the amount
OF transactions TO be settled increases. and there
n no increase IN the currency With which they are
to be settled. II is the ncessant operation OF this
strong but hidden cause which has already SO
much raised the value OF sgreenbacksr as COM
tn. premium on gold was.........'. Pc, csrs s,
IL now III
Showing reduction Of. ...-....................4 40
As the present laws will not interrupt this process,
AND as President Grant has vetoed all proposals
winch would interrupt it, we may iairly assume
that IL viii continue 10 Act as eficIsntiy "a heiore
and that II will gradually raise the value OF the
'greenback" completely to an equality With the
same number oil dollars In specie.
THE GOLD MARKET DURING THE WEEK
ranged on extreme quotations. from 109. to
llOH. the higher agure ruling early in the week
and the lower later. The speculative spirit once
exhibited in this market seems to have wholly died
out OF II, as though the steady progress OF the
country 10 specie payments so tersey shown In
the extract given above, vas already forecasting
that period when the gold brokers will find their
occupation literally gone. The encouraging crop
prospects OF this year have also their In
nuence TO deter speculation in gold,
which cannot go up very much while
we have abundant corn and grain and cotton
10 ship. and stocks are low the other side.
Neither can 1t 90 very much lower while we are
still debtor country and have 10 rely upon the
aid OF a foreign syndicate and foreign market TO
enable rs to fund our six per cent loan into such
Hn unexceptionable bond as United States 1--WE.
EXperts-tnatls people who know everything and
measure everything by strict rule OF three, assert
that the iundng o an ad diitiona $4,000 600 or ever
Sl79,0Oo, 600 OF old skies into new fves will not
snect the gold market inasmuch as 1t is only the
conversion Of one bond into another and should
not affect the exchanges. And this is probably
true IL ought not to have any effect, but as more
DIT less GOLD is likely to change hands in connec'
tion with the details OF the funding operation
rome disturbance is looked for. The following
table shows the fluctuations in the gold marke
.s,.r, .ha