The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-16
The Real Duty Of Congress To Provide for
the Redemption of Legal Tenders and
Give the People Free Banking.
EVENTS OF THE WEEK.
Changers on the Warpath Railroad
Earnings in the West.
MONEY, GOLD AND STOCKS.
WALL STREET,

volume OF currency already legazed outside OF
this reserve II SO. 1t means eventual disaster;
because, frst we 90 not need Imitation; second,
II will unsettle commercial faith. II Congress can
legisate into existence $4,000, 000 1t can, with
equal propriety, issue any other sum which the
people, through their representatives, may elect;
and while this possibility exists trade will always
rest on an uncertain basis and enterprise be held
IN check. II the government had been true to its
obligations the circumstances would be different.
but with an
INCONvERTIBLE AND DEPRECATED MONEY
TO deaf with there is nothing in the immediate
future that AFFORDS hope to the business man Or
real basis on which he may conduct his operations.
mere statute adds nothing to the value OF a
paper currency, except that 1t compels people
to take as money what Is not money.
The issue OF legal tenders was a specific
contract with the people. The latter were
forced to accept 1t as war measure, and IN their
patriotism did SO cheerfuly; but now that years
have elapsed since the necessities OF war COM
PEELED this sacrifice OF great financial principle,
they have right to expect that the government
will not only redeem it's pledges OF the past, but
refuse to add one dollar to the amount to which
that issue was contracted, to wit-$356, OO0 900.
Remove uncertainty on this point and we shall
ENCOURAGE ENTERPRISES
and Industry We shall keep specie at home and
find use for 1t. We shall accumulate that which
makes England and France conspicuous IN the
world OF finance We shall add to the value of our
bonds. acquire more tangible and fixed value
for our productions. do much to settle the vexed
question Of labor and It's wages, and rents, and
eventually attain credit nationally and inter-
nationally based on the most reliable and the only
real measure Of value recognized by the world.
But before we can reach specie payment the
government must first pay what it owes to the
people on demand. When 1t begins to do so the
legal tender note will begin TO appreciate in value
and gold to depreclate proportionateiy.
EVERY PAPER DOLLAB
thus redeemed makes every other paper awaiting
redemption more valuable. 1t is not q process of
contraction but OF substitution. Mr.. Dawes, in
his admirable speech the other day, showed that
the Treasury, since 1862 had spent, In a vain at.
tempt to pay on the national debt, $377 900, 900.
n in four years such an amount can be accumu-
lakeland 1t cantor such purpose in the name
OF all that is honorable and honest let similar
amount during the next four years be appropriated
to the payment OF the most sacred debt that can
exist between government and Its constituency.
we want little more legislation on the subject Of
finance than this and the extension Of the privi-
lege Of Tree banking The result Of
THE FIRST STEP
will be to put our paper on gold basis for, in
the absence Of legal tenders. the banks must of
necessity redeem in gold The result of the sec
ono step will be to distribute money freely 1t
will now where it is most wanted. 1t cannot be
legislated into sparsely settled communities, as
the attempt is now being made in the Senate, but
1t will grow and gravitate wherever the wants of
neighDorhood make Its use desirable or valuable.
THE EVENTS OF THE WEEK
may be briefly described. In Congress the
tn1ationists on Monday, met with what
would seem to be most signal defeat
in the House OF Representatives, which by
many has been considered to be their stronghold.
Mr.. Randall, OF Pennsylvania, moved to suspend
the rules and adopt resolution to the effect that
II any increase OF currency was authorized by
Congress such increase ought to be In illegal
tenders" The motion was voted down by 95 nays
to 90 yeas. This vote Is all the more significant
from the fact that the resolution OF Mr.. Randall
ana the one offered by Mr. Hawey and adopted
some time ago-that s'there should be no increase
OF the non-interest bearing notes Of the govern
ment"-are the only resolutions that have
squarey brought the question before the
House Of the issue of legal tenders, as
distinguished from further issue OF mere sour
rency,n or, in other words bank notes. We con-
graduate the country upon this symptom OF COM
mon sense, and hope that it VIII be likewise ex-
hlbited when the subject comes up for final dispo
6AtlOu. IHe question OF
REDISTRIBUTION
IS also occupying the attention of the Senate and
she East Is arrayed against the West aud South
on the point whether currency shall be Withdrawn
from the former section for the benefit of the lat
ter. 1t is a matter OF little moment, except as
illustrating the imbecility OF legislation In en-
deavoring to Interfere with the natural laws OF
trade. Money Will 60 wherever 1t is most profit
able Send 1t South or West to-day and it will
return to the great commercial centres immedi-
ately. There is no use for 1t IN the South
and West. Reports rom the banks there
indicate as much ease in the market
propOrtionate to the population, as exists
here. The surplus will follow the speculative
channel, wherever, in other words, it can be
loaned on cali and on securities such as constitute
the basis Of our Wall street speculative work.
This Ia one reason why our banks overnowing
to-day and why demand for currency brings over
the counter more bills from the South and West
than from the East. 1t Is not money but business
which the country wants. II trade were active
money would not be loaning at per cent. and it
u bad commercial sign that 1t does so loan.
THE GRANGER INFLUENCE
on the western railroads is evidently beginning to
assert itself. Legislation cannot be shaped as con-
'ventently as 1t used to be. sharp resistance to
she payment OF taxes is being forced, which taxes
II pressed for payment will entail bankruptcy. The
Illinois southeastern Company has already sue
'cumbed Ohio and Mississippi is assessed at seven
per cent ON the gross earnings, and it Is said by
very high Western authorities that If the courts
compel payment on the equaized rates of assess
ment In Illinois six-tenths OF the roads In that
State will cease running cars. Many OF them can
not borrow enough to pay interest. While
THE GROSS EARNINGS
OF twenty-lour railroads whose earnings are pub
iished for January, 1874, show an increase over
January, 1873, OF $1,273,s17. 1t should be remem
bered that the month OF January, 1879 was one
peculiarly unfortunate to railroads owing To the
snow bocKades which prevailed. January of 1874
has been unusually free from such obstruc-
tions so that 1t not unlikely that a comparison