The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-21
The Folly of the Senate Bill and
It's Influences.
TROUBLE in WALL STREET.
Excitement-A Heavy Decline in Stocks
Failure Of a Well Known Firm.
MONEY z PER CENT GOLD.
WALL STREET, |
MONDAY, April 20-6 p. M. I


moment satisfy the constituents of such men as
Morton, Logan and Merrimon, who, in their igno-
rance, may believe that its mere presence means
prosperity but 1t is only the law of trade that can
keep and give 1t use. Issue more currency and 1t
VIII go just where 1t is wanted, stay no longer than
it is wanted and when its work is accomplished 1t
will dow back to the great reservoirs. 1t can
neither be forced into the channels of Legitimate
business nor out OF the channels OF speculation.
Whether the amount be S44 O0o 900 $444, o0O 900
the ultimate concentration Of the sum will be in
the hands OF the spectators Of the country, for
AN EXCESS OF MONEY
invariably incites gambling, stimulates the appe-
lite for more and only aggravates the evil which
the pettifoggng legislator has sought to cure. II
there are States IN the South and West which re-
quire more currency they must buy it with their
products. When these are in demand, as they are
at certain of the year. the purchasing tide
flows in those directions. 1t finds its way to the
banks, and subsequently returns to New York,
Boston or Philadelphia, though counted, perhaps,
reserve at two three or four points in t1dnsttu.
Why IS this the fact, especially when 1t is remem-
bered that money in many country localities Is
worth from to per cent month"; The answer
is in nutshell. Because money will only abide in
a community that lives upon it's earnings and not
upon Its debts. Nor will capital anywhere in
Christendom remain with q people unless 1t De
fostered by thrift, by exact transactions energy,
enterprise, prudence and economy.
LONG LOANS
especially uncultvated lands or real estate, are
rarely extended by banks OF circulation. They
emanate from savings banks and other kindred
institutions, which, being established under State
charters, are the outgrowth OF the industry and
commerce OF the people. Hence the difficulty Of
free IA the SOufh and West. A caDitaSt
with 100000 can better AFFORD to make loans as an
individual, at the high rates of interest above
quoted, than TO spend $40, 900 as a premium on
the purchase or United States bonds and then re-
ceive but 80 per cent OF circulating medium on
which to bank, with the prospect OF realizing his
chief profits only at stated seasons or the year,
and the necessity, should the Senate bill pass
and he be law-abding citizen, OF locking up
his reserves in his own vaults as so much
UNPRoFITABLE TRASH.
Under such circumstances the inducements to free
banking are not Gathering. But rs we have stead
lily urged, there Is already a redundancy OF money
in the country plenty with which to buy articles
at their actual value. Prices still inflated and
artificial as the result OF the tremendous specula-
lions begotten OF the war and its paper issues.
Let these adjust themselves to a reasonable meas
ure Of circulation, and the effect Will be quickly
apparent in an appreciation OF the value OF money
and in the pricking of the immense speculative
balloons to Roat which comes the wild cry from
the South and West for "morel" The question has
been asked. how, If the Senate bill becomes q law,
additional greenback currency is to be put out 2
There are but
TWO METHODS.
The frst Is by paying the running expenses OF
the government. This is now being done by the
revenue, or when slight defect exists by a
1n;~vI .
greenbacks for the ensuing month. The second
10 by the purchase OF United States bonds. Where
Wall street. What Is the consequence Addi-
tional currency thrown into the very hotbed OF
speculation. How does this benefit Illinois, North
Carolina Georgia? The answer Is OBVIOUS.
Hence the signing Of that senate bill. If IL means
any thing besides the broken faith OF the govern
ment, means imitation Of the worst and most de-
structive kind, TO say nothing Of the train Of evils
over which the nation may yet have to mourn.
AN EXCITED STOCK MARKET.
The stock market to-day was stirred to its very
core, and received shock which 1t has not felt
since the panic 1t was more than fcverlsh. 1t
was alarmed demoralized, ana attended Dy uni
versal disturbance that penetrated the office OF
every holder OF long stocks, and pro-
voked well grounded fears that the events
OF the hour might prove the beginning
OF another financial disaster. Men rushed
hitler and thither in anxious desire to sell, and
the more that was sold the greater was the de-
pressing weight added to the natural causes OF
weakness. The HERALD IN this column has re-
peatedly sounded the note of warning The gen.
era condition OF the country, as illustrated by
suspended industry, idle thousands, stagnatlon in
trade, a reduction OF railroad earnings and other
evidences of decline, has been subject OF fire.
uupnt comment here and eISpwhere becausp those
known facts antagonistic to the spirit OF wild
speculation, amid which prices in Wall street have
been shot upward and eventual misfortune in
vited. Steadily for weeks the closing figures have
marked an approach to something like
REAL VALUES.
Not by fractions alone, but by whole numbers,
operators have been startled to see some OF the
most trusted securities 81 ihe street drop drop,
drop, Until the present result has been reached.
Doubtless the principal motor to-day was the
breaking OF G. @. and l. G., and the attendant an
nouncemcnt of the failure OF house identified
with It's fortunes yet, weak as this stock was
known to be- even such knowledge failed to pre-
vent the sympathetic decline that promptly ex.
tended to other shares upon the list. Hence there
ensued not little disturbance of loans
o stifening OF the rate for money on
CALL and those other signs that in
dicate suspicion aroused, and precautionary
measures for the future While the market closes
thus gloomily, however, 1t Is not to be inferred
that it Will be unattended by some reaction, and
that even within lorty-eight hours the bulls may
not rush into the gap and, awaiting themselves OF
low prices, compel by their purchases another ad-
vance. But whether this result occurs or not tue
events Of to-day demonstrate
THE FLIMsiNEss or THE SPECULATIVE STRUCTURE
and show how the breaking Of one OF its supports
may make the whole fabric tremble to its base
Naturally the weakness OF the situation was
assisted by rumor put forth Tor tue
purpose OF further disturbing confidence
There we're 'hints'' from washington that
the President would surely sign the Cur
rency bill; that Comptroller Knox would require
national banks to call home their legal reserves
that difficulties were about to ensue between the
Union Pacific, Pacific Mail and Panama companies,
in conaeouence Of disa9reement as To freight