The New York herald., 1874-10-12
FINANCIAL and COMMERCIAL
Congress and the Currency Question:
The Lessons of the Panic.
SPECIE PAYMENT PRACTICABLE
What "InflatiOn" Has Done for
Indiana and Illinois.
REVIEW OF THE WEEK.
WALL STREET,

WALL STREET,
SUNDAY, Oct. IL, 1874.
On the reassembling OF Congress in December a
renewal OF the financial discussion, embracing the
subjects OF specie payments. currency and bank
ing may be expected. 1t has been alleged that
the prolonged debate OF last session was the cause
OF the dull and unsatisfactory spring trade. Never
having joined in the cry of "do something, only do
1t qucklyo 1t is not inconsistent Tor to regret
that the debate ever ended or to venture the opn-
ION that had IL not ceased the country would
have been in better condition to-day. The mis-
take then MADE is additional bling block in
the way OF prosperity. IL is not unreasonable to
believe that the experience OF the past year Will
convince all those who. in yielding their better
judgment to supposed emergency, consented TO
a compromise on a vital principle, that they made
one OF the great mistakes OF their lives, for COM
promise could be nothing but a total surrender.
Every one ought to have learned that
INFLATIoN Is NOT THE CURE-ALL
SO eloquently described. The legaizing OF the
Illegal issue OF s26, 600 900 additional government
.'promises TO pay'' has not restored confidence.
Capital is so abundant as to be obtanable on call
for purposes OF stock speculatons at 2 and
per cent per annum, while the merchant and
manufacturer without the kind OF collateral which
can be realized on in an hour have never found II
more difficult to borrow for their legitimate wants.
In their operations ana woolen and cotton
manufacturers, running their mills on half or
tnreequarter time continue to overstock the
markets with their productions Every legitimate
and producing interest of the country Is at low
ebb, and hundreds or thousands OF laborlng
men are seeking in vain for employment
This is the condition oil things now and the one
likely to be found existing when Congress resumes
its sessions. VIII there then be member bold
enough to assert that the cause is stn "a want Of
more money ~ Remembering the arguments ad-
vanced at the last session II would probably be
rash to assert that there are not several who will
pursue just this line of reasoning. Mr.. Logan,
who SO .manully" and persistenrly told the Sen
ate and the people OF the wants or his section
win undoubtedly satisfactorily explain the peculiar
position which has caused
THE NATIONAL BANKS or ILLINOIS
10 recall $685., 2o0 OF their circulation, while the
applications for new circulation have amounted
to S642 00o resulting under the operations of the
new law in an actual reduced circulation for the
State OF $347, 200; and Mr.. Morton, whose State
has treated him better. Will, perhaps,
with well rounded periods, portray the
advantages resulting TO Indiana from the
slight concession made to his opinions and
the passage OF the compromise finance BILL and
will point with pride TO applications Tor new
$35looo has been recalled, showing a net gain in
wealth to the State OF 1928 900, all in real new
made money Mr.. Merriman, OF North Carolina,
perhaps may produce the figures showing by how
much richer his State has become through the
effects Of a Congressional enactment to create
.'money," ana so on through the whole list o.
those who believed or proessed to believe thai
wealth and prosperity could be created by the
mixing together OF
RAGS AND PRINTERS INK.
Instead OF the present unsatisfactory state o
anslrs being occasioned by neglect TO innate, the
claim MADE and enforced that Congress has any
power TO tamper with the volume OF money has
retarded a restoration OF confidence and created
a alstrust OF the future. Liquldation-a pay
ment or settlement OF debts-and not mere
renewals is needed to revive hopes OF renewed
prosperity. There mas been TOO free following OF
the bad example set by Mr.. Rlchardson-who
thought that In the dischargng OF Treasury war.
rant by the issue of additional promise to
payn he had discovered the pinnacle of finance.
Government should now set the example OF liqui-
dation and commence by the immediate payment
funding OF this $26 oGo, 900, extended paper s-
sued by Mr.. Richardson. Next it should adopt
some plan--no matter what, provided 4. be steady
ana unalterable-for the gradual cancelling OF the
$356.OOo,o00 legal tenders or the balance OF it's
Nrced war loan. Another opportunity like the
present Will probably not present itself Tor years.
CONTRACTION OF VALUES
in all articles OF commerce and in the productions
OF the people have already reached a point
where II may be reasonable to expect that
the adoption OF any well defined plan
even for an almost inl1leclEte resumption
OF specie payments, one which the people
could expect 10 be carried out would result IN an
advance at PROBABLY too rapld rate to be steady.
successful in postponing to more convenient
accommodating when the people, in spite OF the
stupidity OF their legislators, shall have iully
covered IRON the present depression and are
again prosperous-it Will then be only to meet
with the old argument that any attempt "now" to
contract and reseme specie payments will disturb
values and be an Injustice to the debtor class in
forcing them to pay IN o currency more valuable
than that in which tney had contacted their obli-
gation-an argument, the force OF which, IL It has
any, Is always increased in exact ratio to the de-
gree OF prosperity. Let not the present opportu.
nifty to do right with the least possible amount Of
harm slip away from Imitation has been tried
and proved
HUMBUG.
Common honesty required the payment oi this
forced oan--legal tenders-before the payment oil
q single dollar or the interest-bearing obligations
For what are the legal tender notes what value
have they except as debt due from the govern
mentY They are the representatives Of value
which the government received in merchandise
and In labor performed and for which it con
tracted to pay, falling In which the public creditor
was forced by statute law-oniy then justified by
the emergencies OF the waT-to accept these notes
IN lieu Of money. That az period ten years attei
the close of the war which caused their issue
there remains single one OF them In existence Is
both stain upon the nations credit and dis
grace upon rs ability
Let each member OF Congress come 70 the Dc
cember session with the simple determination tC
be honest, and TO treat the government creditor
holding greenbacK debt with the same degree o.
honesty as the one holding bond, and the finan
cial debate Will be sharp. short and decisive and
a step will be taken toward the restor.,rton nj