The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-20
Congress and Its Action on
the Currency Bill.
WILL THE PRESIDENT 3: CONSISTENT !?
Stocks Still Declining and Opera
tors Undetermined.
MONEY AND GOLD STEADY

VIII II SHtIt
FRIDAY, June 1916 p. NJ

Congress is again In one OF its financial throes.
1t Is endeavoring to 'fx'' the currency of the
country. The Conference Committee have re-
ported bin which proposes to establish the limit
of legal tenders at $685. 600 900 and provide for
the redistribution of the national bank currency.
On their lace neither OF these propositions seems
TO be Objectionable, yet both violate a principle
and establish precedent. The precedent Is one
which the Western and other inlationists have
aimed TO create from the start. The present ex-
cess Of $26 0Co 900 in excess OF the generally &C
cepted legal limit is based upon the claim OF the
administration that IT Is permitted by the unre-
peaied laws OF
THE WAR PERIOD.
In other words, that the so-cailed "reserveO of
444,000,0OO was simply convenient balance In the
Treasury which was subject to draft for the neces-
Sites OF the government. We have always con-
tended that this claim was preposterous. There is
no reason to change the frequently expressed
opinions upon this subject. Undoubtedly there
was an over-issue OF legal tenders in October,
1872. 1t may have been made Tor political pur-
poses 1t has proved an error, but that error con-
not be corrected In the manner suggested, either
by Mr.. Dawes or by Mr. Merriam. For illegal as
the issue OF the s44 900, 900 may be, 1t cannot
pare In It's results with the evils that are likely to
be inflicted upon the country by any unqualified
assertion by Congress that 1t has right to fix
THE VOLUME OF CURRENCY
at one figure or another II this Congress can
thus take liberties with the currency of the coun-
try what capitalist will feel safe when the next
Congress assemblies and may possibly undo all OF
the work that has been attempted during the
present session. May we not in the face OF such
action expect that at some future day $780, 0OO
$500, 900 or 5000, 100000 Will be as easily
<Hegalized" as the sum which constitutes the basis
Of the pending bill ? In their report of the last
session the Finance Committee OF the senate ex-
pressed the thought, and it was sustained by
majority OF both houses Of Congress- that under
the laws OF 1866 and 1868 the maximum
amount OF legal tenders should be s35e,O0 Goo Is
1T not, therefore, an assumption OF extraordinary
power, on tee part or the present body to attempt
to assume control over any sum beyond this
amount or to restrict the Secretary OF the Treas
ury in his management Of reserve which, II
wisely conducted, may be source of no little adj
vantage to the commercial interests OF the coun.
trys Can
THE PRESIDENT
after his strong language on this subject in his
veto and memorandum, be so inconsistent as not
to forbid the exercise of power, which, While
fastening upon the country certain volume or
currency, Will likewise establish dangerous pre-
cedentP
or THIS market to-day there Is little to be writ
ten. The Chief activity was in Western Union,
Lake Shore, wabash, Rock Island. New York Gen.
trail and Union Pacific. New York Central receded
from 97ls 9oh closing at 96A. Rock Island
opened at 94lz and declined TO 92ta, with recov-
cry to e3,s. 1t is not at all singular that market
SO heavily raided as this has been should at last
drag down what have been recognized Its best
securities When the first mortgage seven per
cent gold bonds OF the Chicago and Northwestern
Railroad Company sell down to 70, It is
not reasonable to expect maintenance
OF even speculative strength for the best
speculative shares OF contemporary rail-
ways. comparison with the closing prices
OF last night shows the following decline Lake
Shore Ia per cent? Rock Island Ia per cent; st.
Paul common, u; wabash, x; Western Union, a
New York Central, "; g., q. and c., Il; Erie, Il,
and Hannibal and ST. Joseph X per cent. Harlem
gained per cent and Northwest common gained
= per cent.
THE UNITED STATES TREASURY.
The customs receipts to day were $377,0 The
following were the balances reported at Washing
ton:-Currency, $13,1la,s5 special deposits OF
legal tenders Tor redemption OF certificates Of de-
post, s6O,275,oO0; coin, s7s, ISL including
$20,207, 800 coin certificates; outstanding legal
tenders $3.50, GEO. 00O The Assistant Treasurer to-
day paid out $4,000 on account OF interest, and
$4,000 in redemption Of ave-twenty bonds.
THE GOLD MARKET
Gold opened and closed at 111s, with sales
meanwhile at Ill 111A. There is nothing In the
market which at present eicits comment beyond
the fact that either purchases or sales to any con-
siderable degree would make sharp difference in
the present quoted figures. The rates paid for
borrowing were per cent and nat and for car
rying and per cent.
GOLD EXCHANGE BANK TO-DAY.
Gold balances. ACKNOWLEDGEMENTS. 81. oos 2os
Currency balances. Observation-Disclosures. 1.122, $50
Gross clcarances NEUTRALITY-SUSPICIOUS.. 1S421,OO0
CLEARING HOUSE STATEMENT.
CURRENCY exchanges. ................. ST. 661 4s5
Currency balances. Observation-Disclosures. 2,9IS.429
Gold exchanges. ............. .......... 5,370,2S0
Gold balances. Observation-Disclosures. 524, 1872
GOVERNMENT BONDS.
The following are the last quotations limited
States currency skies, 114A a 1147s do do, 1884,
registered, 1863 116X do. do. do, coupon, 12iA
q 1213 40. hve-twenties, 1862, registered ll3% o