The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-28
FINANCIAL And COMMERCIAL
Wall Street Reflections Upon
Current History.
THE RESULTS OF A DAY.
Dulness, but Inquiry and Anxiety the
Average Feeling.
WHAT IS BEST TO BE DONE,
WALL STREET,


The same story OF little interest in the markets.
Ia SO far as transactions considered applies to
to-day. Union Pacific which furnished Q slight
wave OF interest yesterday afternoon, settled back
again to-day. The pivotal point OF speculation in
this stock has been the approaching election. A
sharp decline occurred In the stock upon the sales
OF German holders, induced by the fear that Ger.
tain prominent ex-0f1cial OF the Erie road-the
one who escaped being shot from the fact that
no was not big enough for . target
was trying to get ga controlling influence"
or AZ the least engineer himself into
the management. Subsequently 1t rallied upon
the assurance that such q calamity had been
guarded against, and as this assurance reached
conviction the stock again went on. assimllating
itself to the surrounding dulness.
A LITTLE INTEREST
In the general railroad list was excited by q de-
spatch announcing that convention OF locomo-
tive engineers was in session at Cleveland, the
purport OF which could not be learned The street
seemed to accept the lact as indicating SETTLE
ment Of the differences between this large body Of
operatives and the companies that furnish them
employment Hence ensued slight recovery In
prices. This is OF course Dostertov1 reasoning,
which is however, the only safe reasoning on the
Stock Exchange.
The interval of rest afforded by Congress and
Mr.. Richardson to the existing financial situation,
permitting it to stand STILL has not resulted in any
active movement, although sensible feeling OF
relief Is thus occasiOned. Advices from Washing
ton place the outstanding legal tenders at
1881, $3.50, 1927, the same figure at which they have
stood Tor four succeeding days. This Is accepted
on the street as q recognition on the part of Mr..
Richardson Of the force and correctness Of public
opinion manifested through the indignant protest
OF the press against the changeful policy heretofore
pursued. Suppose Congress, returning from its
vacation Of thought upon the financial question,
should boldly face the issue by fixing the limit OF
the legal tender circulation precisely where it
stanas to-day. The figures make up an odd sum,
ofcourse, but the great interests OF the nation
afford to overlook mere euphemisms. 1t would be
in the nature Of
A COMPROMISE
between those who denounce the Secretary for
having drawn upon that so-called reserve at all
and those who wish the Equalization Of the entire
amount; but compromise is often the truest states
manshlp. In the meantime Congress can also
apply the lesson Of the late panic here, in regard
to what is imitation. Philologists define innation
to mean the act OF being swelied up, natuiency,
while the same authorities furnish the definition
OF expansion as ''the act Of spreading out" Here
10 precisely the distinction which it is we'll Con-
gress should bear in mind. Any imitation OF the
currency, that is legal tenders, would simply re-
suit in swelling It's volume without increasing Its
value, while the expansion OF the currency
through free banking, based, OF course,
upon redemption, would be the spreading
out over the whole country OF the
existing volume, meeting the wants or
the various sections, as they are nl-advisedly
urged upon Congress with such persistence. Thus
the expansion of bank credit In this and other
cities during the panic did not increase the danger,
hut effect saved from almost universal hank,
ruptcy. This shows practically
HOW DIFFERENT IS BANK EXPANSION FROM CUR
RENCY INFLATION.
This argument brings us to the following conclu-
sion The currency proper Of this country, specie
payments being suspended, Is only the~0utsrand.
Ing legal tender issue OF $751; The national
bank circulation, amounting to $342 500 000 Is only
the expansion OF bank credits bank notes. OF course
having the quality Of currency but not that Of
money which has been to certain extent leQis-
lated into the legal tender. Such legislation has
this danger, that 1t has q limit, which although
yet an indetermnate quality none the less exists,
and in blind cropping Tor It might be reached and
overstepped. The question Is here presented, have
we reached that limit And the answer comes as
quickly, II is best to pause and see. In the mean
time 1t IS worth while 10 place ourselves
IN COMPARISON WITH OTHER NATIONS
upon the question OF whether our existing circua-
ton Is or Is not redundant.
The following figures, compiled by the Bureau Of
Statistics, which We copy, supply these data
KINGDOM CLOSE or 1879.
Silver coin In the country ............... $50 1000
Bronze in the country Observation-Disclosures. i,f00U0
4O5O0OOO
Total active circulation ..............f I4 100 900
-q''' ~'A' ~ FRANCE, IN ISIS
Victor Bonnets rstimate on coinJ
Gold CON- 4oOo0o0lo
Notes OF Bank Of France, Dec rs 1873 $4,000 10
s,W7.Ooo,OoO
70 759sOoOoO
Total active circulation ............ 7saz loo Ooo
GEKxis CONFEDERATION.
Coin circulation in 1870 ....... 6 aAS Sc5Soe
sank note circulation, Jan l. isa $4,000 S
I,2saoOO,OOo
Legal reserve Of banks ............ fOOCOOCOO
Coin IN government military chest lS,oSoa
:o7,ooO0Oo
Total active circulation. e7sooaooo
Equivalent in dollars. $704 100 700
In this estimate the coin reserve Is deducted
from the current circulation Applying the same
rule to this country and reducing our paper money
TO specie We have the following result
CIRCULATION OF THE UNITED STATES IN 1873.
Fractional currency 4S6OJ,UOO
Com certificates Observation-Disclosures. S500OO
Total .S7S GOV, 700
Deduc;-
Depreciation OF S747, 100000 Of cur.
rehcy below par...... ....... $oiUUWV
Specie In banks AS reserve........ noU0V
Legal tenders required as bank re- 49, an. ..o
sf'"o""V ,oe ooo ~,
Active circulation, gold value $oS77OO,OW
Comparing the active circulation Of the respective
countries with their population we have the follow
ing result as 10 the amount Of currency per head -
CSrcua-
Actipe Popua- tion per
CAPITA.
Great Britan..... $6S3,0IUOO0 e20OJ,OO0 "! -
frAnce............ 1859 O0O,UW 36UW,UW VI
Germany ........ 7o4,UUO,lOO 3940O,0W 81
United .tates..... 6o7 7UU,UU 4lUO.OW
Thus, placing the circulations oil the several
countries on gold basis, which Is necessary to q
true comparison, we nnd that the amount in this
country Is $A 80 per head; in Germany, ST. 81; in
Great Britain H21 "a and i'm Franco OF To kiuo