The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-26
FINANCIAL and COMMERCIAL
aLetting I Dare Not Wait Upon
I Would"
Congressional Hesitaney and Commercial
InactiOn.
CONTINUED DULNESS
Progress Made in the Discussion Of the
Financial Problem and
What It Means.
@ U H II H MT ID A II A
WALL SrREET,

would do in the way OF reform II he had It In his
power, as printed this morning, are fair sample
OF the Misrepresentation or the question OF imitation
which seems to prevail In some OF the pest minds
Of Congress. The Senator says he would do I've
things In the order named:-
Ffrst-I would definitely settle as fixed policy
that not one dollar more OF paper money should be
issued until what we have Is at par with gold ana
silver.
This sounds like very pronounced ground to
stand upon but examined, 1t Is not quite so clear
o. course, the Senator means that he would limit
the issue Of greenbacKs to the amount now author
tzed by law, whatever that may be- until these
greenbacks became worth par. This is very well;
but does he mean that he would limit the creation
OF currency by banks to the same fixed standar ?
If 30,
HE MISTAKES BANK EXPANSION FOR CURRENCY M
FLAT1ON,
As he would seem to Indicate in his second propO-
sitiOn, as fOllOws:-
.Second-I would allow national banks to be Or
gained In the South and West until each state
had It's share, and would withdraw circulation
from banks in States that have more than their
share.
but c0nfesses the folly OF any such EFFORT at
regulation Of the currency in the remark which
fOllows:-"In doing this know it will not prevent
the notes from going where trade carries them;
but 1t will give each State the benefit OF local
banks and stine local camor.n
How Is it that he fails to follow out the lesson
which this glimmering comprehension of the true
principle OF regulating bank currency points tor
which is that trade wants will supply the best
governor. Under system of free banking each
section will have what 1t can proftably employ,
and to maintain the value OF Its currency each
bank Will have to contract when the volume out
standing becomes redundant and places it at dis.
count to that in which it is redeemable, when, OF
course, 1t would be presented for redemption.
WITH LEGAL TENDERS AS THE MEDIUM OF REDEMP-
TioN
the natural law OF supply and demand would oper.
ate precisely as though that redemption were to
be IN gold and silver. Further on the Senator
gays:-
ton to the Old limit OF 1856 000,O 700 and establish
the -, o0O 600 OF retired and cancelled notes
reserve to be used only Tor exigeucles defined by
Jaw.
Querv-How is the greenback circulation to be
got back to $685. OOO, 0OeS If by retrenchment this
us sound enough suggestion; but If by increased
taxation 1t would De only repetition in a slightly
modified form, but more dangerous just at this
slime, OF the error that is so largely responsible for
Our present crippled conditioned imposing an un-
duo burden OF taxation upon the country, and so
hamperng its industries, in the effort to buy up the
debt before maturity.
Fourth, Senator Sherman says. to appreciate the
QreenbacK l would authorize 1t to be converted
into five per cent bond at the option OF the
holder, to be paid out again at the option Of the
government for the payment or purchase OF i've
twenty bonds
Why change non-interest bearing debt for an
interest burdened debt2 How will increasing the
debt OF the country appreciate the currency OF the
country
F(frA, and finally, says the Senator, would very
banks, so as 10 take advantage OF the first favor
able opportunity to resume specie payments. In
specie standard WHICH is the only true basis Of
production and the best for both capital and labor
A MOST WISE AND CORRECT CONCLUSION.
IT the Senator had commenced and ended here
he would have given more instruction to his col
leagues a. to what is required in the premises than
Senator Schurz in his two speeches., or was con-
sained in the entire debate on the finances since
congress met IT can be summed up In nutshell.
We must accumulate more and spend less. Do
precisely what any man in business would
who found himself embarrassed and wished
TO avoid failure. But we must avoid
the mistake Of supposing that an extension
OF time granted us by our creditors in the shape
OF fresh paper, which merely represents the old
Claims and enables us still to carry on business
on the capital we have left, means increased lia-
silities. The increased liability, in that case,
would be regulated by the interest obligation we
incurred.
DIVERSION WAS ATTEMPTED IN ALBANY
by the introduction Of y bill in the Senate by
Mr.. Lowery for the appointment of railroad CON-
mission for the entire State. This appears to be
an effort to saddle the famous Illinois Railroad
law. or something like il, as an incubus upon the
commerce OF this State, and the chances OF its
success were so lightly considered on the street
shat it failed OF producing any effect There Is too
3arge an understanding OF the great commercial
wants OF this state among the people to favor
such legislation. Among the other incidents of
the day was the announcements that Attorney
General Williams had decided that the Secretary
OF the Treasury may withhold from railroad com.
panies compensation for transportation when
each company has received from the United STATES
subsidies to aid in the construction Of one OF its
roads while there are bonds upon which 1t has
not paid interest, although the service was rem
dered upon another OF its roads upon which no
government aid was given. This may be law. or
1t may be equity, but it sounds very much like
"crowner's 'questn law, and, in view OF the fact
that Mr.. Williams was not elevated to the post
ton of Chief JUSTICE is likely TO be disputed by the
companies interested.
at 1l2k, the sales OF the day ranging nom
ll2,. 10 1917. The market is wholly without in
terest The ioaning rates ranged from nat for
borrowing to per cent for carrying, closing ar
per cent. The customs receipts to-day were
350o.000 The Assistant Treasurer paid out SAL 600
on account OF interest and $4,000 in redemption
OF called nve-twenty bonds.
FOREIGN EXCHANGE
was dull and closed heavy at AsSh asa for
bankers 80 days. sterling ana Aseh 4s7 for
short sight. Continentals were quiet and steady;
Reichmarks, e6A and 9ss.; cables, sszI o.; prime
Paris 5.18k and 5l3Z.
MONEY WAS EASY
on an extreme range OLA, * and per cent, clos
ing at per cent without new features. Discounts
are quiet at previous rates.
The outstanding legal tenders remain unchanged
ut 1881 sao,s27 The internal revenue receipts to-
day were $224O0
Three hundred and twelve thousand pounds in
bullion has gone into the Bank Of England to-day
on balance.
THE STOCK MARKET
was again extremely dull and wholly without