The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-17
Railroad Affairs in the West
Thoughts for the East.
THE SECRETARY OF THE TREASURY
The Stock Market Fluttering and Respon.
sive to the lndecision Of Congress.
MONEY EASY AND GOLD STRONG.
WALL STREET,


bankers, brokers and merchants protesting
against an increase OF the legal tender Issue, and
asking Congress TO fund the amount OF the reserve
already published or to contract the same upon
some proper basis that the outstanding shall
not exceed $3.50, 600, 0O0 and that step be taken
IN the direction OF gradual resumption. II there
rs any question in finance political economy
that is settled it Is that an inconvertlbe and de-
preciaed paper money is injurious to the interests
oil trade and pubic evil Nay. 1t does more. II
demoralizes the people by compelling them To cir
cuiate a fraudulent, dsreputable and dis
houOred currency. In the language OF Mr..
McCuoch when he the Secretary OF the
Treasury ''there can be no doubt that the Legal
Tender acts have tended to blunt and deaden the
public conscience; nor that they are cnargeaole in
NO small degree with the denomination which so
generally prevails" Mr.. Webster, too, in one OF
his mastery speeches said, ol all the contrivances
Tor
CHEATING THE LABoRINj CLASSES
OF mankind, none has been more erectual than
that which deludes them with paper money.
Ordinary tyranny, oppression excessive taxa
uon-these Dear lightly on the happiness OF the
mass OF the community compared with the rob-
berries committed by deprecated paper. Our own
history has recorded for instruction enough
and more than enough Of the demoralizing ten
dency, the injustice and the intolerable Oppres-
sion on the virtuous aud the well disposed, OF a
degraded paper currency authorized in any
way cOuntenanced by the government" The truth
OF these words has been demonstrated by the ex
perience OF every nation that has tried the expert
mept of an inconvertible paper money and if
We OF America have not succumbed to
THE EVILS DESCRIBED
1t Is because OF tue elasticity resulting from con-
sJantly changing condition, and growth that
forblds the permanent influence OF any great ex-
listing wrong. Real money is not subservient to
statute law, but to human necessity 1t provides
Its own governor to the steam engine OF trade. 1t
regulates Itself, and never more than when it Is
an actual measure OF values-an unyarylng yard
stick. Redundancy has heretofore been
OUR MISFORTUNE.
1t has provoked extravaganza, tempted great
credits, and brought panic in which we, as a
people, broke down. Let us take the lesson to
heart. The Frenchman, because he was economic
cal and saved as an individual, more than he
spent, emerged from great war, PAID his public
debt and kept it at home. Englishmen in the past
have done the same, and we have the secret OF
England's success In that her consols belong now
20 her own people On the other hand Americans
are profiGate, and because we had printing
presses that could turn out
LANPBLACK AND RAGS
ut any rate which mfght be dictated BY q lot Of
four or six years. and whose only animus was the
pleasure of their constituent ts-not the true prin-
ciples OF fnance--we rushed INTO all sorts OF ex-
cesses plunged the country into debt Tor Injuries
piled up the foreign balances against US and
nationally played the Ounce. With such great re-
sources as we possess we might have been, and yet
may be, the creditor nation OF the world; but
never, never shah we attain this condition until
the government redeems It's paper money, con-
tracts its own extravaganza and establishes the
currency upon a specie basis.
WARNINGS TO THE WEST
The war now being waged In the Legislatures OF
Illinois, Iowa, Wisconsin and Minnesota against
the railroads is becoming OF such threatening
character as to attract the attention of capitalists
persisted in 1T may seriously AFFECT the future Of
these States. When the best managed roads are
dong little more than earning enough to pay their
interest, and when others are in the market as
borrowers for similar purpose, 1t would seem to
be an ipopportune time to attempt TO force re-
strictive legislation in the shape Of pro rata rates
and Increased taxes. In Wisconsin the Assembly
has already passed bill, by vote OF four TO
one, increasing the tax the gross receipts of all
railroads from per cent-the present tax-to
per cent, and now have before them bill
regulating the charges Tor freight and passen-
gers, which If IL becomes a law, may make
1t impossible for the companies to earn
enough TO pay their running expenses. The Min
nesota Legislature, smarting under the action OF
the Chicago and Northwestern and the Milwaukee
and St. Paul railroads in combining last fall to
raise the freight on wheat TO Milwaukee from
Is to q cents per pushel--tne effect OF which
was to reduce the price of wheat in all the
market towns OF Minnesota just cents per
bushe-are apparently prepared to go to any length
IN retaliation for the loss of over 100000 wheat
they hau ready for market.
THE FIGHT
1cr business between the railroads is now extend
ing to eastern bound freight well that going
west. Rates have been reduced from Chicago east
20 such an extent mat the usual taking up OF ves-
sells at this season OF the year against the opening
Of navigation is almost entirely suspended.
OUR AUToCRAT oP THE TREASURY
= man, by the way, who possesses power over
the finances OF this country equal to that OF the
Gear OF Russa-has to-day published another state
ment, which exhibits the present issue OF legal
tenders at $3.50, 672 less than it was at the same
period last week. While Secretary Richardson
continues to contract, the conservative and bust
ness public will not find fault; but for every dollar
that be issues from the so-caed reserve he win
invoke the anathema OF the body polite, because
the people are being daily indoctnnated with the
Idea that there is a one man power at work, which,
without authority Of law, is exerting demoraliz-
Ing influence on all of the pubic and
private interests Of the country, sub
tracing from the possibilities OF enterprise and
involving us more deeply than ever in the mre
Oh an rredeemable public debt. Congress, how.
ever, " must be said in justice to MT. Richardson,
10 at chet fault for this condition Of affairs. The
secretary Is simply the Imoner Of that body. He
must respond to its past APPROXIMATIONS nav its
debts and sustain the brunt Of popular ceusure for
every
FINANCIAL WRONG
that he is compelled TO DO We contend. however
that he had no right to issue a single dollar Of the
reserve; that his entire course has been Illegal and
badly judged, and that II the question were SUBJ
United to the decision OF the Supreme Court OF the