The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-02
FINANCIAL and COMMERCIAL
A Review of the Weeks Teach
~ ing and Results.
What Has Been Accomplished in the Settle.
mcnt Of the Financial Question
and Its Tendency.
CLOSING PRICES SATURDAY
WALL. STREET,

Stagnation was the controlling feature OF the Wan
street markets during the past week, the changes
necessarily incidental to the conduct Of business
at all being few and unimportant The stock
market that deDatable ground whereon IL fought
In active periods the never ceasing struggle for
supremacy between the bulls and the bears, rested
In the quiet repose OF an interval in which the
Temple Of Janus was closed and the lion and the
lamb lay down together, and were CORRESPONDENCE
unhappy. 1t would appear almost though the
holiday of Monday had furnished a text for the
operations OF the week. and the lesson Of that day
was repeated in "hence it 49, each succeeding
day.
ON 'CHANaE
similar feeling Of reserve in respect to oper.
atoms was manifested, accompanied with decline
In Prices. Cotton went Off upon the large receipts,
rendered more apparent by the accumulation Of
Monday, when there was no distribution, ana
dull market in Liverpool. The ascending scale or
crop estimates like wise operates against frmness
In prices. This, however. can only be temporary
drawback to active dealings as increased produc-
ton can only stimulate operations in increasing
our capacity for consumption. Grain shows
kindred weakness from much the same causes.
chiefly the accumulation of stock as the result OF
Interrupted delivery. 1t will thus be seen that
the three great fields OF commercial activity all
exhibit similar conditions OF dulness and best
fancy upon the slightest provOcatiOn, The true
cause being referabe In each case to the unsettled
financial condition growing out OF the delay on
the part Of Congress to act upon the measures
now before 1t designed as panacea for existing
Ills ana as a security against their return in the
future
ACTION IS THE ONE THING DEMANDED OF CONGRESS
at the present time and enough Is known Of the
temper Of that body, its aim and desire that
action If Congress will but assume the respon-
eral acquiescence. Capital is waiting patiently
such determination as a basis Of future engage
ments and will accommodate itself to the result
Of the now protracted debate, whatever it may
be, rather than lie idle any longer in Improbable
stagnatiOn. Thus II the limit Of the legal tender
circulation be fixed at $40O 0O0, 0O0 or the present
amount at which 1t has now stood for nearly
week, 1881 $780, 1921, or be restored to the former
figure OF $3.50, 10000, capital adapt itself to
thas circumstance better than remain unem-
pioyed, and as capital stimulates production, Just
as labor produces capital so has labor equal
interest with capital IN desiring an end OF the
present uncertainty which checks the movement
Of capital. The objection is raised to restoring
the legal tender limit TO $780, 900, that it would
illegalize the amount now outstanding in excess
OF that figure unless specially protected while the
calling Of It in would require increased taxation
unless larger degree OF retrenchment than now
appears likely be enforced. Next in Importance is
THE QUESTION OF FREE BANKING,
in respect to which also spirit Of compromise is
gaining ground. The advocates OF free banking,
pure and simple, are prepared to give in to those
who oppose their theory to the extent OF accepting
the assumption of those who desire the conrinu-
ance Of the present system-viZ that the Ameri-
can people are not honest enough, or have not dis
cretiOn sufficient, or intelligence, or experience, OF
az m IN 10 auff n
pate themselves wholly from the control OF those
who consent to govern national banks at the pres
ent day or their eXemplars in the Treasury Depart
ment. Concedlng this point as matter Tor future
discussion, they are willing to accept as much OF
free banking as they can get, even IL obliged to
bank under existing laws having reference to the
maintenance Of a reserve and the pledge Of gov
eminent bonds as a security for their circulation
Mr.. Schurz in this connection has presented HIM
self as opponent OF even this much OF relief to
the business needs Of the country, and finds not
only an apologist but eulogist, i'll one OF the first
financial weekles in this city. The journal refer
req TO- commenting on the Senator's recent speech
says
Mr.. Schurz next proceeds 10 overthrow the falIa
cies OF the free bankers These gentlemen, as is
well known, wou d have the limit OF the bank note
circulation extended that they may open new
banks and get double interest on their capital
psn o yery perecy Another ann Of the
Tree bankers Is to put more currency into the
pockets Of the people Of the West and south In
scheme would utterly fail. he proves his point by
showing that Tor every $500 OF new currency
through this system they would have to buy
$1,000 of United States bonds. BY the purchase
the maestrom OF Wall street. Thus. to get cur.
rency by iree banking, would be to lose currency.
and the West and south would be Drained OF us
present currency, instead Of being enriched by
new supplies.
The error Of this is in assuming that the South
and West are without capital as they are without
currency This is not so.
HOUSES AND LANDS AND CATTLE ARE CAPITAL
as much as government bonds, and, in fact, more
So as they represent intrinsic value. Any Of the
capital Of the South and West monetized ia Wall
street will do to purchase government bonds. II
the purchase OF these bonds at SLIGO for $1,000.
upon which 5000 currency could be Issued, did not
pay it would not be done, and hence the national
bank monopoly OF to-day would not suffer. Besides,
II It be so certain that IL would not pay, where Is
the OF prohibiting the trial Is IT from the fear
that it would strengthen the argument OF the
advocates OF free banking, that banking restricted
TO government bonds, as at present, Is a charge
upon the industrial growth OF the country, and
might be safely extended 10 the AZ and per
cent bonds as an inducement to the placing OF
these the proceeds OF the sales OF which, for such
purpose could be applied TO the redemption Of the
older issues that are now due? Ia this one OF the
dangers OF free banking that array the whole
present national bank interest against IT, alike In
principal and practice2
WITH PROPER PROVISION FOR REDEMPTION,
and the continuance Of the present plan OF re.
serves. such reserve, however, TO be gradually in
creased in the proportion OF coin, 1t does not
seem as though free banking involved such o very
serious danger as not to he worth at least an OPP
portunity Of trial. II would settle al least That
popular ciamor OF the sections which Senator
Sherman spoke Of the other day, far more thor
Oughy than would his proposal Tor redistribution
OF the currency, which he admitted himself to be
futile. while with the requisite accumulation OF
specie 1t would help us TO resumption
The true principle, however, which underiies
RESUMPTION As AN ULTIMATE END
to be reached and maintained has reference to the
balance OF trade which the Gsrnres puhlished here