The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-05
Mere Currency is Not Capital, but a
Very Tempting Bait.
SOUTHERN STATES AND BONDS.
Little Florida Toeing the Mark
with Gold.
THE BANK STATEMENT.
WALL STREET.


T. SUNDAY, Jan. 4, 1874.
The events OF the past week are important as
signifyng the character Of the opening chapter of
the year. They tell for the moment OF ease, re.
covery. growth OF confidence measurably re-
stored; OF renewed ability on the part OF capital
lists to engage in their undertakings and Of COM
munity sympathetic enough with the general situa-
ton to follow blindrold the leaders of the market
They foretell also more activity in speculation
possibly, higher prices and movement generally
on the ascending scale well calculated to daze and
befog the best regulated mental organism. The
causes are apparent. First there has been at
work species Of
"srREEr INSTINCT
which, mystical and indie scribable has pointed to
steady Improvement all along the line and, as
this occurred from day to day, the conort OF be-
lievers increased until their numbers overwhelmed
the small minority who, studying facts figures pre-
cedeuts and all the lessons Of the present past
insisted that the condition was forced and arti-
fetal, ga goodly apple rotten at the heart" The
latter class have, for the n0nce, retired from the
field and are mere "loOkers on in Venice" Second,
the continued imitation by the Treasury has stocked
the banks and gwen ease to the money market
The issue Of 50 0O0. 900 practically means
THE EXPANSION OF BANK CREDITS
to four times that amount The resultant influ-
ence upon the various industries OF the country Is
already being felt Third, there has been an agree.
able disappointment in the ability exhibited by a
large majority OF the corporations OF the country
to meet the payment of their interest without de.
fault And finally the letting loose of from sixty
i've to seventy-lve millions OF dollars in the shape
OF dividends has given to business OF all kinds an
impetus most heaithiul and encouraging. 1t is un-
necessary to 60 further in the search for reasons
why the present situation is underlatd with so
much strengthen why, perhaps, for weeks to come
we shall witness more less OF the buoyancy that
presents itself to-day.
CONGRESS- REAssEABLEs TOMORROW,
and It will not be strange II that body, too, lends
somewhat Of its influence to the MARKET; for while
the daily reports from Washington, laden with
promises Of imitation. hood the street, there are
scores Of men who win jump at the opportunity to
turn their stocks the faith OF some believer 1t
ID di1fcult to realize however, that we are to be
cursed with larger outlay than the socalled ire
serve," now nearly half exhausted. Imitation
means dilutton; dilution means higher prices for
wheat, corn, gold and all the necessaries of life.
Eventually the banks Will be filled with the new
"rags and lamp black" Somehow these must be
used. They will be loaned. Foolish specuiations
and enterprises will follow. The balloon will swell
then burst. We shall have another panic; another
wild demand for more currency; more walls from
reckless men for hundreds OF millions OF green
backs But what we want Is new wealth. q
healthier use for the money we already possess.
MERE CURRENCY Is NOT WEALTH.
1t simply enables gamblers to raise or depress
the value OF stocks-t0 make ''corners'' and
swnde tribe better than their neighbors; to is
sue new bonds; dignity them BY the name Of CAPT.
tai and then rope in thousands of poor fools who
believe that these paper pledges what the gilt
edged advertisements describe. All stocks have
an intrinsic value. Yet nobody knows what 1t is
because Its variations from day to day depend on
the power-which lodges more or less in
THE CONTROL OF CURRENCY
through the banks or otherwise-to 'sbull" or
.sbear" the price at WILL Currency therefore is
not capital and the more have OF it the swifter
shall we travel towards day Of terrible reckoning,
when men win see the folly Of their ways. The
laws of trade are as relentless the laws OF CRAWL
tatlon. They are Independent Of our wills, desires
and prejudices They may be for the moment i'm
peded but never entirely evaded, for they are
part of the moral physical and intellectual forces
of the universe, and under the control OF the Su-
preme Author OF all good.
THE STOCK MARKET.
The range OF rise In stocks during the week was
from to per cent, and Notwithstanding the in
tervention Of the holidays business was brisk and
on some occasions the sales were large. This was
especially the case on Saturday. A noteworthy
feature Of these transactions was the disposition
to deal in the low priced shares, it being evident
that some of these promise an advance under
present combinations which they have not en-
joyeo for many months. In fact, there are fewer
clouds around these securities than there used to
49, xhoA ov Of SlCnrn ra QnA IN fhonn