The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-09
FINANCIAL and COMMERCIAL
Congressional Dalliance and Treas
ury responsibility.
The Cotton Movement Our Foreign
Exchanges, Gold and the Elk
listing Money Market
TIE BEAR RAID I'M STOCKS.
WALL STREET,
SJfNn March z 1STd

tlon in stock circles, although In the more legit-
mate departments or business activity, While i'm
provement was noticeable, 1t had in 1t more OF the
character OF expectation than the quality OF re-
quits This expectation. however, had in 1t prob
ably larger element Of safety than the causes
which make the stock market active. 1t 10 not
well, however, to rest too much confidence upon
mere expectation. and it is very clear that some
thing more than that Is needed to restore the old
vitality to our present palsed industries. That
worthy citizen OF Massachusetts who occupies
towards the people Of this country. In a measure,
TIE RELATIVE POSITION WHICH THE CHANCELLOR
OF THE ExCHEQuER
does to the people OF England-but 1t must
De regret1uly emphasized, only in meas
ure, and that measure as changeful as
his own greenback standard OF value
has for the past week kept the limit Of
the legal tender issue at $685. 000,0 900. This
Is commendable as for as &c goes but the trouble
10, 1t Is 80 little. and uncertain, view Of the
fact that 1t Ia capable Of being disturbed by any
single United States discussing officer who fails
to apply the Recommendation contained In a
recent circular to so regulate his disbursements
as to keep the outstanding legal tenders as near
this point of $685., ooo, 600 as possible.
From this it is inferred that not only does the
Secretary assume TO himself The power TO vary the
standard Of domestic exchange from day to day, as
In every disbursng oflicer OF the United States,
thus placing the enormous monetary interests OF
the country, industrial and commercial at the
mercy OF head OF bureau for whom ability
Is scarcely claimed even by his own party and q
crowd OF inferior officials VIGOROUSLY appointed
for political reasons. Is it any wonder, in such
8 condition OF things as this, that
TRADE LANGUIsHEs
Is Il any wonder that business men, capitalists
hesitate to enter into engagements, the character
and obligation OF which it Is impossible to deter
mine; where all Is guesswork and the contract OF
to-day Is not the same contract tomorrow through
the irresponsible act OF bureau clerk9 What
wonder is 1t that the bonded debt Of the United
States shows an increase during the month OF
February OF $S,0OO,000 contrary to law, as ex-
hibtted on the books OF the department, and the
very excellent Assistant whom Mr.. Richardson
has finds it impossible to expain2 These are sad
admissions for American business men; but they
torce themselves home every day, demanding
recognition and calling loudly for reform. The
proposition to call public meeting OF the mer-
chants and business men to protest against this
trifing with the very source of prosperity in all
financial and commercial transactions
A FIXED STANDARD OF VALUE,
gains favor 1t Is discussed, and unless Congress
should act promptly in the matter may yet prove
to be the starting point OF vigorous opposition to
the present administration OF national affairs that
may perhaps force the dominant party, at no dis
tant day. into exile until it has purged itself OF the
many evils that have grown into its management
OF public affairs. The present political condition
OF England furnishes an instructive lesson in this
connection. MIR. Gladstone, the most popular
Minister, perhaps, that England has for a
long time, has been forced into retirement make
way for Disraell. never a popular Minister In our
sense DOpnIarity. II is not to he assumed that
this conservative reaction means that the liD.
eral movement, OF which Mr.. Gladstone is
the representative, is no longer the purpose
of the English people. only that Mr.. Gladstone
was ahead Of his time and England desires a
breathing space to learn precisely where she
stands and if IL would be sale to venture further.
The republicans here stand in a like comparative
position to that which Mr.. Gladstone did a year
ago. The spirit OF domination out Of which has
grown the Louisiana scandal, the Credit Mobilier
frauds, and its utter failure to deal with the
financial problem suddenly precpitated upon
Congress in q broad, statesmanlike spirit, has
forced the inquiry whether the earnest purpose,
the high endeavor that enabled it to bring the war
OF the rebellion to q successful conclusion, is still
the animatiDg instinct OF the party, or whether
lower objects OF mere personal aim have not
demoralized it that it Will need period Of purga-
ton teiore it will be enabled to deal properly with
the great questions that now agitate the country
WALL STREET ASKS THIS QUESTION,
ana Congress can answer it by it's action during
the present session Further dalliance with the
momentous Issues submitted to it Is traught with
danger to the party. as it is to the country. The
country, II deceived, WILL very likely, have its re-
yenge.
After the limitation of the legal tender clrcula-
eion the next point Of interest has reference to
free banking; and as yet Congress does not seem
to have reached an understanding OF what is free
banking, but continues to waste its time over
various schemes designed by the present monopoly
OF national banks to maintain their exceptional
privileges. To again figure which is likely to
como home to the average intelligence
OF Congressman, the difference between
free banking and national banking is that
described as the difference in the process
of manufacture between ale and lager beer. Thus
one is fermented from the bottom up, while the
other is fermented from the top down. There is,
1t viii be admitted sufficient similarity in the prod
uct In each case to render the ordinary consumer
Indifferent to or ignorant OF the different way in
which, in each case, 1t Is reached. SO with free
banking and our present system OF national
banking.
FREE BANKING IS A MONETARY SYSTEM THAT GROWS
OUT OF TRADE NECESSITIES,
and accommodates Itself to those necessities in
alternate expansion and contraction. The ma
ttonal bank system as 1t at present exists is the
gilt of the government to trade requirements Is
inelastc. and instead Of adapting itself to the
for which 1t was created, forces commerce and the
exchanges to shape themselves to Its measure Of
value. Those who argue that free banking Is only
another name for innaton-that is, the unlimited.
unrestricted issue of bank notes-err. With
proper provision Tor redemption and asserting
houses established at all the great money centres,
the volume outstanding wouid be regulated by the
laws OF trade, expanding and contracting with the
necessities OF the different seasons, the crop
movements and the periods OF settlement. And
this brings us to another point that is intimately
connected with free BANKING, and, in fact. OF
greater Importance, viz: =
FREE MONEY.
Through the operation OF the Usury law trade in
this city enters Lon cIal