The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-06
The DilatOry Policy Of COngress---The
Problem Still UnsOlved.
ENCOURAGING STATISTICS.
Review Of the Markets---SiOckS, Gold, Gov
eminent and Railroad Bonds.
GREENBAcKs 50 CENTS AND MILL
WALL STREET.

lem remains unsolyed. Meanwhile there Is
growing feeling OF distrust in, not contempt for
Congress. The real fnanciers OF the country have
expressed this feeling openly, and now even the
workingmen begin TO realize that by the stupidity
Of legislation, or rather OF the want OF IL, the
iaborer's dollar btl which, on the LIST OF November
was worth 927s cents, mas been reduced in value
TO SO cents on the dollar. There is but one way
out OF the difficulty, and that although 1t IS not
likely 20 be adopted is for Congress to return to
the fundamental principles or political economy. /
That body has constitutional right to issue more
paper and call it a dollar and doubly so when IL Is
not based on actual property available Tor its re-
demption.
NO LEGISLATION CAN PREVENT PANIcs,
and no amount OF foresight can prevent the con.
tingency OF failure to any class OF people who live
beyond their income or invest their means In I'M
dertakngs that can never pay interest. 1t is
equally impossible TO make money stay where it is
not wanted or to put money in the pockets Of those
who have not the wherewith to buy it. We have
200 much currency now. The fact that 1t is not at
par with gold shows that it is only not too small
In volume, but that 1t is actually excessive: and
the more we have the more will the people even
tually suffer from the consequences Ii may take
ten paper dollars to buy bushel OF wheat
or one gold dollar, but no sane man will contend
that the farmer would be getting any more value
American people are eminently practical They
are ayerse to experiments, especially upon such
delicate subject that OF finance, and by such an
inexperienced and purely theoretical body as Con-
gress.
WHAT THE COUNTRY WANTS
Is the recognition OF few plain propositions, SUCH
for instance, as that gold is the only basis OF
sound currency; that paper redeemable in gold is
the best currency; that currency is that form of
WI eh rats birth in trop
and represents an existing value, either gold or
property; that currency untrameled by govern
ment interference regulates Its own volume; that
deprecated currency deprecates the credit of a
nation; that deprecated currency inficts moral
Ill upon all classes, but throws the material loss
and suffering mainly on the farmer and aborer;
and finally, that deprecated currency tends to
create and aggrayate panics. Senator Sargent. OF
California, not long ago said, on the floor oil the
Senate :-"Fortunately for my own State during
the past ten years, since these financial prob
lens became ointerest, 1t has had stable currency.
1t has had currency peculiarly its own. And
during all that time we have not had, by reason of
the abundance or superabundance OF money inna- |
ton Of values nor, when the business OF the coun.
try or other causes effected q proportionate de.
crease In the volume OF the currency have we had
prices falling, breaking down our business and re-
duciRg the value OF our property We have had
during all that time no panics OF any description
and scarcely q notable failure.r
This is a sermon in nutshell
OUR FOREIGN COMMERCE.
The statistics OF foreign commerce for 1872 and
1873, recently published by the bureau at Washing.
ton, are calculated to inspire confidence. Our to-
tai exports exclusive OF specie, for the year enuing
December 81, 1S73 amounted 20 a total, in round
numbers, of $3.50, 0oo, 0oo-an increase or no less
tnan sos. OO0 900 on the previous year. Our specie
ports last year were $50 0o0,o0 Goa reduction OF
$36 coo as compared with 1872 The import
trade also EXHIBITS satisfactory results, amount
ing last year to $685. 900 900 less than
in 1872. In other words, foreign has reached
q condition more healthy than it has been at any
time since the close or the war. The country is
selling more than it buys, and the panic has not
been without its attendant blessing in checking
the spirit OF extravaganza that expended itself in
the purchase OF foreign goods. The suspension Of
railroad enterprises, which IN turn gave employ.
ment to hundreds OF other Industries that re-
CURED the use OF foreign manufactures has ike
wise reduced the volume OF imports and given TO
the country chance TO get more nearly even with
its great European creditors. Alter all the true
currency OF the world is merchandise. That which
settles American balances in foreign lands is
CLEANED from our cotton and tobacco fields,
pumped from our petroleum wells, grown In the
wheat fields of the broad West and found in the
mines OF the Rocky Mountain and Pacific slope.
These will always have their standard OF value in
the settlement OF international accounts, ana it is
only an enemy OF his country, who, pretending to
be political economist, viii attempt to depreci-
ate that value at home by legIslating into exist
ence untold millions OF irredeemable paper cur
rency.
GOVERNMENT RAILROAD AND SOUTHERN SECURITIES.
United States bonds during the week were firm
and advanced In sympathy with gold. The BUSH
ness was alrly active and the demand more than
equal to the supply State bonds were quiet, the
principal feature being decline In old Tennessees
TO sSh and in tue new series to 67ls. Mis-
souris wee firm and found market at "a
q 94H. In railroad bonds good business was
done, and the advance that took place in several
instances seems indicative OF revival or conf
dence and return OF the favor with which this
class OF securities has heretofore been regarded.
Notwithstanding decline in the earnings OF MANY |
OF the railroads the large surplus OF money now on
hand is likely to be more or less invested Ia their
bonds In preference to encounterng the risks Of
the speculation that is likely to ensue in the near
future. ii this connection the
PRANK CONFESSION
OF President Thompson, OF the Pennsylvania Ran.
road Company, Win be read with interest for ii il
rarely that the public are created to such test.
mony from an ofhclal source He says
close examination OF the accounts OF this com.
pany will show that Its charges for freight upon
agricultural products scarcely bear the expenses
OF transportation, and on many Items the charges
for transportation are below actual COST leaving
for the conveyance Of the aggregate tonnage OF
agricultural products little or no profit TO the rail-
road company. This IL largely due to the irregu-
larity OF its movement and the comparatively
small amounts of backloading obtained, four
hitns OF the cars return empty The profits OF the
COMPANY from this source are almost wholly de-
rived from the transportation at higher rates OF
the valuable articles which the sale OF these pro-
ducts enables the merchants and farmers to pur-
chase In the East for consumption at home II the
shareholders OF Eastern trunk lines relied upon
the direct PROFITS from the carriage Of agricultural
products for dividends they would be disappointed
In their expectations.
Mr.. Thompson further shows that the average
charges on his road have fallen from 2.49 cents
per ton per mile In 1864 to 1.4 cents In 1sT3 so
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