The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-19
FINANCIAL And COMMERCIAL
The Senate Bill and Its inconsistency
with the Presidents Views.
WILL HE SIGN 1T /?
Gold Steady at lls "a a lls rs reenbacks
Worth 81 Cents and s Mills.
STOCKS TO-DAY UNSETTLED.
WALL STREET,

WALL STREET, |
SATURDAY. April lS--6 p. NJ.
1t Is difficult to understand how the President
can so lar stutiiy himself as to sign the Senate
Currency bill now before him. or to permit 1t
without veto to become law. In his Message to
Congress he declared. with more than usual en-
phass and with detail OF statement which
showed his carnestnesa OF that tlme that 1--WE can
never have permanent prosperity until specie
basis reached. Elasticity to our circulating
medium and just enough OF it to transact the
legitimate BUSINESS or the country and to keep all
Industries employed Is what is most TO be desired.
The exact medium is specie, the recognized
medium OF exchange the world over. That OBJ
tanned, we shall have currency OF an exact de-
gree OF elasticity II there be too much OF 1t for
the leg innate purposes OF trade and commerce it
viii flow out OF the country. II too little the re-
verse Will result. TO hold what we have and to
APPRECIATE OUR CURRENCY
TO that standard Is the problem deserving the
most serious consideration OF Congress- In his
recent interview with the committee represent
ing New York capitalists the President reiterated
the foregoing views saying, in substance. that he
was always opposed to expansion without re-
demption and in favor OF free banking, accom-
panied by such legislation as would carry out the
pledges OF Congress and the party IN the direction
OF rhe resumption OF specie payments Again
2nayzing the senate bill. let us see what il means
and how it contrasts with these avowed princi-
pies Of the Chief Magistrate. FIRST, the maximum
OF legal tenders Is .'fxed" at $4,000 900. This
means the breaking OF pledge made by the
crnment, for IN the act OF June 3o 1861 we ind
this provision:-
Nor snail the total amount or United States notes
issued TO be issued ever exceed $780, 600 000 and
such additional sum, not exceeding $50 600. 000 as
may be temporarily required for the redemption
Of temporary loan.
The temporary loan- here referred to WAS
redeemed SO that $500, 600 was the limit. Sub
sequently Congress passed the act OF 1906 author
ixing the returning ana canceng OF legal tenders.
which provided
That OF the United States notes not more than
$10,Oou,0OO may be retired ana cancelled within
months from the passage of this act, and thereafter
not more than s4,o0o,0oo in any one month.
The latter authority was not suspended until the
9Th OF February, 1868. up to which time the Secrc-
tary of the Treasury wisely recognizing
TUE IMPORTANCE or GRADUAL CONTRACTION
OF paper, with the view OF ultimately reaching a
par value with gold, had retired" and can
cclleu" $4,000 000 II there is any meaning IN Ian
guage this was the end OF that amount OF legal
tenders. II appears however that these notes,
although temporarily RETIRED" were not "can-
celled" for they nave, more less, made
their appearance at sundry times sDce, and 1t
has been reserved Tor the present Congress. while
seize upon and 'legallzcn this sum "a legitimate
part OF the money OF the country. The President
ii understood to have favored the issue and hence
he doubtless regards the action OF Congress ana
1ts large vote as an endorsement OF his judgment.
Nevertheless, IL means Expansion without re-
dempton.n 1t Is practical cheat upon the
people,
DELUsioN BY A PRINTING PRESS.
production OF mere paper without the specie
basis demanded by the President and CORE
spending destruction OF real values. Hence we
repeat the signing or the Senate DILL viii be con-
trary to the expressed opinions OF the Chief
Magistrate. Second, the measure further pro-
poses to increase the national bank circulation
by the sum OF s46O00,0o0. There is not a line
IN 1t that looks to the appreciation oil dollar OF
this form OF currency, or gives to II single element
OF elasticity "lree banking" 1t simply apples
a hard rigid rule to the country, whereby II is ex
pected that some great financial reform shan De
wrought out 1t seeks to compel an ACT by "A lock
ing up OF reserves that will DISTURB every great
monetary centre. Instead Of causing contraction
that may eventually lead TO resumption, it dimIn-
ishes bank facilities, intereres with the natural
Cow OF currency and the profits to be derived
therefrom, and, short, destroys the very ..cas-
tIcityn and other possibilities about which the
President expresses such anxiety in his Message.
II he would be consistent let him wipe out with
one stroke OF his pen the whole OF the monsrrous
propositions contained in the senate Currency bill.
THE BANK STATEMENT
for the week was unavorabie. showing loss OF
$1,O79, l25 IN The legal reserve. The banks
hold ST. $751; 200 in excess OF the Is per cent re-
CURED by law. The total liabilities increased
$1s9,7Oo The decrease in specie 1921. 500. and
IN legal tenders S409.yO0. The Increase deposits
was $I47, 200. The banking institutions appar-
entity awaiting upon the action OF Congress, and in
the dilemma that has been enforced naturally
unable to pursue any other line Of policy than that
which is suggested by conservatism The follow
ing are the hgures:-
Apf'u IL. Aprl Is. Differences
Loans $293. 666, 300 $293 46i 700 Dec. S2Oi 900
Specie .... %, $50, 400 23,2l3o00 Dec. 62l. 500
Iega tenders 55,573, 500 65,l63,9uO Dec. 400, 700
Deposits 235. 69l, 700 23s, s3S 800 Inc. 1920
CirculatiOn.... 26, 197a00 .6,S40300 Inc. A., 500
The following shows the relation between the
total reserve and the total abinties:-
April H. Ap91t Is. differences
Specie $25 S35, 400 k23 2i3, 600 Dec SOL, 800
Legal tenders 55,57S,s0U 30, l63,90o Dec. 100000
Total reserve SO 200 s7s377. 500 Dec 700
Circulation. 28797 500 20, $40, 800 Inc. 1880
DcpOslts 23s, 69i, 700 23s, 800 Inc. 147,2OO
Tot liabilities 265 265 679, 300 Inc $780, 700
25p.c reserve 66,312,375 Co. ale,s0o
D. c. reserve lsoso,s25 r1957.7oO Dec. 1919, l25
THE UNITED STATES TREASURY
The balances in the United States Treasury at