, 1874-03-02

roncy 1t will make largor amount Of curro.cy
ncccHHary to perform tho Aatno transactions II,
which yol, would have to pay for tho sum yol'
Wnnt for tho same transactions would noceB-
snrily DO larger, That, tl,lnls, is obvionB.
~ tho second place, whon tho currency Ia
iuiatoa
TT 1Nc1rEs SPECULATION AND GAMBLING.
This fact IL Ho notorious TINT nobody questions
1t. Speculation and gambling, denling III lnrgo
yonturoA Md working for very largo profits, In
III tllom to pay high rntos Of interest In order to
obtnin tho money with which to hoat their
speculative enterprises from which they expect
such largo profits Az sool, ms speculation ru1cs
tho money tnarkot, tho ratos Of interest will
thoroforo nocessatily rise, and Legitimate buui-
moss, from which money Ia diverted by specula-
ton, must conform itsolf to those high rates III
order to obtain tho money which 1t moods and
hence general r1ao Of ratcs.
But still another olomont comcH In hero to
prolnco tho Same ofEoot, and that In tho olemont
Of rlak. When m irredoomablo currency IL in-
aated, 1t doprociates In raluo. Tho cnpttast
who londs out money must take tint contngon-
oy into consideration. Ilo has To run what
| havo already called
| THE dAs1nL1Na n1Bg,
Now, SUPPOSE tho sonntor from Indiana had
$1,000 to'lond out. II Ito wore askol to lend
1t out, say on three months, ho woull have to
consider whothor Mt tho tmo when tho loan will
ho returned 10 linn his 100000 will bo worth aa
| mnch M when he lent 1t out. Tho currency boz
| Ing intlatod and depreciation being the conso-
! quoncot ho will aak himself whether tho paper
dollar, ,wlchy, Say, at 10 porcont discount to-day,
wtll not DO as 1G per cont discount whom ho gots
| his money back. Undor ordinary circumstances,
| with currency Of stable valno, lo may DO will
Ing to lend out money my Mt por cont per year
but when he In exposed to tho oi,anco OF loBing
Ill three mouths nor cent, Or iii ono month
por cont in tho valuo Of tho money tnyoslod In
tho loan, tlon l,o will certainly not Id
willing to. lend out Tint money at ono
simple roaaon TINT it would 10 losing
business to tho amount OF and ~ per cont 4
month. What will l,o do, theroforo2 .1Go will
III III probability not bo disposed to Loud out his
910e, QUO on throo months limo ut a!l. IIe will
profor TO lend 1t out on call III the irst placo, 80
Us to bo able to put lliB hand npou 1t Ms soon us
| tho chances SO turn that llo nny loae by leaving
It out longer whore 1lo has put 1t; but even tl,on
o will want to covor his risk, and he will do Tint
by domanling higher rate Of interest, sufficient
to coyor that risk. Honco It il TINT 1oanH on call
aro preferred, and higlor rate of interest III
demanded by londors to coyor tho gambling rink,
under tho inucnca exercised by all itreleemN-
bio CURRENCY, Which, by it's tluctuations, render
secure.
Gentlonen complain that money cannot bo
lad except on call. There Is nothing surprising
in this. There aro, under s,1cl, circumstances.
Two good reasons for tho unwilngneBa Of loud
ers to put out money otherwise that on call;
they arc tho following a lack Of confidence IN
the stability Of blBinoss mud, secondly, tho
growing depreciation Of our paper money III
creaaing tho gambling risk. But II wo initiate
tho currency still moro, tho prenlium on gold
will rise still higher and tho OWL complained Of
III to loans will not only not be rc1nodied, but
WILL BE VASTLY AGGRAVATED.
The faot TINT ut tho prosont moment 1oanB aro
comparatively easy in tho money market has
becn roiorred to az eontradictiug this Wow. It
docs not contradict it Mt all. The crisis hns Grip
Piled onterprieo generally. md especially Bpcc,,-
lativo enterprise. Speculation has had no time
yf yet to recover re- , and to produce its effects.
ont limited requirements of business, and
although wo hnvo Ind MI addition to tic cur
roncy OF twonty-iiye OF twcnty-slx million dol
lnrB, yot much Of tho money Tint makes up that
mont lying idle, The addition has not exercised
itH influence yet, but it will, without doubt, OK
orciso that influence and produce itH effect soon
Speculation M II aiready reviylng; ne observe it in
is rovislng in Now York, as everybody Boos. It
III rowling rapidly. If we intlato tho currency,
wo shall hayc much moro speculation than wo
had before; md with it, and with further do
a o. at our papen money 1 The effects
will rapidly appear, with asl their oppressive
eno1 I05 asi'g ~ Ia,.s o5sr gyo esap
p1e Of tho West and South will learn 20 their sor-
row that irredeemable currency IL indeed not tho
people's money, aud that BY extending and
STRENGTHENING that pern,ciouA syatem they hayo
brought o curse, and not q blessing, upen th ose
whose interests thoy pretend to servo.
a lew days ago received from friend In Eu-
rope
A s1osr SIGNIFICANT LETTER,
to Which an answer was requested. Tho writer
ls a merchant who dcHlroH TO retire from busi-
hess. lIo writes INC to this offeot IT can rcn-
izo out Of my business several hundred thou
Baud dollars, aud should like toinycst, my money
at good rate of interest. have thought Of
investing 1t in tho United StatoH on MORTGAGE so
curity, which, as I am informed, bears from to
10 per cent but loaru also that you are likely
to initiate tho currency i'll the United States
which, Of course, will result til depreciation. 1
would now asl whether it would bo sato for mo
to make such M Investment in mortgage loang
in the United States while there ia q chance that
your legal-tcnder money may deprocate 80 that
would lose more by tho depreciation OF capital
invested than would gain by the intorest
I nak the Senator from Indiana what answor
would ho give. at this moment, to that gontle-
man. who wants to Honl several hundred thou-
sand dollars to thc United statos in order to III
ycnt them loro2
Mr.. AIORTON-I will answor it aftor while, 7
think to your aatisfaction.
AIr. aCHUnz-Will not tho Senator answer it
now2
1lr. l1OnTON-No; not now.
Mr. SCHUnZ-Ho will probably give tho game
answer that the Senator from Illinois [Alr. Lo-.
gnn] Las juat given III an undcrtono, "Writo
him to send it OIL" Let mo tell Senators that
cannot very we'll expect Foreigners to send along
thelr lnonoy When tho chances are tint they will hrcr
loas iu consequence Of financial policy, Sen
stota ought not to conceal from themselves that tie
credit Of sh!H country has t.
;Mosr SERIOUSLY SUFFERED
by tho uale Of stocks III Europo which have turned out
to bo worth far 1esB than they represented to be-
consider it my first duty III citizen OF hy Uu,tcd
sateB ns IN American, to deal fairy and honesty with
the foreigner as we'll aa with tile colutryau aud ~
a. an Acrican WHO has tho hunor Of tho country ut
heart cannot afford to induce foreigner to invest
money n venture concerning which nYe such good
reaaon to fear tLati VII BE- losing baBtness., lsla
toll thRt gentleman, Henl your money hero and tell
a yur friends 10 send theirs III aoon VI We entor upon
policy TINT will DO directed toward spcoo paymens,n
for then shall knaw that tho yaUo Of tile t.rita 10
investod viii be safo; but should not consider it
honest uavicc, did tell him to convert ha gold Into
your pler rouey, long NJ there tH taugor tat tho
paper moMoy might DO dopreeat8d BY intlation.
Mr. CAMENON-I trust tho k3eAator will allow mic To
Interrupt hin, for m0,nent.
Mr. kCIlujtX-Certanly; with great pleasure,
MIR. .CAAlEliON-Does ho believe Ae will 10 swim
ding his German frensa by advising them to seud
tolr money hero aud invest 1t in mortgages pol goo
lands, aud good llnlscs, anl good buildings lero2