The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-23
A Glance at the General Laws Influencing
Money Values and Their Operation
as They Relate to Us.
Larger Production the Means of
Our Future Prosperity.
HOW THIS CAM BE ATTAINED.
Local Duluess as an Incident in
Money Market History.
WALL STREET,

The week just closed has impressed itself upon
the life and thought OF the street two ways
that 1t will carry through all time as the record Of
its influence. In the first place 1T has put the New
York Stock Exchange it's defence before the
world. Gambling Is a term applied in certain
circles Of contracted understanding TO the daily
operations which take place in the various stock
exchanges of the world. The fraud or forgery of
last week places the New York Stock Exchange in
the position that II not ferreted out and punished
1T viii bring upon it the od.um OF conduct OF
business that, even among gamblers, is regarded
with feelings OF disgust The street seems to feel
that way, from the fact that the Governing Com
mittee, through whose weakness mbecility or i'm
perfect direction the fraud was rendered possible
are just now the subject OF
LARGE AMOUNT OF CENsURE.
In fact, the chances Of their removal are being
'canvassed. However, this is matter for the
Stock Exchange, who must accept the acts OF Its
appointed servants or masters-call IL which you
villas its own, and the question is still pending
on The street In this relation, What is 1t going to
do about it ' Something must be done to lift the
incubus OF distrust from of the financial body
which the Stock Exchange represents. 1t is no
longer good joke to fleece the outsiders out OF
their small investments even if it BIZ only to the
extent Of So 00o,oo0 We are longer In the will
derness. The application Of steam power and the
telegraph has made New York socially suburb Of
London or Paris or Berlin. Consequently, we aim
at responsibility. The little game practsed IN the
matter of Wabash and western Union was not re.
spectacle. 1t savored something of the style Of
dealing which msinformed writer's OF fiction and
in some cases imperfect observers are apt to give
OF the American habit This SANDER has lasted too
long. We are not a dishonest people, else would
we not have
THE ENORMOUS CREDIT SYSTEM
among sharply suspicious people which came
near bringing us to grief last fall The late fraud
In the Stock Exchange which, like blessings in dis
guse. has come to us in doubtful shape, furnishes
to the Governing Committee an opportunity to
vndicate our character abroad. The question
plainly is asked on the street, Is 1t capable OF rs-
ing to an understanding Of the situation that will
determine prompt action or does it need the infu-
sion OF new thought Time only can determine
this. unless the Stock Exchange presses home
solution of the popular inquiry.
This was the local sensation. Apart from that
the general Wall street markets were extremely
dull. waiting upon the action Of Congress. Even
that body. although probably in earnest in it's
EFFORT to meet the popular wish and the popular
necessity at the same time-it would be treason to
republican institutions doubt that purpose
moves very slowly. The discussion, however, has
evoked certain conclusions as likely to result
which are accepted by leading minds the street.
Thus
THE LEdALIzAr1oN OF THE ISSUE OF THE FORTY.
FOUR MILLIONS
reserve Is accepted as almost un ,dit dccomph.
This IS rendered necessary by the necessities OF
the republican party, which cannot afford go be.
fore the people impugnlng the good faith or good
Judgment OF its own Treasury Secretary; for,
whatever may be the private points OF difference
between the Secretary and the Chairman OF the
Ways and Means Committee, or the Committee on
Appropriations or the Banking and Currency Com
mittee, the republican party Is responsible for Mr.
Richardson and his acts to-day as they respon-
sibe for President Grant. 1t is the weakest point
In their armor, and they are not going to weaken
1T further by advertising the fact. Thus we may
safely count on s40o, 900 Of legal tender circu
latton and the question comes up here directly, II
the country is able to absorb 1856 600 600, is it
likely be burdened by the addition OF s44 oOOa
And common sense says No. We will soon grow
up to it, Better. anyhow, the limit q $500 ooo, 900
tnan the present effort at producing III elastic
currency In tue daily alternate contraction or ex-
panslon, which is about on par with the silver
resumption plan. 1t is sound policy to take
THE GOODS THE GODS PROVIDE;
out It Is to be hoped for the credit OF human ma
ture and the future OF this great and glorious
country that when next we want u Secretary Of
the Treasury the gods will see that they have on
hand better article We stand before the world
to-day in the throes OF financial labor and not one
in our midst able to promise successful accouch-
ment 1t is the parturent mountain. and the
chances are ten to one that the result win be a
ridiculous mouse. Thus it is necessary to get rid
OF theories to a certain extent in attempting 10
deal with this question. One must bring his
thought down to the level OF the average Congress
slonal understanding, and when he gets there he is
likely to learn that the average Congressional I'M
derstanding Is nearer right than he was himself.
Optimism belongs to the millennium. The pres
ent calls simply for availability. so Congress
has dealt, or seemed to deal, with free banking,
which it has had before it. Free banking, pure
and simple, is impracticable at the present time.
whether it is a lack OF inherent honesty or tn at
the present national bank system has demorazed
u.s. it would not be safe Tor us to go back even TO
such perfect system Of Tree banking as existed
in this state before the Wharf.-The best, perhaps,
that was ever devised. But we may have Tree
banking upon government securities as a basis Of
circulation. OF course, 1t Is only euphemism to
call this Tree banking, but it IS step in that drec
ton. Besides, it will help Us in the process OF
funding. Bring out the 4 and per cent bonds,
and keep our interest at home. There Is large
instinct among our people now in favor OF
a new class of security that shall represent
the English consol, and be either irredeemabe
or have so long to run as to insure
safe annuity for at least one generation. Til ere
is large amount of trust funds. that would seek
such an investment at once. Late events, espe-
'cally the recent panic, have brought home to us
knowledge OF the error we committed In attempt
ing to pay or any portion Of the principal Of our
debt before maturity. The hundred and odd MIL
lions paying per cent interest invested IN the
industries OF the nation, would have produced
more than per cent return, ana so left us
profit after paying this interest. In other words,
these millions borrowed at g. per cent were
WORTH MORE TO US
than the relief we gained In returning them Our
true policy is to postpone the payment of our debt
to such time that the country has grown and de-
uaoned reaaurces which w dwar