The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-23
LESSONS OF THE PAST.
What $27,OOO,OOO Already
Issued Have Done.
MONEY ABUNDANT
Gold Firm-stocks "Sloppy"-Govern-
ment and Railroad Bonds Steady.
WALL STREET,

among
OF political economy is the foiowing:-"A CON-
mercial cr,s,s is the partial breakdown OF mercan-
tile credit; q financial crisis Is a collapse OF
speculative enterprise; panic Is partial break
down OF bank credit, producing q run upon the
banks for the payment OF deposits" We have re-
Gently passed through all OF these conditions. We
have had q "breakdown," "collapsen ana 'run."
The only currency during this experience was a
government promise to pay" and a national bank
issue. IL purported to represent gold. Good
naturedy, and, as matter OF necessity, the nation
accepted the obligation. War generated patriotism
and patriotism overlooked
MULTITUDE OF FINANCIAL SINS.
We piled up immense debts abroad We mort
gagged the country to foreign bankers Govern
ment, States cities, counties towns, railroads.
all made "paper promises to pay" and because
we were nationally rich and full of resources; be
cause we had only to "ticke the soil with hoe TO
make 1t laugh with q harvest; - because we were
absorbing the emigration of the world because
gold, silver. iron, COAL cotton and all the products
that enter into the cOnsumptive demand Of man
kind were indigenous; because we could create
and supply, We commanded
A CREDIT ABROAD
which enabled us to run into debt to an amount
that is to-day represented by between
and g. 600 OOO 600 The interest thereon, annually
payable In gold, is much greater than appears
ADDED to this drain Is that made by our extrava-
gance We probably spend more for outside lux
uries than any nation on the lace OF the globe.
Nationally. are living beyond our means
Stamp an article of trade London" "Parts" or
''vienna," put it side by side with the same arti
Gle Of American manufacture, and
AN AMERICAN WOMAN
will turn up her nose at the latter and pay tribute
for the privilege OF saying a fashionable circle
tinually adding to the weight against us. Piling
the excess OF imports upon the amount due In the
shape OF other obligations, we are continually In
creaalng the strain upon Q debtor nation.
France. emerging from a great war, taught US a
lesson; but we are slow to use IT, France lives
within herself-within herself controls her ma
tiona debt, and every hour developing greater
financial strength. We OF America on the con-
trary, are every hour plunging in more deeply. We
make paper, give it a name-caH it money; water
Its volume to suit necessities, just one would
water brandy; yet behind it all, Notwithstanding
we population OF 10000, 600 and the cynosure
or the civilized world there not iOta OF real
commercial value to give even American 'fegal
tenders' character beyond our national domain.
We produce gold and silver and are bare OF
both. We talk about specie payments, yet count
from day to day as part Of the national treasure
fully half of it in the shape OF yellow back"
paper. This Is
AMERICAN FINANCE
In the face OF it all there Is demand for more cur
rency. Twenty-seven millions OF dollars have
already gone out from fund, the issue OF which
Ia so doubtful from legal point OF view that Con-
gress Is called upon to justify it's use by new law
More Ia likely TO follow But, strange to say, not q
dollar Of the outlay from the reserve" has yet
turned wheel or stirred into life OF the inter-
rupted industries Of the country. 1t has simply
tSwlsa nnvE nvA ivSND b.
ofthe Wall street speculator. 1t has helped men
who are moving stocks to
DELUpR THE PUBLIC
with an tdea-to make canaerd-obscssyu pictures
on che wall and gather in the millions that poor
o. dupes paid as the cost of the show. And Congress-
all chaotic and befogged, is helping the exhibit
t1On. Demag0gues like the boys at DOtheboys
Hall, are crying for "Morew The South and West
are said to want 'more.' Money is declared to be
unevenly distributed. In the south senator Cor
don states that the people have less than So per
capita. Granted. 1t is a fact that obeys natural
causes Good money will not usually follow that
which has proved bad. Men who overplanting,
men overloaded with mOrtgaged property, men
who are driven to the strait or paying IN anu
per cent month to help themselves out of debt,
men whose securities are fringed all around with
DEAD WEIGHTS,
will not attract currency. 1t is not wonder that
IL refuses 70 move IN SuCn ClreCttOnS. congress
may iegisate into existence hundred millions
OF new paper dollars, but without a corresponding
movement OF industrial enterprise the amount
will hnd no save IN promoting and provoking
speculation and producing the very evils which
are doubtless sought to be averted. During the
war we could use the entire bulk OF currency in O
healthiui manner, because every mine, water
power. steam engine, loom, plough and spade was
In active employment.
LABOR MADE TIE VALUE.
Dollars found legitimate employment and COM
pensated or their use. Products were the equiva-
Tents oil gold. Now we have entered on a new
phase. We are doing less business than during the
war; aud we do not need more currency. An IN
crease OF volume over the wants OF general bust
r1ess means depreciation. We need a currency
that spaIl be on par with specie-which shall be
convertible nexible and adaptive to the varying
conditions OF commerce and trade. This feature,
however. opens range OF thought the considera-
ton OF which must be deferred, for want OF space
until another time
THE STOCK MARKET
requires scarcely more description than is
involved Ia the one w0rd--tredl The day
was quiet. and the transactions were con-
fined chiefly TO brokers and local specu-
lators. There were no symptoms Of outside
buying, and the exhibition OF cautiousness in
making ventures for the future was 80 well marked
as to elicit comment. me active stocks were
Western Union, Union Pacific, Pacific Mail, Lake
shora New York Central and wabash. The follow
Ing are some Of the prices OF the day western
Union opened at 7ex. sold down to IS 7Sh,
up TO 76A, and closed Al 757.. Pacific Mail
sold at 42H AZ 417s 42ts Ak AZ
New York Central at lO4A q 104h 1881 a l04h !;
northwestern common at CIR 6l3s 6O,< COS (;
DO. preferred At TN 72@ 72A 721a; c., @. and
y. AZ Slh siH a 3lA a 31e.; Hannibal and St
Joseph az 32k a s2. 80; Wabash at 54,1 "a.
63x %. Lake Shore moved from so5s down to
791S, recovered to sos, again receded and closed