The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-20
WALL STREET WAITING
Thc Simple Duty Of Congress to the Business
v.r Interests Of the Country.
NO I N r L A It L O N /.
resumption the Objective Point of Sound
esaah Financial Policy.
IT r AIDE FIG UR Il S
WALL STREET,

"A fI
WALL STREET,
.r.. THURSDAY Feb. 1916 p. NJ.
There has been much discussion and argument
In Congress upon the financial question, but with
little result. The trouble with the Congressional
doctors appears to be that they do not understand
the character OF the disc under which the coun-
try Is laboring. They almost uniformly seem to
think it Is the want OF currency, and so call
for innation. whereas the real fact Ia we have so
much currency that Il Is dl1icult to ind
employment for 1t. With money pressing for use
ON the street at and S per cent we have what
might be called sad exhibit OF industrial dulness
East and yet that same money can command
three times that amount OF interest in the Western
states-vlz., IL to Is per cent-n 1t would only go
there.
IF GENERAL BUSINESS WERE ACTIVE
there would be no such plethora OF unemployed
capital at this centre any other money centre.
The whole trouble lies with Congress. 1t has ap.
preached this subject OF financial reform, In the
first place, ign0rantly, not understanding either
the outspoken wants, and much less the hidden
INSTINCTS OF the people, and the only remedy 1t
has produced for the prevailing distress has been
imitation. Imitation Is no remedy. AS well try to
make one bottle Of whiskey I'LL two bottles
an argument which we use as coming
home directly to Congressional understands
ing--as try to make $400,000, 900 OF pa
per money, or any other amount, without
any redeemable quality in It, worth more than
$685. 900 oil the sort of scrip. This is the
rock upon which the innarionists split, In sup
posing that they can increase the circulating me-
dunn OF the country In paper without correspond
dngly reducing it's purchasing power. Our legls-
lators have made almost the same mistake in re-
gard to t.. ..
'lpH FREE BANKING
which they appear to regard as an unrestricted
issue Of national bank notes. No such thing. Free
banking, II extended to note issues involves the
principle that the note issued by bank
shall have in the community to which it
Is presented exactly the value which
the popular knowledge its chance OF redemption
gives it. This commercial government OF 1t as
token Of exchange ensures the necessary security
behind it to MAINTAIN its value otherwise it sinks
In the scale Of acceptstion precisely In the proper
ton Of the risk OF its ultimate redemption This is
free banking, so far as the currency question Is
concerned, In nutshell and properly belongs to q
condition OF specie payment on the part OF the
government. It Is unfortunate that Congress has
not risen to a sense Of making some public decla-
ration of Its purpose to tnaugurate at its earliest
agreement some policy which would speedily
PLACE THE COUNTRY UPON A SPECIE PAYING BASIS
and bring about the redemption Of all outstanding
demand obligations in gold or its equivalent.
the payment Of the interest on the public debt.
and very much to their advantage. Another decla-
ration such as ts here pointed out would still the
popular anxiety In regard to the wild schemes Of
the innatonists and give assurance to the busi-
ness interests OF the country that the existing
government was not mere ephemera but one
seeking the true advantage OF the people and
closely allied with their ambitions and purposes,
which in spite of all the argument that represen-
far fnv{o Of fnpfoI
presidential honors may use has reference to
material, not euphemissic, values.
THE FORGERY FRAUD
on the Stock Exchange was stii subject OF dis
cussion on the street, and Mr. McKaye, despite his
enervescent revelations, met with but little SYM
PATTY, even under circumstances the most likely
to call forth an expression OF feeling. H. is well
recognized, however, that the New York Stock
Exchange has but one duty to perform in the
premises, II 1t would preserve itself on the same
level with the London Stock Exchange, the Paris
Bourse, the Berlin BOurse and the Frankfort
Bourse-viz., to press home the investigation with
such vigor and determination that the perpetra-
tor of the fraud may be discovered and punished;
otherwise the New York Stock Exchange will find
it hard to entirely relieve itself OF odium. Else
where will be found what has been done in
the matter. a isg.-t-..
r GOLD CLOSED AT 112X.
The range Of the price to-day was from 1l2x to
1l2X. The market was without special interest.
The Assistant Treasurer paid out $2O3 900 in gold,
and $24 Is in silver. Foreign exchange was dull
and steady at previous rates. For gold loans to
per cent was paid for carrying. The bullion In
the Bank OF England has increased f273,0o0 during
the past week. The proportion Of the bank re-
serve to liabilities which last week was ASK per
cent is now 4sx per cent The specie in the Bank
OF France has Increased 42.4sa,ooo francs during
the past week. ia i..
MONEY IS FOUR AND FIVE PER CENT.
An unhealthy sign while we keep our legal rate
OF Interest at per cent, and make real estate pay
q double rate In the shape OF o tax on mortgages
well as tax on real estate direct 1t represents
unemployed capital that should be engaged in
stimulating the industries OF the nation, and Con-
gress blame for 1t that while 1t nestates upon
q solution OF the financial issue presented to 1t
large amount OF capital viii avoid anything like
permanent investment and produce q surplus
of funds seeking temporary employment.
THE STOCK MARKET,
however does not seem to benefit much BY this
REDUNDANCY, out rather shows an absence OF spe-
cial interest western Union exhibited slight
squirt this afternoon, and advanced to TX.
Northwest was also nrm, but otherwise there was
no particular development in the share list that is
not shown In the prices. The following were the
highest and lowest prices OF stocks during the
day ,
Y. c. and Hudson consolidated .105h 1o4X
Lake shore. ......'..'..'.''' oza 80
ROCK lsland. -; -; :. TOT 1I,Z