The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-21
vERITABLE DULNESS
Free Banking Radically Considered, and with
Reference to the Understanding
Of the Average Member.
Facts, Figures and differences as Ap-
piled to Current History.
THREE C's AND I.
WALL STREET.


Tho street to-day. in the absence Of any special
excitement, was interested in considering the
question of free banking. II 1t were matter ar
fecting a trade union directly we should have q
lively discussion. but the average sentiment OF the
street being only directed to efrervescent stratum,
without reference to its effects, produced, a. q
natural conclusion. dulness. The circumstance,
however, forces the inquiry, la aa
WHAT Is FREE BANKNGf ,a a.
Fairly considered IN It's largest sense, 1t is away
beyond the present conception OF Congress, and,
being so, it suggests the Importance OF getting as
much from that crippled conception as ts possible
in the way OF legitimate return. Thus. free bank
tng. pure and simple-and the writer overloads
this article, to bring 1t home to Congressional
ACKNOWLEDGEMENTS On unlimited issue Of paper
money. which people take for what 1t Ia worth. II
the popular voice, in examining bill, suggests
that President Barnard OF the Five Points House of
Industry, or Mr.. Brace, Of the Children's Aid So
cety, endorsers certincators, are unreliable,
It might provoke distrust and large discount,
but the average bill would be taken at Its face
value ana the discount regulated by the chances
of redemption the Five Points House Of Industry
and the Children's Aid Society to the contrary
Notwithstanding. However, the problem OF free
banking, tmperlecty named, now before Congress,
purposes something different from this. 1t is not
tho thing wanted; but 1t is progress towards 1t.
and the question Is whether 1t Is not better to take
half loaf than 60 hungry. There is i
A STRONG PRESSURE
bearing upon Congress. which Is bound to be heard
In favor OF free banking upon government bonds as
the basis Of security for circulation. The plan
purposes the use Of government bonds as a basis
of circulation, and the withdrawal of such bonds
when the value OF money makes circulation redun-
dant. 1t is really the plan
form and thus Objectionable. The compromise meas
ure which leading nnanciers advocate now, first as
ameans OF relief, and secondly as Fastening that
millenial period when greenback dollar will be
worth its face in gold, Is simply funding. The
latest operation Of this kind did not pay but II we
make an effort in that direction there is conf.
dence enough yet in the Treasury Department
that the entire six per cent loan can be funded at
lower rate Of interest. It Is certain that
IF CONGRESS- WILL AUTHORIZE
30 much Of free banking as permits unrestricted
circulation upon government bonds the ives
being soon exhausted, the four and one
half and four per cents viii soon
be called for as basis OF banking.
This Is not free banking Of course, in the sense
OF the theorists, but 1t is question whether it Is
not quite as much In that direction as 1t would
be advisable, in our preseno condition, for US to
attempt We hear great deal about resumption
and the conversion of the outstanding legal tender
Issue lntO coin. ibis WOul0 De all very wei II we
were in q condition to make that redemption, but
1t Is just as well that 1t should be distinctly
understood that neither from our agricultural
sources, from our commercial profits our man
ufacturlng balances are we capable OF putting our
foreign exchanges on q par with the rest Of the
world. We are O large creditor nation. The money
we borrow is worth more to us than what we pay
for it; hence, while we are drained to pay large
interest burden abroad, we are using the money
upon which we pay interest to a larger advantage
that enables US 10 pay this tax ana yet make
profit. t'f
THE GENERAL WALL STREET SITUATION
may be described as steady, with lew changes, at
all events, In the gold or stock markets. to excite
comment. This, in the face OF Secretary Richard.
sons little effort to create IAN elastic currency
BY contracting and expanding greenbacks Gd
yl0tttszn ls worth notice. There is strong feeling
OF opposition on the street to Mr. Richardson, and
II he should appoint his funeral it is quite possible
che stock Exchange would adjourn. The neigh
boring matters, anyhow, would be sure OF a
slightly increased demand for mourning bands.
The following figures show
,4ro' HOW GOLD RANGED
during the day; not very interesting exhibit, but
showing how near we are to resumption from Mr..
rpSc