The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-07

department to comply with this law.r Here il O
department OF the government which, according
10 the present Secretary, has always held thar It
haa Q "reserve' OF some 50 900, 600, explaining
20 tho representatives OF the people why for the
past ave months II had carried 30 large balance
OF funds on hand IN the face Of daily complaints
from the people, e, Wall street-thar by so
doing 1t was making money tight and times hard.
That explanation was (''to enable the department.
no comply with this lawn really made to the
people, although done In report to Congress, and
was In reply to the complaints which had been
made In the public press during the whole autumn.
In the reports OF December. 1871. Secretary Bout
well Is silent upon the subject; but Mr. Comptroller
Hubbard, In bis report to the Secretary, comes to
the 'front.' and In writing upon the subject Of specie
payments says:-"So prevalent was this view OF
,the case at one time that In 1866 Congress, in
obedience to what was regarded as
SOUND AND CORRECT PRINCIPLE
ofpolitical economy, provided by law for gradual
withdrawal and cancellation or United States
notes. DC. - TO the people this stringency
seemed to be produced by the contraction, though
It is now evident that other causes c0nspired
to aid and produce the result. This
opinion had all the force Of conviction in the public
mind. and foundits appropriate expression in an
act of Congress which became law In February
1868, prohibiting any further reduction Of the cur
rency; and so the matter now stands.n Further
on, In the same paper he urges the policy OF the
'repeal" Of the act OF 1S68-the act suspendng
further retiring and cancellng or United States
notes. There IL no evidence yet that the depart
ment SHIELD" that "reserven meant cancellation,
and, 1t was not until October, 1872, just prior to
the October elections, that the public received
their education upon this point, and the country
was startled to learn that the Secretary claimed
the power to Issue and to retire, in his Judgment
might seem good any portion or all OF the sum Of
$44,0o0,ooO The object Of the issue thus made.
whatever it may have been 1t is supposed was
speedily accomp lshed, for by the New Year It had
all been Withdrawn again. Here, in October 1872,
therefore, is the first evidence ever made
public that the department" held that
the law authorizing the issue of $780, 600, 900 Of
legal tenders-notwithstandipg the law OF 1865
provided for the ''retiring and cancelling" OF a
portion OF themwas Tin full force." 1t Is clear,
then, that the department had not "uniformlyu
held to such an opinion. II Is equally clear that
Secretary Boutwelldid not hold such an opinion
when he wrote hts reports Of 1859 and 1870, and it
Is almost Ger ain that .ras t7ll. .tl.r.
Mr. BOUTwELLs COMPTROLLER OF THE CURRENCY
did not so hold IN 1871. Now. when did this new
light some six years alter the retiring and can
ceiling law had passed., this new inspiration.
come to the department ?"
lift Is to be charged by the people to political
inspiration the Department. is at fault for
having SO long kept them in ignorance as to
the law. Aud now we come to the first public
document IN which 1t was ever intimated that the
department. entertained the doctrine which MIR.
Richardson says 1t haa "uniformiy heldn-Secre-
tary Boutwells report OF December, 1872. Space
will not allow Us to quote 1t, but the Secretary APP
proaohes the subject without reference to his
action in October and with an ingenuity worthy OF
q better cause. so1 .t1 m
SPECIAL ATTENTION Is INVITED
to what he says upon. the subject and compare
son with what Is quoted from bis statements in
1870. Whether the Secretary is right or wrong in
the assumption Of this power, the short expert
ence we have had or its operation has taught the
lesson that such power ought not to rest In the
executive departments OF the government. Ger.
tain 1t Ia that the action or October 1872 In the
issue OF some SIC, 900 PRESERVE" ADDED i'm
mensely to the mlsortunes OF September, 1878. It
encouraged q recklessness IN speculations, based
upon assured help from the Treasury in case OF
trouble, which did and must have proved delusive.
Yet, now again the Secretary-and this time under
plea OF necessity-is sowing the seeds for second
harvest Of disaster, which he will be unable to
stem. The people look for safety to Congress, and
inaction Will not save this body from responsibility,
AoA NVukACoo uiOAo ACSGo tuC dpauty w Voh w
account any oficer Of the government who either
assumes power or fails in any manner, through
neglect,or incapacity, to fulfil his duties. The cry
for innation comes alone from the Spectator and
debtor not from the solid men of the country nor
rom those who earn their bread by the sweat Of
their br0ws.
THE STOCK MARKET WOW
to-day maintained much greater frmness than
might have been expected under the circum-
stances. Bad weather deferred many operators
from coming to the street, and there was an ex-
hibition Of o purpose on the part Of q few to sell
the market 'short." No evidence OF permanent
weakness came to the surface, however, and, not
withstanding decline here and there recorded OF
one per cent and its fractions The confident under
tone OF the market was apparently unaffected and
the predictions as to further rise ia wise
abated. The changes of prices during the day were
not great and the one word ''steady" would per-
haps most fairly describe the situation. The open
ing, while somewhat weak, was followed by an I'D.
vance, Of which Pacific Mail, Columbus, Chicago
and Indiana Central, Northwestern common,
Western Union, Lake Shore, Union Pacific and
Rock Island enjoyed the benent. Later some
of the Improvement was lost--not enough
however, to make q noteworthy feature as indl-
eating an early or q serious decline. Among the
incidents OF the Stock Board was the sale OF
bnareS Ol new Jersey Soutnern, under the ruie,"
at 8, which had been purchased, as ia claimed by
one OF the parties to the transaction, 'n joker
at The statement is that the buyer agreed TO
take the stock by the bushel,n but when 1t was
seriously rendered scrpturally '.hid his candle"
under the aforesaid bushel Hence q probable ar
btration. As the little JOKE far, has cost some
$4,000, it is likely to be an example to others
whose hilarity occasionally runs away with their
rRUDENCE OF EXPRESSION. lat
Western Union opened at 7sk. sold up to rex and
fell or to 7Sx. Rock Island moved from lol to
1o4x and dropped TO 1oSX. New York Central sold
between lOOx looK. ST. Paul tcommon) was
arm at 45x 46X Ask. Pacific Mail
ranged from AK to Az, advancing at the last
TO AK. Lake Shore sold at SIX SIX SOFA 81;
Hannibal and St. Joseph ct 80 2sA 29X 80 20x;
preferred at sex a asX; Northwestern tcommon)
at COX Q cox go; preferred closed at TAX. Union
Pacific sold at 30H . SIX S0k 81 Wabash