The New York herald., 1874-01-31
The Legality of the Excess
in Legal Tenders.
WHITTIER ARE WE DRIFTING {?
Our Necessities, Remedies
and Possibilities.
A STRONGER STOCK MARKET
Money Still Easy and Gold
a Triae Lower.
WALL STREET,

WALL STREET,
FRIDAY, Jan. SO p. M.
Until Congress determines the status OF the
600 of reserve, and definitely declares to the
country that go much Of 1t as has already been Is
sued is illegal and unwarranted our legislators
viii quarrel In vain over their respective financial
propositions. The legal tender issue was war
measure-made as o matter of necessity. 1t is r-
redeemaDle, or rather has thus far been unre-
deemed; yet it is the basis Of our vast bank crcu-
latiOn.
TIE SUPREME COURT
gave It character to a limited extent, and when
that was reached no power could subsequently
legally extend its use 1t was never Intended
that government should go on pling up
this peculiar class of obligations. Hence
every dollar that has been issued or may be
hereafter Issued in excess OF $356ooo,o0o is ga
lie" illegal and damaging To the best commercial
interests Of the country. Members OF Congress-
ooeying what they conceive to be the demands OF
their respective constituencies may plead Tor In
nati0u. but there s no plan whereby this result
can be erected that will not be in direct conflict
with the provisions OF the constitution. II
FINANCIAL RELIEF
IA to be legitimately obtained 1t must come from
some other source than an increase by the govern
ment OF its present paper currency. Free banking
ofers the only solution Tor the difficulty. Free
banking will adjust itself to the laws Of
trade and the necessities Of commerce. Un-
der Its operations money win now wher-
ever 1t is most required and replenish the
Golfers Of any section of the country from which
now come complaints OF barrenness and want.
But the government should have nothing to do
with 1t. One OF the greatest evils OF the moment
is Q disposition to centraze power-to commit to
the Treasurer Of the United States
THE AUTHORITY OF AN AUToCRAT;
the right to issue and contract the currency OF the
country at will the privilege OF interfering with
and disturbing the known laws of trade; the
agency OF millions OF dollars, the movement of
which in his hands has already affected values to
q degree that cannot be estimated. The true plan
OF relief is to resume specie payments. 1t may be
accompnshed-frst, by severe retrenchment on the
part OF the government; second, " the exercise
OF economy on the part OF the peoples 80 that, saw
ing more than we spend We shall eventually be-
come o creditor instead OF
DEBTOR NATION,
reducing imports, enhancing exports and thereby
promoting return OF gold to this country. instead
Of being yearly drawn upon by every trading ma
tion in Christendom, from England to Japan for
our precious metals. To attempt to return to spe-
Gle payment, however. while every dollar OF the
so-cailed legal tenders now being issued Is over
turning existing values and deranging commerce.
would be folly. More, ir would be impossible.
The laws Of trade are just as immutable as the
laws OF the universe, and not all
THE INTELLECTUAL STRIFE
OF Congress will alter one iota the condition that
h sure to follow persistence in the present policy
OF the Treasury Department. What we believe to
be reasonable and simple plan Of redemption,
without complexlty and easy Of immediate appli-
cation, is that which has already been presented
and commented upon in this column. The issue of
$500, 900 Of
FOUR PER CENT GOLD BONDS
As fast and no faster than they may be required
will afford fresh banking facilities. The induce
ment as compared with the present bonds,
would be exemption from taxation upon the
bonds and currency. The government receiving
gold for these bonds would gain "backbone'-
something which is more substantial than an
empty "promise to pay" It could cancel its
greenbacks in proportion to its receipts. The
banks would assume the place OF the government,
issue their own bills, provide for their redemption
and attend to the commerce Of the country. Under
this system probably less than five years would
witness the absorption OF every greenback now
outstanding and the return of the banking busi-
ness OF the country to its legitimate channels.
MONEY
Is easy at and per cent. The situation is aptly
illustrated by the remark OF broker who had just
returned from 'interviewing" a bank officer.
s'When talked per cent to him his face smiled
all over, and left him cheerful at g.. Good paper
is discounted at and per cent Foreign ex-
change lett on at 4s4 for prime sixty day bills, and
Ls7X lor sight. The market, however, was not
active.
THE UNITED STATES TREASURY.
The following are the balances remaining in the
af M c1o of huain m
Special deposit OF legal tenders for the -" N''''1
redemption oil certificates OF Deposit. a, ,946, 900
Including coin certificates. .......... 44,e54 900
Outstanding legal tenders. ........... 38I, IA 1877
The Secretary seems to have reduced his changes
OF the outstanding legal tenders sort of retail
standard. Yesterday he decreased the amount by
the sum of $1,26s; to-day he increased 1t $3 400.
The currency balance at the same time showed an
increase Of about 5000, 600. The internal revenue
receipts to-day were $265,955. The customs re.
ceipts we're $628,O00.
The Assistant treasurer paid out $23oOo0 in
coin interest and redeemed $4,000 in called
bonds.
was not as firm as heretofore, the opening and
closing business being at 111'a, and the lowest
price OF the day 111S The rates paid for carrying
to-day were s, 4, Az. 2, and per cent and for
borrowing nat. The final rate was per cent for
carrying
OPERATIONS OF THE GOLD EXCHANGE BANK TO-DAY.
Gold balances OBSERVATION-DISCLOSURES. $2,175,495
Currency balances. OBSERVATION-DISCLOSURES. 2,4O6,428
Gross cearances. 35,o63,OO0
CLEARING HOUSE STATEMENT
Currency exchanges 500, sac, 1888
Currency balances. ces...................... 2730,328
Gold exchanges Observation-Disclosures. 6,905,602
Gold balances. ACKNOWLEDGEMENTS. L110,794
DRY GOODS IMPORTS.
The mDOrts drv UOOda this week were
81, 27250, and the amount marketed S2,943, 5s5.
TILE FOREIGN MARKET.
The amount Of bullion withdrawn from the Bank
OF England on balance to-day is f243,OOo. Paris
dispatches quote rentes at 6sf. 15c In Frankfort
United states fve.twenty bonds ore 9Sb for the
Issue Of 1ss2 The London market for securities
closes quiet and steady. The quotations are as