The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-10
FINANCIAL and COMMERCIAL
The Effect of Imitation Abroad -0pin-
ions Of Foreign Merchants.
A DROPPING STOCK MARKET.
Heavy Weights Being unloadfd = Gloom
Among the Spectators.
GREENBACKS WORTH So CENTS.
WALL STREET.

WALL STREET, !
THURSDAY April &c p. NJ.
The lamentahe results OF the recent Congress
sional action and Of the prospective policy or that
body are already showing themselves on the other
Ede OF the Atlantic. Private letters received here
by merchants and bankers indicate decrease IN
the faith that has heretofore attached to American
securities, especially those which represented
by railroad bonds; likewise an indispostion to
continue investments that are not based on some
thing like real values. The following extract
from one OF these communications VIII best Illus
strate the feeling to which we reler;'l am aston
ished at the short-sIgh,ed police ~ which Amer
lean legislators seem just now TO be moved. With
. credit heretofore so well sustained, with re-
sources so abundant, with an opportunity before
your people 70 make use OF the immense capital
which Is seeking investment IN every European
market il seems little short OF
NATIONAL INSANITY
TO increase your debt to the public by the issue OF
more paper money. IL IS repetition, in a limited
degree Of the experiences OF the late Southern
Confederacy, rom which so many or US suffered
and cannot fan to diminish the confidence that has
been felt here in the safety OF American invest
ments. surely, with so much gold and silver as
you are annually producing, with the balance Of
trade gradually improving in your favor and q
IL
panic as is yours, one would think that the aim OF
your financial leaders IN Congress, and out OF it,
would be directed the Improvement instead OF
the depreciation OF your currency its establish
ment upon gold basis. such an announcement
would be received here with unaiioyed satisfaction,
because 1t would be a promise 10 the European
capitalist OF safety for his investment and in
ducement 10 him re plant dis money where 1t pays
30 much higher rates OF interest than at home.n
1t Will be seen that the correspondent anudes to
what has been so urgently iterated and reiterated
by the minority Congress and the majority OF
the leading newspapers of the country-to wit,
shat we not only have currency enough but that q
further Issue will be attended by
THE GRAvEsr FISASCIAL EVILS.
1t is interesting 10 trace some OF the evils re-
suiting ID the past from false ideas OF the nature
and work OF currency. IL February, 1920 the
French government gave power TO issue an incon-
vertibe paper currency 70 John Law. In the
month OF May notes had been issued OF the NOM
mal value OF So 600 goo 000 One hundred livres II
paper were worth about III silver. In 1890 the
French government itself assumed such power and
authorized the issue OF ss0.000000 OF assignats.
based on the security Of the public domain, then
estimated TO be worth $3.50 000,0 coo. In Septem-
her, Oft same year. further issues TO the amount
OF $1e0.0o0,00o were authorized France was the
prosperity-on paper. Taneyrand opposed these
issues as certain to cause depreciation, but he was
rldiculed by Mirabeau in speeches. the counterpart
OF which are delivered to-day by
MORTON, LOGAN AND OTHER THINKERS
In the same school, In a twelvemonth these as
Hgnats lost one-tnird OF their value. An attempt
was made by legislative enactments to overdue
the laws Of trade IL lailed In 1896 assignats lei
TO one-thOusandth part of their nominal value
Yet they were secured by pubic lands and b4re
the imprint Of the nations faith. In 1896 the great
paper fabric tumbled INTO ruins and then specie
came from its hiding place and gave new lie to
France. In Austria, in 1910, a silver form was
worth thirteen in paper. In 1913 the DANISH gov
ernment exchanged its cure ncy at the rate OF 81
In silver Tor $500 OF paper. In 1891 the cry was
raised in England, such hear to-day, that
the circulation was not sufficient for
THE BUSINESS " ANTS OF THE COMMUNITY.
More medium was demanded by the merchants
and the Bank OF England enlarged its issues Its
paper deprecated and IL became necessary to
diminish the supply During the years 1914, 1915
and 1916 1t IS estimated that the contraction
amounted about 500 00o, 00o and thus, in Isl92o
the resumption Of specie payments became possible.
In this year Of our LORD 1874, the legal tender OF
sstne best government the world ever saw, Is
worth about IS cents on the dollar. And
shis in the time OF peace ana plenty. WIN Congress
sional stupidity go further in It's Imitation OF the
doctrines OF the revolutionary Mlrabeau?
GOLD
declined from 113lz 10 1885, advanced to 1872 and
closed at 1851 ll2ss The carrying rates were 3
and per cent. Tie value OF greenbacks ranged
from IS cents mills 10 81 cents and mills, and
were at the close 50.
OPERATIONS OF THE GOLD EXCHANGE BANK.
Cold balances. Observation-Disclosures. u, 220, G63
Currency balances. NEUTRALITY-SUSPICIOUS.. l.41e, 1l5
Gross cearances. OBSERVATION-DISCLOSURES. 1888, 90
CLEARING HOUSE STATEMENT.