The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-15

do not mature until 1890. It was also stated that
London 100000 OF the $4,000, 900 New Jersey
Central Railroad COmpany's consolidated nrss
mortgage bonds, which they recently bought from
the company Part OF the remaining x2,OOO,O0O
has already been sold In this market. IL Is I'M
derstood that the greater part OF the EXCHANGE
ana gold against the London negotiation has
been sold.
Inquiry at the ONCE of Brown Brothers in re-
spect TO the latter loan obtained the corrobora-
ton OF the above statement to the extent that
mat nrm were engaged IN negotiating such loaa
not heard from Europe as to the actual taking up
OF the balance. rhe effect OF these TWO negotiA~
exchange stinened in the lace of a reduction in
. ano,s Bank OF England rate OF one per cent
attracted attention IN the same direction.
PACIFIC MAIL
furnished nothing new TO the gossip OF the street:
IL is understood that Russell Sage's declinatlon Of
seat In The direction is still In allegiance.
MILWAUKEE AND ST. PAUL
The stock Exchange has, upon the recommen-
dation OF the Committee on securities. ordered the
addition to the call OF the 'Chicago, Milwaukee
and 81. Paul first mortgage bondsn upon the lol-
lowing presentment:-
Total amount of mortgage. $35 900 900
Dated February IA, 1874. Due January l. isjL
An amount OF the consolidated bonds equal to-
the above amount Of mortgage debt exclusive OF
the S9I consolidated bonds already lssuedj lA
placed In the hands OF the trustees. TO be issued
only DOLLAR for dolarl IN discharging such debt,
and the remainder OF the bonds are to be used Tor
the building OF bridges and other purposes OF the
company as specifically set forth Ia the mortgage.
FINANCE BILL
was announced on the street curing the day, ac-
companled with further statement that tue
President Will shortly recommend increased taxa
ton.
gress is again beginning to excite the atten-
ton and interest OF the street. The passage on
Tuesday OF the blil reported back from the Bank
strctions from gold banks in respect to their cir
cuatlon redeemable IN gold, is regarded as a large
step toward specie resumption. TIE explanation
OF Mr.. MAYNARD, through whom the oil was re-
ported back, that it Is merely '1oca in Its
fined to the Pacific coast" doubtless prevented
some opposition which might otherwise have been
SHOWN Dy the advocates adherents OF the present
national bank monopoly. But the great point OF
the bill Is shown In tue declaration Of Mr. Merriam
OF New York, that cit is
FREE BANKING so FAR AS THE GOLD BANKS ARE
CONCERNED"
and, being general in its character, gives to New
York the same privileges as 1t does to San Fran
cisco IN respect to the organization OF such gold
banks without limit to circulation. so long as
such banks MAINTAIN system OF redemption in
direct authorization for the establishment OF
banks upon specie basis without restriction as
to circulation so long as such specie basis is un-
impaired by default OF com redemption OF such
it were not that this Dill, coming from the Bank
ing and Currency Committee, Is
A SORT OF COMPLEMENT OF THE FINANCE BILL,
recently passed, known as "a Bill Tor the Resump.
ton OF Specie Payments" MI Garfield Chairman
DENIES Of MS o
VI That We VII, M solemn Ims T., sSa
resume specie payments. That declaration il
declares that tnat day shall witness that consum-
nation. While the machinery provided
in the bill does not seem at all adequate to the
result the nope is that public opinion following
the lead OF this solemn declaration Will enable
Congress before that time arrives to take the
necessary steps to achieve what has been soemnly
may 40 shape itself to accomplish that result Is
the reconstruction OF our banking system under
as gold banks are concerned, !" whereby a gradual
change may be brought about IN our monetary
BANK n Which issues
rest upon paper securities for one resting upon
The idea meets with much favor. The national
bank system has many excellent principles that
Can be readily used elsewhere, but 1t Is Jelt tnat
ton, throwing the whole Onus upon the govern
ment OF bringing to par its $685., 900 OF demand
CURED to make any effort to redeem their own
paper. II, however, the several business cOmmu-
60 the governmenL instead OF waiting for the gov
eminent to reach down to them, give such sup
banks on a specie basis, consequence VIII be the
gradual shrinkage OF naaonal bank credits.
are 70 Ss nenas sIsss
thus taking the initiative could enable tho
government to gradually retire the greenbacks
and so bring the country back to q specie basis
without the severe contraction that might be en-
dured in ''noardng"-thatis Is, Withdrawing large
amount OF coin from Its use visible security
Tor bank issues. That we cannot reach specie
payments without contraction in some form OF the
present volume of rredeemabe paper money
seems clear. That very considerable reduct1on
OF such volume might be made from this point for
ward without great detrlment to values seems
probable from the large amount which the snrlnk-
age OF the last couple OF years leaves AZ present
practically unemployed, begging use on the street
daily as low as two and half and three per cent.
These
FACTS ARE STEADILY MAKING THEIR WAY
into the public mind and acquiring daily more
believers. The former desire for further
imitation is being given up even by its
strongest utterers as mistaken. and the desire
Is growing that the necessary contraction should
be begun as quickly as possible under the favOra-
Bile conditions prevalent. This bill In respect to
gold banks, 1t Is hoped and thought, will give the
business community an opportunity to work out
this problem themselves, without the need OF
waiting upon the political Legislation Of either Of
the conflicting parties. 1t would seem singular ii,
after all, the means OF safe return to q specie
basis, with the resumption OF specie payments,
should come to US from the far West, the Pacific
slope, the EXTREMIST point OF our Empire re.
storing to US the sound teachings 80 long disre-
garded among those who founded that empire.
The thoughtful words OF Ex-Governor Dix upon
this subject IN the added interest they gained from
the names OF the gentlemen to whom they were
addressed were generally commented upon hero
yesterday and approved, as rejecting the cumu-
latve feeling in this matter OF specie resumption.