New-York tribune., 1879-11-25

sS Il Ses SeS S iSSS
iS9.4 1877 i....ll24 1000
Il has been generally supposed thar upon the day OF
resumption the amount II available currency would he
Immediately increased by the addition To It's volume oil
Xecfa ion has nor been realized The Treasury OWES
nearly Sljs, 100000 Of gold coin and bullion, large
Treasury no-s outstanding, aud $Jo.0O0,O00 of stand
ard dollars and subsidiary coinage VII ch cannot
properly b. included IN TIE Aggregate cllcuaiion Inc
average gold coin held by the National banks as p
was about $4,000 OOO The coin III circulation upon
the Pacific Coast the State OF Texas ana In the noun
10 900 600 AZ well s the subsidiary coin ont Standing
amounting 10 SS0,OOlOOO had been continually IN cr
these amounts from the tota. there would remain but
Sl2OOOO.0OO OF currency In excess of previous years
many years boarded bv the people, now estimated 10
number i9OOOO0O and does not enter into circulation
in any greater degree than before resumption. The
hoariers OF coin aud of little savings are imd class
who do not easily part with thor treasure The amount
OF cOin and currency actual circulation nj the present
therefore believed be not greatly IN excess or
the average amount duriug the i've preceding years
Ii Is manifest at time the date of sus-
pension large amount OF currency has oeD needed
present year The hlrvests have unprecedentedy
large while the value OF agricultural products, owing
TO the short crops natous and the consequent
demand for products abroad, has greatly Increased
There has also been continual rise IN wages. IN the
vaue OF manufactured goods IN PROVISIONS ana Ii the
price OF iron and Other cOmmOdities.
Ii THIS statement Is correct VIII explain tue scarcity
Of currency IN the City Of New-lOrk during the last
months. and the Quent demand for additional
lssues the amount of National bank notes issued
during September aud toOer Deing nearly SIX and one
aifnlons. which is nearly equal TO ne amount issued
for the who'll Ten pr9ceSl"g & ~ NIL s"
payment their 'egai-tender certificates: aud been
Obliged designate of I'll IT number depositary
Tor goid upon which Clearing House oernncates are
issued aud used In setting their exchanges.
Notwithstanding the large Increase OF specie In the
country during the past wear, the amount held by the
banks as by no means Increased In proportion
National banks shall take advantage OF the present
influx OF gold 10 accumulate IN their vaults an amount
Snges the nope that the repors OF another year may
show them be possessed Of at least SlO0OOOOOO OF
gold coin. II this coin, which Is still flowing into the
Treasury small also be largely accumulated by the
banks, It will be more likely 10 become ahsed amopg
smaller denominations Of notes were withdrawn from
amounts, and at minimum cost, al every post office.
DANGER OF TOO MUCH SPECIE.
The addition OF coin the circulation should have the
effect TO reduce the amount of paper money IN excess
of the wants OF business, and send homeward tor
dempton the legatender aud the National bank notes
IL the legal-tender notes accumulate in the Treasury
they be issued excep upon acquisitions OF
the Governments and the accumulation OF such
notes tendency to induce extravagant approprfa
tions and expenditures by Congress. The law, as 1t
now stands requires that tho Secretary shall keep IN
circulation the egaltender notes, which is not pracu
cable and their accumulation by him will lead to con-
slant agitation OF the subject In Congress and among
the people, which discussions will encourage specula-
tion and disturb the current of legitimate business
With the influx of specie II is important that such
paper currency shall be in circulation as can be easily
retired II In excess currency is needed which Will act
automatically and as regulator like the governor IN
machinery or the baance-wheei In the chronometer
The best currency is that which will most readily
adap itself the needs OF business and its relative
cost should be taken into considerations for the best
money Is always the cheapest in the end This Drinc
pie was acknowledged by those who reluctantly recon-
mended voted for the legislation which authorized
the OF Treasury notes AS temporary measure
and a review Of the debate IN Congress, while tnat
measure pending before IT, Will show that its chief
objection acknowledged both oy those VINO favored
AMI those who opposed It's passage TO De hat the Gov
circulating note did not have the chief atTi
butes of perfect currency ana mat It's Issue would
tend To disturb values ana thus disarrange the con-
merce aud business OF the country.
Resumption has made tie dollar OF the same value at
home and abroad The reiundiug OF the debt has
placed idle funds IN the hands O Such holders as have
dec ned TO IenveSt IN the four per cents. The good
haryests the shipment OF nroduce the large annual
production OF gold and silver from the IDines and the
importation Of gold which sill continues, will certainly
make money abundant. aud have already stimulated
speculation 10 unhealthy degree, and VIII be nkey
has 50 long boarded which las hitherto been
usrd only in payment 10 the Government o duties on
brought general The effect Of the present in
creasng and prospective redundancy oi the currency
is manifest the transactions ol the stock Board dur
ing last three months which are said 10 be the ag
record, onefourih OF which are e>mated TO have
been based upon stocks which pay no dlvidends. Tue
increase IN the market value OF many classes Of bonds
less has brought upon the market also flood OF shares
of mining and OF other corporations, many Of them
fictitious The necessaries Oi life. as well as articles OF
luxury have sympathlZed IN the upward movement,
Il ther prices, II not already too high, are likely soon
TO rise bey Oud a req sOnaDle iiult.
The influx and accumulation of q large amount Of
specie may thus result IN injury instead OF benefit.
The payment Nv the French Na,lon TO Iefma,y oi nve
thousand mllards OF francs brought about an un-
healthy of prices and deranged the business OF the
German Empire. while France. Notwithstanding the
prompt liquidation oi It's enormous oDisalOs speciy
recovered rs wonied prosperity In Engand also, in
lnrdiately ater resumption. similar financial reyolu
ton was experienced Leone Lew, IN "A late duuIess
refers to iLIS subj, CT as follows:
"Souu after the ended, the Bank OF England was
Tea0y resume cash payments, nnd with increas
immediately revived For time the alienation 81
aud depression continued. but from 1870 To 1924
abundant, ana Win an anoltlOh III tne am UNI o. bull
ION n the Bank OF England from al,746,oOO IN Febru
AIRY, im ls2O, TO A6.V92OOO III February ls24. and
Ia ada ton 10 IT, deposits OF IRON 4o,VoO,pOO IN
1920 To 9lI 100000 in 1924 speculation began set
IL ia earnest OlHcr circumstances contributed to this
end. Government came forward IN lS.3 wlth
a measure for the reduction OF the rate OF
to the amount OF sl35. .O00,O aud In 1924 for
know cd gment of 80 th American r. public nitro
duccd new KIND OF commerce IN loans and INNING In
foreign countries. large number o. comParies were
Tor railroads, ininng' canals. INSURANCE, bank
lax gas. GA nuuDer requiring nominal capt. al
~ e372 100000. Tor winch, however 40 than
2 COO.ODO actually advanced ana prices OF ali
chuodlt,es and of securities of All xmas. enOr
nous " but the fail precipitOus as the
unjnstifed and 10 uubounded credit and confidence
there soon succeeded general dStrus during which
lie pest securities could not be converted and
". re rendered uusaiaDic"
History repeats itsef aud the experience OF EDg and
and of Germany, aud our own experience Ia former
DAYS. unlikely again TO be repeated In tins
currency which win adapt itself 10 the existing cir
and II wl tue province OF Congress 10 watch
fully tue Indications Of al excess OF paper money aud