Telegram-herald., 1890-06-10

HEskK tL1sss r s.a1fses.4i Ltysz. ~. q
tlsE. ID -asE.. k.Tes ta4se yleas on she
s1tisct III pelal-1g s-lssr .sz.s-at..-. 3
SD .eel " great interest ~ grese1t.
"L InaI sle secretary II Gle Treas
cry shaA par-lase s. s.0.8N worth q
slfeE 1l-.gl e--4 ll4lLC IHaE,
1g4llsl E1lss 54Ic-9s8s. le sLal ssle
d 1oEresBysl aaEsllt II treasury
lsles, sh-eL s1all - d ls-al LeLceT l
tle payment % aol1 g1ol.C Ana lrlsage
1eots 5. lnal ,L.1 treasury DoJss sasA
he FesleeEl4D.a, ca demand, b CON. ~,
apou aefl4l1 u Ils holders Ia FL Fef
bll.ll ar s, tleu csrrelL ulsrkel
value. 8J the discretion 0L t1e SecFetary
~ Lle rrtslIF. al4 Z. lns blLl DTa-
Fl1aa tlAE tls Secretary vi the Treas
lgy snail cover into the treasury
.le lawful money fHDa IoW amount
Hy o. about s5T 8og 10 held Tor rle
redemption u CzLsd-ln baLk notes
thereby making Ile same available tor
general ciEcuAU0u.
As tls ullI recognizes the conserve
tive provision insisted Upon ~ secretary
r.dou that the silver NOTES shall. uu-
der certain conditions, D. redeeuiatle
value, l- II assumed As highly probable
-u4l the President would accept the
House measure. The senate W.l lo
l0ub- strongly oppose t2.s redemption
clause, but - taat body may nuaily
learn that, Wl-l Pre-, dent Harrison 70 IS
a Question " the House b.u OK none,
the violent silver men of the upper
house viii most kelly hud It necessary
% suoIlt I'D nnal conference between
,le tH3 branches ~ Congress.
wallet, .ntaEprets these facts ss
meaning, a. a tEaL effect, great lnfia-
t1u ot the currency, likely ~ act upon
tae speculative mas adr0n lu such a
way as o. proiuc q general anticipation
ot T. Use .u tle prices alike 90 cOmmot-
lLles and securities. That autlClp8t
5 one tullL. however though mdueu-
tal enough % produce Hu effect ON
prices tJr t.me, tine economic bearings
lnd the Ultimate result may be p quite
different matter. The mere fact OF
putting into tne retail circulation 50
much more money can have little eject
beyond driving Out ot use, - certain
extent. cleCk, aud prOmlssOgv notes
which are now performing the tuDc-
tlOn5 OF currency. So Tar, however,
as the new money may md perman-
ent resting place IN tho banks, Il wlll
become a UuCh more important ele-
meut Ot imitation. For, n proportion
as the l8wiu. money IN the banks To-
ereAses. tle power OI the banks 20 lend
within tne legal restraints - increased.
Tile proposed silver notes are 90 be u
lega tender. and - such could be used
as legal reserve by the banks, hut u is
uy uo means certain whether the banks
may u1J discriminate against those
notes as being an undesirable aud un-
safe form or reserve. There can, how
ever be no second opinion asto the effect
oi putting illo circulation the 80 600,
600 OF money ROW Ted up IN the bank
note redemption fund. That tundcou-
slsts entirely OI the KIND OF legal tend
ers which the banks now employ for
reserves; and, WIKI the large rcdun-
daucy OF currency that wIll exist under
the new law, there Will be strong ten
dcncy towards circulation accutnUla-
ting n the banks, which Will find no
difficulty in discarding the silver notes
and az the same time holding onto the
legal tenders that will be released from
this special fund. And as accumula-
tons OF idle currency in the banks Of
the interior are apt TO be sent 70 this
city. We may most probably see "A one
of the results of the proposed measure
q large and more or less permanent ac-
emulation OF legal tenders IN the New
YORK Associated banks-than wn.ch
nothing could be more conducive &C
the encouragement of speculation IN
this center.
.lt viii thus be seen that Wall street
is not without some substantial reasons
Tor regarding the House Silver bill 3;
iavOrng an initiation, sooner or later
IN the prices Of securities; and the in
creased activity and the advancing ten
tency IN prices for the latter half Of the
week is simply an expression OF that
estimate"