The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-06
soOAs D1AnrHs OF ovrarsor.

tlooks 40 II the long continued low rates Of
interest, and the difficulty OF Investing money at
any rate at ell. had finally begun to take effect
upon the prices Of securities heretofore
neglected by invsstors, Established bonds and
stocks are not TO be had In any considerable
amounts. and the now Lake Shore go per
cents after selling at about par and interest,
have advanced. upon a demand that exceeds the
supply. to a premium. The new Rock Island
4 per cents are also quoted at n premium, and
that the New York Central gle per cents will
also sell above par when they arc issued is q
foreRono conclusion. Stocks that can be relied
on to pay regular dividends are bought no
longer on q 3 per cent basis, but upon one ut
which tho buyer receives barely 4 por cent. Tho
disbursement BY tho Government on Jan. 1, Of
$4,000, 900 for tho maturing Pacific Railroad
subsidy bonds will release that amount for 70.
Investment, and. in view OF all the facts,
It 10 not surprising that owners OF idle money
are willing to take a little risk for tho sake Of
getting more income than IL yielded by copper.
fastened and ironclad securities, and that not
only bonds which have heretofore boon out Of
favor with them, such as those Of tho recently
reorganized Western railroad companies. but
sven the stocks behind these bonds shonld DO
taken by them at higher prices.
Coincident with tho abun lance. at this centre.
~ AAShoy ih tAo phoppt hut oht1 VI uuhh
with which the greater part OF the buying and
selling Of the city 10 effected, but OF actual cur
rency composed Of coin and paper, thcre come
complaints, from distant parts Of the country. Il
. doarth OF money OF boti kinds. wouid-bo Dor
rowers ind nobody to lend to them even q credit
at o bank against which they can draw checks.
ana Al to coin and paper money. there 10 30
little Of It. 1t Is said. in many localities. that
trade 10 reduced to tho form Of barter. Thus. a
- a $50 - u
Atlanta. Ca. for the 18th Of this month. to con-
slider the currency question and to demand that
"tho whole system Of national finances DO re-
adjusted on such a sound and scientific bnsis as
will give each section Of our common country q
circulating medium adequate to Its business
and based upon Its commercial assets"
1t Is here assumed. az 1t has frequently else
where been plainly declared, that all the Sec
tions Of our common country have not, at pres
ont, o circulating medium adequate to their
business. but that while some of them, like New
York and its neighborhoot. possess the desired
supply, others, especially Mt the South. are left
destitute. This was conceded by the Indian.
apolis Monetary Conference of last January.
aud tho volunteer commission appointed by
that body is now considering n scheme for
remedylng tho evil. The callers Of the Atlanta
meeting lay down tho preliminary condition Of
any reform that the United States Govern.
ment should retire from the banking business
meaning, 1t may be presumed. that the Govern.
mont notes now in circulation as money shall be
retired. leaving the field clear for the proposed
currency based upon commercial assets"
ANY plan OF currency reform which involves
the retirement Of the Government notes and
tho substitution for them of currency biased
upon commercial assets" may as well be given
MP first as last. The clamor for this measure,
which. a year ago, was exceedingly loud and
prevalent, has of lat6 almost entirely ceased,
and In its place is heard only the modest request
that the redeemabiHty of the notes in gold be
assured by not roIssuing them. after they have
boon once re lecmei, except against fresh dc.
posits Of gold. There Is n possibility that this
Destruction my be adopted, and by it the volume
of the notes uncovered by gold deposits. would
be reduced to a point at which gold would never
be demanded for them; but as for cancelling the
whole Of them. 1t is idle to talk about it. Less
probable still Is the adoption OF any scheme for
the issue OF uns .cnrcd bank notes. or, in other
WORKS, OF the wildcat" currency. with which
tho country was afflicted before the war. From
that curse we have been forever delivered.
Tho fallacy which underlies the whole agita.
fion for legislative measures to secure to local
ties now lacking 1t the supply OF currency which
the desire. is simply the failure to perceive that
currency, that Is to say, coin ana paper, 10 q com.
modify. and, like all commodities. goes wherever
1t finds o market, irrespective Of its place Of
origin. The supply of shoes. or %ofcotton cloth. OF
of bricks, is no smaller hero In New York because
the shoe factories and tho cotton mills are stu
ated in New England and bricks are made AT
Haverstraw. Nor are these same articles any
scarcer in the remote parts Of the Union because
they arc manufactured Elsewhere and have to be
transported to tho consumer OF them wherever
he happens to DO. When the supply of then
falls short 1t can be increased as well by adding
TO the New England factories and the Haver
straw brick yards as by setting up new factories
and brick yards on the exact spots where theil
product Is needed. So, n body of people needing
currency and able to pay for 1t. can as we'll draw
It from elsewhere. as create 1t themselves.
Conversely, a locality In which certain com
moditios are produced may yot b able to retain
none OF them, but must see them sent away Il
places able to pay for them q higher price. Thu
market gardener. who raises early vegetables
and fruit for the New YORK market. does mo-
supply his own family with them; they arc lux
uries too expensive for his means. That shoe
makers children go barefoot is q familiar
proverb; and that of all poor countries one tina
produces only gold and silver is the poorest 4
equally notorious. Only when the productive
labor of q community %suifices to meet the forcigI
demand and leave a surplus for home consump
tion, as. for example. oranges in Florida, suga
in Cuba, and wheat and cotton In our agrtcul
tural States, are those engaged In 1t able to en-
Joy Its fruits. In like manner, when all thu
currency earned by the same comm unity ha
TO be exported TO pay for its supplies, none cal
be left for home use.
Statistics have been compiled and are oftel
presented to show that the Northeastern State
have. in proportion to their population, vastl,
more capital invested in banking. and that thel
banks issue vastly moro circulation, than the re
manning States OF the Union. Hence, 1t l
argued. an injustice has been done to the les
favored Stat 8 which legislation can and shoul'
remedy. What the remedy is and how 1t shou!'
be applied is a matter OF dispute. and the dis
pute will never be settled because 1t proceed
upon the false assumption above pointed ou'
II all the banks In the country were located In
single State the distribution of currency In tn
remaining States would no moro be ~curtaile
than the distribution of ready made shoes |