Year: 1877

LIE ANtW 1Ofh f"teS tAHNsS


columns of communications from and IN
terviews with prominent men engaged IN
many different departments of business,
IN which opinions are freely expressed In
regard to prospects for the fall trade The
psaer then reviews these statements, ana
summing up pronounoes the verdict favor
able. There are two elements IN these
opinions which have been wanting IN years
pest, and these are hopefulness and con-
iidence. The substantial indications are
not very great, but in the absence OF these
a general feeling of confidence Is the next
best thing, if not even better than results
which may be temporary. Confidence un-
locks capital and inaugurates new enter
prises. 1t sends money into the currents
of business. 1t checks the depreciation
of property, and in time causes 1t To rise
in the scale.


There are two things in the way OF leg
islation which the country now needs to
inspire a confidence which will lead TO
permanent results These are, the revis-
lon of the tariff, whichis inevitable sooner
or later, on a plan that may continue
through term of years and the remon-
citation of silver. So long as the coun-
try is threatened with resumption on q
gold basis, capital will not transform IT.
self into property. 1t will lend itself out
on bond and mortgage, to be returned
dollar for dollar, but it will not go into
real estate nor manufacturing enterprises.
The reason why it will not is plain Ii
resumption ensues on gold basis, dol
lars viii be worth more and property less
than now. Dollars will be worth more,
because there viii be fewer of them in
the world, and property less, because its
value win be measured by this apprecl-
ated money.


The proposition To resume specie pay
ments on gold basis was a stroke of pol
icy on the part of bondholders, mostly in
England and Germany, to enhance the
value of their possessions. American am
ateurs in finance fell in with it. We can
not expect owners Of money to put 1t in
business, that Is, transform it into prop
erty, while legislation is impending which
may cause money to appreciate IN value
and property to depreciate. They prefer
to leave it at low rates of interest, with
property as security sufficiently below its
real value to cover any possible deprecia-
ton. This is the reason why money is a
drug in the market, while no one is will
ling to buy property or embark IN busl-
ness


Currency and silver are now within FIVE
per cent of gold, but this relation would
not be maintained two days after an au
thoritative declaration by Congress that
gold was to be the sole standard. Prop
erty and merchandise have now but TO de-
preciate four per cent. To stand on Il gold
valuation bat what we term gold val
nation is nog determined in 4 measure by
the probabilities In regard 10 the remone-
tiZation of silver. At present in the ex
pectation that silver will be remCnetized,
gold and silver are approxin,ating to their
old relation to each other. Should Con-
9ress disappoint these expectations, gold
would rise and silver fall. Property would
90 with silver because, as we have said,
henceforth everything would be measured
in value by the dearer article OF gold.
The sensible way out of our present diff
ficulties would be to authorize the Secre-
tary of the Treasury to turn greenbacks
into bonds bearing i, low rate of interest,
both interest andprincipal payable in coin,
and at the same time to remonetiZe silver.
Creenbacks would be retired under this
system until they were at par with gold,
the value Of which would be kept down
by the use Of silver as money. There
would be but slight contraction under this
system, and very little further deprecia-
ton of property