Year: 1873

WALL STREET,
SUNDAY, Nov. %. 1871


The future treatment OF our currency will un-
questionaby be one OF the serious and principal
themes OF the incoming Congress. First, IL Is to be
borne in mind that although we nominallv possess
say 500 0O0 900 In national bank bills and legal
tenders, fully $780, 900 OF this sum have for the
moment disappeared from circulation. producing
the logical and inevitable result OF shrinkage in
values. With the exception OF certain articles OF
food there Is scarcely object OF manufacture or
agriculture In any department OF trade that has
not obeyed this law Of contraction. Second, we
have 1t semiocially from the lips OF Seuator Sher-
man that, unless there be war, there will be In
Nation. Imitation is contrary to the pronounced
policy Of the Executive. General Grant, when in
the city at the beginning of the panic resisted the
most urgent OF appeals from the most influential
sources to trench even upon the $44, ,00O, 900 re-
serve, and the public knows how slowly and care
fully 1t has been dealt out until the recent prepara-
tions for


POSSIBLE WAR


compelled the use of considerable portion of this
fund. That the country, however. does demand
additional monetary facilities is a foregone con-
clusion. Two weeks hence Congressman will go
into the National Legislature fresh from clamor-
Gus people, impressed by the misiortunes of their
unemployed constituents. and eager to fulfil
pledges they have made at home to do something
that shall afford relief All sorts Of propositions
may consequently be expected, ana all the con-
servatism OF the administration will be put to test
In resisting the demand for "more currency"
This will be the cry-especialy from the West and
touth-"More currencyl" But we do not need IT,
The evil we suffer from may be compassed In
other way. The currency we possess is abundant
but it must be made more useful. In that new use





name OF that new use is Elasticity. Seven hundred
millions OF dollars have already enabled to
reach


THE PINNACLE OF COMMERCIAL PROSPERITY.
The purchasing power OF that $70o, 600 has
been increased by the shrinkage IN values from 80
to 40 per cent. There will be enough OF inhaton,
therefore, when the 5000 000 600 now in hoard
forth obedient TO the laws of trade and responsive
to the return OF confidence. To ensure this conf
dence should be the chief end OF all Congressional
deliberations. further issue OF greenbacks will
only augment prices, stimulate fresh speculat tion
ami make new bubbles Tor another panic year or
two hence TO burst What the country wants is
the use Of money at the right time. How is this
desderatum to be reached The answer is given
by correspondent who, intelligenty and at length
discusses the question in another portion OF the
HERALD. Briefly, his proposition is, that whenever
bank Official or an individual presents at a
public depository five per cent gold bond he shall
receive the equivalent of the amount and interest
in greenbacks; and whenever


MONEY BEING PLENTIFUL,


lying idle on his hands or drawing but q small
amount OF interest, he desires that bond again he
shall be entitled to the same on depositing green
backs equal in amount, with the rebate OF interest
from the time the bond was deposited until 1t was
again reissued. AS the writer justly states, this
would make the bonds species OF convertible
currency. 1t would 90 more. 1t would make them
act like the governor OF an engine in marking the
speed at which we travel commercially; 1t would
prevent the monopoly OF deposits by banks and
banking institutions; 1t would enhance the value
OF the securities themselves and create for them
by capitalists and merchants, larger demand at
home Finally. during those periods OF the year
when 1t is necessary to move Southern and West
ern crops. it would supply an abundance OF cur
rency from the Golfers OF the government Itself
and prevent for evermore the contingency of a
.lockupn such has proved to be among the
gravest evils If not among the direct causes OF the
present crisis.


POSTAL SAVINGS BANKS


Among other financial questions that will be
submitted to Congress Is one which involves the
establishment OF postal savings system, similar
to that which for several years has been In sue
cessiul operation in Great Britain AT first the
plan viii doubtless be applied only to the money
order post Offices, but the advantages become
apparent and experience demonstrates the utility
or this mode OF saving, 1t is not hazardous to pre-
dict that all post Offices in the country VIII event.
ually become the media through which people
everywhere will be eager to transmit their earn
ings into the National Treasury; Tor on such a
bank there can be no runs. II may be argued that
owing to the peculiar character OF many OF the
politicians appointed as postmasters dis
trust will prevent thousands from making
deposits with them; but, ii we are rightly in
formed, the authorities at Washington give the
ceipt by telegraph, and as further check require
the local postmaster at stated times to transfer
the sum on hand 20 the nearest national de-
pository. The plan is said to have been well ma
turcd and to have received general approval, not
merely because OF the inducement and safety it
ofrers to rich and poor alike but as an efficient
means for strengthening the credit OF the govern
ment ana preventing national panic IN time OF
crisis The fow of currency into the Treasury
would enable the government TO purchase It's own
bonds, and thus keep currency in circulation.
THR FINANCIAL EVENTS


OF the past week have been unusually interesting
In the atmosphere OF Wall street the perturbation
has been especially great, the various markets
showing scnsiuyeness to the various conditions
that prevailed. The meeting OF the Clearing
House Association and temporary withdrawal
Of some OF It's MEMBERS who disagree
with the report OF the Committee oil
sA.~