Year: 1873

rest OF day had served TO bring q calmer and
more unbiased Judgment TO q review OF the facts
that have been presented from day to day, and
the result is not more hopeful feeling but
higher sense OF endurance. 1t is beginning to be
felt that this is no longer panic. but that
going through the fire OF suffering for the accumu-
lated ills OF expansion that we have courted and
nursed and cherished since the first gun was
fred at Fort sumter. or course, in the su-
preme crisis that was then suddenly sprung
upon the country, where the national life
was at stake the popular ear readily accepted
the euphonism OF the apology offered, that
desperate strait required desperate remedy,
and rapidly absorbed the printed Obligations OF the
government TO pay at future day in lieu OF
material value This may have been wise step,
1t may have been a necessary step; with that the
present writer does not propose to deal. But, 1t
was


THE INITIAL POLICY


OF the present party in power In respect to the
management or the national hnances-a promise
to pay. "Call round Tuesday and l will tell you
when to call again" became the keynote OF our
entire dealings as people as well as nation.
Begun in war, continued through period OF pro-
found peace, is it any wonder that the
business OF the country should have
followed the example of the government
and expanded recklessly beyond the
pUNcT VI any COuIEdCIlOu WllHOuL Niut-
spread loss and ruin The rapid appreciation OF
our government bonds abroad, following the sue
cess of the Union arms, furnished an opportunity
for various schemes OF wildcat nature to noat
their securities among the ignorant and IN.
wary. Money flowed into the country, and the
people, forgetting that it was simply


BORROWED MONEY


and would have to be repaid at no distant day,
revelled in the Of boundless prosperity. Two
successive Secretaries of the Treasury stimulated
this unhealthy condition of affairs by their remon-
strative purchase OF the public debt before matur-
ity anu their careful publication from month
Co month of the reduction made, draining
the business capital OF the country in this way
the shape OF exorbirant taxes, to give an adver-
ttsement to rotten American speculative enter
prises abroad, upon which was OF course supposed
to be thrown some rejection OF the wonderful
prosperity OF the nation. Three Secretaries Of the
Treasury contributed TO this result-one OF them
already called to higher account; another pres
ent Senator the third-an eminently respectable
citizen, OF unquestioned honesty, hut wholly una
ble to grasp the present situation as is shown in
his efforts at silver resumption-s the present in
cumbent. What wonder then. that with a record
like this on the part OF the governing power, and


THE sAD STERN FACTS OF THE DAY,


face. men stopped for a time yesterday the feeble
moved by the results tuesdays elections to a
higher comprehension OF the position we hold,
asked themselves WITH more earnest lorce,
urer OF the United States, whose imprint Is as lam
iliar as are the greenbacks themselves appears TO
be the only one who has sought to penetrate the
source OF the existing Ills and apply the remedy
wnere it IS most wanted and would be most effi-
management, or rather direction OF the financial
administration. have been but experimentalsts
regulating their action by the eXpediency or the
hour. There has been no comprehensive scheme
looking to certain end. with definite result
and the familiar announcement-''The following Is


THE POLICY OF THE TREASURY
for the ensuing month expressed alike the feeble
that have marked the financial measures OF the
government during the last ten or twelve years.
Mr. Spinner, IN his report, which was publ shed IN
yesterdays HERALD and freely discussed on the
street. falls into the same error as his colleagues
in Office, although not IN the degree that they do,
that this crisis can be still further postponed, that
tine invalid who has been suffering Tor years
functional arrangement at the very source OF It's
vitality can yet recuperate and recover upon the
same treatment as heretofore apphed-stimula-
ton. The Treasurers scheme is an elaborate one.
IL has the merit OF recommending free banking an
elastic currency through the issue OF a converti-
ble bond interchangeable Tor and with currency
and the prohibition OF the payment OF interest on
deposits. Its Objectionable features are the in
crease OF the interest burden oil the country IN
VOWED, which, although according TO the Secre-
tary's showing would be but small, should not be
increased one dollar. The Treasurer's apprecia-
ton oil the situation is as snori-sighted as that oil
WE WANT NOT ONLY CURRENCY REFORM But BANK


REFORM,





an opportunity presents itself 10 reduce the inter-
est burden OF the country. Why should the gov
ernment pay the national banks interest on the
security they deposit tor their currency and per-
NIT them TO employ that currency as they see hit?
There Is no law OF fitness nor principle oil trade en-
titing them TO this special preierment Banks are
but nduclary institutions, and the chartered agents
oil their customers to perform certain duties in
that relation. The power to issue currency Is a
privilege conferred upon them In the name OF
the people to enable them the the better ',,s, 70 isal
this privilege they should be paid Tor its use and
often abuse Is absurd. 1t does not want much
logic TO convince man that at time when money
is locked up all over the country and merchants
are sinking into the appearance OF bankruptcy
Tor want OF medium OF exchange the banks
should still be drawing interest upon this money
that IL unavailable Tor public uses. Much COM
plaint IS made also that


FAvoKITIsM AND NRPoTIsM RULE IN BANK PARLoRs
10 degree dangerous To the man who cannot in
woke these aids to nelp through his application for
accommodation; and further, that bank officers are
not above sharing IN usurious rates. politely called
eommissons,n IN times OF pressing stringency
I6us there is nothing IN the record OF the national
banks, nor IN the estimation in which they are at
present held to entitle them 10 the favorable
slderation oi Congress when that body proposes to
deal with the financial problem now submitted TO
II lor solution, that shall not only give immediate
relief, but provide against recurrence OF a crisis
such as we are now passing through. Let men
not be deceived by the present outflow OF gold
We owe too much abroad to hope to Keep this bull |
lion permanently with us. Tue balance OF trade
ls temporarily III our iavor because our importers
have not money TO buy goods abroad wtth-as is
shown IN the limited demand Tor exchange which
caused decline yesterday 70 1905 FOR prime bank.
ers' sixty days steriinR-and the short crop Of
Europe has created an exceptional demand for our
breadstuns But this situation may change 9t any
moment.


LONDON Is NOW MOVED TO GREAT uSEAsrSEss
by the present outflow OF bullion and the rapid
advance OF the Bank OF England rate OF discount,
speedily followed by the rate In the open market.
There were rumors OF failures yesterday,
happily without confirmation. The fresh
rumors here had reference TO the condition
oil the Pennsylvania Railroad Company and the
condition OF the city banks. the report OF the Clear
HOugq AQS0cIQtiOu
Central National Bank was impaired seeming to
excite fears concerning the condition OF the other
banks. Nothing was done, however, TO satisfy the
desire Tor positive information ON this head IL IS
not likely the banks will voluntarily furnish this
INFORMATION, but as the Bank Examiner has 1t IN
ms power TO make such investigation the opinion
ls mat lt MOnld he nIudnnt him do AZ llis