Year: 1873

WALL STREET,


TUESDAY, Dec 20 +. NJ
Secretary Richardson in his report TO Congress
to-day unquestionably reflects the policy OF the
administrator and of the republican party He
plants his argument on public and Official pledge,
che law OF 1854 and declares that If further expan
sion takes place 1t will be NOT only violation Of
public faith, but will retard the execution OF the
great purpose which since the war has been con-
stantly kept III view-to wit return to specie
payments He favors any plan that will secure
elasticity without imitation. by this term the
Secretary undoubtedly means the establishment OF
q relationship between the existing currency and
the growth Of commerce ard population. The
form of currency may be changed it may assume
She shape OF the compound interest notes OF Sen
ator Sumner any other; the entire circulating
medium may consist solely OF greenbacks or legal
tenders; but to extend the volume beyond that
which at present exists is IN the wei sustained
Judgment oil Mr.. Richardson, to take


STEr BACKWARD


and condonc with ten porary evils at the expense
OF other and greater misiortunes that might occur
In the future. On the other hand, there are
siderable number OF Representatives, especially
from the West and South, who mpelled by their
constituents, ana Dolsered by all sorts OF theories
propose at any cost TO the nation TO enlarge tue
currency to any extent which tney may deem nee
essary TO afford relief Instead OF allowing con-
valcscence to obey the laws OF trade and nature
these political doctors intend TO drug the patient
and experiment on his condition just as much as
may be necessary to preserve their diplomas. They
may not desire to work ruin; but as charlatans in
their profession, they can do little else than aug
ment the disease they are attempting cure
These men seem to be blind to the TACT that the
true treatment Of the case should be paatve
snat IL was imitation which produced the crisis and
1t Is contraction which is slowly, and not without
pain, producing relief Every day since the panic,
1utSide OF Wall street. we nave been getting


NEARER 70 THE BED RoUK.


reduction OF prices has followed the locking Un
Of money. The immense line OF credits now out
standing all over the country Only represent an
other specles OF currency and the inability meet
In full these promises to pay because OF the decline
Of values which they formerly represented, is only
another phase in Illustration OF the process thati
going on-.the return to specie values. SO tar, oil
the conditions Of this process have been favorable
save one. The cost or labor is maintained at its
highest fgurcs-not because OF its intrinsic worth,
Tor it s really worth less but because of the law OF
trades unions. which mas not yet adapted itself to
the existing situation. BY and by the change will
be forced here and as the cost OF production
dimnshes the cost OF buildings, OF rents, OF loOd
Of everything that enters into domestic life will
diminish accordingly. When this stage is reached





Will be less extravagant, and


THE NATION ITSELF RICHER,


yuasmuch as every dollar Will rlen be like gold.
the full measure oil that which IL represents An
apparent increase in values may promote spirit
uf enterprise, and for a time give semblance OF
universal increase of prosperity, but the imitation
which produces this is OF only fictitious, not
OF real wealth. Commercial evil is The legitimate
result and the example Is before us. 1t is to be
hoped that Congress will hesitate long before tak-
ing steps so iU OF danger as those whicl are pro-
posed by some OF its members GIVE us gold as the
basis OF our national credit and the substratum Of
the national confidence In our power to resume;
keep the currency where 1t Is; make 1t adjustable
10 the growth and locality OF enterprise and the
wants OF certain seasons of the year and sections
OF the country, and national legislation will have
done all that is required or safely can be done by
q government in interfering with the laws OF COM
merce.


THE BONDS or 1874.


Under the provisions or the act OF June II, 1855,
and amended by act OF March g. 1859, the then Sec.
$20,00O, OOO Tor part Of which registered bonds
were issued 'redeemablc as the pleasure OF the
United states any time after the expiration OF IL
years after the 1st OF January, 1897 For the bal
ance and much larger part 'coupon bonds were
issued, payable at any time after the 1st day of
January, 1874. on the presentation and surrender
Oi the certificates at the Treasury Of the United
States" The amount of each class now outstand-
ing is 900 registered and s1a 900 coupons.
1t Is understood that some


HOLDERS THE COUPON BONDS


have regarded them payable on and after the lst
Of January next, and thereafter at their option
Applications have been made at the department
1or the privilege OF exchanging these the funded
Joan, which the Secretary oil the Treasury has now
no authority to permit. No appropriation has
been made either In the act authorizing the loan
IN any subsequent act Tor the payment OF the prn-
Cipal, and no provision OF law exists for determn-
1ng the pleasure of the United states to the time
Of payment of either class OF bonds. The recon-
menuations OF the Secretary to Congress with ref
crcnce to the redemption Of this loan, are, there
lore, likely To revive unusual interest in


THE GOLD QUESTION,


ana recall some OF the Old feeling that exhausted
atself just previous to the panic. 1t VIII be remem
bered that the HERALD at that time, in TACT
throughout the gold speculation incident to the
pdriod, took strong grounds against the large
weekly sales OF gold made By the Treasurer-frst,
because IT was antagonistic to I'LL the laws pot
Cal economy tor government TO enter the market
as specuator in gold; and, secondly, on the
ground that The absorption OF currency by the
Treasury only tended to weaken banking nstitu-
sions and Withdraw from general circulation a
portion OF its


LIFE BLOOD


at season OF the year when every dollar was
actually enhanced in value by reason OF its use In
commerce. The result was subsequently seen in
tnc accumulation by the Treasurer OF some
aI7O0oooo OF currency, the withdrawal OF which in
.tbe face OF the early movement OF an enormous
harvest West and south did much TO create the
panic that quickly followed. Had he withheld the
Cold and allowed currency to move in its &C.
...tovund rhapucI instead OF axhaustiup tho