Year: 1873

WALL STREET,


SUNDAY, Nov. 30, 1873.
Congress will assemble tomorrow. and doubt
less before many days enter upon the considera-
ton OF measures which have for their object pre-
ent relief and the prevention OF another money
panic. In the discussion winch Is likely to ensue
two pointssho be prominently borne in mind
1rst that = permanent cure cannot be effected by
inaation; second, that the healthy contraction
which has occurred as the result OF the recent
crisis-being obedient to certain known laws OF
trade-is practical step towards ultimate re-
sumption, and ought not to be suddenly checked
The country has suffered enough from expansion
over-trading, overlmporting, over-confdence
unlimited credits. and thousand evils begotten
by extravaganza. We want no more OF 1t. We
want to turn new leaf, and there has not been
since the war such an opportunity for doing so as
the present The question now agitating the com.
mercial mind is how to wisely adapt cur
rency to


THE NATIONAL NEED.


to the growth and population of the country
how to enlarge It's utility when most required,
and give 1t adjustibility and stable value at all
periods. 1t Is not altogether the lack of q
specie basis, but the lack OF govern
ing power Of restriction that depreciates the
value OF the paper issues OF any people, When
illimited, as was the case with Continental and



parativey worthless. On the other hand, when
limited in quantity, it becomes like gold and silver,
o natural measure OF value. That limit must, to
great extent, depend on some just ratio to pOpu-
lation and commerce. In France and Germany
this seems to have been discovered, and we OBJ
serve the result in paper that Is exchangeable
Tor gold nearly at par The United States are ap.
preaching the same condition because


THE CONTRACTION OF THE CURRENCY
has checked extravagance, and we importing
less and exporting more. Ostensihly the value OF
this currency depends on the belief that 1t can be
converted into gold Faith is the foundation. Yet
gold is chiefly useful to Us for the payment of the
public debt, interest and customs, and probably it
never will again superscde the use Of paper as a
superior medium or exchange. Nay, 1t Is far more
likely that, II our manufactures continue to gain
upon those OF foreign countries our exports to In
crease and our imports diminish a. national cur
rency OF legal tenders well established and pro-
tected, would practically be more valuable than
even gold itself.


WE WANT GOLD


now, however say to the amount OF $3.50, 600, 900,
as the basis or that faith. Credit, whether 1t be
national or individual IN character, rests upon q
fixed and worldwide recognized value. That
value has but one financial expression. Paper,
cotton wheat corn iron, the products OF the earth
and mans handiwork may represent II, but they
must always be measured by the one standard
gold. The common mind, however, must not un-
derstand that gold is required in the proportion OF
dollar for dollar to the confidence for which
we plead or to represent the worth Of all we use.
1t Is merely symbol, an emblem OF trust and the
government that most possesses it or that which
produces it its equivalent most largely possesses
the faith OF mankind. This, then, should be


THE KEYSTONE OF THE ARCH


which Congress will doubtless endeav0r to erect
Let it 90 forth to the world that the Treasury fs
accommodating the precious metal; that Its sale in
Wall street has been suspended; that the price is
no longer under the control OF spectators; tnat
importers can purchase what they need for busi-
ness purposes from the United States repositories
at par, and six months after the beginning Of the
process would see decline in the premium, and
In q year-unless war ntervened-our entire
seven hundred millions of currency would be upon
q basis that panic would never again disturb.
Hand in hand with this reform should 60 that other
and equally important measure which is 10 secure
elasticity for this currency. 1t may for the mo-
ment be in the germ, but We have faith that among
the various plans which will be submitted to Con.
gress one will be found embodying the wisdom
and purpose OF the hour.


THE FOREIGN SITUATION.


Late advces rom London by mail do not give
very cheerful report OF the financial situation in
England, as 1t existed fifteen days ago. There has
been stringency in the money market, and o great
depreciation Of securities Since then a recovery
is recorded and coincidence Is more assured
America is said to be 'the standing difnculty."
She wants money, and the transmission OF gold
hither in exchange 1or our crops, has been him
dered by the dearness Of money there. It Is ex-
pected that Germany will likewise resume her
drain upon the English market. as soon as II can
be done without producing financial disorder
With such suspended forces hanging over the mar
ket 1t Is predicted that money win not be very
much cheaper With reference to the operations
or the London Stock Exchange the following table,
showing the fall in securities, will be read with
INTEREST,"


FALL IN SECURITIES BETwEEN SEPTEMBER IL AND


NOVEMBER s, 1875


-PiceS.- De-