Year: 1872

money Markcts


Mr.. Boutwell, appears to have an irresistible
desire to meddle with the money market. He
imagines it is his duty or privilege TO regulate
the financial operations of Wall street and the
business of the country. We have heard
great deal within the last few days of what the
Secretary was prepared to do in purchasing
bonds or selling gold in order to relieve any
pressure in the market that might be caused by
the disastrous fire at Boston. We have seen
that just previous to this calamity he inflated
the legal tender circulation nearly five millions
of dollars. 1t is we'll known that scarcely
week passes that he does not in one
way or another interfere with the gold, money
or stock market, and, consequently, with
values and the natural current Of business.
He may not violate any law in doing so, and
it may be legally within his discretion to issue
the reserve Of greenbacks held by the Treas
ury, to buy more or less of bonds, or to soil
whatever amount of gold he may think proper.
He may be at liberty to do these things to
some extent privately or publicly, and might
even, if 50 disposed, do them in q way to bene-
fit certain parties and to injure others. This
is dangerous power and liable to abuse, and
has tendency constantly to make the market
feverish and speculative, to disturb values and
to place tho regular and legitimate business of
the country at the mercy of spectators and
those that may know the secrets Of the Treas
ury Department.


ton has had good effect sometimes in break
! ing up cornering operations in gold and cur
| rent money and in relieving the business COM
munity temporarily from the embarrassments
caused thereby, still the evils consequent upon
the Secretary's general interference with the
money market are far greater than the good
resulting from such cases of exceptional re-
lief. Besides this practice Of Mr.. Boutwell,
is contrary to good policy to the freedom of
trade, to the principles Of our government and
institutions, to the proper functions Of the
Treasury Department. and to the management
of the national finances throughout the history
of the Republic anterior to the war. The
Secretary seems to have taken the idea of regu-
lating the money market from the practice OF
the Bank Of England. His action, it is true,
is somewhat different, but the effect is
similar. The Bank of England makes money
easy and fosters speculation by lowering the
rate of discount, and squeezes the market,
checks business operations and prevents the
outflow Ct snecie by raising the Eats, MI
Boutwell, uses the gold and legal tenders Of
the Treasury to contract or expand the money
market in like manner and according to his
pleasure. He is an autocrat in this respect
and is governed neither by law nor established
precedent as the Bank Of England is. The
Treasury Department was created for no such
purpose Its functions should be confined to
receiving and disbursing the income Of the
| government. The money and stock market
ought to be left to the operations of individu-
ais, the same as the buying and selling Of mer-
chandise. 1t would not be safe to trust such
power as Mr.. Boutwell, assumes to great
financier or statesman and in his hands the
danger is greater because he is incompetent.
There is nothing Mr.. Boutwell, has done
that has alarmed the business community
more than the recent reissue Of nearly five
millions of legal tenders. What security, it is
asked generally, have we against another and
larger reissue? If the Secretary can expand
the currency four or five millions, what is to
hinder him expanding it twenty Millions or
to the extent of the whole of the legal tender
reserve? Everywhere protests are made
against the expansion of the currency. Even
in Boston, where, from the late disastrous
fire, money will be in great demand, the Relief
Committee has passed a resolution and for
warded it by telegram to Washington, protest
ing against the issue of additional currency.
The people all over the country are hoping for
and looking forward to the time when specie
payments will be resumed, and fear the post
ponement of that period by an increase of the
volume of currency. 1t is natural, therefore,
that they should regard with alarm the power
Mr.. Boutwell, has assumed in issuing within
fraction, an additional five millions Of green
backs and the power he may have of expand
ing the currency much more. While there is
no wish to have the present circula-
ton contracted, as contraction might
lead to embarrassments, shrinkage of
values and to an interruption of
business, there is no less opposition to expan-
sion. Our people believe that the country
by its wonderful progress and increase of
population, will grow up to specie payments
and they are willing to wait till the laws Of
nature and trade, aided by such prudent leg
islation as Congress may adopt, shall bring
about that state Of things. But they will not
consent to have specie payments deferred by
the arbitrary action Of the Secretary of the
Treasury.


1t will be necessary, therefore, for Congress
when it reassembles to place restrictions upon
the Secretary-to limit his power over the cur
rency and business of the country-and to
confine the Treasury Department to its proper
functions of Collecting and dishnrsinn tho