The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1862-10-24
THE WEEKLY PIONEER AND DEMOCRAT


During the past month the price of gold
has been gradually ballooning up until it
has reached the high figures of 80 premi-
UNI over treasury or bank notes. There
are various explanations given for this rap
id rise in the value of gold. Some attri-
butte the appreciation merely to specula-
ton while there are many who perceive
it the result of other causes. 1t is known
that the European holders of our stocks
have become seriously alarmed for the Ill
innate safety of their investments, and
therefore are realizing by selling their
stocks in New York for gold. Of course
vast amounts of securities thrown on the
market, to be RENTED in gold, must COM
pei rise in the value of the precious me-
tails.
But this fact alone would not suffice
to explain the rise. When government
is issuing an irredeemable paper currency,
there is more confidence in it when people
can perceive the probability of some ces-
sation in the cause which eompels the issue
The war is known to be that cause. Could
we see the end of this war, gold would de-
cline. So many think that we have pro-
crossed but small way towards crush
ing the rebellion and establishing lasting
peace. The truth is, the value of our pa
per currency depends upon the success of
the army. On this subject, Thompsons
Bank Note Reporter of this week says:
When the banks made the first loan of $50
600, 900 to the government for the war. it was
virtually agreed that the war should be prose
| cuted economically and vigorously to a speedy
result When General Halleck took the posi-.
ton OF commander-in-chie Secretary Chase
sought an interview with him in hopes of COM
! ing to better knowledge of his own position
as minister of finance, anxious, of course to
re-assure the capitalists ofthe country that this
money and the strength and resources of the
nation were applied fixedly and determinedly
| to the object for which the money had been
borrowed, taxes levied and the nation mortgag-
ed. What this interview amounted to it is not
IN our province to know, suffice it to say that
the Hon. Secretary is as fully sensible as any
other man in the country that the success or
failure OF his financial measures rests entirely
with the army, and if he has been anxious and
even nervous on the question of generalship,
such feeling evinces nothing short of com.
mendable anxiety for our country generally.
ana Tor our finances especially. After the adj
JOurnment of Congress in July, the financial
measures of the Secretary have all been passed
and approved, so fully did we feel that the army
only could sustain the credit of the government,
mat we Jocosely said Mr.. Chase's next great
| move must be on the battlefield Little If any
military progress has been made since. Hence
Told Is twenty-eight and thirty per cent. premi-
| um and our currency and securities are CORES
pondlngly discredited. This is q question that
goes to the pockets of all the people. Every
treasury note bank note, and postal note afiOat,
Is snorn OF its value The people may not vet
See IL IN tnls night, nevertheless nothing is tru-
er. HOW can the minister of finance rest feel
ing, knowing that we have the power of prog
ress, yet still sink under inaction. Under eX-
istlng circumstances, it would be quite natural
lor Mr.. Chase to canvass the advantages and
disadvantages Ola change in the financial meas
ures OF the government Without argument on
tae subject, we viii simply say, that any effort
TO revive lost credit before victories pave the
way, will only make matters worse. Press
right on; pay the army; pay the navy; pay
| the contractors with currency though it be
deprecated. Individually it may not be their
fault that the currency is deprecated, but col
lectively it is.
The possession of Richmond and the
destruction of the rebel army of Virginia,
would at once check the rise in gold I'm
til we obtain decided success in Virginia,
we cannot expect to see much decline in
the value of gold. That success would al
SO induce foreigners to withdraw the stocks
which they are pressing for sale upon the
New York market Peace might not be
directly at hand, but there would be a
more probable prospect of it. Now with
our army near the Potomac, foreigners
think that we have not made an impress
sion on the rebellion. To illustrate to
what extent the success of the army inf1u-
ences the value ofgold, after the banks Of
New York suspended specie payments in
December last, gold rose to premium of G
per cent. The victory of Fort Donelson
reduced it to 3. The reverses to McClel-
lan's armg advanced the valne of gold from
s to 20. Other reverses have carried it ur
to the high figures of the present bearing
in mind that the extent of the increased
issue of irredeemable paper is dependent
upon the prolongation of the war; The
problem is brief. The longer the war, the
moreirredeemable paper, and of course its
diminished value, and relative rise in the
value of gold. ...-5 ....