The Portland daily press., 1862-11-24
Monday Morning, Nov. II, 1862.
The Rise In the Value of Gold, and Its
Effects upon Farmers.


One OF the marked events of the month is
the rise in the value Of gold as compared with
the legal tender currency of the country. At
the time of this writing gold is quoted at 1882
that is, 500 in American gold coin will buy
1892 of bank notes, or United States Treasury
Notes, either of which pass current in trade,
or in the payment of debts at their par value
Any one having 800 in gold can buy 100
bushels of wheat of a grade quoted in the
market at S1.32 per bushel Or rice rerso, a
farmer having 100 bushels of wheat, which in
foreign market would buy only 800 in gold,
and enough more to pay the expenses and
profits of export. can sell it for 1882 of a cur
rency that will pay his debts TO the merchant,
or on his farm. Again, suppose London
grain dealer, whose purchases are on the gold
basis, desires to procure 10000 bushels of first
grade wheat. In his own country. or else
where in Europe, he must pay, say sl.50 per
bushel, or $4,000. The same grade of wheat
is quoted in New York at, say S1.00 per bush
ell. Add 20 cents per bushel for freight, insur-
ance, and other expenses, and the 10000 BUSH
els of wheat would cost him, deliveredin Lon
don, 81 so per bushel or $4,000 in all. But
his $4,000 sent in gold or laid out in ex-
change, would buy in New York S19.SO0 of
the par currency, from which he could pay
$4,000 for the 10000 bushels of wheat, at ST.
60 per busbel, and $1,000 for expenses, and yet
save 81 800. The same reasoning applies to
other articles Of export-ffour, corn, provisions,
etc.
These figures, though not representing ex-
actly the difference in prices, are a fair illus
tration OF the effects upon our breadstuffs and
provision markets, of the recent rise in the
value of gold, as ompared with the legel cur
rency of this country. The exporting of grain
and provisions has been greatly stimulated,
and shipments abroad have gone up to unpre-
cedented figures, as detailed in another article.
We are not discussing the advantage or the
disadvantage of this disturbance of the cur
rency of the country. The country at large
is not any richer because hundred million
bushels of wheat are represented by hun
drcd and thirty-two million dollars of legal
currency, instead of one hundred million gold
dollars, for the real value of the two are the
same. The particular point we are here aim
ing at, is, to show that this great advance in
gold is insuring to the special benefit of farm
ers, even doubly so. First, it has created
greater foreign demand for our produce as IL
lustrated above, thus enlarging the market. as
well as increasing the prices. Second, the
greater prices farmers receive for their grain
butter, meat, &C., though not in gold, are in
currency that is legal and acceptable tender in
the payment of their debts to merchants, their
land debts. The nominal rise, during the past
month, of 10 to 20 cents per bushel in wheat
OF S1.20 to S1.30 per barrel in -four of cents
per bushel in corn, OF to cents per bushel
in oats, of cents per pound in butter, ETC., is
so much clear gain 20 farmers, in the payment
of debts previously contracted. But the rise
in articles which farmers must buy, is nearly
equal to the advance in what they have TO sell,
and more, on some articles The advance in
sugar, coffee, cotton, and other cloths, however,
is due more to the high tariff, taxes, and other
causes growing out of the war, than to the adj
vance In gold, and nearly the same prices
would have prevailed had not farm products
gone upward. 1t is evident, therefore, that
however unfavorable Others may be affected by
the present disturbances in the currency of
the country, farmers are clearly the gamers.
The practical lesson we would impress upon
farmers is, that they should improve the pres
ent opportunity to pay off their liabilities, and
get upon safe ground Because their products
can he sold at higher figures than formerly,
they should not increase their outlay by more
expensive living, by running in debt for dress,
carriages, or for more land Debts contracted
now may have to be paid when money is of
comparatively greater value--when bushel
of grain or pound of butter may buy much
less money. Better take in sail, and be ready
for any storm that may suddenly come. Stick
TO the old coat, and hat, and carriage. A
cheaper dress will suffice for year or two
Patch up the old dwelling, it will keep the fam
lily comfortable year or two longer. Put in
a few extra acres, or rather provide for better
cultivation for those already planned for. The
initiation of the currency may continue year
or two yet, in which case products will con-
tinue to yield large nominal returns in the
market When they fall, you will need the
more Of them to sell. A financial pressure
must come, when values return to the gold stan
dnrd. The change may be gradual, and ex-
tend over yeas, and not all at once, in a crash
and smash. The farmer who is then out of
debt, aud can raise from his own soil crops
enough to supply his actual necessities-hs
bread, and home-prodnced clothing--will be
able to look out serenely upon the financial
storm around him. The summing up of our
discourse is: Now is the time for farmers to
get out and keep out of DEBT-[American
Agriculturalist.