Maryland free press., 1863-03-13
Thc Speculation in Gold Coin-De cline
in the Premium.


,ILe reaction in the premium fot gold coin
over paper money commenced on "Wednesday
md continued yesterday, falling from the max
.imnn of72s per cent, on Tuesday to CO, de-
elsne of 1s3 per cent, in two days. This sud-
den reaction 10 ascribed to various causes, but
the operation of the stamp tax on all transac-
tiops in gold over three days, and upon ell
Leans upon gold and bullion, passed by Con-
rress as part Of the revenue law, is generally
accepted "a the principal cause Of the move
ment.
Yhe following is tho section Of the hll as
PASSED:
That all contracts for the purchase or sale
sc gold and silver Din or bullion, secured by
pledge or deposit, or other disposition of gold
nj silver coin of the United States, if to be
reformed after period exceeding three days,
shall be in writing or printed, and sighed by
the parties or their agents or attorneys, ana
shall have ono or more adhesive stamps, rs
provided in the act to which this il an amend
,aent, equal in amount to the one half OF one
per ccntum. aud interest at the rate Of six per
epntum per anuum on the amount SO loaned,
pledged or deposited; and If any such loan,
pledge or deposit made for aperiod not ex-
.eeding three days, shall be renewed or in any
way extended, for any time whatever, said
loan, pledge or deposit shall be subject to the
duty imposed on loans exceeding three days;
and no loan Of CURRENCY or money, on the So
aurits Of gold or silver coin of the United
States rs aforesaid shall be made exceeding IN
smount the par value Of the coin pledged or
deposited as security; and any loan SO made,
or attempted to be made, shall he utterly
void"
The stamp on gold contracts and loans Upon
gold, which are not permitted to exceed the
par vulue of the gold, is thus made to amount,
ta.s cn thirty days contract or loan, to per
cent. that is the general tax to begin with Is
Der cent, and in addition to this, the inter-
sst on the contract or loan, 10 the extent OF
per cent. per annum also goes to the govern
ment, making per cent. more for so days
A contract or loan for 90 days will require
stamps equal to II per cent. This law aP-
plies equally to hanks, brokers and private
moncy-lenders, and it goes into effect from Its
oficiM publication in Washington.
In noticing the excitement in the New York
gold market on Wednesday, the Herald re-
marks:
The amendment " the tax bill adopted by
Congress on Wednesday Knocked the premium
upon gold down to 1863 yesterday "a fall of
nearly five per cent-and occasioned great
slaughter among the spectators in Wall
street.
This oct stops the operations ofthe gold
spectators. If thoy buy gold now they must
have the ready cash to pay the difference be-
tween the par value and the premium; for no
one can lead them more than the par value OF
Of shs gold. For exam pie: ifa speculator goes
into Wall street to day ten thousands dollars
On his gold, and must have the six thousand
Ave hundred dollars premium in his pocket
Few rnen will desire to invest so mnch money
in such speculation. Before this amends
mcnt passed speculator could borrow $l5,-
600 on 10000 in gold at l07, and would
reauirc only onc thousand seven hundred dol
lars to pay the balance. Here is difference
to the speculator Of Ave thousand dollars on o
small affair Of ten thousand at ACT; and the
greater the speculation and the higher the
premium the more difference tue Spectator
will have to keep on hand.
The World says
These laws have leon passed by Congress
for the perpose Of bringing down the price Of
gold, for which the sole legitimate demand
comes from foreigners to ship abroad. Ane-
ricaus have no use for it. These Laws are
copies of what in Spain during the time they
held Mexico. They arc known to those who
understand the principles Of political economy
ander the aahe of"attshts to hedge In the
eaehoo,"