The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-03-05
r FINANCIAL AND COMMERCIAL.
WEDNESDAY, March 4--6P.

WEDNESDAY, March 4--6P.M N.
At length the miserable speculation in gold
which has deprecated the national currency "a
sixty cents on the dollar, has eliminated, and the
bubble has burst. Gold, which sold yesterday al
172, opened this morning at 1921, declined to
1917 almost without q check sold Mt I65 and
1857 in the afternoon, and closed 1859 bid Bold
and persistent efforts were made by holders to re.
sst the decline. well known CLIQUE of spcculs-
tors, known by the name of the Washington party,
| is said to hold some two millions of dollars These
and Others In the same predcsment strove hard.
| hut Intellectually. 10 stem the downward tide
/ There was resisting the effect Of Yesterdays
legislation. BY the law of Congress passed
yesterday, not only does every purchase or sale
Of gold pay tax larger than a fair profit
on the operation, but banks and bankers
are expressly prohibited from lending over par on
gold. Speculator- are in fact obliged to carry
their own gold-to invest OF their own money one
dollar for every one per cent premium on the
metal. To buy $4,000 gold now man must Law
ont Of $4,000. Under such circrms stances specu.
iation for the rise becomes hopeless, and viii be
abandoned. Several leading operators in bullion.
whose speculative purchases have deprecated the
national currency very considerably are already
closing their accounts and preparing to resume
their old business In dccayed apparel. II is i'm
possible to say how far the decline in gold NAV
60 " i pretty well asoertained that from twenty
TO twenty-five millions Of gold are held under
hypothecation by our banks and bankers Tho
New York banks, which showed spocie
average o. over *3s 100000 last Monday. and
which have lent ~ 200 900 TO The govern
meut, had only s22, 100000 in specie when
lley suspended in December, 1861. They may
have sweiled this reserve 20 s25 900 900 since II
foliows that s2o 600 900 Of the gold held by them
belong 10 individuals, and il il fair 20 nresu,ro
that advances have been made upon II. From All
that we can learn we suppose that from l25 Ia I5o
has been lent on tic greater part OF this bullion
These loans must now be >caled in, and The gold
sold in open market. Who will buy il, and nav
the tax, besides locking up SO SOC Of currency on
every $4,000 goldi The sNutest minds in wall
street would not be surprised IT, under the opora
ton Of this new law, gold fell TO l25-.that Is TO
ray, to the point from which il shdsd never have
risen The law, a. reported l. of ~ mos, strin.
gent character. A loan on over mar made or Mt /
tempted to he made ON gold is absolutely yold:r
- that, IN the event Of collusiou> between
banker and Spectator, whereby q loan
y over par on gold Were made by the former. with
Tie private understanding that the latter wand
not plead he law in bar Of the lenders claim. De
isrs Of ths borrower could recover The money
rom the lender after his death. Il viii rcou,o
ome Ingenuity and some recklcssnoss 10 attemn.
Q evade this Law. We understand thia af,eynoan
hat the state Legislature have taken an tho ami.
'ct, and are likely to render Il illenal for Tho.
anks to make any loans whatever on gold cr Tho
round that they were not chartered for anv suc,,
arposc, but on the contrary, for purposes direct.
opposed 70 the speculation In gold. !
The exchange market wsa ycrt o,,ob o,.,,.,
day III consc4 islec - ~ ial, I. s, wA