The New York herald., 1863-10-12
FiNANC AL AND COMMERCIAL

FiNANC Al AND COMMERC ClAL.
| -~-.>~--o~~~~>>-
SUNDAY, Oct. IL, 1853.
| Gold rose last week TO l49a, closing last night
| at I4S3z. Exchange rose 10 1854, closing at l63
| 1881 The advance in gold is therefore about
8 per cent for the week. No intelligence Of mill
tary naval O.. political disaster has besn received
to justify IL. Within ten days the Sui Ire sury has
disbursed nearly three millions Of gold in payment
of interest the 7.30 notes, the whole of which
has been absorbed. Within q few days specu1a-
ton has been more active than it WIS. But it is
notorious that there are at least many specua-
tors for the fall for the rise, and hence the adj
vance cannot be traced to mere speculation, as
was the case in January last. We are thus driven
to the conclusion that gold rose last week, as it
had risen for three or four previous weeks, in
spite of very strenuous eforts-made from patri-
otic point of vew-to keep it down. from the single
reason that the supply was less than the demand.
The wants Of the mercantile community for duties
average quarter Of million day. In addition
to this, the excess Of our imports exports
has got to be paid in gold On the other hand,
the supply from California is SMALL including the
amounts shipped direct to England. which are
represented by bills drawn here, 1t will not more
than half satisfy the demand for duties. to say
nothing Of the demand for export. The other
source Of suppIy-the Treasury Departments
locked, except at certain fixed periods. Some
nine millions of dollars in gold a. now lying idle
in the sub.Treasury at this- point--enough to
supply the wants Of the merchants for q con-
siderable period. But it seems it can't be got out
It was proposed at the Treasury Department, and
at one time it was understood that It was deter
mined. to anticipate the payment Of the November
coupons on the $40 bonds. But it seems that a
| deficiency Of clerical force was pleaded in bar of
this sensibls arrangement, and II fell through. Thus
the government ofthe United States figures as one
of the chief canses and agents of the deprccia-
tion of its own currency. 1t is, however, due to
truth to say that the zeal cause of the advance in
gold lies deeper than he policy Of government or
the temporary requirements Of commerce. Paper
money has created general prosperity which sti-
mulates extravagance ands large expenditures in
every quarter. Though there has been an ad.
vance in all imported goods fully equal to the in
creased customs duties and the premium on gold
there never has been Q period in our history at
which the consumption Of these goods was as large
as it is at present. All the great importers and
all the great retail dealers tell the same story
They never did so good business as this season.
kinds, sell instantly. The consequence is the crea-
ton Of an Indebtedness TO foreign countries which,
in one point of view, IL really alarming. Last
year we were enabled to pay our debts to Eu-
rope by large exports Il food, which was then
high in price. This year the European harvests
are good, and the price Of cereals is such that
they can only be shipped from here at a loss. A
certain proportion of our foreign Liabilities is
hahn dol ed Ip obi or
pecially United States $40 bonds. But . ship.
ment Of million Of bonds per week Is very large,
and few such weeks would saturate the European
markets. The only remaining article which we
have to ship is gold and though of this there is IN
the country an ample supply for the wants of
trade, IL 1t were brought freely 70 market and
placed at the disposition of importers yet if IL be
withheld and boarded, as is the invarable rule
on an advancing market, scarcity Of coin ensues,
and the result is that the premium advances day
by day. This advance does not spring from a
want Of confidence in the national cause or the
national currency II may be cotemporaneous
with victories or peace propositions. 1t grows
out Of the fact that a certain quantity Of
q specific artcle-gold--is required TO pay
balances md duties, AID that there is
not that quantity in market for sie. The true
cure for this state OF things Is general reduction
OF expenditures by the people. IL people will
spend the money made out Of the war IN foreign
luxurics, there is no saying to what point they
may not drive the premium on gold. II has been
suggested that the foreign importers are the cri
minas In this matter; and in one point OF view
namely, the extreme fevcrishness aud uncertain
course Of the gold market-we cannot but think
that an importer who imports goods which he has
not paid for in advance runs risk which no pru-
railing ut one class Of men. when the true re-
sponsibiity rests with the community at large.
Importers will import long jobbers will buy
jobbers will buy a. long they can find a market
among retailers; and retailers will keep full stocks
a. long as the public are ready 10 take them Of
their hands at profit. The remedy must come
from the public. the consumers, or not at all.
Yesterdays sudden advance from ii7 to ilsi. was
sscribed in the street TO trick contrived by some
smart spectators. II is said that some bull opc.
rators in gold bought 5000 900 and shipped
81, ,i5o, 900. with q view 10 alarm tho public and
scll the balance al profit. This theoy derives
piausibility from the fact that Friday last bills
were IA - rer cent lower than gold, and no
good nerchant under the circumstances would
have rcmiitSd gold when he could buy bills II
this theory b. souni 'he parties concerned dc.
serve, and win doubtless recsivc. the ndi ignant
rsprobation Of tho community. Men who al this
crisis in our history, voald seek TO deproc catc the
currency by cheating Operations COR The sake Of
petty gain. are the paturS, eompeers Of smugglers