The Tiffin weekly tribune. (Tiffin, Ohio) 1859-1868, 1863-11-20
farm aud Household.
GOLD UP.

AT the time OF this writing (Oct.
14th) the Wall street bulletins
marked gold at 154 and upward,
and exchange on London 109t.-
That is, it takes S154 of the gen.
eral Legal Currency of the country
to buy one hundred gold coins that
were formerly second as dollars,
and a little more to buy a draft on
London payable in gold dollars or
sovereigns. 1.-THE peculiar style Of
reconing the nominal par Of ex.
change at about 10, or 10 per cebt.
about the real par, Ter 81. "A to the
Pound Sterling,) accounts for~the
apparent discrepancy between the
quotation of gold, and thai or ex.
change. Tenper cent. added
to 154 makes very nearly 1904.
The difference between gold Here
and in London is generally only ]
to per cent, which pays thecost
of shippingit from one place to
another. Merchandise imported
from abroad is paid for in gold, OF
against flour, grain, meats, lard,
tallow, cheese, etc., exportedirom
Tic ctfects of a rise inathe mar,
kot valoeof gold, upon the prices
lof farm products, are rcadily eeen
Owing to abundant crops abroad
breadstufis are not now in great
demand there. England imports
an equivalent to 25, ,Oo9 to 40.
loco, 900 bushels of wheat, esen in
the best years, buying it where il
lcan be most cheaply obtained-on
the European Continent, or in
America. This year We have tC
ompete with considerable sup
Iplies from the Baltic, tue Danube
etc, whence it can be obtained al
! prices nominally cheaper thar
here. But tile greater relative val
ue ct gold, and consequently o
Exchange, makes it profitable tC
to buy breadstuils and provisions
from US. To illustrate: SupposC
wheat to be worth 81 20 per bush
el in London, amounting to $4,000
can do so with 5000 bushels o
wheat delivered there, or with q bill
of exchange, which at 15L. Vh'
price of fgold,) will cost him Iferc.
SO, ,240 in currency. lie could ther
Just as well pay this sum for tho
1000 bushels of wheat (about 81,
S5 per bushel, and send that-oi
say 81, ,65 per bushel, allowing 20
cents extra per Lushel for sending
lit. All that he can save by buying
below 81 65, will be clear profit
If, on the contrary, gold were down
to par, he could pay only 81 OC
per bushel for the wheat Thl
same is the case with all other ex-
portable products-corn, wool, pro-
visions, etc. (The transactions
are generally carried on by several
parties, thus: The exporter ships
his articles and draws bills of
Exchange against them, payable
in GO days or thereabouts. The
foreign exchange dealers buy these
less interest and profit, and sell
them to importers who send them
over to pay for their goods. There
is mutual system, 10y which a bill
drawn against shipments to Liver
pool, for ex implc, can be used in
payment for manufacturers wares
in any part of Europe and even for
teas and silks bought in China.)
But the chief fact We desire to
illustrate, is, that any Advance in
the relative value gold increases
the sale of exportable farm pro-
ducts, and sends up the prices.
The higher price OF these increases
the prices of other products. The
cost of transporting products from
the interior to the seaboard is
nearly uniform, so that any ad-
vance experienced here, is felt
throughout the country. We are
not arguing that gold at 154 indi-
Gates healthy financial condition
of the country as a whole; we are
merely stating that it is specially
advantageous TO those who raise
any kind of farm products to sell.
"But," says the farmer, 'the same
causes which carry mp the prices Of
products also increase in the same
ratio the cost of what / have to
purchase" This is in part true !;
brt it is to be noted that only
small part of the proceeds of his
wheat, corn, wool, butter, ETC., are