Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-07-05
FINANCIAL.

TIE AudlCl1 dIt4CIS VA tiAS -ne'N'''
Gazette of last Saturday, most excellent
commercial paper. Its facts are carefully
collated, and its suggestions worthy OF
attention.
Our regular adyices from Eastern markets
are to the 7th of June. The money market
at that date was becoming rather more strinT
gent than it had been for some time before;
Instead of 5d6 per cent. per annum Tor Cail
loans, the current rate in May with an e1-
cessiye offering, lenders were demanding
and obtaining 6(a7 per cent-chlefy, the
latter. This sudden change is attributed to
very important modification Of fiscal policy
by the Secretary Of the Treasury. 1t is now
stated positively that instead Of manufactur,
ing money as he wants it, the Secretary will
borrow and that he will retire the 5per cent.
Legal Tenders Of small denominations as
fast as possible, using only large notes such
as $500 and $1,000, which will not 60 into
general circulation or if they do, will soon
be taken from it by the accumulation Of in
terest. This change in the policy of the Be-
cretary if really to be made and persisted IN,
it was believed would materially tighten up
money matters in Eastern markets, and
cause general decline in all commodities,
Gold among the rest. We have seen so
many such statements and speculations that
we are prone to regard them with doubt, and |
our doubts are confirmed in this instance by |
telegraphic advices, at least so far as Gold is |
concerned, for they announce a very large |
and decided movement in the opposite dlrec- |
ton. The fact is that Eastern hnanciers are
bewildered, and scarcely know what calcula- |
ton to make from one week S end to another. |
They find Gold in the present expanded con-
~ hat n,,rr rtafxlNy
manage, even with the aid of the strong arm |
of the Secretary of the Treasury. 1t is inte- |
resting and sometimes amusing to read the |
profound dissertations of financial writer's at |
the East touching the future course Of the |
money market and fiscal matters generally, |
with Geographic dispatches of 3 or weeks |
later date in hand.
1t is very reasonable to suppose, however, |
that if the Secretary pursues the course lndi- |
Gated above for any length of time, and in |
the meanwhile National Bank Currency |
notes are not issued as fast as Government |
notes are Withdrawn, there will be contrac- |
ton in money matters that will seriously al |
feet stocks and market values generally
Time will show. Congress is certainly max |
ing immense preparations for new loans |
which would seem to foreshadow that the |
Secretary is to be fully occupied in that de- |
New York Tribune in regard to the new |
policy:
at will give wholesome check to specu-
lation in all directions, and business will |
cease to be little else than gambling. Peo- |
pie will now see that the National credit is |
ample for all its wants, that Legal Tender |
notes are next to gold in value and daily in |
creasing in buying capacity. While the |
Treasury manufactured money, any kind of |
fixed property was better than bank balance. |
Now that the Government buys money |
bank balance daily increases in value. To |
parties out of debt these changes have not |
the significance they possess to those who |
hold property unpaid for at rates placed on |
unlimited currency. What those prices are |
is best told by the Price Current and the |
Share List. What they will be and the re-
turn to borrowing, can all be determined by |
the persistence with which the new policy is
carried out"
1t is stated that Mr.. Chase has been ten
dered considerable amount of money
some $4,000, 0O0-on temporary loan, pro.
vided he will give 6 per cent. interest, and |
waive the ten days notice also that Foreign |
Capitalists have offered him large sums for 6 |
per cents, if he will make the Coupons pay
able in London and Amsterdam. The Share
market was inactive and dropping, and the |
Government list lower in some respects.
The people of California brought with |
them originally to their new abode an ire
pressible repugnance to paper money and
engrafted it upon their organic law. Since
then nothing has transpired to mitigate that
repugnance. From these isolated shores
they have witnessed the disastrous revul- |
slons in fiscal affairs on the Atlantic side
,ko,, ho,. habal1 ~ THAR mn
popular Banks crushed and ruined by en-
tanglements with paper money concerns in
Eastern cities they now see the currency of
their Atlantic brethren deprecated to half
its nominal value, causing confusion and
danger in every department Of commerce.
With these causes of distrust added to the
considerations named above, we can hardly
suppose their antipathies to paper money |
will be overcome BY the mere promises Of
men whose chief object it may be, and doubt
less is, by such promises to tide over the
enormous depreciation of their capital trans
mute it into our gold values as par, and thus
preserve it intact from impending disaster.
1t is greatly desired by the chief movers in
this paper money scheme that some OF our
popular and wealthy bankers and capitalists
should Join in it, and aid by their personal
influence in overcoming the prejudices of the
people. We do not believe this wish can be
gratifed. We have yet to meet the first one
Of them who favors the introduction of paper
money as currency. Though unimpeach-
ably loyal in their procliyities and regarding
the credit of Government with all the conf
dence bestowed upon it in financial circles at
the East, they will nevertheless withhold
their aid from Eastern capitalists in the in
Fiction of so great and unnecessary an evil
upon their fellow citizens. They will do
more-they will resist the movement with
unrelenting determination. Public senti-
ment is utterly opposed. The able report of
the President of the Chamber Of Commerce |
reflects the views of our merchants and bust
ness men; and as regards the laboring classes
their opinions are fully expressed in the |
words Of Mr.. Webster, that "Of all the con-
trivances for cheating the laboring classes OF
mankind none has been more effectual than |
that which deludes them with paper money"