Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-06-03
Gold 1914,

Some persons THINK that the price OF gold Is
absolutely regulated by the events of the war
They regard the quotations of Wall street as the
only correct commentary upon the military situ-
alton. Implicit confidence is placed by them in
the theory that capitalists alone can form sound
opinions in relation 10 the achievements Of our
Generals a little investigation is all that is ne
cessary TO establish the absurdi,y of this mode of
reasoning. What are the facts
Gold is higher, or more properly speaking,
the value of Government paper is less now than
at any time since the war commenced; yet
The military situation was never brighter nor
more hopeful Grant, Notwithstanding all of
Lees efforts, has forced his way from the Rapidan
to within seven eight miles OF Richmond
With White House, on the Pamunkcy i'll his
rear, as new base he can, rs soon as he gets
ready, commence the siege of Richmond. John
ston, in Georgia, weakened to enable Lee to OPP
pose Grant with some show of success, has been
forced, by Sherman, TO the vicinity of Atlanta,
the key Of the railroad system of the extreme
South; while the army of Louisiana has been
ex.ricated from its difficult position at Alexan.
dria, and will soon bu ready TO take the field
again.
We repeat that, since the war commenced. tho
military situation was never brighter nor more
hopeful yet gold is higher to-day than at any time
since the rebellion commenced. 1t Is evident
therefore, that we must look elsewhere for the
principal cause of the present depreciation of
Government paper. No difficulty will be expert.
cnced in ascertginiug it, if the well known laws
of finance be adopted for our guidance.
Il is irdiSputnble that currency, like everything
else is regulated by tho laws of supply and de-
mand. Ii there be TOO much of it in circulation
it will deprccae il too little it will rs certainly
appreciate. There are now several hundred mil
lions of the Government paper, i'll the shape OF
grrenbacks and other evidences of indebtedness
allOat more than are necessary for the wants OF
the people. and the surplus is increasing in this
way under the law of the last Congress, large
number Of National Banks have been organized.
They all issuing paper on the basis OF tue
funded debt of the United States. The private
banks are also issuing paper. On the other side
of the mountains they have, therefore three diff
fcrent kinds Of paper money in circulation, viz:
/. Greenbacks and other evidences Of National
Indebtedness.
. The issues OF the National Banks.
J. The issues of the private banks
The first are in excess OF the wants of the peo-
pie BY several hundred millions of dollars. To
that excess are 10 be added the issues Of the pri
vate and National Banks. The result, Of course,
is an extraordinary depreciation in the class Of
paper which is most circulated-that is TO say,
the Government paper. But this state of affairs
cannot long continue. Congress has imposed a
tax upon the issues Of the private banks of one
quarter of one per cent per month, which will
give the National Banks so great an advantage
that the former in time will have TO GO TO the
wall. We will then have but two kinds ofpaper
in circulation, viz. the Issues eff the National
Banks aud the issues of the Government. a
mode has been provided also for the conversion OF
crecubacks into bonds, which buTdS IRE TO be.
come the basis of the issues of the National
Banks: so that ;ftEc war were over we have only
one kind Of paper in circulation-that is TO say,
the paper Of the National Banks, and that would
be legal tender without legislative assistance for
it would be redeemed at the counter in gold and
silver.
When the volume Of paper in circulation is les
scned the price of gold will rrcedc, but not before
Battles have no effect upon the market, except in
so far that a great victory would furnish grounds
for the belief that the war would soon be ended
aud that, therefore, there would be no necessity
for the issuance of any more paper; while on the
other hand, great disaster would render II toler
ably certain that II further expansion would be
inevitable a great victory or Il great disaster
would not vary the price of gold either way five
per cent A great series of victories, or grea;
series of disasters would not affect the market to
the extent of ten per cent; for, no matter what
might be the issue Of the conflict, the loyal States
now numbering over twenty. -four millions Of PEG.
pie, are abundantly able 10 pay every dollar Of
the indebtedness which has been or is likely TO be
contracted for years yet to come. 1t must be
borne in mind, also, that it is TO themselves that
they owe all of this money Very little, if any.
of our national obligations has passed into the
hands of foreigners. The great trouble is the i'm
meuse amount of paper now in circulation. When
il is reduced by the closing up Of the private
banks and the heavy taxation which Congress il
imposing gold will reCede, but not before, no
matter what may he our successes on the field
s, f. Alta Of Wednesday.