The Goodhue volunteer., 1864-08-31

experience. 1t is true that in the war o
1876 Government stocks FELL at ono
time to 70; but most OF the banks were
then suspended CT bankrupt and there was
comparatively little currency in the coun
try to buy stocks with. But suppose the
god value Of Governments stocks were this
day 70, (the loves. they eyers till now
sold att the market value at the present
rate of gold woald be ls5s while in fact the
stocks are selling helsw ae,5 asge,55..~Sapposing
then, that the market priGses gore:nlnen,
securities were, ty the resuaalt'on Of specie
payments, to go down to 7asia July, The
decline would be 35 on lQ5s "a lliya'eat tc
80 x per cant, while the syaa:e syasia:e y ii.
road stock would be nearly oir quite eqlal
10 the whole present diffeIerce between
gold and pa per- A common Iail"oad stock,
selling now at 1C5, would decline to IS, or
in the test supposabe case, to- CO. This
is illustrative by the history of every sus.
pension ofspecie payments W have had,
and there are many business men who
| will rccollect what the prices Of produce e
stocks and all sa|eable comm4di,ics We're
after the commercial reYulsons o. 1887 and
1899 40. In I84l, ~ '43, prices were
rednced to degree now scarcely credible
But government stacks did not fall materi
ally. On tire contrary, it is a set; led princi-
pie, deduced frcm 81 experience in England
and his c2unlry, that Goct?J meu fan u 10
moi 1'nr'unt: 10 tie san, exAut as 9th r.
hn|* # pro,o<rty, II ere is gooltreason for
1t. The ti@ e. ru's cfint:re~t ard security
are all liked and permanent. There may
be some variations in The market price. ow
ing to the crea cr or less bulk of t,,e entire
currency, bat there can be none in the IN
trinsic value; and hence it is, that his 'ori
ca!lv. The fluctuations in the value of gov
crnmcnt stock have been comparatiy lively
small. In all the recent commercial flu
tuations Of England [l, some Of which. there
has been ct mple'e ;,.os.ration of ali other
property,) the variation in British conSols
has not been over gve or six per cent, This
canno be said Of ary other kind Of stock.
Or railway and bank stocks the great var'a
'ions md at times wonderful depreciation
ara notorious. Sudden commercial reYuI-
sions have reducei thee stocks to on.
hal t':eir price Suppose, then that with
COLL say at 81 now. and government .,tp:x, :,
a 1O5 their shou'i b, q ros,.mnt.9r .oi
gold ps*:n>,ts in M, v>a-. (a3l this IS
upp"sition which NAV hoc me fact wllat
would he tbs latiyn efr,ct o. t'raa kidd.
o. stnck--sav government At 105. hank nt
rs ard railroad at ]20? Tn at human
probability tn resumption ofgold payments
in wear would bring them to these re!a
t;vr nricoe VIZ Go, crnmen' 90 bank So
ra''ro7d 20.
J"dg Il hv hirto, rel rrpo ,'en"> his won i
be nearly the r<7n''u. result. The conee
qnencn then is that tie government funds
rcpr ciate * per cen. The hanks 25, and
The railroads so. II is more probable, II
this statement he thonoht erroneous, that
the actual resn''s would he much more in
favor Of Government But we merely s'vc
this as an illustration ola general h;stori
cal truth, That on the resumption Of spec e
payments or on the occrr7enc. Of y great
commercial convulsion. t'4o fall in gown
mrnt stocks will be far less, relatively,
than thu fall in anv other kind of stocks -
7h' p"nctira' infe"ence from this is plain -
THE purchase Of government stocks beng
made Cor investment, II IS u tiar safer n7d
| mar. prcffaUs s'nra@t'n<''t, fir the f;.'urc,
when gold payments viii be resumed, than
any other
| Now nobody can donht that the Wa,
| Chat is the great bulk and e~rense Of .he
War; will be over in a year CT so; anf
when that occurs there e,W BE- II qo'a st.,n
dnrd: and then. when others are lament
inc over the fall OF stocks. the Folder 0
government loans will have no fall to Ia
ment. He will. 10 fact. profit By tha
change which Injuries the holders Of other
property. !Ssn';nel.