Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-05-21
THE EVENING NEWS.
SUPPLEMENT
The Rise and Fall of Gold.

Mr.. Chase's letter to the Chairman of
the Senate Committee on Finance ascribes
the advance in the price of gold "to the
increase of notes of local banks, and the
efforts of spectators. The two bills
now before Congress-that which taxes
the circulation of State banks, and that
which prohibits the sale of gold "on
time" are intended to remedy these evils;
but Mr.. Chase acknowledges that they
will be, after all. but partial remedies;
nothing short of taxation to one-halt
the amount of our current expenditures,
and a reduction of these expenditures to
the lowest point compatible with efficien-
cy, will secure financial success to the
Government" And he adds that with
out military success, call measures Will
fall" This is the whole matter in nut
she'll.
There is no doubt that the restriction
of the Bank circulation is wholesome
and necessary measure, and will have an
excellent effect; but we must say we think
that those who expect much from the bill
to "put down" speculation i'll gold will
find themselves miserably disappointed.
One of the misfortunes attendant on civil
war is the strong sway which peoples
feelings are apt to exercise over their
judgment-the general tendency to draw
differences by the aid of hopes and fears;
sympathy and indignation.
The loyal people at the North have been
so outraged both by the principles and
practices of their Copperhead neighbors,
that they have got into the habit of be-
ieving the Copperheads to be capable of
a great deal more mischief than they real
ly are. This has been illustrated in a
very striking way in the popular theories
about the price of gold.
Two-thirds of the public have been un-
til now, and very large proportion Of
them are still, thoroughly satisfied that
the rise in gold has been solely due to the
efforts of spectators to break down the
Government. Gold has been, ever since
specie payments were suspended, a mar
ketable commodity like all others, and
its rise and fall, as compared with " Gov
ernments," has been due to precisely the
same causes.
The mass of those who hold gold ask
more for it one day than another for pre-
cisely the same reason as those who hold
win @, or corn, or cotton. In other words,
the laws of trade are the same for gold as
for any other article. If it is scarce in
relation to the demand for it, it rises; if it
is scarce in relation to the articles offered
in exchange for it, it rises or if the value
of any one article offered i'll exchange for
it fall, it seems to rise. What has hap
pened during the last month has been lit
tie if any change in the value of gold
reckoned in any thing but paper monet.
Speculation may have, and does have q
disturbing effect on these laws, but the
disturbance must be temporary. 1t can
no more be permanent or deep-seated
than the wind can alter the plane of the
ocean. A storm raises waves, but they
sink down again, and the general level
remains the same. Speculation is always
due to natural fluctuations in value. The
ups and downs in the gold market are not
due to spectators to any extent worth
noticing, or any extent that can damage
the National credit.
They do not create fluctuations; they
bet on them. Their gambling alarms and
disgusts people, no doubt; but they can
no more permanently raise or lower the
price of gold, or even communicate ten
dency to it, than they can bring down
rain. Those things depend on the guam
tity of paper in circulation, and on the
prospects of the war.
1t is of course we'll that speculation
should be made difficult and dangerous,
because it is a form of gambling, and as
such demoralizing but the notion that
making it penal will materilly help the
National finances, is simply folly, and
very childish folly to boot. We will even
go so far as to say that in the actual con-
dition of affairs, the time spent in dcba-
ting a measure for this purpose is wasted.
IfGrant should destroy Lees army this
summer, all the spectators i'll Wall
street, banded together, could not keep
gold from falling for a single week; and
yet they would be just as anxious 10
make money and break down the Govern
ment as ever. If the paper in circulation
were reduced to 100000, 900, the same
result would follow. These are radical
remedies, and it is to applying these that
everybody's attention, and particularly
that of Congress, should be directed
Times.