New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1864-12-22
TRADE AND FINANCE.

correspondent commenting upon an article oil
ours wherein we endeavorcd to point out de-
ficiency in the Report of the Secretary OF the
Treasury both OF information and Of discussion
of the essential point in our financial condition.
lie misapprchends us in supposing that we ad'
vocate suspension Of payment in gold OF the
interest on our Public Debt, and Of customs
duties. What we did say was that the receipts
from customs-duties and tho payment OF gold
interest are so nearly equal, that one counter
balances the other and therefore are of little, IL
of any, practical effect upon the demand Tor
gold. 1t ia the want Of the precious metal for
export that keeps up the demand; and, az MI
Fesscnden SAYS $50 long as there remains a
large and increasing necessity for its use, and a
limited supply, it will command price COM
mensurate with the necessity and difficulty OF
obtaining it." Were there no demand for gold
there would be no speculation; 1t is the ne
cessity of paying our foreign debt in gold that
creates the demand, and not the payment OF
duties and the interest on the Public DeDt,
which equalize each other.
To us. it seems neither Just nor expedicnt TO ad-
vocate the payment ofthe interest on the existing
Public Debt in currency aud not in coin. such
proposition. il entertained, would have pre-
ciscly the same effect upon the national crcdit,
and on commercial values, a. that made by Mr.
Stevens would have had, had it been adopted.
IL would I've a shock TO capital-an event always
to be avoided, if possibc-and would dcprcciate
all our national securities. 1t would throw
back upon US, to be sold for whatcver they
would bring, all our national securities held
abroad. II would create, at once, new
demand for gold among timid capitalists
who would seek such an investment that
they might remit their capital abroad for
safety. The mere apprehension that MIR.
Stcvens's proposal might be adopted had, we
know, this effect to come degree; and the GER
tainty that such would be the result, should ii
become a law, was the cause Of the rampant
speculation in the gold-room that followed his
motion Such tampering with the national
credit and with capital. which Is as sensitive to
atmospheric changes, can only result in disaster.
and can only be justified by extreme circum-
stances which can in no other way be met.
On this point, there seems to have been some
misapprehension Of Mr.. Fessendens meaning
He does not propose to pay the interest on the
present Public Debt in currency. but suggests
merely whether, in case Of continuance OF tho
war, VIC may not, at some future time, be COM
PEELED 10 issue bonds at higher rate Of interest,
convertible at maturity into gold-bearing secu-
rites. That necessity may be nvertcd by
increased taxa'on.or speedy end Of the war
But whether il may, or may not, be wise to r.
sort to such a measure in case we are compelled
to increase the Public Debt, is . question We 60
not now propose TO consider.
IT, then, ii would he unwise 10 cease 'he pay.
ment Of interest in gold on what we now owe,
it follows, Of course, that it would be equally
50 TO change the present law in regard to duties
VIVA, comes from one goes TO and is needed for
the other.
Neither doc. our correspondent meet the real
difficulty in our financial condition, by PROPOSE
ton to limit by law the amount Of imports TO the
amount of exports. The laws Of trade are best
not meddlcd with, and the larger the volume of
our commerce the better, with the condition
always that we do not oyer.trade, and buy no
more than We can pay for. The real trouble IL,
not that We import too much. but that we cx-
port too little. Our resources, about which
there is good deal of vague talk, are unques-
tionably enormous; bat Of what value are they
to us unless we can get them TO markoti Here
is the real kernel Of our difficulty. The North
ern States must pay in gold for oil they bny
abroad over and above the value OF the Pork,
Flour, Wheat, Petroleum. Corn, Butter, Cheese,
Lard, &C., which they have in foreign hands or
on hand for export. II our Imports exceed orr
Exports OF produce by certain sum annually.
We must pay that difference in specie. If We
could export the value Of that sum in produce.
the demand for just 80 much gold ceases; and,
the demand ceasing, speculation would be soiar
at an end, and gold graytate to the natural
premium which ourlarge paper currency and the
export of gold for other purposes ncccssita'e.
We have the produce; but the difficulty il to
avail ourselves OF it. But this is . question
which We do not mean now TO discuss, as il re-
lates TO our system of Internal Improvements.
We do not forget, Of courfe, that in any COM
putation of that foreign Indebtedness by which
We wish TO get at the actual amount Of gold
which We are annually compelled to send
abroad, we must not lose sight Of the gold-bear-
inp securities i'm foreign hands nor Of the large