The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-03-31
The Monetary Panic.

One of the causes for the recent decline
in gold is the great sales Of 5-20s in Ger
many, which turned exchange in favor of
this country. Steamers arriving at New
York are bringing large amounts Of spe.
Gle. A dispatch states that great excite
ment existed in New York last week, and
that many who have been specializing for
rise are ruined. Several dry goods
houses reduced their prices 20 per cent.
The Chicago Times Of Monday gives the
following summary for the week previous:
The past week has been one of depression
and foreboding in commercial circles. The
sudden and very great fall in gold was almost
wholly unexpected by manv, and it has con.
sequently found them totally unprepared.
Many merchants In this city bought heavily
when gold was over 200.-one firm, 1t is said,
having purchased not less than $40O, 900 worth
of dry goods when gold ruled at 220. There
are scores, possibly hundreds of others, who
purchased under like circumstances, and to
whom the present fall is anything but welcome
The general feeling in all departments Of. the
market has been that financial panic was i'm
minent, and that one might be precipitated at
dicious operators. .. -.
Our opinion is that at this moment every
one should reduce sail as much as possible
and await the action of time. 1t cannot be
that the decline is natural or likely to be per-
manent So long as we retain our present
enormously swollen circulation q material in
crease in the value of currency cannot be more
than temporary. We have now in circulation
1888, $50, $50, which is an increase over that of
1861 of $737, 452. $50. Nothing is more ev:.
dent than that, with such bloated issue Of
paper, it cannot approach gold, save only in
snQl m M
general level, although at times it may rise
above it or sink below it for a short time
acted upon by extraneOus circumstances. These
extraneous circumstances in the present case
are the prospects of military success but even
these cannot for great length of time impart
fictitious value to our currency
: In view of this, it is better that nobody
should yield to despair; but that all should
hold on, with the hope that there will be re-
action before their endurance shall be exhaust
ed. Let our merchants and business men not
attempt to carry too much, for in doing this
they may lose all. By sacrificing some portion
OF their burden, they may save the remainder.
Although reaction in gold is probable, it is
not likely, unless our armies meet with great
and unexpected disaster, that gold will ever
rule as high as it has ruled during the past
year. 1t may go back TO 175 or 200, but it is
scarcely probable that we shall again see it at
225 or 25O 1t may, however, go considerably
lower than it now is before the reaction sets
in, and, for this reason it is better that people
should not attempt to carry too much.
just now military successes and prospects of
success afford reasons why there should be a
greater decline in gold than at any previous
period; bat, at the same time, the imitation of
the currency and our colossal Indebtedness
afford reasons why gold should greatly appre-
ciate. The weight of the latter must have its
legitimate effect before long; and the result
viii be that gold will go up as fast as it came
down, although it may not reach as high q
point as it has fallen from.
matters to-day. Everything has been more
than usually quiet The absence of another
decline in gold has given people a breathing
space, and resulted in q much better feeling;
and it is hoped that the cessation of business
and gold gambling during the coming Sabbath
will enable operators to survey the ground aud
comprehend the situation, and that restora.
ton Of confidence will follow.