The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1865-03-23

The fall in gold is 50 much the topic
Of conversation at present, that il IS
plain the public mind has been stirred
deeply. Six months ago gold sold up
70 $50. Yesterday it sold down 10 l59
difference Of 81. 1t is idle for anyone 30
shut his eyes to the momentous cense
auences ofsueh fluctuations or toignol
their discussion. Within & week, even,
the iall has been Unprecedented Du-
ring these six months the volume Of
paper money has not been reduced, and
hence those who attributed the whole
rise 10 ever issues Of notes arc NON left
IN a somewhat singular position The
Increase OF national bank notes goes
on steadily the greenbacks remain az
thev we're, The interest bearing Ireasu~
rs notes increase heavily, and stiil the
price Of geld is on the downward track.
There Is one phenomenon which
ought not 10 escape notice at this time.
IL Is that while gold has been $50 high,
sterling exchange, which used to be re-
earded az regulated by the price OF
gold, has fallen down 10 merely nom
| NAL rates OF premium. and the last ad
vices from England even bring an init
nation that there will probably be an
expectation OF gold hither from Liver
pool. This arises from various causes
The importations Of foreign goods into
The United States fell OF heavily du-
ring the last six months Of 1864, and
the beginning Of the present year.
Prices here had become 20 precarious
and uncertain that the importers were
mostly afraid to carry large stocks of
goods or risk buying at high prices.
Then the expectation Of petroleum was
cutie large. and thus the balance Of
trade gradually began to turn in our
favor 10 this must be added the in
crossing demand for United States
bonds in Europe, the quantities Of
which carried 70 foreign markets were
80 much toward relieving the demand
for gold and sterling exchange.
These are cause which no combina-
ton of speculators can c0unteract, and
we see the result in the prices of gold
and exchange. To this must be added
the uninterrupted ecccesses of our mil
itarg and naval operations, which haya
done 90 much to exhaust the power OF
the rebellion and reduce the war within
such limits that its termination seems
within view. The probabilities Of
peace growing stronger, the Likelihood
Of a continued demand for loans for
government purposes diminiEhes, and
the practical men Of our financial ci?
cles begin 10 calculate ahead, 30 IS to
he prepared fOr return 70 permanent
commercial basis Those who looked
for n gradual reduction Of the differ
ence between greenbacks aud gold
have found themselves mistaken, be-
cause the merchants have mostly been
preparing for this tumble. Having
bought and imported lightly during the
last nine months, their stocks OF goods
cannot be heavy and, although they
may lose seriously on what they have
they win be the better able TO resume
purchases on q permanent footing, with
goods OF low rates and bare market
before. than they would De with prices
going down gradually.
A gradual aud continued fan in prices
always operates 10 this wise; those be-
lieging ia reaction hold on 10 their
goods in expectation Of q rise, while
those fearing heavy fall, az well as al
compelled by the need Of money, at
tempt to realize at once, and thus, an
immense amount Of goods being thrown
on the market, the fail is accelerated, I
and Others are thus compelled OF in>
duced TO sell likewise. With a gradual I
reduction, the heavy operators lay in 4
no stocks, for the plain reason that they |
can form no estimates With an ex-
treme fail In prices the strong men /
commence aRew at the low rates, and /
coon realize handsome profits from the 4
natural reaction At the present time /
there is no basis Of trade up0n which /
s merchant can proceed with any safe 4
u, and Tor that reason we afe inclined /
70 think that 8 pgolongaticn Of this
stateof things would work q complete 4
stagnation Of trade
AZ 20 the probability that this viii /
injure the governmentl loans, We do not
believe IL Prices Of these loans may
ssil. but as the general contraction pro
crosses, the value Of government loans
must be perceived, and the losses in
fancy stocks viii drive thousands away
ilom that vortex which has swallowed
up so many millions Of dollars. The
crops this SESSION wili be enormous be
yond all precedent, and the surplus for
expors must even exceed that OF 1872
Tie product Of petroleum will also be
about doubled. So here We have =
margin which mast enable us 10 keep I
down sterling exchange and keep the I
balance Of trade even. Adding 70 this 4
The brilliant prospect q an early peace, /
and it will be seen inst Il q ali moon |
shine TO look for any reaction IN gold !
--fi.,t AnsrioaIl