The Cleveland leader. [volume] (Cleveland [Ohio]) 1865-1865, 1865-06-29

1
TIE PRICE OF GOLD.
The premium on specie dates from the
lat of January, 1862, immediately upon
tbs second SUSPENSION of the banks. The
arst great disaster to our arms ct Bull Kun,
wbicS rendered il certain that we were
Committed TO q long and bloody contest
had no effect in creating 8 gold market
Neither did the issue of $50, 100000 de-
msnd Lotes, Even the suspension in 1860
exercised no s%ppreeiAble effect IN mai d.
rection. But on the second OF these ocea-
sions the banks held over $60,000,0 600 OF
government securities, which had already
declined two or three per cent. below the
rate at which they had been taken BY the
ba nks. With q Subsequent Improvement
in the prices OF securities this premium
declined to one and one-hslf per cent and
continued below two until the month OF
May, when the new currency began to MI
the channels.
The passage of the legaI-tender act in
February, 1862, was followed by the issue
of $3.50, 0OO, 600 in government currency,
when an advance Of from two to nine per
cent. took place in the price Of specie. In
June gold reached 100. This slight rise
alarmed only the few, the general effect
upon business being decidedly beneficial.
This issue about filed the vacuum which
had been made by bank failures in the
Northwest It quickened the mAnufsetur-
ing industry of the country it supplied
means of forwarding to the East and ku-
rope the vast stock Of breadstuffs lying iale
in the gain. growing Ststes Of the West st
atime when Europe was hungry, and thus
revived confidence in the PoOPle ana IN tne
government, which alone was worth all
losses to both, occssioned by the somewhat
| higher prices that began to rule, through
the appreciation of gold, or rather the de-
precistion of the currency.
But in the summer Of 1862 we had anew
creation of $4,000 900 legsl-tender notes,
whereupon in July the price Of gold bound
ed upward from lO9 to 120, and before the
end of October it touched 1877. The ensu-
ing winter we had q fresh issue Of $780,
OO0. 600. with the authorization of $50,OOO,-
600 of postal currency, whereupon in jan
usry, 1868, gold made q fourth leap up
ward, reaching l60, and in March, III. In
the following August Secretary Chase
made his celebrated movement IN Wsll
street, when gold fell to l22, but in spite OF
his schemes and Congressional enactments
against the sale of gold, its price again
went up until it reached 156 In October Of
that year.
Toinerease the infstion, certificates of
indebtedness had been authorized by Con-
gress, and before the end of many weeks
had appeared in market, to compete with
the United States notes in ~liquidating
debts due from one person TO another, IS
we | as from the government to the private
citizen. On the Both of June, 1863, the
$l57,479, 26l of these had been issued, 8
large portion Of it dischsrging all the func-
tions of money.
Next, the state banks followed the gene
raj example, finding they could redeem
their promises with " ~greenbAcks" instead
of specie. Those were the days when con-
tractors were getting rich, when merchants
we're daily marking up their wares, when
the prices of farm produce were advancing
with equal rapidly, and when labor found
it could dictate its own terms IN nearly
every department of male industry. Ever
houses and lands began to feel the ground
swell.
The advance in gold was, however, tn,
effect of a combination Of causes, the rels
/; tive importance of which hiss never beel
: sufficiently explained. Thus, with tn
issue of government notes, there were, 8
cooperating agencies, disasters in the felt
during 1862 and the two following year.
In July, 1862, we had not only the secon,
issue of legaltender notes created, but tn
: disasters to Mcclellan and Pope in Vii
ginia. The battle of Fredericksburg wa
followed, in January, 1863, by a rise /
gold from 1874 to 100. From this figure
s went up to l72 at one time, and kept we
, up to $50 until July, when Vicksburl
g other descent to l22. The friends Of Il
g administration policy pointed triumphan.
& ty 10 this decline, insisting that, with sun
q Gent confidence in the government, gol
would certainlycomedown TO the currOnc
standard. !
is In truth, this confidence, which at Il
beginning of the war can hardly be So
y to have existed, save as q grain Of mustal
! seed, had already begun to develop into
10 plant of sturdy growth. In 1868 the fV
d twenty loan was put upon the market. q
b the first of May about So, 100000 of it hi
been taken; and thenceiorwsrd it foul
subscribers in such numbers that the 7
manning $40, 900, 900 were taken at Il
ID tate of forty.eight and q half millions p
IA month; making with other loans an s
gregste absorption by the people OF oV
nfty-fve millions per month for the I
G. mainder of that year. These loans beiI
l. SO freely taken prevented sthe Secretal
! from having resort to fresh issues of Gu
J. reBcy, and proved that the governmet
n had q substantial basis to rest upon, not &
oil mere within or caprice Of a fckle-mind
> multitude. ,
p In looking over the rise or fall of spec
stocks, DC, It must be borne In mind tn
n neither Of these movements Is uniform 81
y regular, but occurs spssmodically, BEN
% produced by combinations which ma
IS themselves felt suddenly in the marke
W and for a time carry the line of values
OF yond the point where it can long renal
OF Every bound is invariably followed by
rebound, as every billow Of the fowl
" tide is succeeded by its rehuent wGve.
d In March, 1863, Congress authoriz
$500, 600, 900 of three years six per Gel
notes, which, however, did not come il
sl market until later in the season. On
goth of September $500, coo, ZOO of q
money had been issued. About the sal
occurred the defeat of Chicksmauga q
cd the sbortive attempt of Meade IN {
Ae' Rapidan, the joint effect Of which was
re- send up gold from 127, the lowest point
TO September, to lao, the lowest in Octob
ler and 1874 the highest reached in Move
DIS Der. From this figure it kept graduA
working upward till the following Mar
when # reached l69; in April 1877;
o. May ITO; in June 25I; and in July 2
from which maximum figure it fell b
August to 262; in September to 255, q
IN in October to 800. In November it az
rallied to $50, b1fth following month
III eded to pa. Thenceforth it rather tu
$50 bled than fell 10 200, to 175, to $50, q
mo I5O, Io1oWed by the advance which
recently taken place.
no The rise in the Autumn Of 1853 was (
l in part to the appearance Of the fresh is
~ of Government six per cent notes in P
to military events in Tennessee, and IN P
OK to the same in Virginia At the sAmeti
'1u repeated calls were made for fresh troo
ne that could be furnished only with dificu
and at vast expense to the States, q
RS hesping up the indebtedness at an unT
cedented rate. The gloom was deep, at
ing, almost universal. PIT %
rs In the autumnof 1854, Johnston hsv
been fired out of the mountains Of Georl
Atlanta fell; Sherman undertook his
lIe nous Hmarch to the sea !" Savannah
"a captured Hood was repeatedly thrssl