The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-03-21
FINANCIAL AND coMMERciA
MONDAY. March 20-eP. N.

MONDAY, March 2o-oP. NJ.
The effect Of the heavy decline in the gold premium Is
beginning show itself in the extreme depression or
government securities and the stoppageo the usual SUD
srpons the thirty loan Speculative lois hed on
small margins have been pressed for sale and the neces
stiles Of investors among the financial and mercahte
community have compelled them TO sell ut sacrifice.
At the same time the general disturbance OF all
values and the temporary cessation OF the
foreign demand added to the possibility OF return OF
avetwenties from Europe has weakened faith In the
maintenance OF the present market prices, and induced
preference for currency every other form Of
cury The general and not incorrect impression Is that
we arc drawing towards lower range Of values, and
people are therefore providing themselves with as much
paper money as they conveniently In other words
there is strong disposition to realize and keep within
the safest possible limits.
II appears first sight somewhat anomalous that the
decline Of gold, which is equivalent TO corresponding
appreciation Of the currency, should cause heavy fall
In government securities and almost suspend subscrp
lions by the people to the loan the market but it
must be remembered that decline Of gold involves
contraction Of values from which national securities can
not DO wholly exempted. II nve-twenty bonds decline
TO 80 specie basis they would still be worth more
than when they were 110with gold as high as 1t was
little more than two months ago, and is probable that
like other marketable bonds to the value Of the paper
dollar.
Large lots OF the sevenhrty loan were offered to day
on the street at 99 without takers that the only loan
the government has to rely upon is at discount Of
per cent Until 1t returns to par subscriptions to any
considerable extent cannot be looked for and mean
while the expenses of the running at
q Of nearly two millions and half day In
OF the revenue.
Gold opened at l67 187H, an advance OF tx 81
per upon the closing price Saturday, and 1t re-
manned nearly steady till noon, when the CLEARS began
to sell freely After three O'Clock rumors were crcu
lated to the effect that Mobile had been captured and
Richmond evacuated also that General Lee had re-
signed and strong combination, including well
known speculative banker largely 'short" Of stocks
and gold, sold the market down till 1t touched 1908
very 'pancky state Of feeling fraught with great dan
ger thus revived 1t is the intention Of the bears to
precpitae the decline far as possible and the parties
at work have Insignificant financial resources at Their
command If they succeed in their designs they will
add millions their riches bankrupt hreefourths
Of the financial and commercial houses in the country,
and leave the public treasury empty and the danger Of
great commercial crash is becoming more and more i'm
mnent II the "bear" party is left in control of the
gold roo the threatened panic 1t is safe to say will be
inevitable. 1t would be like any 70 panic wit
messed in this country any other for its results would
be destructive in proportion to the imitation which pre-
coded it, II the panic OF 1887 inflicted widespread
ruin upon the commerce Of the land. What will such
as that produced by fall in gold from 234K In
January to Its present lower point be? The bank
suspension which led to the panic Of 1887 took place
specie basis But here are paper money
basis with nothing to prevent collapse but opinion,
unless those interested in the welfare Of the country and
the government step in TO arrest the downward
course OF gold and defeat the ends Of the specu-
lators We, however, understand that those rep
resenting national interests at least have not
looked the danger Of the situation, and that
several millions Of gold will be Immediately Withdrawn
from the market Cash gold has been scarce to-day,
and the demand for small from the outside pub
tic has been unusually largo since Friday
The business OF the country begin to realize
the evil effects Of the financial policy and absurd gold
bill legislation of the government which forced gold in
July last 2S5, and has left it the caprice of specu
iation since the suspension Of specie payments
But for fiscal mismanagement tho premium would
have to the height from which 1t has falen
and consequently the currency would have had much
more stable value like that OF England between 1877
and 1884, when spectators had very little power over its
value than public opinion sanctioned The secret
OF this lay in heavy taxation and avoidance OF paper
money imitation beyond amount needfu for the pur
poses Of commerce. The gold quotations during the day