Daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1859-1865, 1865-03-18
Thg gutkIIlaeafar.
A GOLD spRoUIAroR bas b-ono6. 81 III

course of the trial Mr.. McC1llocb. tn
present Secretary of the Treasury. an
! Mr. Spinner, the United States Treasure,
were examined as witnesses.
In answer to the einterrogatories of conn
sci, Mr.. Spinner stated that the ponpla
terms, "the rise and fall of gold,n sieuif
''sdepreciatiou or rise of the currency 4
compared with the standard" he adde,
that ''no country can carry on a war sue
cessfulIy whose finances are. in bad con,
dition; the best mode of attack on a Gov,
ernment is to depreoiate its currsncy.,
Y cpEFepey qffths country j,
something else (than goldJ, made so by
statute. Gold has ceased to be used a.
money in the ordinary commercial trana.
actions of the cOuntfy."g Gold at prsseh,
"is not required at all, but for three pur.
poses: first, for the payment of customs,
second, for the payment blythe Govern.
ment of the interest upon it's bonds; and
thirdly, for the balancing of the exchange
of the coun1ry-the differences of our ex-
ternal trade"
The following is alsO:vsry important:
Q. suppose the demand by the Govern.
ment for gold is calculated to depreciate
the paper currency also7
A. 1t never existed. The Government
has always got its gold legttimately, from
the laws of the country, by collections,
customs. &c.i and may say,i further, that
! know that the Government has sold gold
with view of bringing it down.
Q. But what want to know is, whether
the Government, by collecting its customs
in gold, does not necessarily create de-
mand for gold on the part Of theimporting
merchant?
A. Yes, sir.
Q. Well, fir, in that ratio the Govern
ment. by requiring the payment of duties
in gold, depreciates it's own currency2
a. 1t does, undoubtedly.
Mr. Spinner attributed the violent fluctu.
a'ions in the value of gold to the fastitious
demand that was created for it. This led
to the following:
Mr.. BRENT-Do you consider It a facti-
tious demand for party whowants TO buy
gold when it is down, and sell it when it is
up, SO as to increase his paper capitsl2 Is
/ not that real transaction, and doesn't it
really enhance the fortune of the iudivid
ual in that WayP
A. The misfortune is that there are no
/ transactions but what are absolutely bets
as' 70 tae II gsiG WIN ,certliil time
or on a certain day. know enough Of
brokers' transactions to know that-that
the actual gold does not pass.
r.
9. If | can buy gold (not for the purpose
either of paying customs or exchange) to.
day at $50, and can sellit next week at
200 in paper legal currency, is not that a
real transaction?
A. think it is.
Q. A pretty solid transaction
A. Certainly.
BY Mr.. BRADLEY-I will ask you as q
mater of history, SO far as il can be traced
in Europe, and in this country, whether OF
not gold and silver do not become articles
of merchandise SO sooa as the currency ,ol
the country is by any means deprecated Z
A. think so.
Mr.. McCulloch also testified that, in his
opinion, the popular terms "the rise and
fall of gold" siguify '.merely the depreci.
alton of the value of the currency of the
country, gold being the standard" He fur.
ther testified:
A small amount of gold may be made tc
do very large amount of business. sc
that 1t is impossible TO say how much gold
ls required for certain transactions. If the
government should pay out on one day
the gold that is received yesterday, thu
demand would pot be very great; bat if, OF
the otner hand, the government was in
condition to retain the gold in its sub
l n RI ia N,S- 4
larger amount of gold would Ue required
for these TRANSACTIONS. Everybo6y know
that the amount required depends upol
the manner in5which it is used. When thr
market is active, a very small amount O
t money will do very large amount of bu
siuess.
Mr.. Bradley.-I would ask whether tn
government does not send direct from Cal
iforniato Europe funds- -tormeet, its oWl
credit there, which would enter into tn
calculations?
A. am notAWare of what the goverumen
has been doing in that particular thin
mere have been some small shipments Q
coin from California, but do not know
for whatpurpose.
Q. There is no doubt about one thing:
uudsrstapd' Mr.. AcCulloeh, that ever
increase OF the demand, whether it be a,
increase owing to a real operation, or a fic
htIous operation, tends to depreciate tn
public curreucyH -
} A. have no doubt about that fact. ]
is the universal law of trade. 4s
z WIN you state, if you please, the mai
cause that has operatedto produce this so
; called effect upon gold within the last tnre
or four years!
A. There have been various influence
j operating upon what is called the gol
market The necessity which the Govern
amount of paper money has undoubtedI
: had an effect in that direction; aud the uu
certainty that has existed in the minds {
many persons in regard to the ability Of th
Government to suppress the rebellion hal
9nqpestlonaoly, had an influence in this
direction: and then everybody understand
there is greatiUauencs aIlover theicouu
try In favor of deprecated currency. Th
use that has been made By persons VIII