The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-03-20
FINANCIAL AND CONNER GAL.
SUNDAY, March 10, 1865.

SUNDAf, mdfch ~, iooo
The past week has been one OF almost unprecedented
excitement in the gold room, and the continued rapid
decline OF the premium hss violently unsettled n values
and produced grea. anxiety not to say CONSTITUTION IN
the commercial and financial world Tie primary causes
OF the panic which has prevailed OF course 70 DC
found In tho series OF brill wica nave r.
Gently crowned the national arms and In the hneu uc
mand for legitimate purposes; but II derived - 'n'ei
impulse from speculat for fall and thiS mas oeeh
TOO rapid and heavy TO be natural Tor was promo'ea
not by sales Of coin actually held by the sellers OUT Oh
that which they expected to buy NJ lower figures
than they sold at Hence the market through
out the country has become SO largely oversold
that the shor" interest is probably larger in amount
than all the specie in the United states and the bears
who promoted this fall for their profit, still on
aeavorng TO make capital Of it by precipitating it to
lower point only TO turn 'bulls' and 'engneer" up
again afterwards
Now II public interests were less seriously affected by
vioen. fluctuations In the price Of gold, they might be
regarded with complacency. But when they paralyze
trade entail mercantile failures, and place tho
country In imminent danger Of general commercial
panic besides checking subscriptions TO the government
loan and causing sharp decline in all national securities
perfectly obvious that they great evils and should
be guarded against far possible II there had never
been rise there could never have been an
excessive fall in gold and speculation is responsible for
both to a great extent But the wretched financial
policy OF the government placed power in the hands Of
parcel OF INSCRIPTIONS Spectators and they have not
neglected TO profit by It. Since few weeks after the
susp snsion December 1851, currency has been
without stability OF value which the most important Of
oil qualities which 1t ought to possess to a 1t for the
Of money. In February 1853 gold sold as high as
IT, and In the following August as low ns 122 In July
1884, sold at 1885, in September Of the same at 1885,
In November at 260 and January last at 234 All these
fluctuations many disturbing causes anagonstic
10 and fanght with evil consequences to the
greater portion Of the people No proper adjustment OF
prices has been possible such insecure bass In
order TO protect themselves against contingent loss mer
chants and retailers have always priced their goods SUM-
GENTLY high to allow OF large profit under any probable
circumstances The public generally, and especially per-
with Fixed incomes, have suffered accordingly As
yet retail dealers have not lowered their prices in con-
sequence OF the decline in gold; but wholesale
dealers find themselves heavy losers by it.
The process Of imitation pleasant TO those who profit
by IT, and they many; but contraction is always pain
full and liable to be disastrous than the expan
sion which led 70 it. Hence the danger Of the latter
The bank expansion In this country, moro than thirty
years ago. was productive Of undue speculation, high
prices and the sweeping panic of 1887 Tho effects OF
the moderate paper money imitation in Great Britain
the Napol0Onc tne SuSp6nsiou Vi sPeco
payment are thus described by Sir Archibald Alison in
chapter twenty-five Of his History of
article OF life speedily N Re and continued
Ssove twenty years at thH and&spon the
recurrence 70 metallic currency in 1872 the distress and
suffering among the industrious classes long exceeded
ANYTHING ever before witnessed In history But In
thispouny where the mutations Of value and the depre-
cstasa OF the curdncy have been 50 much greater
than they in England, the process OF readjust-
mens 70 specie range VI values will be attended by
much more decided financial and commercial convulson
than accompanied the return to specie payments there
The probability in case however Is that we shall
nsvor return 10 specie payments in the same manner
namely by the appreciation Of the currency II IL mos
in the OF the American people TO submit perma
nently to that heavy taxation which carried England
through her financial difficulties After the war ceases
and the end is not yet visble-wo shall begin
70 feel the real burden Of the national debt
It may then aggregate I've or six thousand mil
lions and the several States will be clamorous
TO add their debts to the grand total Tho example
OF other nations will be urged upon Congress, and re-
ducton OF the ratio Of interest demanded What legisa
ton will follow useless to conjecture At present we
are under the excitement OF war; and would Indignantly
repudiate what may hereafter strenuousy advocate
The gold market closed on Saturday with moro firm
ness than had shown during the previous part OF the
week. in which the extreme decline was thirty one per
cent on par as Indicated by the following ngures:-