Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1865-01-19
panic"

with the financial news which we receive
from the East; but there are few who I'M
derstand what it means, or the reason
why fall in the price of gold and con-
seauent rise in sreenbacks should cause a
"panic - in financial circles. The follow
ing explanation which we find in the Aha
of Tuesday, makes the subject clear, and
will perhaps be read with interest by
those whose notions about the meaning of
"panic " may have been cloudy:
Heretofore the word "panic," when
used in connection with money matters in
New York, indicated that heavy fall in
stocks. or depreciation in the currency
had taken place, and there was rush to
sacrifice the one or the other, by holders,
for the sake of securing gold TO hoard.
To-day the word has entirely different
meaning, and when on Saturday last the
dispatches received by brokers and bank
ers in San Francisco from their cores
pondents in New York closed with "gold
lower-panicky," they understood at once
that it was the fall in gold and the rise in
the market value of greenbacks, which
form the currency in all the Eastern,
Western and Middle Stairs, which caused
the panic. And this is now the change
we do not mean "small change" in our
acceptation of the word, for that has all
gone long since-has been brought about.
Gold has been purchased at high premium
and boarded largely by people who dis
trusted the times, and not long since feared
dissolution of the nation, and conse-
quent further decline, if not total de-
struction of the value of the National
currency. When gold commences de-
clining these people all rush to sell out be-
fore losing too much on their investments;
goods bought on credit when greenbacks
were at forty-tiye cents, or less decline in
relative value largely, and every man in
debt to the extent of dollar sees the
market value of his assets decreased,
while his actual Indebtedness proper
tionately increased. An Eastern paper OF
immense circulation and influence, in an
article headed "Be Prepared for the
storm" thus states the case:
ga merchant with stock Of goods on
hand worth say $4,000, and half paid
for, viii not realize therefrom enough to
pay what he owes. When the goods are
all sold he will find himself still in debt
for them five to ten thousand dollars, and
this debt he mast liquidate, principal and
interest. with gold or its equivalent, or go
into bankruptcy. The consequence OF
the end of the war on the debtor class
will be to increase every mans debts
about 1875 per cent. An obligation OF
$4,000 will become, in practical effect,
$4,000. That is, will require property
or labor now worth in currency $4,000
to nav it. A note outstanding drawing
ten per cent. interest, will then draw what
would now be equivalent to twenty-five
per cent. or Whereabouts, to say nothing
ofthe principal of the note, the difficulty
of whose payment will swell in cores
ponding ratio
Thus the mercantile community at the
East, despite their loyal feelings, are ao-
solutely in dread of the inevitable collapse
of the rebellion, and the contraction OF
the currency, which must follow, and
parodoxical as it may seem, the restora-
ton Of confidence in our country's cause
produces "panic in commercial circles.
Those wiseacres who have so earnestly
advocated the greenback currency in Cali
fornia, and predicted all sorts of evils to our
State by the pursuit of an opposite course,
viii now, in spite of themselves, be saved