The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1866-03-08

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We find the following comments on the recent
decline in gold and its probable effect on business
generally, in the Cincinnati Gasette ofthe 5th:
This blow falls most heavily upon holders Of
foreign dry goods, for the reason that the stocks
held in New York are greatly in excess Of the de-
mand. The declining tendency of the market
causes buyers to hold OF, and this feature eharac
terizcs the trade through all its branches, from
the wholesale dealers down to the consumers All
are waiting for lower prices If gold should react.
whether from the present point or a still lower
one, there would be general rush for goods; for
people do not propose to go naked, nor do we see
any indications OF q disposition to curtail their
purchases very largely. The present stagnation,
therefore, in the dry goods market results from
the anticipation Of lower prices. There are, of
course, too many foreign goods in New York.
The importing business has been overdone. This
m stake was made early last fall when goods were
scarce, business good, and profits large The IN
favorable state Of things now prevailing was soon
thereafter predicted from the extraordinary orders
sent out. Importers saw it themselves, but too
late to correct the mistake, except in small part
Orders were, as far as possible, countermanded,
and in some cases goods were resold in Europe:
but the enormous imports of the last two months
show the extent of the error committed. That
there will be embarrassments among the importers
is matter of course. Many of the houses are
very strong, but they not all strong enough to
bear the losses that are being experienced A
portion, therefore, of the European debts incurred
will be adjusted by failures. This will further
disturb the already excited money market in Eu-
rope and the rebound will be felt here to the re-
lief, perhaps, Of those who shall withstand the
prevailing pressure. That there will speedily be
experienced heavy falling off in imports is not
to be doubted, and from excessive supplies we shall
now run into the opposite extreme. This will
bring falling off in customs, and the Secretary
of the Treasury will have less gold to hold ia ter
rorem over the market. 1t is also to be borne in
mind that serious mercantile disasters in this
country would cause such a monetary panic in
Europe as would lead to the return Of Govern
ment securities for sale. This would embarrass
our national finances. We hear good deal said
about smashing prices, but the fact is, the Govern
ment and the people are in the same boat and the
latter cannot be smashed without serious injury TO
the former. With serious mercantile disasters
would come financial crisis in Europe the return
of t. S securities, falling of in customs and
internal revenue receipts, and general prostra-
ton of affairs, both regards the nation and
individuals. Then would begin the flow Of coin
to England, and after the general smash we should
ind ourselves further, apparently from the specie
basis than now. By making haste slowly.
specie payments will be reached much sooner than
If we start off at gallop on the smashing prin-
riple.
The threatening aspect of financial affairs now
presented will if it shall not be so aggravated as
to produce general panic and sweeping revul-
sion, not 70 be without its compromising advan-
tages in that it viii check speculation, and pre-
vent the expansansion Of private credits What
ever may happen, business will be conducted with
extreme caution for the public must see that how
ever slow or rapid the progress may be- the coun-
try is certainly to reach through contraction Of
the currency, resumption Of specie payments,
and this contraction will be attended Of course
by corresponding shrinksge Of values, that viii
extend to sll kinds of property and all xmas Of
securities.