The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-11-06
The Fluctuations in Gold.


living remote from Wall street, who
know anything about the mysteries
of the gold market-of the causes
which produce the almost daily ebb
and flow in the price of the precious
metal. Yet every one has something
to urge on the subject-especiany
newspaper men, who are generally
presumed to have q large practical
intimacy with all questions of finan-
cial character. In q late number of
the Baltimorei Gazette, we find a long
article, called forth by the announce
ment that there are $95, 200, 900 of
gold in the Treasury, the boarding of
which the writer regards as an unwise
feature in Secretary. McCulloch's
financial policy. Without pretend
ing to determine to what extent our
Baltimore contemporary may be COR
rect in his conclusions, we copy q
portion of his remarks:
Mr.. McCulloch is certainly bene-
fitting one class of men-the manu-
facturers By keeping up the price
Of gold to $50, he is virtually aiding
them by giving them what is equiva-
lent to q very large additional duty
in addition to the excessive duties
now levied. This is all very we'll for
Massachusetts; but it is very hard on
the masses of the people. An appre-
citation Of gold is depreciation of
currency, and the policy which makes
the Middle and Western and South
ern agricultural States give more
grain, and more pork, and more cot
ton, for shirts, and shoes, and wooden
nutmegs, is certainly neither wise
nor national one. The customs re-
ceived for the year 1866 will probably
amount to $14O,0OO, 900. OF this sum,
about $75, 900, 600 is paid out for gold
interest, a considerable portion of
which goes abroad. On every cent
that goes abroad, the consumer of
foreign imports has to pay a premium
of so per cent. SO long as gold is at
$50, which neither benefits him. nor
the importer, nor the Government.
He is merely taxed so much for the
rival manufacturer, and for nothing
else. On the balance Of the customs
received, Government benefits to the
extent of the gold premium saved
on the gold interest paid out or real
lied on the surplus gold sold. This,
however, large as it appears as a
whole, is small matter when COM
pared with the heavy tax on an al
ready overburdened community, and
that, too, levied by q Government
| whose receipts are professedly largely
in excess Of its expenditures.
But this is not the only evil. If
Mr.. McCulloch and the administra-
ton, of which he forms part, desire
actually to bring about healthy and
settled condition Of affairs through
out the country, the first requisite is
settled policy. An unsettled policy
creates distrust and unsettles every
thing. Mr.. McCulloch's object
should be to inspire confidence and
not to destroy it. How can Mr..
McCulloch expect man to invest
largely in foreign goods. to-day with
gold at lat, when he knows that Mr..
McCulloch may throw $50. 600, 900 of
gold on the market next morning and
bear down the price to an extent suf-
ficient to ruin him? This is surely
no way to deal with the heavy tax
payers of the country. 1t is certain
ly not wise to destroy the men who
i contribute SO largely to the revenues.
Still this is where Mr.. McCullochs
policy tends, and so long as Mr..
McCulloch IS uncertain in his policy,
so long will there be uncertainty and
dlstrust in the business community.
What the country wants is a better
policy and return to specie pay
ments. To effect this, the first step
required is that all the gold in the
country, not needed for payment of
interest abroad, should be kept afoat
ln the community and not boarded
up by the Government. Let Mr..
McCulloch announce the amount to
be held Ill reserve, and then let the
surplus be sold regularly in the
market. Let the gold question, in a
word, take care of itself, and it will
do more to create confidence than
anything else. Supplied regularly, it
Will excite no uneasiness. Hoarded
up for extreme occasions and thrown
upon the market in times of excite
ment, 1t may only add fuel to the
cry flame it is meant to extinguish
MIR. McCulloch's experience of last
summer ShOul1 not La foroo++o, IT.