The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-09-23


The gold spectators and stock gamblers
are making extraordinary efforts to induce tho
Secretary of tho Treasury to sell part Of the
gold in tho hands Of the government. It is re-
ported that deputation Of gentlemen-s'very
influential gentlemen" Of course, and perhaps
for that purpose. If they cannot get the gold
out Of the vaults Of the Treasury by direct
sale the spectators hope to do so by urging
Mr.. McCulloch to pay tho interest on the fvc-
twenty loan before 1t Is due. or course the
old, ridiculous argument is used that the sale
Of gold will bring down the premium on 1t by
making II more plentiful among the people
and In the channels Of trade. But every one
with any sense knows that the real object is 10
disturb tho market, to cause sudden and fire.
qucnt fluctuations, In order that these gold and
stock gamblers may make money.
II would hardly appear necessary to speak
OF tho folly Of yielding to these clamors of
SPECTATORS, or TO warn the Secretary against
doing anything SO stupid; but as he has COM
mitted such blundcrs before, and knows 20 little
Of great financial questions, we deem IL our
duty to caution him.
When Mr.. McCulloch sold something like the
enormous amount Of thirty millions Of gold .
short time ago It was said to be for the pur-
pose Of bringing the price down. He and the
that Il would have that effect Yet we all
know the contrary was the result. Gold began
10 60 up shortly after and advanced to over
6fty per cent premium. II has been declining
again lately ~ the amount accumulated in the
Treasury, and 40 . natural consequence Of that
accumulation. Avery healthful and satisfactory
state Of things sensible people will say; but II
does not suit the specie and stock gamblers.
They want the Secretary to repeat his blunder,
10 deplete tho Treasury Of Its gold, to cause
sudden fluctuations which favor speculations,
and finally TO send the premium up again as
natural consequence OF the reserve being
reduced.
Il IL . universally acknowledged principle
that wherever therc Is q strong reserve or sur
plus Of specie confidence Is inspired, and the
nominal paper representatives of value neces-
sarily approximate or attain the real value
they represent For example, when the Bank
Of England, In . great crisis, in war times or
otherwise, 10 known TO have an abundant specie
reserve II sllays excitement, and Its notes are
taken al a. par with and as freely as gold. Hany
great banking establishment In this country
n known 10 have oh ample reserve Of
specie ib notes arc as acceptable as gold.
ID 10 tho same with the government In
our pressst situation. The currency, which
regulates everything, acquires q value in
proportion 10 the specie on hand ready to
meet ID Houses, lands and other property
have an intrinsic or local value, but paper
representatives OF value arc regulated by the
ability 10 convert them into specie. This, how
ever. IL an artificial vsluc; for there Is not in
the world . sufficient quantity Of the precious
metals 10 represent twentieth part OF tho real
wealth Still il has become, through CONNER
cIal agency, the principal agent Of exchange
able vailc. We cannot resist this fact, and arc
bound 70 accept IL. Applying this fact, then,
10 the question before as, az ~ the reserve OF
gold 10 The hands o. the Treasury, we say that
the Secretary ought not 10 part with II, but
should maintain largo reserve In order TO In
splre confidence When the public know that
there !. m abundant surplus OF specie In The
Treasury they cease 20 doubt The ability Of
the country to rcsurn TO specie payments, and
paper asi gold approximate 10 par as nat
ural consequences. This "a the whole logic OF
Tho question, and II ,hs Secretary has sense
enough be will sec H. lie will not accommo-
dlls the gambling SPECTATORS Of Wall street.
bat husband his specie IS the best guarantee
hs can give for reduction % the gold premium
and he return 70 specie payments within .
x~..o~shf. tirus.