The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-07-13

| An Interesting, simple and InStrue.
tive Communications.
10 the Editors CTths .BoStCn Daily Advertisers
The average price of gold during the
year 1854 was 204, ductnating between
$50 and 2S5. This high price was ow-
ing to two causes: frst, the superabun-
dance of currency, aud, secondly, the
discredit of the government. The re-
suit of the military struggle seemed
very doubtful through the whole OF
that year, and consequently the nation
al credit was at low ebb, The prices
of all commodities rose with the price
OF gold, because everybody felt that the
gold was in reality the only certain re-
lance, and they made IL standard of
value. Timid capitalists sent gold
abroad for safe keeping, and over one
hundred millions were exported during
the year. The triumphant march OF
Sherman and the decisive victories of
Grant, in the early part of 1865, made
it certain that the government would
be successful, and gold at once fell to
about 145, remaining at that point from
May to December of last year. This
was doubtless very near to the natural
value of gold, as compared with the
currency of the country. The element
of diStT1tSt no longer formed a part of
the price. But the gold market, unfor-
tunately, was not permitted to regulate
itself. The Secretary of the Treasury
adopted the policy of running down
the rate of premium as much as DOS
sible. This he did by entering the
market whenever the premium advanc-
ed, and bearing down the price by the
sale of gold. BE pursued this course
vigorously and persistently. The price
was reduced to 125 in March last, and
has been kept at about 130 until within
a few days. 'a'
Two questions arise in regard to this
policy on the part of the Secretary:
What was his motive2 What are the
results? His motive seems to have been
to advance the interests and credit of
the Government. But what interest
had the Government in reducing the
premium on gold2 1t had ceased to be
large purchaser of commodities, as it
was during the war, and, therefore,
could gain mo advantage from lowering
general prices besides, by reducing the
price of gold, it actually reduced its
own Income, as the premium on gold
added largely to the revenue. SO far as
1t was used as currency. Did such a
course really improve the credit of the
Government Certainly not, amongst
intelligent men, who saw through the
movement, and knew the price of gold
was no longer governed by the laws of
value. Prices in general continued as
high as ever, Notwithstanding the de-
cline In gold. No good came to the
Government by this reduction of the
price of gold; 1t gained neither rev
enue nor credit.
What were the results to the trade
and manufactures of the country?
Gold being cheapened by the interfer-
ence of the Treasury, 1t became the
most profitable article of export, and
begun of course to flow out of the coun-
try at rapid rate. This was one di-
rect result. Another was an unprece-
dentedly large importation of foreign
goods, which could be brought in aud
sold at currency prices, which were ad-
vanced atleast 100 per cent. above the
natural rate, while gold to pay for the
same could be had at only 80 per cent.
premium This left large margin for
proht, and, as consequence, the coun-
try was flooded with foreign fabrics.
The same cause now depresses the'man-
ufactures of the country, which have to
compete with foreign commodities
made under currency at par with
gold. And not only this, but the agri-
cultural interests of the nation have
suffered from the same cause. All er-
ports have to be measured by gold, and
are sold at gold prices. When the price
of gold is 100, the price of wheat will be
higher than when gold is at 13O..l AS
gold falls in value, SO must all our ex-
portable products decline. The farmer,
thenS mas been obliged to sell his W heat
at gold prices, and purchase his COM
modtties at currency prices, and the
difference to him has been yery great
and a dead loss. What, then, has been
gained to the country by arbitrarily
forcing down the price of gold? lsiI
1t seems to have been the idea of the
Secretary that the national credit would
be improved as the premium on gold
should be reduced; and this would have
been true, if the decline was caused by
the operation Of the laws of trade. If
the currency Were in a normal condi-
ton, and the Trade and industry of the
country in natural and, healthy state,
such adecline would indeed advance
the credit of the government; but hen,
as everybody knows, the fall in the
price of gold is artiticially occasioned
Dy the operations in the market, made
by the government itself for that very
purpose, tits far from being advanta-
geous to its credit. The people have
been assured from various quarters
that the premium on gold would con-
tinue to decline until the banks and the
national Treasury would both easily
resume specie Payments. This was
delusion. There has never, since the
war, been the least tendency to such a
result. The people have been deceived.
The country has been drifting all the
time In an opposite direction; we have
been constantly expanding our curren-
cy, 1nsteadsof contrasting It, until here
| we are, In time of peace, with gold at
15O to l60.l Our national banks are is
suing nearly one and half millions of
new currency euely week; how is It pos
sihle that gold should not advance?
The Secretary has been obliged to
give up the contest in the gold market
l.Canute cannot contend successfully
against the laws of nature, and he must
Withdraw, or be overwhelmed. So we
shall probably soon know what the ac-
tual value of gold is, as measured by
our currency; that is very desirable.
We want no shams. A high premium
on gold will not now permanently adj
vance general prices. They will be
governed by the volume of the curren-
the credit of the Government should be
againlsnspeeted EG liE16 Tfl1Ti
Business men, then, instead of being
alarmed at the great and sudden rise
In gold, should regard it as the natural
culm1nationotth OF the governmental finan-
clRl policy; and while they should be
exceedingly cautious in giving credits
should buy and sell with the currency
as 1t is, with geod degree of conf
dence, that there would be nogreat con-
traction OF the circulating medium at
present. Wien the country will return
| 70 specie payments it Is quite impossi-
bic to predict. The Bank of England
remained in suspension % years and
Ionr months, during and after the wars
with Napoleon. Its final RESUMPTION
occastoned a fdghtfuI reytllsion. The
longer the present suspension lasts, the
more terrific will be the disasters that
must follow it, Unless the Govern
menb speedily adopt such measures as
Will secure gradual but certain return
to sound currency and normal con.
fraG rNE 81