The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-18
FINANCIAL AND CONNER CIAL.


SUNDAY, June IL, leoo
Gold which, according TO an eminent local authority
ought never to above i2s l-l0 closed on Saturday
=, Ieo Notwithstanding the Treasury sales thirty
millions in May. Although speculation aggravated this
rapid upward movement, was almost entirely due to
legitimate inausnces-namely those Of supply and de
mand We have exported since the beginning Of last
month about forty one million three hundred thousand
dollars gold and this Unprecedented drain still con
tnues The Treasury or the United States held ON the
Ist instant $50 679,950 in coin, including $22e0s $40
represented by gold certificates OF deposit In
the hands Of the public The banks OF this
city, according to their last weekly statement held
1852 663 We have here total OF only $66 SOL 622
IN the hands the and In the banks q the
great financial cenre of the country. war Is threat
sned in Continental Europe In which Prussia and Italy
are likely take part against Austria, and In all Europe
probably three hundred and fy millions Of our
securities, national and otherwise arc held. At first
sight the prospect may appear perous but In reality IL
is far less so than II the premonitory symptoms Of
were not visible In Europe and this country we're
threatened with As II Is we are at peace and re-
covering with rapid strides all that we lost by the
rebellion. Our receipts, including customs,
arc at the rate Of nearly I've hundred millions
year. and the public credit never stood higher than at
present. We are entirely aloof from European comph
cations and money market is guarded from foreign
influences by the legal tehucr ACT WHAT Wo nave usu.
ally regarded as our weakness proves under existing
circumstances to be strength Had 1t not been for
the fact that paper money instead Of the
normal specie basis the drain of gold which has taken
place during the last six weeks would have created
disastrous rcyuson here involving the suspension OF
specie payments by every bank in the country The
dark days Of 1887 and 1851 would have been repeated
and wall OF commercial anguish would have been heard
from Maine to Texas.
How different the now Is we have already ex-
perienced. Forty-one millions OF gold have left our
shores to repenish the impoverished Golfers Of our
foreign creditors without causing monetary spasm; for
except that which due to the secret sales Of
gold low price by the Treasury the details Of which
the public is still looking for, and to investigate
which trust Congress will appoint q COM
mlttee Paper money has been q financial breast
work which has protected against the dangerous
effects of sudden drain Of gold, and which will enable
to successfully resist the shock Of foreign Gold
Il true, has scared TO higher premium than has been
reached before since March, 1856 but gold is com.
modify subject to the laws regulate the price Of
anything else, and We can carry our internal trade
and exchanges independently Of the premium at which
1t may be selling The latter only affects the currency
price Of articles Of foreign importation and in de-
gre, of those export largely But IL must be admit.
ted that all prices have tendency TO rise sympahe.
caly WIN those OF foreign goods atbough not 10 nearly
the extent This in part duo TO tho rise in the
proc of treadsus aud other cxportabe conmod ties
which are higher in proportion than non exportable
commodities, owing to their having foreign as well as
. domestic market open TO them.
Now II stands to reason that IL war breaks out In
Europe the Germans and the Italians will sock security
Tor their property by transferring to countries remote
from the complications of the conflict, and foremost for
both safety and profit among the securities Of all nations
stand those Of the United States The belgerent ma
sions Prussia probably not excepted will suspend specie
payments, and specie will flow away from them just as
u did from this country during the The demand
for our breadstufs and other articles of export will
be largely stimulated in Europe by the with.
drawa Of men from industrial pursuits for purposes,
and q. the time the tide OF immigration here viii
probably DO quckened and now impulse impaired TO
our agricultural and manufacturing industry. Great
Britain was never SO prosperous and speculative enter
prise with her was never greater than when the war
ragged in the United States and the threat
ond war In Europe will affect similarly and having
moro to gain than TO lose by It, there good
why We should regard II with dread.
The extreme fluctuations Of the gold market In each
uaopth z,nce A suspenson were under.-