The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-08-16
Gold Sales.
The Senate passed a bill at the late

The Senate passed bill at the late
session, creating o sinking fund for
the extinction of the public debt,
which provided that no gold should
be sold by the Treasury, except the
surplus over fifty millions, and that
it then should be sold in open mar
ket. This was not acted upon in the
House; but the gold provision was
understood to accord with the views
of the majority of both Houses, espe-
clally as the sales of gold preceding
the panic in the London money mar
ket were generally condemned by the
antl-Admlnistration papers and poll
tlcians. The bill was intended to re-
verse the policy Of Secretary McCnl-
loch, which was to keep gold at the
level Of about 80 per cent. Had he
not sod gold freely; it would have
risen in price from 80 to 80 or 100;
and, besides that, the pressure upon
American cotton bonds in England
would have been 80 great as to compel
them to stop payment of the bills
drawn upon them against the ship
ment of cotton. Widespread bank
yuptcy in New York would have been
the consequence.
But Congress and the anti-Admi-
nistration bankers decided that gold
must be boarded, or at least must not
be sold at such time, and in such
manner, and at such rates as would
best promote the interests of COM
merce, demoralize gold-funding and
speculation, and repress the tendency
existing towards increasing prices of
all the necessaries of life.
The Treasury has of late made no
sales of gold, but the Secretary is
free to pursue his own policy upon
that subject, which will, no doubt, be
very wise and prudent. He may sell
gold If it accumulates to that extent
that will cause scarcity and enhance
prices; and he may sell it either in
open market, or, as heretofore,
through banker.
1t seems that, in this state of
things, q number of bankers and
traders In New York, embracing many
OF the trading firms connected with
foreign trade, prefer the former policy
OF MIR. McCulloch to that which
Congress would have dictated to him.
and have petitioned him to sell sur
plus gold once a week. They make
the following representation, to wit:
According to general belief, in
which we participate, the sole ground
for imposing duties upon imports
payable In gold, was to provide for
the payment of the interest on the
debt, and was not intended to con-
vert the Treasury into savings bank
for the boarding of gold coin, thus
contributing to impede the legitimate
course of business, and to reduce all
commercial transactions to the basis
or speculations in gold, rs is the case
at present. We, therefore, further
respectfully submit to your consid-
Grafton, as the most cffectual means of
checking inordinate speculation,
whether it would not be advisable to
sell all your surplus gold ut least
once week. We consider the rate
of premium a matter of secondary
Importance. Gold at $50 means
practically the reputation of all
debts, public and private, to the
extent OF one-third of their VIII Die
amount, and we do not deem it essen
tlal to the dignity or well-being of the
Government to benefit to any great
extent by that fact.
The idea that gold should be re-
tanned and boarded by the Govern
ment, as means for prohibiting the
resumption of specie payment, is
pressed in some quarters This sug-
gestion arises from opposition to the
only practicable mode of returning
to specie standard, which is by .:
reduction of the paper currency.
National MteNigencer.