The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-09-28

pay one.quarter Of one per cent.-say S25-to the
buyer by way OF peaalty i9I non delivery, and like
penalty for each subsequent default. The rule was
established at time when tran actions gold
loosely conducted. and twas highly desirable that
adherence TO contracts. But In practice he rule
has had an effect which was not anticipated by ITS
trainers. II established u normal-though hctIuous
-vaue for the of gold. 1t started he idea that,
instead OF borrowing money TO carry gold, holders
and by a combination among themselves, exact from
short sellers and borrowers of COLO bonus tor The
MUM for immediate delivery. And in this
DInations for the rise in gold which very nearly
ruined the Government in the last year of the war.
and which now keeps the premium twenty to
twenty-five per cent higher than 1t was in March
last IL has been calculated that man who bought
a million of gold on the lat of Marcn last and has
steadily lent il out ever since has made "a per cent.
on his investment. If he bought his gold at 127,
which was the average prlce in March, his gold now
real 20 54 per cent. S540000 in currency BY
selling out WHAT legitimate business offers such
plohis as thisY 1t may well be questioned whether
any such pi offs would have been realized, any
such operations undertaken but tor the one-quarter
per cent rule above mentioned The 0reat specu-
latols who combined last s'llng TO buy up all The
floating gold IN Wall street re red upon the pros
pect OF lending out their gold their main source
OF proht. Mercnants who rrOwed Pold for the
payment of duties, short SO ers wno required eold
Tor immedato delivery, AGENTS of California
shippers who sold against remittances by
steamers, were all at the mercy of the
little ique of god Job ers who mad bought up the
bulk Of the floating gold IN Wall street. Ii it had
been Erie, or pork, cotton, wnea there mi ght
have been some temporary Inconvenience in effect
ing deliveries. but In the course of q day or two
everything would have been smoothed over But
in the case of gold the borrowers met at oDoe
with the rule of the Gold Room which arbitrarily
declares the daily value of gold TO be one-quarter
per cent With this rule back them, the cques
refused to lend their god under one eighth OF one
per cent. The merchants and the bears had NO
choice but to accede to the terms propoSed; and
hence ior days and weeks, the chques were ena yed
cent? da Had AZ bere beep Ur o per
cent rule, 1t is very doubtful whether the chques
| would have ventured to purcha'e a the floating
goo OF the street, and 1T is quite likely that the
bears, rather than pay bonus for the use of gold,
would have elected to have their contracts closed
| bv an officer of the Gold Room Opinions continue
to differ with regard to the future of gold.
One set OF men, in view of the heavy at the
| Northwest the unfavorable reports from the
| Sou'h, and the prospect of heavy Importa-
| tons of goods from Europe expect gold to ad-
| vance to higher points than 1t has touched
dwelling upon the steady reduction of the national
debt and esoecialy uDon the liquidation of all those
| forms of indebtedness which stood the way OF
| contraction of the irredeemab paper money, can
| not see why god shou d rule hIg er now than it
ruled in March last. So far as the crops are con.
cerDed, the public may rely upon 1t tnat tho current
| reports are more likely TO be under than over the
fact. For twelve years we have heard the same
story each successive year-the is ruined, cot
| ton and corn Yet each year we have seeming v
| bad enough for ourselves and Tor Europe. Ii must
always be bo ne in mind that the parties who crcu
late these stories about ruined crops have got stocks
| on hand tor sale On the other hand the vast bank
| expansion is sure to lead to eXravagant ex pend
lures by individuals, and consequently to large i'm.
| portations of foreign goods But again. the more
theEuropean people lnvestln our FIve.twenty bonds
the better they like them, and practically, they pay
| for hardware and dry goods just effectuallv as
cotton corn II seems to be settled fact thai
the Government is not m gong m TO @ sell any more gold
| pay ment of duties at our custom houses When thu
Treasury holds 800 100000 of its own it will b.
dangerous to buy gold for the rise. This will Occur
| before New Year"