New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-11-15
ORR 1REASURY POLICY.

g. 1866. varied from 145y to 1881. During the
past week it has stood at about al. During
the week ending May 90, 1865, soon after the
surrender of Lee, and before any policy OF con-
traction had been inaugurated, the premium on
gold stood at about 30, with q tendency 10 stlll
further decline. We see no event III the pOllu-
cal history of the country that should have
since raised the premium from 30 to AZ cents,
and kept it steadily at this higher figure.
One would think, from the persistency with
which gold keeps up, that some enormous
gold bull was engaged in boarding all the
gold he could keep out of the market. our
reconstruction questions are progressing as
satisfactorily as could be expected. Their dis-
cussion has no more effect to retard industry
than political discussions usually do. Nobody
seriously anticipates danger from them. Our
crops are fair. Why then this high premium
ON goldP 1t cannot result from want of con-
fidence in the credit of the Government. This
never stood higher.
Again we ask, is anybody boarding the gold'
Yes! Secretary McCulloch is boarding now
the enormous sum of about one hundred ana
twenty millions in gold, or about half the
actual quantity of gold in the country. Far
more than any individual gold bull could do
TO keep up the price of gold, by Withdrawing
it from the market and boarding 1t, Is done
by the Treasury Department which purports
to aim mt a return to specie payments. NO
sooner does the Secretary sell any gold, how
ever small the quantity, or pass 1t forth IN
payment Of interest, than the price OF gold
drops with most. suggestive and encouI-
aging promptness. Does it not seem nat
ural inference that, by selling all the gold
in his hands not needed for the payment OF
interest, he might send the premium down
much furtherY Why nOtP Gold, now with
drawn from the currency, is like any other
commodity. If thrown on the market Its price
goes down. If boarded, its price keeps mp.
Suppose the Secretary. by diligent boarding,
could collect S240,OO0,0OO, or all the gold in the
country. Would not the price of it treble and
ouadruple? Certainly it would. The greatest
hOarcr of gold does most to keep up IFS price.
One practical bar to specie payments is, there
| fore. the boarding policy of Secretary McCul-
! lOch.
On May 2OElsG5, when gold was.down to 49,
the Secretary had but S36OOO,OOO, all told, IN
the Treasury. Now, he has nearly four times
that sum ia gold. Hence the rise in the pre-
MUM, when every other circumstance should
conduce 10 a fall But it is said the Secretary
must hoard in order TO have the means with
which 10 legin specie payments. Indeed! II
boarding sixty millions more than he needs to
pay interest adds from - to IS per cent. to the
price of gold, how much must he hoard to
| bring il down to parg
| The theory of the Secretary seems TO be,
| that the way TO return to specie payments Is
to collect gold enough TO pay all the Govern
ment's debts. This is simply impossible. I'm
der the former period of specie payments, be-
fore the war, there was at no time gold
enough in the country 10 pay one-tenth of the
obligations of banks and individuals if pay
ment had been demanded according to the
tenor of the obligations and without credit.
The way to return TO specie payments is to
enhance credit and remove distrust, especially
in the obligations of the Government. The
present policy of the Government i'll boarding
gold has precisely the opposite effect. Fear
and distyust dictates the policy. The Govern
! hient fears to take its own promises for its
gold, and so practically says to the people
Beware of these legal tenders; they are dan
"gerous. Nothing but gold is secure" The
Government thus lays down distrust in its own
promises rs the cornerstone of its financial
policy What wonder that the people are led
in some degree to follow suit
How then, can our currency, which is now
so universally acceptable at certain uniform
discount, be made redeemable at par, dollar
for dollar in gold9 We answer, only by re-
moving the mass of causes which operate to
put it at a discount Is initiation of the cur
rency one of these Only in very slight
degree if at all. In 1861, Secretary Chase
estimated the whole amount of our currency
in circulation ms follows: Gold, 1915, 100000 ;
bank notes, S2O2 100000. Total $477,OOO,0OO.
How much have we increased it The report
Of the Controller of the Currency for October,
1867, gives the
Totalof Legal Tenders In circulation at sl5TOO0O0O
National Bank Notes. 29JOOOOO0
state BANK NOtes.-... f,0s2lOJ
a ...ulI fssn0.