The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1867-12-14
Gold sales.

since the 1rst OF September the Secre-
tary Of the Treasury il is reported, has
sold about eight millions Of gold, from
which he has realized eleven and half
millions Of grecnbacks. What has been
done with this money? -Four millions Of
it has been burned up--that being the
maximum amount of plain legal tender
he is authorized to retire and destroy per
month, The remaining seven and half
millions has been expended in the pur-
chase Of compound legal tenders. The
accumulated interest on these is 20 per
cent. Consequently the seven and half
millions purchased s6,250,0 900 Of them
with the interest thereon. The sale Of
eight milionaof goldre the plain and
compound legal tenders so 100000, and
there is that much less currency in poses
sion Of the banks and business men now
than there was one month ago. The COM
pounds having become due the interest on
them had already stopped. The sale Of
gold has therefore enabled the Secrctaryt to
carry out his favoritc policy of contraction
in single month, TO an amount equal to
the entire circulation OF all tho banks in
Illinois The effect of this contraction is
beginning to be feltin GnancialeircIegq quite
palpnbly. The rates Of interest in New
York have advanced one or two per cent,
aud the difficulty of obtaining money to
purchase tho produce Of the West Ii ma.
terially increased. The advance in the
rates of interest is taken out of the price
realized on flour and grain, and the far.
mers OF the West are paid that much less
for their products Of all kinds than other.
wise they would have received.
What good hos the Secretary Of the
Treasury accomplished by this financial
operation? He has not strengthened the
public credit particle The premium on
gold is greater than it was on the lst OF
September. The bonded Indebtedness is
not diminished, nor the interest on the
bonds reduced cent by this large sale Of
gold. He il authorized by act Of Congress
| to issue three per cent certificates with
which to redeem the six per cent com.
pounds. Suppose he had done so, and ap-
piled the proceeds Of the gold sale on the
seyen.thirty bonds, let US sec what would
have been the result. Eight millions of
coin sold at IA would have purchased
$40, $50 900 seycnty-thirty bonds, the saw
ing Of interest on which would be $500.
600, in currency The bonded indebted
ness would be reduced nearly elccea mil
lions aud the interest thereon at 6.30 per
cent forever saved to the tax payers. .-
Bonds to that amount would be taken off
the market, rendering the credit of the
government that much stronger IF the
| public debt were reduced one.half the re.
naming half would be worth par in gold,
aud greenbacks would necessarily advance
with them 10 par, carrying up the value Of
bank notes in the hands oi the people in
the same proportion. Il ~ impossible for
greenbucks to rise higher in gold value
than bonds, and il Is equally impossible to
decrease the discount on them any faster
than the discount on bonds disappears.
From the first Of September, 1866. to the
lst Of September, 1867, the Secretary Of
the Treasury has retired one hundred mil.
lions Of greenbacks and compound legal
tender currency from circulation. and
since the first Of September be has retired
some twenty millions more Of compounds
and legal tenders, for he is using his sur.
plus revenue as well as surplus gold "a
this eud yet the premium on gold il
higher now than it was thirteen months
ago, notwithstanding n currency contrac
ti0n Of one hundred and twenty millions
| Who believes that such would be the case
if the Secretary had let the grcenbacks
alone and redeemed the compounds with
three per cent certificates, and had pur.
chased one hundred and twelve millions
of scven-thirty bonds with his spare cash
The transaction would have wiped out
six per cent. Of the whole bonded indcbt.
cduess Of the United States, aud reduced
the interest thereon by more than cighi
millions per annum. If this policy had
been pursued. the money market would be
far easier than it is now, interest would
be at least two per cent lower; and gold
would certainly not exceed 1875, because
the bonds would be worth seven or eight
per cent more than they arc. Eight per
cent added to the purchasing power Of
the grcenbacks and bank notes would
render the holders fifty millions Of dollars
richer than they are, and the holders oi
the currency comprise the whole people
We conclude, then, that the policy pur.
sued by the Secretary of the Treasury has
cost the American taxpayers the loss oi
the interest on S112, 100000 of seven
thirtios bonds; the holders of the currency
fifty million in the purchasing power Of
their money the mercantile and the pro
ducing classes one to two per cent on the
interest Of money, and the use Of S120,
000,0 Of currency withdrawn from cir
culation. This is the debit side of the
ledger. What credits can the Honorable
Secretary exhibit to balance these losses
IF there be any we have failed to discover
them, and will thank him or any Of hi'
hackers to point them out Chicago Tri
bune
OREGON CENTRAL RAILRoAD.-Tht
San Francisco Bulletin, in an article OF
} the projected railroad routes in which th,
State of 0reoon - intereSked SAYS tha