The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-14
The Secretary of tho Treasury and the Col
Ring.

| A great many people wonder why gold re-
mains at such high premium, and why every
thing the people buy is high accordingly.
| They reason naturally enough that the govern
ment and the business of the country are in a
solvent condition; that the war ended three
years ago and peace has been firmly estab-
lished that the income of the government is
greater than the current expenditure; that the
gold receipts from customs exceed the demand
for coin to pay the interest of the debt that
we produce eightX,to hundred millions year
of the precious metals from our own mines,
and that the Treasury has in its vaults nearly
all the time hundred millions or upwards Of
specie-as much as the Bank of England ordi-
narily holds to represent the whole paper cir
culation of that national establishment. They
reason thus, and then ask with surprise why
we have not specie payments, or, at least, why
gold is not at much lower premium.
There are two causes chiefly for this anoma-
lous and unnecessary state of things. First,
the stupidity and Encouragement of the Secre-
tary of the Treasury, and next the operations
of the gold gamblers of Wall street. Mr..
McCulloch and the pettifogging inanciers in
Congress are continually talking about super
abundance of currency and the necessity Of
contraction in order to bring about specie pay
ments OF course specie payments could be
forced if the greater part of the paper money
in circulation were withdrawn; but the people
would be left without a sufficient circulating
yboI Gam,
capitalists and bondholders, would be thrown
into bankruptcy and ruin. Amputation might
be successfully accomplished, but the patient
would be killed. The precious metals cannot
answer all the purposes of trade. They do
not in England or any other great commercial
country. They are merely representative in
part, and that small part, of paper values
and of business transactions. 1t is impossible
to define the precise proportion one should
bear to the other. That must depend
upon the circumstances, nature of trade,
geographical extent and other things of
each nation. The Bank of England is
allowed to issue double the amount of
notes to its specie reserve, Independent of
the circulating notes of all the other banks.
We require in this country greater proportion
and larger circulation of paper than they
have in England. Business is carried on
upon extensive individual credits; here trade
is more from hand to hand and requires the
use of more abundant currency. 1t is a
question whether we have now more currency
than the country needs, especially if it were more
evenly and generally distributed. 1t is certain
there is not more than will be needed within a
few years. Nor is there much more actually
in circulation than before the war. if we take
into account the legal tenders required to be
held in reserve by the banks and the amount
lying always in the Treasury, and if we cal
culate the whole amount of bank issues
throughout the country at the time the war
commenced. No, it is not the superabundance
of paper currency nor the want of precious
metals that prevents us returning to specie
payments, but the Encouragement of Mr..
McCulloch, the Treasury ring and the gold
gamblers of Wall street.
During the war and since the gold transac-
tions in this city-buying and selling gold, so
called-amounted to several hundred millions
day, and now, in the slack times, the average
transactions probably amount to little less
than hundred millions day. This is all
fictitious, nothing but gambling. No gold is
used, or at most a very Insignificant amount.
Hundreds of millions are bought and sold when
the parties have none and never see the color
of the metal. Strange to say, too, these bogus
gold transactions on such a magnitude are car
ried on chiefly by few persons, dozen or
so, and they for the most part foreigners All
the gold actually needed for commercial pur-
poses by our merchants for paying duties and
balances of trade abroad lie not over half
million to million day all the year round
| This would rarely have any effect upon the
price. There is an abundance for this purpose.
The amount required would have no influence
in depreciating the currency in keeping up the
price Of gold or in retarding specie payments.
II is the fictitious gambling business of Wall
street, and not the legitimate business of trade,
that keeps mp the price Of gold and the price Of
everything we buy or use.
Mr.. McCuloch plays into the hands of these
bogus capitalists and gold gamblers. The
Treasury ring is not myth, but lamentable
reality. The members of it in New York are
favored by the Secretary. They get informa-
ton directly, or indirectly, from him which
enables them TO put gold up or down
as they please and to make large
fortunes. They have their agents in Wash
ington, who are made acquainted with the
secrets Of the Treasury Department and exer-
else an extraordinary influence over IT, Butler,
when he got hold of the Sam Ward despatch
in his impeachment investigations, supposed he
was on the right scent for the information he
wanted, but he was on the wrong track. Had