The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-26

TIE Decline ID GoId-Gosd Effects Of Gem
oral CRAMPS Policy.
The remarkable decline In gold-the price
yesterday touching 1914, the lowest since the
year le63-is the fruition Of the policy which
General Grant inaugurated when he delivered
his brief and simple address on the 4th Of
March last. The promise which he then made
Of reducing the expenditures and Of faithfully
gathering the revenues Of the government is
being fulfilled in the falling Of the price Of
gold, which is but the financial sign and index
Of the increasing credit and stability Of the
government. The practical effects of his
policy are now quite visible, since
the smashing Of the gold ring and
the breaking up of the Wall street combine
tons that were formed in midsummer to ad-
vance the price of the precious metal. 1t will
be remembered with what delight his enemies
then pointed to the rise in gold as proof Of
the weakness of his efforts. The gold
gamblers were the sole cause of the upward
movement, and in pushing 1t onward aban-
doned themselves to the belief that they pos
sessed the power to undo all the good work
which General Grant set out to perform. His
simple order to sell few millions from the
Treasury ruined their fond anticipations and
dissipsted the gold corner in the most efectual
manner.
The results Of General Grants policy are
all the more remarkable for the reason that
In taking hold of the reins of government he
was encountered by the abuses bequeathed
to him from the previous administration.
Before setting his own plans in operation he
was under the necessity Of righting what was
wrong in the various departments. He had
to unearth and put an end to all the various
frauds and schemes Of corruption clinging to
the appointments of the former regime, and
make general clearing out of the public
offices. The formidable conspiracy which
attacked the gold market was an obstacle for
time to the operation Of his Plans but he event.
ually triumphed, as the apparent dscredit Of
the government finances implied in the rise
in gold was the result of artificial influences
only, which had in the long run to succumb
to natural causes. The good results Of his
honest determination to faithfully collect the
revenues and to retrench the expenses of the
government are at length reflected in the
gradual and steady but sure appreciation Of
the national credit. Under the circumstances
of our present political situation gold is q
commodity whose price depends, on the one
hand, upon the condition of the national
credit, and, on the other, upon the relations Of
our foreign trade. The burden OF the public
debt is not necessarily an insurnountable
obstacle to the resumption of specie payment
for the government currency. Otherwise
England would never have returned to
specie payments. 1t is only sufficient
to assure the national creditors of the
honest intentions and ability of the government
to meet its obligations In order to restore per-
feet confidence. This portion Of the plan
General Grant has assumed as his special
duty. The commercial value of gold is settled
by the laws Of demand and supply According
as the balance of trade is for or against us
will gold be in demand for export. Gold,
after all, is not the real currency of the
the world to suffice for all the transactions Of
commerce. Signs of value. such as checks,
bills Of exchange, drafts and bank notes, are
the real vehicle Of business operations.
Between different countries gold is essential
simply as means Of settlement for the differ
ence in value between the imports and exports.
Now, General Grant on his side is doing what
is proper to restore the national credit. Econ
omy among the people and production in
excess of consumption will contribute what is
needed to complete the work