The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1869-06-02
Secretary BoutweIi's Policy. the Gold
Ring, and the Rise in Gold.

The advance in the price of gold has been
declared by the opposition press to be the
depreciation of government securities, and
injurious to our finances. This is wholly
untrue. There is no depreciation of our
bonds, although there Is an advance in the
price of gold. The primary cause of this
advance is the new policy of Mr. BOUTWELL,,
the Secretary of the Treasury. For some
weeks past he has been buying a million
dollars worth of bonds each week-that is,
as many bonds as one million dollars in gold
would buy. The bonds thus purchased
are cancelled, and the national debt is re-
duced by the amount bought. THIS course
puts one million of specie in circulation every
week. Mr.. BoUTwELL's system is violently
opposed by the gold ring" who know that
it will soon prevent them from controlling the
finances of the country. For seven years they
have been keeping up the price of gold and
trading on the necessities OF the nation. This
will be stopped by the continuance of Mr..
BoUTwELL's system, hence their opposition
to it. The present advance in gold quota
tions is the result of the labors of the gold
ring, and is intended to intimidate Mr..
boutwell, into abandoning policy so inju-
rious to them. To effect their object they
have resorted to every device known to the
gold room. They have used the rejection of
the Alabama Claims Treaty, and the COM
mentaries thereon of the English press with
considerable effect. They have also been al d.
ed in their efforts by the suspension of large
German banking house which failed tor
eight millions in gold. Their failure broke
many smaller houses and caused dema nd
for gold which has been used to bull the
market in America. Thus the ring has b eel
able to cause sudden and large advance in
the price of gold. The demonstrate ms
of the ring, however, have not produced ;he
desired effect. Instead of being intimi da :ed
into abandoning his policy, Mr.. BoUTwI ILL
convinced that he is on the right trae k, ha:
given notice that he will now purchas t.et
millions dollars worth of bonds eacfl seek
Thus the efforts of the ring to int; i'm ihat1
him have in reality greatly benefit ed h,a,
for the higher the price of gold the NOR,
bonds will his two millions in gol buy
Thus, if the price of geld is S1.4O, Mr. BOUT
WELLS S2,000,0O0 in gold will buy S,seo,
600 in bonds, clear saving to the cauatr,
of the payment of 100000, and of the pay
ment of a gold interest of six per ct ut a yea
on $2,SO0,000. The interest on s. ,,S0e, ,e0'
in bonds for one year is S1GS.O00 /; this ad
ded to the 100000 made by the aiGerenc
in price between gold and paper usskes
clear gain of $96S,0OO for each ,OD
paid in redeeming the bonds IT mteres 81
on the bonds thus bought if the 3 had nc
been paid until maturity W eJsld hav
amounted to $2,352, 900 in goH Tlaus it wi
be seen that the course pursued ~ Mr. BoUr
WE'LL is eminently wise and nc ii benefici.
in its effects. The money til III MIR. I3oU,
WELL uses in buying in the be usas is eol
that is paid into the Treasury ssam the GU
toms, and which would otherv rise lie idle i
the Treasury, not bringing in q. cent of i,
terest, and of no more value than a pap.
dollar. By Mr. BoUTwELL's pl I'm, this none
otherwise useless, is made te pay six D,
cent. interest in gold, and la p kemium of fort
cents on the dollar. The wisdom of tn
policy on the part of the secretary of tt
Treasury, will at once be m anifest to evel
business man. Any meit jhant who ha
notes out, and who had ahso a surplus
funds, would be glad to br 4 in his notes 1
forty per cent. discount al Ia thus lessen IL
amount of the principal na save all of Il
interest. This is exactly what the Unite
States is now doing tbrou 9Th Mr.. Boutwell,
and is, by so doing, fol- owing as a natic
the same plan that wo' ild be followed /
any intelligent man in b Is private bushes
We like MIR. BoUwELL's policy and think
the true solution of o. rr financial ploble
which so many have Giled to solve. "
consider that the ina ncial prospect is Fl
brighter than it has be- IN 'at any time durin
the last eight years. sna that this is I'll
course that will shortl free the nation fro
debt. Again, the lar ge amount of spec
thus put into circulf fien will do much
prepare the country @r a return to spec
payments, and thus accomplish the la
change necessary to + egain our former pro
perity. With the re- fuction of the nation
debt will come the eduction of taxes, an
the industries of t ne country will recoy
their wonted vigor rom the removal of ii
present oppressive aeight of taxation. "
are very hopeful of the success of Mr.. BoU
WELLS policy, and iaelleVe that it will +