The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-04-27
C0KKERCIAL AND FINANCIAL.
Treesurx snles Of Gold.

From the FINANCIAL Chronicle OF saturday.
The question has never been satisfac-
torily settled how much gold the Treas
urY needs to hold as a surplus. Still,
| whenever the coin reserve belonging to
the government reaches 75 or so mill
lions, there Is always q popular outcry
for the depletion OF the hoard. Yield
ing to the pressure OF such influences,
Mr.. Boutwell, has just announced his
intention to sell part Of his accumu-
lated coin once week. This policy he
announced on Thursday, in the follow
ing notice:
ceIye at the New York Sub-Treasury,
sealed proposals for the purchase OF
gold until noon of Thursday next, in
sums of not less than $5 900. Payment
may be made in United States notes or
three per cent. certificates. The sue
cessfuI bidder will be required to de-
posit five per cent. of the amount Of
the purchase on the day of the sale.
Like proposals will be received every
Thursday until otherwise ordered.
The wished-for success did not at
tempts to deplete his Treasury balance
by Offering to prepay the coupons due
in May and July, for most of the bond
holders do not like to pay six per cent.
interest for the privilege OF anticipat-
ing their interest; and moreover, the
coupons are detached, as coin equiva-
lent of the missing coupons must &C
company each bond in order to make
"a good delivery"
The fall in gold on Friday was the
most conspicuous result OF the SeCre-
tary's announcement, which seems to
have taken Wall street by surprise.
There Is also some dissatisfaction with
the change in the method of selling
gold. By the terms of the announce
ment it will be seen that Mr.. Boutwell,
will receive proposals from purchasers
through the Assistant Treasurer at
New York, as heretofore; but he does
not state the amount he Will dispose OF.
no does he reserve the right to reject
any bids which may be too low or In
excess of the amount he has to sell.
A more important question Is, how
ever, as to how much gold should be
held as reserve In the Treasury. 1t
would be we'll for this point to be set
tied by law, as IL Is of great importance.
We have to pay over 130 millions OF
gold interest every year. The coin sur
plus is our reserve of gold to guarantee
that this interest shall be forthcoming
when due, and shall not be subject to
any contingency such as the temporary
falling off of the customs duties from
depression of trade. That this shall be
placed beyond the possibility OF doubt,
stored up beforehand and the coin re-
serve should never fall below 20 mil
lions of dollars.
But the coin in the Treasury fulfills
other functions besides securing the
punctual payment of interest and the
support OF the credit of the government.
1t represents the gold nUtes which are
afloat, and il affords means of keeping
in the Golfers of the government, sur
plus revenue which cannot without de-
ranging the money market be held there
in currency. Moreover, there are per-
sons who suppose that the Treasury
gold helps to sustain the value of the
greenbacks. Certainly, when the time
approaches for the greenbacks to be re-
deemed in coin, there will be necessity
for large amount of specie reserve to
be previously boarded up as prepara-
tory provision. But the time OF coin
redemption is we fear not near enough
to Justify US in keeping any large
amount of coin idle for the purpose of
preparing for this distant contingency.
From all we have said, 1t may be In
ferred that public opinion is not SO far
wrong when it fixes the minimum gold
reserve which the Treasury should hold
at seventy.five or, eighty millions Of
dollars. The surplus may be more
sometimes than this sum; less 1t should
never be.
But when we sell our government
gold what should we do with the pro-
ceeds? Shall we buy up the govern
ment securities and thus pay off part of
our debt, or shall we make some other
disposition ofthe money SO as to tighten
the burden of taxation. Both these
plans have their advocates. As Con-
gress will probably repeal some OF the
Internal revenue taxes at its next 6eS-
sion we may fairly expect during the
coming six months that the question OF
taxation will occupy good deal of the
public attention. Hereafter perhaps the
surplus revenue represented In the
government gold may be devoted chief
ly or wholly to the diminutton of the
burden OF internal taxes. Prior to that
time, however, Mr.. Boutwell, will pro-
badly confine his gold sales to such an
amount as will represent the three per
cent certificates offered for redemption.
Many persons have supposed that at
present the Secretary of the Treasury
can buy gold bonds in the market just
as formerly. But it has been pointed
out that this is mistake. The
Public Credit Bill prohibits the
purchase of the funded debt and de-
clares that "none OF the said interest
bearing obligations not already due
shall be redeemed or paid before matu-
rity, unless at such times United States
notes shall be convertible into coin at
the option of the holder, or unless at
such time bonds OF the United States
bearing lower rate ot interest than
the bonds to be redeemed can be sold at
par in coin." We presume it is in con-
sequence of this prohibluon to buy up
the funded debt, that Mr.. Boutwell,
| offers to take pay for his gold in three
per cent certificates II required. For
these certificates are part of the un-
funded or floating debt of the Govern
ment, and are therefore excluded from
the prohibition of the Public Credit
| Bill.