The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-05-20
'CH.ARsL EsTON
THURSDAY MORNING, MAY 20. 1869.
The Value OF Gold.


During the past, four weeks gold has ad-
vanoed II per cent in the face of the con-
trsry expectations Of many well informed
persons, who entertained the opinion that
ths-pfiss Of geld MAS regulated by the po-
liticsl circumstances of This country. The
incorrectness Of such an opinion, and the
true causes Of the advance in gold, may,
We think; be easily shown |
It is now Acknowledged that the prosper
ity of nation is shown by the value of it's
exports, and as soon as its imports are in
excess efsthe former, one of two conditions
is shown to exist: ii. the excess of imports |
ls:cpaid for by the profits Of trade, it Of
course shows prosperity; but if trade hos
been Improbable, that excess then shows
grave fault and forbodes impending evil.
Now what has been the condition Of com
merce during the past nine months! Con-
inuously, unproR.ahIs- may be ssfely
assumed that the majority Of the foreign
merchants Of The United States have scarce
ly cleared their running expenses, and but
few have made sny profit; while In Earope,
mercantile failures lave been frequent and
heavy. T.,9 ,zwl .....-
The experts Of the United States for the
period mentioned have been $40, 100000
less than for the corresponding period Of
last year, while the imports have been
$50, 900, 900 in excess of those of the'same
period, making difference against this
country of $75, ,Ooo, 900, which could not be
equsli1ed by the prof,s Of commerce. for
there have been none, and which oonse-
quentlY have had To be paid'in gold or an
equal valuable commodity, About $780,
OO0, 900 Of this amount have been paid in
United States bonds and the balsncsin gold
Exclusive Of these bonds, -there have been
purchased by parties in Europe for invest
ment, about sac. .0OO, 900 more, particularly
of late, ION account of the political distur-
banoes with which they are momeatarily
threatened. So that altogether there are
now held In Europe about $3.50, ,OOVo0Oof
United States bonds. a.f..i.12 "Ct
80 long as natiou's debt is held by its
own people, it is comparatively safe; for it,
may repudiate without fear, save as to its
fn.ure credit; but when held abroad, ,such will
nos bsrpermitted. Every dollar Of the $780,
00O, 600 neld in Europe must be paid BY our
government in gold, even lift has to be e1tort-
ed by something stronger than moral sua-
sion. We have paid our debt, contracted
through commerce, by new debts, and Of
course oui credit lie suffering. The debt in
truth remsins-iti is not yet cancelled.
This is oneioaase Of the advance in gold.
Again, the public debt has been increased
$2s, ,00O, 900 during the past year. If this
occurs; instead of decrease, during the
fourth year rof peace, what have weto"e1-
pect during the four more years during
which the present corrupt administration
will be in power!
Iu 1864, gold touched 20o; but no well
informed person presumed that this showed
the true depreciation Of the currency, bui
more properly public distrust and unrea-
sonsble excitement. Recently, with the
currency inflated so per cent. and disas
,rous state of trade, it touched 13O, and We
have no reason to presume this to be its
true value more than the other. The truth
is, that the currency is more deprecated
than the price of gold shows. The latter
has been kept down below it's true value,
and sooner CT later must rise to the level
of the dep recitation of the currency. The
supply of gold in this country is really
only apparent. We hear of immense sales
in New York, sometimes as much as $l7O,
000. 600 daily, all of which is done with the
use Of not more than $3,000,0 900 of real
coin. This is effected by means of the gold
exchange bank, where balances are settled.
This institution was established to facili.
tate gold transactions, diminish the demand
for the real article, conceal the paucity of
| gold by an sppsrent abundance, and thus
keep up the value of national currency.
This currency is now quoted at II cents to
the dollar; but with the surrounding cir
cumstsnoes Of the present and the future,
it is hard to see how it can be worth more
than about 60 cents. We shall soon see.