The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-05-20
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The Advance I'm Gold.
From The ". 7. Posi- or Monday.

sudden advance. beyond forty per cent
premium, may be due in part to local
and temporary causes; but the rise OF
more than ten per cent within few
weeks. and the general condition of the
| market, in which it is found so easV to
down, are facts which have a wider
meaning.
This meaning is simply that the
public are beginning to understand the
| financial situation better than hereto
fore. The currency of the country is
paper, which, by its excessive amount,
| Is greatly deprecated in its actual pur-
chasing power. The general cost of
| living is about twice what it was when
| we last had q currency of real money.
That is to say, greenbacks, measured
in commodities, are worth but little If
any more than fifty per cent. II the
price of gold were controlled like the
average price of other articles, chiefly
by the initiation OF the currency, it
would be nearly or quite two hundred
per cent.
But the disuse of coin for money des-
trOys great part of the demand for
gold, and therefore puts down its value
The pledge of the government to re.
deem it's notes, and the general conf.
dence that the pledge will one day be
fulfilled, increase largely the value of
those notes. Besides all this, the poli-
cy OF the government has steadily been
to depress the price OF gold by frequent
sales, and especially by holding its
large reserves in menace to all pur-
been aided by the increasing demand
for the bonds of the United States in
foreign countries, which has led to the
shipment of bonds instead OF money in
payment for imports, and SO kept q
considerable sum of the idle gold in
this country.
Had any one of these depressing in
fuenCes been wanting, the premium on
gold must have been very much hig
er for the last three years. Had all ex-
ceptional and disturbing influence been
absent, and had the price of the cur
rency in gold coin been governed SIM
ply by the amount of paper currency
in use, that premium could never have
fallen much below one hundred per
cent.
The question arises, how long will
these Influences continue to act2 The
recent decision OF the Supreme Court,
that contracts for coin are valid In law,
opens the way for the use of coin as
money; and it is likely that the demand
for it, for this purpose, may increase.
The general expectation of speedy re-
turn TO specie payments has already
been seriously weakened by recent
events, and may soon pass away en-
tirely. The large sales of gold are los
ing their effect. And finally, the large
shipments OF bonds to European mar
kets are now approaching limit. in
the small amount of the national debt
which remains in this country within
the reach of foreign bankers. On the
whole, therefore. the influences which
have for so long a time unuaturally de-
growing weaker; and unless some new
element appears in the situation to
counterbalance this change, the low
quotations of last March do not promise
soon to return.
It is matter for deep regret that
careful and intelligent newspapers,
such as the Times, should regard this
rise in the price of gold as in itself re-
proach to the administration of the
Treasury. The power of the govern
ment has been used to depress the
price; wise administration would alb
stain from all interferences, and let the
market regulate itself. 1t is true that
the price of gold would then advance
still further; but this is precisely what
the country needs. Whatever may be
said in general terms about the nation
al credit and the honor of the Treasury
paper. the fact remains that neither is
really improved by an artificial and
compulsory reduction of the premium
on coin. The more force is used to re.
press the natural Influences that would
control it, and the longer the effort APP
pears to succeed, the more violent will
the reaction be in the end.
The cost to the Government of its
struggle against the gold premium is
already enormous. But the worst part
of the bill is yet to come in. By keep
ing gold cheaper than other commodi-
ties, this has been for q long time the
best market for goods in the world.
Imports have been unnaturally, stimu-
lated, exports discouraged, and enor-
nous balances created which have been
met by bonds payable in gold. These
bonds have yet to be paid, and whether
only the interest on them be demanded
for many years, or whether the princi-
pal be hurried home for sale one day
on a sudden disturbance in, Europe, in
either case the burden on our people
will be heavy AS the case now stands,
all our markets are at the mercy Of
foreign rulers, diplomatists and finan-
ciers.
Were the price OF gold raised to the
general prices, without serious disturb
ance to trade in general, the export OF
bonds and the increase OF our debt
abroad would be checked, foreign mar
kets for our surplus crops and manu-
features would be opened, and greater
stability would soon be given to the
financial condition of the country. We
could then measure our means and face
our difficulties, without the thin dis
guise which now blinds SO many to
them both; and the country would see
the essential truth, that the really weak
point in the situation is our inflated
currency, and that until that is dis
posed of, neither the credit of tho "a
ton nor the industry of the people can
be established in satisfactory condi-
ton.