The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-05-24
MIR. BOUTWELL's FINANCIAL JERKS.

From the n. y World.
When a few weeks since, the Secretary of the
Treasury announced his intention TO make
weekly sales of million of dollars in gold and
weekly purchases of an equivalent amount of
Government bonds, the policy which he pro-
claimed, however faulty in other respects. had
the advantage of being perfectly ineligible.
The steadiness and regularity of the intended
proceedings gave to business men a basis for
calculating the future and regulating their trans
actions by what seemed a tolerably certain rule
Mr.. Boutwell, had wholly mistaken conception
OF the manner the rule would operate. He has
discovered, by brief trial, that it must disap-
point his expectations and he has fitfully
changed it. Finding that the price OF gold
was rapidly rising, when the chief purpose
OF his policy was to depress it, he suddenly re-
solved, two days ago, to double the amount of
gold which he will pour weekly into the market,
and causes it to be given out that, if necessary,
he may still further increase the quantity. He
has thereby succeeded in arresting the advance.
He had the satisfaction of seeing gold fall
back one or two per cent. Nobody ever
doubted that, if he would empty the gold out of
the Treasury at sufficiently rapid rate, he could
temporarily bring down its price. There is lust
rs little reason to doubt that the temporary de-
preston thus artfcially produced will be fol-
lowed by q greater ultimate rise.
The easiest way to reach clear understanding
of this subject is by first considering the nature
of Mr.. Boutwells original miscalculation. If he
had steadily pursued the policy which he first
announced-if he had regularly parted with a
weekly million of gold and purchased weekly
million of bOnds-the consequence would have
been that an export of gold would have taken
the place of an export of bonds TO meet the
foreign balance against this country. For the
last ten months our importatOns of foreign
goods have amounted 10 S2SOUOOOO at gold
valuation, and our exports of domestic pro-
ductOns to only 5l47O000O0 valued in cur
rency, or little over 500, 100000 valued
in gold. To offset the heavy foreign
balance against us, we have been regularly
(fOVprumpOt
bonds purchased by Mr.. Boutwell, and kept
in the Treasury cannot be exported; and
gold so far as gold s'ayailable, must be sent in
their stead. If the supply of bonds for eXpOrta
lion were ineXhaustibe, the weekly Withdrawal
of million of bonds, and the weekly substitute
ton in the market of the same amount of gold
should have no effect on the price OF either gOlC
or bonds In that case, the transactions of The
Treasury would only cause the substitution o
one medium of foreign payments Tor am equa
amount of another medium. But the supply o
both is limited. large portion OF the bond
which now remain in the hands OF American
holders will be kept as a convenient form OF in
yestment The bonds available for exploration
consist merely of the surplus over and aooy
what the interests of the holders retain III Uni
country The three hundred mlilohs am
upwards which are required 70 be deposlted U
secure the circulation of the national banks
cannot be exported. The vast amounts neld D
the savings banks and insurance companies ar
equally locked up and unavailable. ana Jne
our capitalists, and tens OF thousands OF cltlleu
who have made small savings, prefer this Torn
of investment because the rate OF Interest !
, high, and this Kind of property is exempt iron
local taxation. The amount OF bonds whic
can be used for expectation is apprOacnln
exhaustion. When the Treasury comes int
the market as a large and constant purchaser
our importing merchants are obliged TO loo
about them for some other means OF dischare
ing their debts. If the supply OF gold IN th
Treasury were eXhaustless, they would need {
GEEK no other means; but there is not more tina