The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-09-28
THE BRoKEN-DowN GOLD sPECULA
TIOH
From the N. Y. World.

The friends of Secretary Boutwell, must
not be permitted TO mislead the country into
believing that the blame of the late gigantic
gold-gambling operation belongs wholly to
the speculators who were its immediate au-
thors, and that he and the party whose inan-
cial policy he administers are not responsible
for il. The Republicans cannot thus make
scape-goat of the gold gamblers. If the
cashier of bank should go home at night
without locking the safe and the porter
should leave the street door open and sink
into the stupefaction of drunken sleep, the
bank would be robbed of courses but the fact
that there are burglars always ready to take
advantage of such chance would not be ac-
cepted by the bank directors as an extenua-
tion of the guilt of their servants If these
unfaithful servants should inveigh
against the wickedness of the robbers they
would be met with derisive indignation. 1t is
because society is infested with burglars that
Safes and locks, and strict vigilance are
needed; and it is because every commercial
community abounds with bold sanguine
speculators that the Government should not
place its own credit and the business of the
country in their power. If the financial sys-
tenn of the Republican party were not funda-
mentally wrong and rotten, band of specula-
tors could not thus strike the legitimate bust
ness of the country with sudden paralysis and
stagnation, and send distraction and panic
through all the walks of commerce.
A bad system may be administered with
VARYING degrees of skill. The power of the
spectators has never been so great nor their
operations so unsettling and mischievous as
nnder Mr. Boutwell,. None of his Repub-
ican predecessors have had SO few OBJ
stacles to contend against as he has.
During the war the price of gold was subject
to perpetual fluctuations by the result of
battles and rumors of foreign interven-
tion; but at no time during the war
were there any such scenes in Wall
street as were witnessed last Friday. During
the four years after the close of the war, the
Secretary of the Treasury had a vast, un-
wieldy, enormous mass of floating debt to
fund; but during those four years commerce
and the public credit never reeled and stag
gered as they did in consequence Of the
recent operations. Mr.. Boutwell, has no
difficulties to contend with, except such
as inhere in the false system which was the
same under his predecessors as under him.
He found the Treasury full to overhowing,
and has had redundant revenue during the
whole time he has been in Office 1t has been
period of peace; he has had the advantage of
showing a monthly reduction of the public
debt; he has been subject to no strain from
any quarter, either by events or the pressure
of deferred obligations; he has had hundred
millions of gold in the Treasury, and has
been in position to dictate and control (if
he had known how to use his power; and
he has been exempt from any other con-
straint than that which skill exerts over
imbecility. But with all his vast re-
sources, and all the strength and the advan-
tages of his position, he has been out
witted and overruled, and the fluctuations in
gold have been more sudden and violent,
and the commissions in business more ruinous
than at any time during the war, or during
the settlement and liquidation of the enor-
NOUS outstanding accounts which the war be-
queathed to the following administration
1t is for the interest of trade that the cur
rency should have some steadiness of value;
but under Mr. Boutwell, it has undergone the
most jerking fluctuations without any dis
turbing causes either in the amount of the
circulation, the state of the foreign exchanges,
the movements of trade or the turn of poll
tics. The system which puts such dangerous
power in the hands of spectators is of course
bad; but MIR. Boutwell's predecessors had to
administer the same system under disadvan-
tages from which he is free, and yet unset
ting speculation never ran so wild as it does
when he is sailing in perfectly smooth water.
If Mr.. Boutwell, were competent officer,
the credit of the Government should have
steadily improved under his administration
and the improvement have been manifested
in a steady and gradual decline in the price
of gold. The resolution passed by Congress,
at its last session, declaring the debt payable
ID,
moved one of the chief causes alleged by the
Republicans for the low state of the public
credit. The constant laudationS bestowed by
the Republican press, from month to month
on his success in diminishing the public debt,
were propitious. The great and increasing
amount of gold in the Treasury gave an i'm
posing appearance of strength. And yet the
price of gold, which was only 131 at the time
of his accession to Office, was carried up to
162 after seven months of his boasted reduc-
hons of the public debt. Without any spe-
cial activity of the spectators, gold ranged
constantly higher than he found it, and when
they put forth their strength to create a
corner, the price went up like an unbal-
lasted balloon. With all his advantages and
all his abounding resources, the public credit,
under his management, has constantly dete-
riorated.
Nothing could have been more maladroii
and clumsy than his course during the recent
excitement. If he had been going to inter
fere, his interference should have been ear
her, and have saved the business of the coun
try from disaster. The avowed object was tt
bring down the price of gold, and keep it a
a reasonable figure. But if it was allowable
for him to use the resources of the Treasur,
to lower the price, it was equally allowabl
for him to adopt the same means to preven
its rise. By interfering on Wednesday, h
could have prevented the extreme and vic
lent fluctuations which inflicted so much mii
chief. By doing nothing till Friday afte
noon, and then giving sudden notice of hi
newborn intention, he added to the violenc
of the fluctuations. If he had stood aloo
aud oil frnI6 IN ha -