The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-13
TREASURY Po.ICY-THE EFFECT OF RI.


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To THB EDITOR OF THE HERALD:-
The great mistake OF the Treasury In violating the
great law OF supply ana demand bya temporary
postponement OF q debt to Europe, and the conss.
qnen fraud upon our farmers TO mo amount Of
eral hundred Millions was stared ana explained
In the last letter. That our debt to Europe must
still be very largo Is proved by the published report
OF tho exports and imports OF the country for tho
past year, ending on the 30th diy OF last june This
report shows balance against for that period OF
more than nineyscven millions OF dollars. Here IL
evidence That our foreign debt is increasing and yet
gold and exchange have dec!lnel ana are declining
IN our market. Why is TINS sol An inquiry at the
oDces OF foreign bankers WIN show that they ara
constantly sending and selling our bonded debt to
European purchasers, against which they selling
exchange, ana thus they keep down the price Of
gold and exchange, Notwithstanding export.
ing niuety seven millions OF farm produce less than
our Imports. Had they not sent these bonds abroad
then, there would have besa sharper
demand for farm produce ana goi. and gold would
have advanced in pnce'with farm produce full ten
per cent. wish TO bring home clearly to the minds
OF our people that gold and farm produce both
tho product OF American LABOR, and are equally In
demahf for SHIPMENT to orelIn ports. The demand
Tor these products controls brices at our seaports
When the demand Is greater than the supply prices
advance, and when the supply exceeds the dem and
prices fall Thus gold aud farm produce rise and
al! together because both the shipments OF farm
produce and gold make exchange on Europe Our
currency Ia not subject for export and Is not In
huenced by the price OF gold Of farm produce.
our currency will not pay deots ia Europe, ana,
therefore, will not make exchange While our foreign
debt remains large, and, as shown above, is the
increase, there will continue to Oe o premium on
gold; but when we pay our debt to Europe and be-
come creditor instead Of debtor nation gold VIII
now back upon with the same force 1t is now
Many OF our legislators believe that the prlce OF
gold indicates decrease or advance in the value OF
our paper IL, currency ana .hey forget anaa wnen We
tute for gold IA currency, from mat moment We
gave up gold TO commerce and export and placed u
among the other articles produced IN our country.
From that moment the law conCroihng our foreign
trade has governed the plce OF god, as haa marked
the value Of every other eXportaoie thing produced
by the industry OF our people. Before we can prescribe
full ana efectual remedy for the present condition
where the decrease Is located and what It's nature
really Is we dwell therefore, with much patienco
currency. For If the people shall be satisfied thar
the price OF gold IN our marke mica tue rGte OF
exchange or foreign demand and does not act upon
OF influence the eSchangeaole value OF our coined
paper then we can apply remedy mat VIII DO COM
The people nave become SO accustomed to the IN.
contradcted ASSERTION Thar oar coined paper IL In
bad credthat although II lsa flvorte with all our
people ana IS preferred TO any otler money, and
although every one, from iecla2 OF honorable
pride and a knowledge OF our condlvon rs people
and government, openly and freely asserts ana
believes that there IL no ue ter or Saier
credit on the globe than that represented
In promlses-yet they do not seek to
learn how 1t Is possible TOR sound, good
and popular coined paper that - in general use IL
every part OF the United States to be 1uct ating in
value by the buyers and sci Of gold at the Stock
Exchange According to THIS 'doctrlne our whole
volume OF several hu idred m li.ons OF money, spread
all States and IefI 10 les, Is put down and
up daily by the sellers OF gold. For what Is gold
bought and sod? Not Tor INLAND trade or commerce..
our iarmers mecaaBlcs traders aul Others through.
out the whole extent OF our country prefer our
coined paper to coined gold IL is not therefore.
bought for interior trade, or because any OF cur peo
plo desire 1t or wish To hoard 1t. Ihen for whom u
gold bought? The largest ca are made for gam
bling at the Stock Exchange; the next Is an arbi-
trary demand made by our government for charges
and duties on foreign merchandise, and another de-
mand c1mes from importing merchants Who ship 10
to Europe. Tn the three OF the demand
for gold Neither OF these demands can be responded
to except IN gold The stock specu ttor the Custom
House or Sub-ireasury ana the exporter must have
gold. Is there anything thai can lake the place OF
gold for these purposesg The customs charge upon
merchandise Ii founded upon pCaitlye and 1mpe,
law the effect Is to retain IN the country
suficient gold to eject this par oSe OF paying du-
ties. The next Is The export demand; this demand
sends gold out OF The country, and 1t Is this exhaust
ing demand that produces the varying prices OF gold
outside Vi the specuIations OF the Gold Exchange.
JONATHAN OLtBUCk.