The New York herald., 1869-05-03
FINANCIAL AND CONNER CIAL

SUNDAY, May q 1859.
The rise OF gold 10 135 is OF the unsatisfactory
features OF the financial situation. 1t is very un-
complimentary to our national credit that we
should thus retrograde instead OF going forward,
especially as many iond antcipations OF steady
approach TO specie payments were indulged In with
the advent OF the present administration and the
present business season. These anticipations were
natural with the decline OF the premium which
succeeded the winter and ensued upon the immense
foreign demand for our government securities.
Until within the past week they seemed still posi-.
BILE of realization; but the fact is too patent that in
our dealings with foreign nations we have
been too much the buyer and too little
the seller. The Secretary OF the Treasury
has been blamed for his apathy or lack Of ability in
administering the finances OF the country and while
there is an impression that in boarding the govern
ment gold he has played into the hands OF the gold
gamblers OF the New York market, he is not wholly
responsible for the evil of dearer gold. His nten-
tions are doubtless most proper and well meant but
he does not possess the capacity grasp the great
problem which more famous fnanciers would hesi-
tate to attempt the solution Of His statement OF the
public debt for the past month shows reduction OF
over six millions, which was as much surprise to
HIM as to the public. Last Thursday he commenced
his programme of weekly gold saes but gold up
Immediately thereafter and continued ascent
close OF the week, when 1t touched its highest,
despite the contribution to the market Of nearly
millions In payment OF the May coupons. These facts
show that he is not wholly to blame. The trouble lies
In the extrayagant amount OF imports, which
for the period since January $780, OO0, ,OO0
This sum is twenty five millions in excess OF last
year. and about equal to our imports In the imitation
OF 1855. Our exports for the same period were
about fifty two Millions The movement in specie
was about three millions against US. The total
balance against us at this time is therefore,
Shout nifty millions, to the payment OF which
we have exported government bonds and
railway stocks variOusly estimated at from thirty
to forty-nvo millions. We are, therefore,
still heavily in debt to foreign countries allow
ing that our payment In bonds Is satisfactory and
effectual which many Inclined to question.
Should our national securities come back to US
through any panic or fear Of our stability the pros
pect would be very cherries one; but 1t Is certain
that long the interest is regularly and promptly
paid such contingency need not be counted upon,
far especially, as England Is concerned, whose
consols are investments the principal Of which 1t Is
understood Will never be paid. The unsatisfactory
character OF foreign trade s therefore, the real
secret Of the appreciation Of the gold premium. As
to the remedy which should be applied the discussion
is meriting more space than be devoted in this
paragraph 1t is subject however. which should
community. National extravaganza is individual
bankruptcy. Until there is q more heathy tone in
the character OF foreign trade relations the gov
ernment has in It's power to arrest the imitation
which will succeed the advance in gold. There are
over ninety millions in treasure now in the hands Of
Secretary Boutwell,. large portion OF this sum
could be devoted to combating the rise in the pre-
MUM. 1t Is lying In the vaults Of the Treasury,
drawing no interest," and can be spared. The present
system OF weekly gold sales could be pursued as
long as the currency withdrawn would work
no strngency in the money market The rest
of the gold could be directly used to purchase
and cancel government bonds. We should thus be
spared the humiliation OF seeing our greenbacks
continue to depreclate We may boast OF our enter
prise, progress and civilization, but rival nations
can taunt us tnat our national notes OF hand are
worth only seventy-four per cent Of their face.
When In efiete, debtridden bankrupt AUSTRIA gold
Is at premium OF only H. it is humiliatlng that in
our country 1t Is at 35 The following table shows
the range in the price during the past week.