The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-08
FINANCIAL AND COMMERCE
SUNDAY, Nov. 7, 1859

SUNDAY, NOV. Z, 1859.
The week in Wall street has been luil OF incidents,
ana the departments Of business have shown
interesting phases Perhaps the most striking fea-
ture was the decline IN gold to l2o4-the lowest
point touched since March, 1886. The downward
movement In the precious metal caused considerable
a,arm among those who have beea holders ever
esnce the days OF the panic and was employed by
the speculative fraternity for rather successful
raid upon the government bond market. The de-
cline was assisted BY the curious position in which
tho elimination or the gold corner left the street, On
the day that the price tumbed from 1875 spectators
who had capital enough to keep from bankruptcy
found themselves ali possessed OF gold ct prices
ranging from 135 upwards. The inability OF the
sbus' take gold at the high figures of the event.
ful Friday placed the ''bears on the other side or
the market; for they had bought gold 10 deliver
which the 'bulls" were unable to buy from them.
The lowest point touched on the last day OF the
corner was 1924, which il therefore the starting
point OF the present decline. few shrewd opo-
rators, folescens the eject OF such condition OF
affairs, sold for further Decline and have there
fore rallied the market by stages as 1t went down.
The short interest nj the present time Is not large;
for among merchants and business men who have
conducted TRANSACTIONS on basis OF gold at l3o
and above 1t Is difficult to dsspato the impression
shat gold IL cheap at the prices OF the week, and
hence there was great deal or buying under which
the price reacted TO- 1917. aud then fell to 1891 az
the close The paid for carrying gold have been
the best index OF the tact that the outside purchases
were very large. II IS the history OF the gold mar
ket over ana over again since tho close OF the war
that. while II has taken days and weeks to sham
mer' the price down few per cent q day, perhaps
An hour has satlced to undo oil the work OF the
''bearsn ana restore strong upward tendency How
ever, the time for any decided upward movement IN
gold may reasonably DO regarded aS gone BY. The
increasing prosperity OF the country, the reduction
Of the national debt, the growth OF population and
the spread OF the field Tor the use of the paper cur
rency Of the government all contribute to elevate the
value OF the 9reenDac1 and reduce the premium on
gold. 1t would not be difficult to prove We think,
that we enhancing in national wealth as to be
able to improve our credit at the ratio OF eight to
ten per cent per Were 1t not for the specu-
latlve combinations OF last summer gold would have
gravitated to It's norna figure, and we should not
have had the contrast Of los in September and 1264
IN November. While the undouDtcd destiny OF the
country In the Immediate future Is to restoration
Of greenbacks to their par value in the money OF the
world, 1t viii not 90 politio to become too enthu-
siasti0 over tho prospect OF resumption OF specie
payments All the stories that the policy of the
Secretary OF the Treasury favor3 resumption at q
very carly day born Of Wall street speculation.
Mr.. Boutwell, and Congress might conformity decree
specie payments with all the power and force OF
their respective positions, only 10 make themselves
ridiculous. The matter is one TO be settled by a
higher law than can emanato from Washington,
and any Congressional provision or Treasury order
would be as futile MS "a Papa bull against
the comet" Cola sooking It's level, and has been
aided IN its decline Dy a reaction from the specEa-
tive influences which carried 1t up. With steady
Improvement In the national credit the premium on
1t can be oplileraied IN a fcw years without the
detrment to trade III not commercial ruin) which
sudden downward plunge would result In. The
country must and Will grow to specie payments If
Its present development continues. steady pro-
gress thereto would be the hapoiest means of adj
tnsting the relations OF the creditor and debtor
classes The great mercantile interest would pass
tho ordeal in safety. The hue and CRY In Wall
street just now is raised by the spectators
for decline In gold AMI government securities.
Tho very voices which two months since were OK.
claiming In favor Of higher gold as the correct
policy Of thegovernment to market our crops OF
cotton and corn 70 the best advantage are now de-
nlanding specie payments within q few months.
The very pens which two months since figured gov.
eminent bonds at 125 to be the most desirable OF In
vestments are now proving their imitation at IFS.
The secret OF the movement lies In the fact that the
SPECTATORS nre .'shortu In both these lines OF
inyestment. The particular object sought is q
"break' In governments preparatory to purchas-
ing for the always buoJant market In
December, when banking houses, corporations,
aud capitalists all rush their funds and
wealth into United States bonds, with the intention
OF making oath to the government State county and
local assessors next spring that their property on
the 31st OF December entirely consisted OF the I'M
taxable securities OF the national government Dur
ting the week the Dank oil England raised It's rate OF
discount from tx 70 per cent, but the change had
little effect upon the markets here 1t caused o
temporary rise in gold, which was soon lost In the
general heavness OF the market. The range Of gold