, 1870-04-23
MONETARY AND COMMERCIAL
MONETARY.

MONETARY.
FRIDAY EvEIr<o, Aprti 90
Every business man is interested to know |
what y Likely to be tho courso OF the premium /
On gold yet there Waa never time since gold !
beGan to bear 3 premium when 80 many ia.
had to bo taken into consideration. |
Keeping in view the fAct that the reason why
gold bears "premium" at all Ia, thxt the |
government cannot--or 1t least does not-re-
deem its notes, which arc arbitrarily made the
be acknowledged that there arc other financial |
and commercial influences which OF late yea1s |
have made greater fluctuations in the price Of |
gold than any vaziAtions that have taken place |
~ the ability Of tho government to redeem |
itn notes IN coin. The government has At the |
proportion to the amount Of its demand notes
IN circulation, than it Inns hid At many times
during the last two years, when gold was at
from 135 to 140, instead Of ll3, a. At present.
Everybody understands by this time that the
principal cause Of the decline in gold during
our exports Of cotton and other products,
and Of government md railroad bonds
These exports hare adjusted the balance Of
foreign trade to such An extent as to cause IN
seeumu1tien s,1 ,ia Of ,,',st gold in The eonnt5,
able only to limited oxtent as
a circulating meoium, its holders must Always
convert it into grcenbacks before it could bs
made sEsil.h1e; il other words. the ssld
titious appreciation Of grcenbaeka, though the
government might not he dollar nearer their
redemption in specie. The present question,
then, is whether the amount OF gold in tho
country is Likely to increase or diminish, for
upon this (aaide from any action Of the gov
ernment toward specie resunption) tho gener-
al course Of the price Of gold will lerond.
The product Of gold this rear will, in ali
probability, show great increase on tue past.
In 1867 the total product OF gold and silver
in the Pacific States and Territories wsa
s5s, s,0O0, 900; in 1862 it WAS S63, ,50o, coo, but
in the prospect Of mining afraira- Not only
have new mining regions been discovered, but
owing 10 the improvements in machinery and
more systematic plan Of operations, there
hAs been large increase in the yield OF euch
| old mines Il thoee on the Comstock Lode aud
nines has induced the renewal. within few
months, Of work in great number Of caifor-
nia mines that had been abandoned for soma
years, and tho prospect is that the gold and
silver yield OF the Pacific 6tatca VIII be at
least S75, ,000, 600 this year.
Of the cotton crop grown in 1859, orer .
| million and 4 hals OF bales has been exported
and there is Btill half million bales, ,-o7e,
and above the amount required for consump-
ton in the United Statcs,-araiiable for e1'
| port The Southwestern States, ALSO whert
the yield Of cotton is on the average nearly
double to the aero what it IL in the Atlantic
| cotton States, have received An immense add
ton to their working population since Las,
summer, and some Of tho Southern papers ex
prcss the belief TINT il there is no disaster t.
The crop now planted, tho yield will 10 oye,
500 600 bales.
I'm. = II AZ
price Of gold, seem to favor gradual decline
or. At least, y continuance Of the present Low
prices. But it must be borne in mind that i
was not the export OF products alone thAt per
u1itted the accumulation Of gold in the coun
tE. The European money markets have beet
full Of money. Our government and tailwa!
yeAr up to very recently, and on . rising mar
ket it was not surprising that both capitalist
and spectators in Europe should taxi
hold freely. But, As these securities cal
not rise alwaye. there must com
ere, iustead Of re-investing their interest il
more bonds, will prefer 10 have 1t in specie.
xaa estimated some months ago tliat OF GU
national, State. municipal. and railroad bonds
therewere Il 600, ,D00, 600 held in Europe, tn
gold interest on which would be 800, 900, 90
per annum. But this spring there bag been
vast increase in the amount Of American se
curities offered III London and Frankfort.
late number OF the London Times notices III
fact that q ,0O0, ,O0o Of 7 per cent bonds Of th
st, Louis Bridge Company haa Just been nego
tiated there at 20 cents. and e, ,ooo 900 Of bond
agents had Just 3. arrived in Europe 70
the purpose Of trying TO neeotiat
k1uo, ,oo9, ,oo0 Of bonds Of tho Northern Pacifi
lal road. The magnitude Of thesc operation
mAY be properly estimated when it IL consider
ed that the amount Of these last threc loans
nearly equal TO the value Of all the cotton thu
has been exported siueo last fall. and il il nc
improbable that since last fall the total e1pol
OF all kinds OF American securities that hAv
equal to the s200, ,0o1. 900 Of value in tho tot
c1pottable eu1plus OF last years cotton c,oE
, The "talance Of foreign trade has, it
true, alwars been somewhat OF 4 .thugal,oo
. with which to faghten people hut. in connet
ton ton with ~ tho Price tEa Of gold lit i will IT,
VIC have been borrnwing money in Eufop.
; by the negotiation Of these bonds, is making a
amount Of interest Obligation abroad thu
; must, some time soon, make \ heavier drai
on the specie in this country than has eyt
,, been experienced As long as there is no =
sumo specie payments, the tendency OF ii
: price Of gold will be determined by the volun
Of gold exports The Treasury is reservoi
; which furnishes the market Temporary sul
!, ply: Eut the e1penence 81 last spring. who
,. gold continued to rise in spite Of the increase
saIcs by the Treasury, showed that the TreA
ury supply could not counteTsct the effect
= the increasing exports. How long il VIII I
:. before gold will GO up, is simply question
: how long the foreign bondholders choose
> , take more bonds for their interest, instead
! demanding the gold
Money continues abundant. All Of II
5 banks would gladly increase their discounts
. tho right kind Of paper we're offered, and sou
9 9 Of them would be Wiling to take good pap
at considerably less than the usual 10 per cen
= Choice paper can he negotiated at 8 per cen
: Private bankers and others who can n
r money CD ca0. get il casily on governue
c bonds at from to 7 per cent.
The supply Of currency here is large, an
:. as therc is but little demand for it. there il
= disposition 10 convert it into Now York e
!e change, in order to have the money In NJ
York. where it Will he drawing some intere.
" 1t is not improbable that, with the e1cenu
G. OF come temporary demand, the money mark
will continnr easy until the usual stAgnadon
finances in the summer.
h Exchange WAS sold between banke to-day
N &c per $1,000 premium. At the count
bankers sell at LILO premium, and buy At pa
=, At the Stock Dosrl, to-day, the followi
:" bids for, and Offers of, stocks wore made: