New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-04-05
THE GOLD MARKET.

The recent attempts of spectators to advance
the premium on gold have altogether failed.
These persons now find that they have to con-
tend with such volume of adverse influences
they find the forces operating against them
so powerful as well as numerOus-that they
have fallen into a state of encouragement as
hard to bear as anything they have suffered
for years past. The Treasury sale of two mil
lions of gold for the current month is OF less
consequence than the heavy disbursement of
gold which will presently be made by the
Government for the May iDterest-which, in
fact is now ready to be paid out, with the re-
bate, according to the notice recently pub
lished. This May interest amounts to nearly
twenty-five millions in coin; aud. though it is
unlikely that much of it will be drawn in adj
vance, its weight will he none the less felt
while it is lying in the Sub-Treasury. at the
order of those to whom it is payable 1t will
not be easy to hold up the quotation to the
current figures in the presence of this immense
outflow of coin. 1t has been shown by recent
Treasury sales that there is but little demand
for gold even at the existing rate and at one
of the two public sales of last month the Gov
ernment received but fraction over ITO. The
May interest, moreover, will quickly be fol-
lowed 10y the payment Of the still larger July
interest," and thua, with tho disbursement Of
over fifty-fv millions of gold during the en-
suing three months there will be supply far
beyond any current necessity, and consequently
large proportion of it will appear in the
market. Through all these disbursements the
Treasury will still maintain an imposing sur
plus, the growth of which will easily permit the
continuance of the public sales The present
state of trade and exchange, no less than our
past experience, gives assurance that the bulk
of this gold will remain in the cOuntry-exert-
ing its Strengthening influence upon our credit,
and assisting in bringing the operations of
business back to a sound basis.
But the influences vastly greater than these
which the gold spectators are now conscious
of their inability to contend with, have been
developed from the general administration and
condition of Treasury affairs the state of trade.
and the remarkable advance of Government
credit. While the Treasury exhibits. as pub
lshed every month, show constant decrease
of the public debt, which has been diminished
over hundred millions during the past twelve
month, it will be hard, and always harder, for
spectators to advance the premium on gold,
OF HuIl IuC puUIiC LNCfCi az aby timo
during the last nine years has our financial
condition been as strong and hopeful, at home
and abroad, as it is to-day. AS our bonds
have advanced toward their face value, more
over, both foreign and domestic investors have
shown greater anxiety than ever to obtain and
hold them. These bonds seem less desirable.
because less secure, when quoted at so in gold
than they are when quoted at 100 in gold. IL
the interest be less in amount, the value OF the
principal is more definitely established, and
assurance is always prime element in fixing
the price and desirabity of any investment.
The condition of our mercantile exchanges.
however, is undoubtedly the most powerful aud
effective influence in depressing the gold pre-
MUM. Cotton has come to our relief this year
even more adyantageously than it did last
year. The product of last season is now ad-
mittcd to be fully 100000 bales, of which
more than twO-thirds will be sent to Europe
at an assured value of over two hundred mil
lions of dollars There has lately been de-
cline in the price of this staple but il is still
about double the price it was in the years pre-
ceding the war. and the country is receiving
greater aggregate returns from it than were
ever obtained at any previous period OF our
history. There is little doubt that the crop of
the current year will be still greater than that
Of last season. and though there may no fur