Evening star., 1870-03-07
IME DECLINE IN GOLD.
IT'S EFFECTS
Tslk e specie Payments -stlser for
Change-Tse 1eDastve Saaae
Of COmnOdittc Ac.

| lhe rrpce OF gold nuctuated between lis ~ and
ia, in New York Saturday, and closed st IlS 4
The lowest price was made early I'm the morning
:, aron recesIt OF the me igence that five-twen-
eee md again gone mp In London, which fast
! nM taken ns signal Tor another "break.'
But The stock ciiqucs staved the market, and az
| At this time a sharp borrowing demand for gold
, set in, inducing the Inference that the market
\ was oversold, the upward turn was quite sud
den. The bull" movement begun Friday vas
| quite percepuble, and the undertone OF the gold
market was thus rendered firm. For the pres-
ent, however, these purchases are confined %
the professional speculators, the public being
| satisfied that the causes which took gold % ia
will again take IL there, IL not 20 lower prices
| still.
The events OF this week promise % be impor-
tant, and IL is likely that Wall street will be the
l scene Of renewed excitement and wide tuctua-
| uons. There is 80 far general disposition TO
await the action Of the United States Senate
o-aay ON the funding bill, which measure
gold market viii turn. IL TIE decline in the
currency price of gold contin aes, it ts probable
that the hoarded silver will come out freely AMI
add 10 the yolame Of circulation. and When fhs
currency reaches par its whole volume viii Also
be added TO the circulation. In New York We
see IL stated that the shrewd traders are extern
sively setting mp specie payments on their own
1 account by paying out silver change, which
! brings them additional custom, from the novel;
| " OF touching hard money I'm dimes, hslf-dimes
and quarters" These dealers bay silver i'm
! Canada for about ten per cent discount for eold
and Of course lose bat little on the transaction.
1 n.
bank having at least three tons Of IL.
THE CAUSE or THE DECLINE.
The New York Herald Of yesterdaysavs:-
Two good causes for the decline OF gold are
obvious, even TO superficial view. One of these
Is the effect Of the Atlantic cable the other the
erect OF the administration OF General Grant.
Ihey have acted together on the .ommon minl
Of the great financial centers of the world.
IL Is now more than ever that foreign
inanc,ers comprehend the true character OF
| perceive that the only point that was regarded
| as weakness In our securities no longer exists.
They are convinced that we have a government
resolute 70 be at peace even against popular
shall mind is own business and devote Its great
powers and resources, not 20 Quixoting around
strictly and definitely TO the Improvement OF
our financial condition. This fact once i'm
pressed on the European mind there is NOT a
iinancier beyond the Atlantic but knows that
American bonds are the best securities to hold
that are anywhere access ible. In face az this
fact who viii permit his gold 60 lie idle i'm the
vaults, earning nothing with thus splendid i'm
yestment open? IL Is thus that the effect OF
the cable and OF the careful administrator of
the Government act together upon our nuances.
IL the moral influence exercised by the Govern
ment In this way Is continued gold will 90 20
par, and In a little time we shall be once more
the honest, prosperous, plain, practical people
We were Of yore.
sPEcIE PAYMENTS.
We find the following announcement in the
New York Commercial OF Saturdsy:-Tn nearly
every business thoroughfare in the city placards
are to be seen announcing Specie Payments Re
sumed,' gladdening the eyes OF all behoders and
attracting increased custom TO enterprisng deal
ers. One restaurant keeper down town has OBJ
tained q bushel OF silver coin Of various denom-
nations, which he is paying out rapidly. Large
orders have been sent on from here 20 the Phil
sdelphia mint, and within a day or two twenty
barrels OF coin have arrived i'm New York. Large
consignments have also been received from Cam
ada and Nova Scotia. The day of the jubilee is
surely coming" The Commercial lmoney
tcle) thinks the decline is going TO insate the
currency and give a new lease to speculation,
rather than otherwise.
The New York Tribune regards the de-
cline OF tie premium in gold as indicating
"the -wished-for financial millennium
specie payments" And i'm reference TO re-
tail tail houses making use Of silver, Il says.
keepers may be mere shrewd devices 20 gain
popular favor, but not 30 the actions OF the
nent OF which, IL is said, are earnestly consider
ing the propriety OF making IN end Of the un-
settled condition Of momentary affairs by boldly
the street, with much of q tone of authority,
that, I'm the event that no reaction occurred, the
Chemical Bsnk would next week announce the
resumption OF specie payment This institu-
ton, however, has never, as a matter of fact
suspended specie payments; IL has no circulation
OF Its own, and when government suspended IL be-
gan paying currency instead of coin, but without
any formal act or announcement OF suspension
The Tribune adds: {" Should il return 70 specie
IT must of course make special srrangeme ents
made mere medium for exchanging currency
into gold at par, which no bank can xnord 20 do
SO long as there is any premium on gold But
their purpose, it Is supposed, Is 20 merely pro-
claim resumption . theoretical practice,
which will pos be without great inf uence. Sew
a,,oat gs aIso Ean ma,ca nave circulating notes
sumo. Resumption by such institutions means
the subsequent redemption of their notes in
goldi and when that is proclaimed by a few of
tied"
KPFEc- ON PRICES AND TRADE
TheNew York Express OF Saturday evening
says -" Meanwhile trade has been affected
during the past week by the decline I'm gold, and
values have undergone q shrinkage, although
the decline generally has not been very marked.
The fall in prices, however, has had the beneh-
cial result OF stimulating trade and the
amount of merchandise distributed from
for any previous week since the opening
OF the year. Buyers generally, who have been
delaying their purchases in consequence Of the
taken hold more freely. and. a. A. o = nstnrsS m
consequence, business is steadily on the increase
The spring trade has now fairly opened. The
Of dry goods, where the drives I'm goods gem
orally, offered by the leading firms, have had a
tendency to stimulate trade. II Is remarka-
bic feature of the trade thus far that the busi-
mess has been concentrated chiefly I'm the hands
of the prominent iobbers. The commission mer-
chants and importers, especially the latter, have
been slow to make concessions, and have at
tempted TO ignore the drives offered by the lead
ing 3obbers. These drives however, In connec-
ton with the decline in gold and cotton, have
had their effect, and prices are generally
lower"
The New York Tribune shows that the cost OF
the necessities Of life does not bear its proper
relation to the great indicator of values. I'm the
case Of such staple productions as coal, cotton,
hour, sugar, &C., they stand pretty near In their
Just relations TO gold; but comparing the present
wholesal prices Of butter, cheese, eggs, beef,
mutton, potatoes, Sc; with those Of December,
1854, when gold was quoted at 222k, il appears
that they have not fallen, as q rule, over 80 per
cent, and in some cases have not fallen at all.
In the retail trade the disparity which should
exist between the prices Of the different dates is
still further lessened, and is less than 20 per
cent. against difference Of almost 100 per cent.
In gold.
Arornrn sk2RcH roR THE NoRraEAsr
PAseAGR--Capt- q. II. Hall proposes TO make
another search fer the northeast passage. He
intends to start with a l5o-ton steam propeller.
10 be provided with sails. He viii also have
topeafl schoOner Of about 80 TONS. His route
WIN be into Jones Sound. and thence by sea
and land, as circumstances favor, 20 the goie-
After taking his yesels e n.r u Pssc1cse,e, e,