Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-03-02

II is reported that Secretary Boutwell,
has expressed his determination TO bring
the price of gold down to ITO. Gold has
experienced very material decline during
the past week, and this decline has given
rise to good deal of speculation as tothe
inducing causes. The Cincinnati Gazette
(RadicaDsdoes not appear to regard the
Secretary of the Treasury as verypotent
agency in this matter, for it attributes the
decline to political cause.-the stability OF
the government being the main influence
that has brought about the present condi-
ton of affairs. The Gazette says, how
ever, that resumption cannot take place
until there is contraction in the currency,
that there is no probability that the vol
ume of currency will soon be diminished
and ''people engaged in business may as
well make up their minds that we are net
on the eve of specie payments" The
New York World gives the following as
the solution of the decline in gold:
The most important cause of the re-
duction is onewith which the Government
has had nothing to do, as ithas no control
over the weather and the seasons. The
decline in gold has resulted from several
causes, of which the most important is
the abundance of the cotton crop. Our
chief use for gold is in the purchase of
farat Ist,oo ko.,
good for this purpose as gold itself, an
abundant cotton crop dispenses with an
equivalent value in gold for the purpose of
foreign commerce. According to the
most recent estimates, the cotton crop of
the last year does not fall short of three
million bales; and, as the price isslouble,
this crop is equal in value to six million
bales previous to the war. We have ac-
cordingly, at present, little use for gold
except for the payment of duties a: the
custom house. The supply is in excess
of the demand, and, as a necessary conse-
quence, the price falls. 1t would be alb
surd TO attribute this result to the policy of
the Government.
The abundance Of the cotton crop has
operated in another manner. 1t has car
ried into the South large sums of money,
of which only part has been returned.
Three million bales of cotton, at present
prices, are worth about $3.50, 900, 900.
The planters reserve out Of their proceeds
the money they will need for tillage,
wages and family expenses until the next
crop is brought to market; and the de-
fciency of banks in that section causes
much of this money to be locked up in
private safes and desks, thus Withdrawing
it from circulation and practically dimin-
ishing the volume of the currency. The
effect is, SO far as it goes, to lessen the
disparity between the value of gold and
the value of currency.
Another cause which is slowly ope-
rating to reduce the price of gold is the
steady appreciation of Government bonds.
Our war bonds have always been selling
at great deal less than their real value in
consequence of prodigious glut of the
market. While the war lasted, and bonds
continued to be issued in large quantities,
they were bought by spectators with
view to future profits, and their holders
have ever since been crowding them upon
the market as fast as it would receive
| them. The lapse of five years since the
close of the war is perceptibly relieving
the glut, and, as a natural consequence,
the price of Government bonds is slowly
but steadily rising-a result for which the
administration is entitled to no more
credit than it is for ebb and flow of the
tides or the changes of the seasons.
''It is Notifying TO think that while
natural causes are doing SO much for us
legislation has, as yet, done nothing"