The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-02-26
SPIRIT OF THE PRESS.
editorial Opinions OF the Leading Journals
UpOu Current Topios-ComDiied Every
Day for the Evening Telegraph.
COLD AT 1lG.

GOLD AT 1lG.
Prom, tie " Y. World.
The price of gold fell on Thursday afternoon
Co t16A-a noteworthy fact which challenges
attention and comment.
First. who will be benefited by this de-
cline We do not mean the decline of one
or two per cent. within the last few days, but
the very considerable decline in the price of
gold which has been steadily going on during
the last four or five months. To whose ad-
vantage will it inure? Chiefly, almost solely,
the purchasers and consumers of imported
goods. The prices of our domestic produo-
fions are not measured by gold, and have not
been since gold was demonetized by the pas
sage of the Legaltender act Some gold is
purchased as commodity and used in the
arts by jewellers and others; but, aside from
such uses, our only employment for gold Is In
the purchase of foreign goods and payment
of the duties exacted by the Government on
their importation. Unfortunately, the decline
in gold will be attended by very slight reduc-
tions in the prices of imported commodities.
It is not so much the premium on gold as our
exorbitant tariff that renders foreign. goods
30 high; and as the tariff is not reduced, con-
Humers find that the steady fall in gold makes
little difference at the retail stores. The ope-
ration of the tariff in keeping up prices may
be clearly illustrated by an example. piece
of cloth which costs one dollar yard in gold
would have reached the consumer burdened
with the following enhancements when the
price of gold was 13O-
original cost per yard
Duty at the Custom House e..................... 90
Premium on cost and duty tY..................... 40
siO5
Merchants profit at 80 per cent So
Price to the consumer. .s268
With gold at 116 the calculation would be
Ms follows
Original cost per
Duty at the Custom House. e..................... so
Gold premium on both ACKNOWLEDGEMENTS. "a
,,.,,,.... 80. =. ., -. ..,, Hjs q
Price to the consumer
II appears by this comparison that if the
price of gold should remain at 116 until there
Is time for the exhaustion of present stocks
and fresh importations of foreign goods,
consumers would be benefited only to the
extent Of buying for 1925 goods for which
they paid $3.50 when gold was selling at 130.
But if the duty were abolished, the same
goods would cost the consumer only 81 80.
The reduction of the premium on gold does
not Justify much congratulation so long as a
high tariff intercepts and neutralizes the
practical benefit that would otherwise result
TO the consumers of imported goods
The decline in gold reflects no credit on
the course and policy of the Government
for it has taken place contrary to the expecta-
tion of the Government and without its
agency. When, few months ago, Mr.. Bout
well refused bids for gold which, as now
appears, it would have been highly advan-
tageous to the Government to accept, he had
no foresight of what was coming. Neither
Congress nor the Treasury Department have
done anything to bring this reduction. There
has been no change in the Banking law, no
withdrawal and cancellation of greenbacks
no alteration in the funding system, no modi-
fication of the tariff; nothing, in short, has
been done either by the legislative or the
executive department to improve the credit
of the nation or lower the price of gold. Mr.
Boutwell's panegyrists will refer us to his
gold sales; but those sales merely released q
surplus which was accumulating by the ope-
ration of an absurd tariff. The tariff, by
locking up gold in the Treasury, tends to
make it scarce and enhance its price; and
Mr.. Boutwen's sales partially undid this par
4icular mischief. But they have had little
influence in bringing the price of gold down
to it's present figure.
The most important cause of the reduction
is one with which the Government has had
nothing to do, as it has no control over the
weather and the seasons. The decline in gold
has resulted from several causes, of which the
most important ls the abundance OF the cot
ton crop. Our chief use for gold is in the
purchase of foreign commodities and cotton
being as good for this purpose as gold itself
an abundant cotton crop dispenses with an
equivalent value of gold for the purpose OF
foreign commerce. According to the mos
recent estimates, the cotton crop of the las
wear does not fall short of three million bales
and, as the price is double this crop is equa
in value to six million bales previous to th
war. We have accordingly, at present, littl
nse for gold except for the payment of du
ties at the custom house. The supply is il
excess of the demand, and, as a necessar
consequence, the price falls. 1t would b
absurd to attribute this result to the policy 0
the Government.
The abundance of the cotton crop ha
operated in another manner. 1t has carrie
into the South large sums of money of whic
only part has been returned. Three mi
lion bales of cotton, at present prices, ar
worth about $3.50, 900, 000 The planters re
serve out of their proceeds the money the
will need for tillage, wages, aud family el
penses until the next crop is brought {
market; and the deficiency of banks in this
section causes much of this money to b
locked up in private safes and desks, thu
withdrawing it from circulation and pract
cally diminishing the volume of the currenc,
The effect is, so far it goes, to lessen ii
disparity between the value of gold and IL
value of greenbacks.