The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-04-26
Tho Future Of lhe. Gold Premium,
Fran The CalcagO Tribune.

FFO4H INC CHtCusO 4F1DHH'
Every business man Is interested 10
know what is likely to DO the course Of
the premium on gold, yet there was never
time since gold began 10 bear premium
when SO many influences had 10 be taken
into consideration. Keeping in view the
ihct that the reason why gold bears a
"premium" at oil Is, that the Government
cannot-Or ut least docs not-rcdcem It's
notes, which are arbitrarily made the
Icgal tender currency Of the country, 1t
must DO acknowledged that there arc
other financial and commercial influences
which OF late years have made greater
fluctuations in the price Of gold than any
variations that hRve taken place In the
ability Of the Government TO redeem lis
notes in coin. The Government has at
the present time much less gold in the
Treasury, in proportion 10 the amount
Of It's demand notes in circulation, than
it hns had at many times during the
last two years, when gold was at from
1876 to 40, instead Of 113, as ut present.
Everybody understands by this time that
the principal cause of the decline in gold
during the last seven months has been
the increase In our exports Of cotton and
other products, and Of government anu
railroHd bonds. These exports have ad-
iustCd the balance Of foreign trade to such
IN extent as to cause an accumulation Of
gold in the country from this product Of
the mines, and as this gold was available
only TO q limited extent Hs circulating
medium, its holders must always convert
it into grecnbacks before it could be made
available; In other words, the gold must
be "sOld." Thus, there would be fiC-
titious appreciation Of greenbacks,
though the government might not be
dollar nearer their redemption in specie.
The present question, then, Is whether
tho amount Of gold In the country Is
likely to increase or diminish, for upon
this (asIdc from any action of the govern
mCnt toward specie resumptiOnl the gen
eral :cogrselot the price Of gold will de-
pend.S ~ : 4 %" "
The product of gold this year will, in
all probability, show great increase on
the pNst. In 1857 the total product Of
gold and silver in the Pacific States and
Territories was $59,0O0,0O0 in 1869 II
was $G3,500,000, but this year there is u
very marked improvement In tho pros
pect OF mining affairs. Not only have
new mining regions been discovered, but
owing to the improvements in machinery
and more systematic plan Of operations,
there has been u large increase in theyield
Of such old mines as those on the Coinstock
Lode and many others. This increase in
the yield of old mines has induced the
renewal within n f6w months, Of work In
a great number Of California mines TINT
had been abandoned for some years, and
the prospect is that the gold and silver
yield Of the Pacific States will be at least
SIS 100000 this year. n
or the cotton crop grown in 1860, over
million md half Of bAles has been GX-
ported, and there Is still half million
bales,-0yor and above the amount re.
0uircd for consumption in the United
Slatcs,-availabIc ior export. The South.
western States, also, where the yield OF
cotton Is on the average nearly double To
the acre what II Is in the Atlantic cotton
States, havc received IN immense Nddt-
ti0n to the working population since last
summer, and some Of the Southern papers
cxpress tho beliefttiat Il there Is no disaster
10 the crop now planted, the yield will bc
over 3,500,000 bales.
These lacts, reviewed in connection
with tic price Of gold, seem to favor q
gradual decline, or, nj least, continuance
Of the present low prices But It must be
horne in mind that It was not the export
Of products alone that permitted tho ac'
ctrmulation Of gold in the country. The
European money markets have been full
of money. Our government and railway
bonds have been rising In value for tho
lust year up to very recently, and on
rising market 1t was not surprising tllat
both capitalists ind speculatOrS In Europe
should take hold freely. But, rs these Sc
CuritiCs can not rise always, there must
come time, very soon, when the foreign
bOnd.holderS, instead Of reinvestlng their
interest in more bonds, will prefer to hNve
It It in specie. 1t was estimated some
months ago that Of our national, State,
nunicipal, and railroad bonds, therc wetC
81, 600, 900, 600 held in Europe, the gold in.
tcrcst on which would be 100000, 600
per Gnnum. But this spring there has
been vast increase in the amount Of
American securities offered in London
and Frankfort. A lNtG number Of the Lon.
don 7rmeS notices tho iGct that 81 600, 600
Of Z pcr cent bonds OfthG st. Louis Bridge
Company had Just been negotiated there
at 90 cents, and $5, 900 600 Of bonds oftlie
Oregon. California Railroad Company In
Frankfort Mt 73i, md that American
agents had Just arrived in Europe for
tic purpose Of trying to negotiate
$I0O,00O,O00 of bonds Of the Northern Pa'
cifc Railroad. The magnitude Of these
operations may DO properly estimated
when 1t Ia considered that the amount oi
these last three loans Is nearly equal to the
value of all tho cotton that has boGn ex'
ported since last fall, and 1t Is not imprOll..
able that since last fall the total export oil
all kinds Of American securities that have
heen negotiated In Europe has been nearly
equal to the $20O'OOO00O of value in the
total cxportablo surplus Of last years cot,
ton crop. SThc balance Of foreign trade
has, II e true, always been somewhat OF a
"bugabo0" with which to frightCn people;
but, in connection with the price OF gold
Il will be seen that the ease with which
We have been borrowing money in Europe
by the negotiation Of these bonds, is max,
ing an amount Of interest obligation abrOAd
that must, some time soon, make heavier
drain on the specie in this country than has
eyer been experienced, As long as there Is
no attempt on the part Of tho government