The Newberry herald. [volume] (Newberry, S.C.) 1865-1884, 1870-03-16
We ly'RHKRI,. e.. g. G.,
Wednesday, March IS, 1870,
Tho Dcolino in Gold,

Tho decline in gold /. said 70 be hov,
ing on effect on all articles used IL
the Northern cities to much greater dc
gree than here in the South MS yet. Iii
continues, everything will tumble dowr
to ante bcllum prices, aud perhaps III,
good timc-fnancially--So long looked
fOr will come. But we hardly look for
any Soo'l Tine yct--nor FOR some Yeas,
nor can wc believe that this tumble is
niolc than one OF the !luctunlions common
to trade. Experienced iinanciriS think
that n reaction will take place, when it
will again so up. TO come now TO n spc.
cic basis would we think prove tiSas.
trous, not only to the commercial but all
interests; the country Is not yet prepared
for It.
The best view We have seen on this
subject VIC find in the Courier, written
hy its financial editor. The aim Of the
Secretary of the Treasury is to bring the
country back to the gold standard, but
he thinks there is danger in the process
We APPEND the concluding paragraphs !:
Mr.. Boutwell, appears to have rurgot-
ten that VIC have hrtN cen seven anil
eight hundred millions of dollars Of float.
ing debt. How resumption is to take
place with such an incubus 1t is difficult
to explain. Like some Of tho visionarics
who write on the subject, he seems to
t'inh that it is possible to elevate the
value Of this large emission Of the Gov.
crnmcnt to 4 level with gol', instead Of
reducing its amount 10 n gold level.
Whilc he is placiaS gold on the market
Mt the rate of two millions month he is
purchasing United States stock, to form
a sinking fund, at the rate Of four mil.
lions month, thus ur,loing with one
hand what he DOES with the other land.
lie is apparently contracting the currcn.
cy by selling gold, hut in reality effect
ing no reduction, for his purchases Of
stock adis to the currency more than he
wilhlrawS from it.
1t has been alleged that he applies tho
surplus funds Of the Treasury to the
purchase of stock and issues no addition.
al currency. The question is not from
what source The revenue is derived by
which he MAKES his purchases Of stock,
but does he diminish the Legal Tender
notes 81 rs to bring them to par with
gold. If he does not he makes no step
in advance towards specie payments.
lie can dn nothing in this direction IN.
Ill he cancels that part Of the lIna,ing
debt which is in cxcrSS. lie uuSt reduce |
the public expenditure to effect his oh.
jrct, canccllinS the u"tcs aS they arc paid
in Tor taxes, and not rriSS,,c them for
any purpose whatever, even for the pur.
chase Of stock TO form sinking fund
II is idle to speak Of resumption until
another cotton crnp rntS us in position
to pay our commercial debt and IA ror.
tion Of our public debt. Our present
cotton crop will yield us from $3.50 to
$3o0,ooo,ooo. This will, (should we be-
blessed with another Of equal magnitude
and value,) produce balance Of trade in |
our favor, and direct the current Of Spr.
clio to our shores, providing means not
only to liq"idate our commercial debt,
but to discharge portion Of our public
obligations. Then the price Of gold will
decline through process of natural
causes, and not 10y the fiat Of Govern
mcnt or the National Legislature.