The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1870-03-25
The Cold Market -Ths Funding Bill IN
Congress-,

causing q great deal of speculation
and anxiety as to how far It Is likely
to go--whcther It will come to par
with currency and what will be the
consequences. Of course those who
arc insdcbt or who have largo stocks
OF goods and securities on hand which
have been purchased ut high currcn.
cy prices arc trembling, while the
creditor class of tho community arc
exulting at the prospect. Every one
argues upon the probable future course
OF the gold market according to his
wishes or interests. Nor it is easy
to form an opinion as to how far gold
may decline or what reaction may
take place. At the present time
there is a plethora of the precious
metals in the great financial centres
of Europe. They have been accu.
mulatinglargely in the Banks of Eng
land and France, and money is 80
abundant that it is loaned at two and
half per cent. interest. This pie
thora and the expectation of United
States securities abroad. with the
large amount of products exported,
prevent a'drain of gold from this side.
Hero is the real secret of the fall of
gold just now. AS long as the cotton
crop and other products arc going
out and q large amount of bonds are
exported to balance the trade against
US there will be no demand for gold.
Another cause is found, too for. the
equalization.of trade and value of the
precious metals in the operation of
the telegraph, which brings the. COM
mercial nations of Europe and the
United States in instant communica-
ton. But we have yet to see to what
extent and how long tho expectation
OF our products and bonds will pay
for our importations. IF we knew
that, we might form an. opinion as to
the price of gold iii the future. We
must not forget that the more bonds
go abroad the larger the debt oh the
other side becomcs-tho creator will
be the demand for specie hereafter to
pay the interest At the same time
should peace continue in Europe and
money remain 80 abundant there
large sums may be sent to this coun-
try tor Investment, and thus help to
increase our products. It is not wise
therefore, to jump at conclusions from
the present state Of things.
1t has been said that the effort
made in Congress to fund the debt
have also had an effect upon the gold
market; but we think that is not so.
The credit of the government has
been raised by other causes. The
high rate of interest tho debt bears
has been one Of the principal causes
OF that extraordinary demand for
our bonds abroad which has stopped
tho outward flow of. gold. Should
Mr. Sherman's Funding bill-which
reduces the rate of interest-be. pass-
cd, we may see another state of things
No one can tell what the Immediate
effect would be; nor can We yet say
in what shape the bill will be passed,
II passed at all. The discussion of it
in the Senate seems interminable.
Few Senators understand the subject.
Nearly every one has a different. plan
for funding the debt. There seems
to be great difficulty II, agreeing upon
any measure: Perhaps the ,besttbing
has been said in the Senate during
the debate was by that practical old
Senator Simon Cameron. He remark
ed that the consideration Of the
question should be postponed for q
year. Looking at the want Of knowl,
edge on this important matter in Con.
gress. at the steady decline of, gold,
and at the financial prospect before
US, this course, probably would be the
best. Funding the debt is a measure
Of such great importance that suffi-
eient time should be allowed to bring
it to maturity. Nor is there any ne.
cessity for immediate action. The
national finances are in a good condi-
ton, and 'wilnot sufferby tho delay.
The principal object in this Funding
bill seems 20 be the reduction Of in.
terest On the debt. To this end three