Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1870-03-11
THE GOLD
The Features and Effects Of the
Gold Decline-USe of Silver in
Erade-Specie Payments.

dby l11cIAtSs
We clip from The Baltimore SIM of Mon
day last the following resume Of the effect of
the decline in gold, which will be read with
interest by all:
There was q halt iu the downward course
! of the currency price of gold on Saturday.
The closing rate at New York was 113ss
against 1881 on Friday. which shows a slight
/ recovery. The events of this week promise
to be important. and there are grave appre-
tensions Of excitement ard vide fluctuations.
There is also a general disposition 70 await
the action Of the United States Senate to day
on the funding bill, which measure promises
to be the next pivot upoa which the gold
market will turn.
In connection with the gold decline it is
reported that many Of four city retail dealers,
particularly those in the public market
houses, were on Saturday using silver for
small change. Ii the decline in the curren-
cy price Of gold continues, it is probable that
the boarded silver will come out freely and
add to the volume Of circulation, and when
the currency reaches par its whole volume
! will also be added to the circulation. This,
however, must be necessarily a gradual pro-
cess.
In New York we see it stated that the
shrcwd traders are extensively setting up
specie payments on their own account by
paying out silver change, which brings them
additional custom, from the novelty Ct touch
ing hard money in dimes, half dimes and
Quarters These dealers buy silver in
Canada for about ten per cent. discount for
gold, and Of course lose but little on the
transaction. Canada is glutted with Amer
lean silver, o4la hank having at least three
tons of it.
III regard to the gold situation and specie
payments We Gud the following in the New
York papers. The New York Tribune re-
CARDS the decline Of the premium in gold as
indicating 'the long wished for financial
millenium-specie payments" And in ref
crencc to retail houses making use of silver,
il says:
"These acts of small dealers and rcstau-
rant keepers may he mere shrewd devices
to gain popular favor, but not SO the action
of the banks. some Of the wealthiest and
most prominent Of which, it is said, are
earnestly considering the propriety of ma.
king an end of the unsettled condition Of
monetary affairs by boldly proclaiming re-
sumption. It was whispered CD the street,
with much Of q tone Of authority, that, in
the event that no reaction occurred, the
Chemical Bank would next week announce
the resumption Of specie payments
'This institution, however, has never, as
a matter Of fact. suspended specie payments
it has no circulation Of its own, and when
government suspended it began paying cur,
rency instead %ofcoin, but without any formal
act or announcement Of SUSPENSION
The Tribune adds:
"Should it return to specie it must OF
course make special arrangements with the
customers 60 protect itself from being made
a mere medium for exchanging currency in
to gold at par, WHICH no bank can afford to
do so long as there is any premium on gold.
But their purpose. it is supposed, is TO mere
iy proclaim resumption as q theoretical prac-
tice, which will not be without great inau-
ence. Several other banks which have cir
cula.!ng notes afcat also were mentioned as
preparing to fespmo. Resumption by such
institutions means the Subsequent redemption
of their notes in gold /; and when that is
proclaimed by a few of the leading banks
the whole question is settled"
The New York Commercial Adreytisey
says:
In nearly every business t~horoaghfare in
the city placards are to be seen announcing
SPECIE PAYMENTS RESUMED"
gladdening the eyes Of all beholders. and
attracting increased custom to enterprising
dealers, One restaurant keeper down town
has obtained a bushael of silver coin of various
denominations, which he is paying out rap
idly. Large orders have been sent on from
here to the philadelphia Mint, and within a
day CT two twenty barrels of coins have
arrived in New York. Large eonsignments
have also been received from Canada qnd
Nova Scotia. The day of the jubilee is
surely coming.