, 1870-12-14
MONETARY AND COMMERCIAL,
MONETARY.


Both the President and the Secretary Of tho
Treasury. IN their recent annual documents,
congratulate tho people upon the fAct that the
price Of gold thus far ia 1870 hxs Averaged
uuly lis AEsicst an average Of l3s to 13i in
1868, thus inttrstinF, says the Secretary, ''au
rcncy Of about II per ccntum.N Tle Score
Tar. claims Positively that this las bsen to a
great extcrt the rntuls of his purchases OF
boz de WHICH he tays have contributed - to de-
pItci1ta the market value OF gold That
-.ch IN Effect. 10 4 very limited extent+ hss
tcen the resttlt Of tue bond purchases. II prob
ally tt11e, int tot 10 the extent implied hy
MI. Boutwell,, Hho seeuls to have fo1gatten.
Altogether, thai .he Ercst 5eciiae Of
god frum an average OF LII during
June. InIy, August. and part Of September Of
latt year, to l10 in March Of Ills yea, WAS due
cotton. When slis decline Of gold began the
bond d-buying policy bad been in progress seven
ucrths, AMI the Tressury had accnnnlatcd
$50 000,D00 OF bonas. aud yct it il.d got. uo
10 that time, sf5ecsea tbs rzsco Of gold sut-
tcieutls to make the average premium for the
Tho greater portion o1 1857. Tbs "ea..oa
seae begins On September |, and earlv in
that mouth exports usually begin to so for
~a1d il INCREASING volume. nsktng
.'tsAne exchange ahuudsLt and cheap.
and making Il unnecessary to ship gold
Gold thus xccurlnlases in tbs country. ca3itAt
neeEn:es !oekea up in holding it, aud tue nc
ctsesty Ct turning thi. caritat into piper cur
IeneF Detore 1t CAL he ute1 in ttA1e clnsos a
cen.ane for and ~ appreciation in the vAlne
II. the currency. This is tho practical work
irs Of c.u.es ehicb, in tho present eitaation,
make N increase in the yalrs OF sue cur
.eEcv. THE administration Of the Troasury
.sas had sln1nat noyf1iuG to do with csusiug the
itcrtase IN The vsiue OF ttH cnrrence, tAecan-s
It 1.ae not touched the .cutrency. but only the
ta,ud~. which are 4 different thing. Tho PROC:
Il en- tue principal agent in reducing the price
IT Eol3. mas be seen in the decline IN tho ps'cs
II gold utis n cotton exports begin in the fall
During the summer Of 1866. .Eola VAS n lin.
| saiu1d At an averAge premium Of liz. md
gradually rose to 1s5 By September !, but in
- catt-n aud other experts increased, and on
december 81 bad fasieu 10 1856. DnnuS
he sumner Of 1865 grld averaged us. aud
| 10 September fsood 1t l3t. AZ sti% po:ot
he ''Gsess Gel spscul,'iou" took hold ol it
and run it up.to l6a on September ~: The
Il, der the a.fln~nee Of ex'Eaorlinssy exp sts
/ Of cotton. pesr.,ftnrn. and brsAlstufI4. t. l2p
III December 81. Thus, in 1865 tho lcclinc
VI Eota, cAustd hy aa,Eo e1rs1ss II pro lu :ts.
.tuber 81, xrd in 1863 tha decline iron,
between September ard. December H.
and tho continued dcclI eauriuG the next three
mouths to Ill, it. Match. vas the result Of the
nnsusual1y good foreign demand for thegreans
increased quantity Of cotton We l,zd to sell. II
the inquiry A. to the Tcaepn WhY gola hss Eo'
declined this fail n proportion to .hs decline
Of the TWO previnns Year,, the moet natura
cr1or would be that the Eurape2u wzr had
prevented the export OF cotton and othel
commodities. This. however. would not ot
ccrrsct, for the truth il, We hase exparssf
mere cotton this year. since September ]. thSs
IN any Eges1o Qua Year aiace the wst--:he a1
| ports from al the ports agSegating 6aa. 81.
! ,a|ts this year Ito Deeember y asatas
/ 10. .9ls bales in the corresponding PERIOD o
la-t vear--hut with tho i'm ua1ortsnt difference
that, 70 far this years crop has bee
~atd for onfy Little ovar hai
! The gold ps.f~ ef la,f year. crop Here il q
, | important feature In our finances thas sustain
] | the price Of go1de As near ~ can now oe es
siuated, the 1 ,OOO, ,0o0 bales Of this Toaxs Gro
I Of cotton will NOT realize ~ much money :
u.e $500 900 balce Of last years crop, 3
a nearas ESQ. COX, 600 in GOLD. Whether the d
L oeeneJ vii Ia moro or less th1n that- d
!: pepnh upon the course Of prices Of cotton
2 .oteaSn maskete, au,.ng the next three Or tot
e Tie impostsnee Of this great reduction
eetizaAtsa from lhe faet fhas the to}al 10
10 | vs]ne o. NJ tho Whekt, snd vhest fiour. q.
II ported In 1853 VAR bat lit4la oynr Asi3 ma no
It will thus be seen that the causes whieh M,
duced the lncreeseo Of l7pes ceut Ia tha ya]rn
Tho currency, between the 1st Of Qctobsr. lR6
and thelaAk 1t March. 1876, ana potln onaFAs,n
Re- cor. md. that &heee not besng in opoy1uo
pe I tho pzsce ct gold esaow what 1t xss in MArc