The New York herald., 1870-03-03
TEE DOWNFALL OF GOLD.
What IL Means and What 1t Doesn't Moan
''Thou Art So Near and Yet So Far"-An
Interview with Practical Finsncicr.

diton OF Affairs which win follow the anticiuatet
resumption OF specie payments. In this city ther,
\, TO speak anayrica'ly OF the feeling an exciting
and rather agreeable nutter In the minds OF men a
Ne prospect in the near future OF returning TO the
eld financial basis OF gold and silver; OF jinglina
snce more the half forgotten coin Of democratlc
Gays, when everything looked lovely and the song o
-hal Columbia. Happv Land" mad no empty siRni-
acaton. Among poor folks there Is glorious feeling
ehat wnile their earnings Will be large az ever the
prices OF all the necessaries OF life Will tumbe down
10 the old level. This pleasant del1sion will sueeten
their existence for some time longer. Everythin q
appears TO c0mone favorably 70 raise these blg
expectations among all classes of people-the states
OF the South being restored and Ssmbo removed
from the arena OF politics, the crops being SO
abundant and the horizon Of peace ur-
nccked by single cloud-that these delign,
tul and universal iinaginings or the good
time coming are rather excusabie. Very little renec-
lion, however, Is needed 10 convince the judicious
that the resumption Of specie payments at present
AZ Elusive as the mirage OF the desert The sea-
sons Will roll round several tunes again ere THIS
Happy and long-prayed-for consummation Is
reached. True gold win never perhaps reach a
ngure as high as $50 but occurrences easily compre-
hended as likely to spring up any day WIN keep the
capricious standard of values unsettled for some
time TO come.
THE sUB-TRgAsURY AND Mr.. roLGER
A reporter or the HERALD took stroll down fail
skrces yesterday afternoon to learn wnat view men
OF years and experience take of the descent In gold
7ne Assistant Treasurer. Mr.. Folger, seemed to be
one Isey 10 soms 1r.eions On tue subject
worthy OF hearing and telling tor the benefit OF be-
aighted community. Accordingly, bending his steps
through that stately and massive mausoienm, the
Sub Treasury, and sending the usher with the
Lyonnalse wig as an arant courier before
him TO announce his approach 70 the presiding on
Of the lDsti ution, s5 reporter presently found
himself sitting on leather. bottomed chair looking
across three feet OF green baize At the IRON gray
KKPoaTER-Just called In, Mr. Foiger, 70 learn
-FOUR opinions, speculative or otherwise, for the
hKRALD as 70 the causes for the depression gold
MI. FoLGnR-I don't know anything about It and
have no speculative opinions 10 give; know very
ltte or tine ways OF Wall street and don't want to
REPoRrER-oh, don't mean gold gambling; sim
ply the causes which, IN your yudgmeot nave con-
Mr.. FoIssRIro show you now little / am In
cllned TO trust my judgment upon the subject
as to whether he ought TO sell fifteen or twenty uhou-
sana dollars In gold ne had in mis- possession, and
matter. Speculative opinions are OF no value, and
they are all that can De gwen on the subject
RBP0RIER-Thank you, sir. Good afternoon.
THE VIEWS or A PRACTICAL MAN.
etrollng down tue street q lew blocks further, an
old familiar name canght tne reporters eye and kp
Determined 10 see the owner Oh that name or perish
t the attempt Tor well he knew Ii he did see min
MS baMs would De well rewarded. AS VIII be seen
hs was dot disappointed and II there are views In The
conversation GhlaS are not exactly IN consonance
WITH Secretary rodrwe,,s 2olcy, ~ WIN admit
there Is at least much simple. PRACTICAL common
gense c0ntaineJ therein. Having been requested by
the gentleman TO withhold mis-, name from puolica-
on and all such requests being entitled to respect
tul attention, Il does not here appear,
REpoBl EE-Mr. So-aud SO, l nave called down
from the HERALD Office to get your views about the
all,lnterestng pubic question OF the decline IN
Mr.. C.-You have, indeed. Wei. now, II you cross
the street TO mat apple woman on the corner 10
the peanut man on the opposite side he VIII tell you
lusb about as much AZ can.
REi oKIER.-I shall do 80, sir. on my way back.
and invest IN pint OF peanuts &C the same time;
buG impiore you tell me before 1 leave II our be-
loved greenDacks are about 10 vanish from our gaze
Mr. G.-Tney ny not yet and as I see you are
anxIous, my humble views uponltne subject are at
your disposal Gold has gone down because there
was ,ess demand for it than hitherto. because the
sales OF govef nmen gold break specnation because
securIies aoroad nave appreciated, our exports
OF oOson-l alamo ng exchanges nave been largely n
crea Ell, our home resources OF every kind hugely
swelled, our Union established stronger than ever,
ana OF many other things IL would take
two us 10 tell you, and have but hall an hour to
Spare.
ward 70 permanent settings
Mr.. C-By no means. Why should 1t be soi II
gold DOWN We are long way young man, from
vberss payments. 1t is possible we might have oeen
sne snets the treasury and as Tor
1 never dreamed there were 80 many nuanciAl
fools ana IDIOTS s - or H. Inv ono GSu :, may hundred
difierent causes. The death OF Napoleon to-mor-
row would send 1t up 70 10 or higher as the case
may be- II the tinKers in Congress ADD tfty mil
ninder i 'H L from going up: adlaoTs ai Yar, war
ITSELF anything tnat occurs I'd your mind as likely
10 disturb confidence Will send II back.
Our inaDclal system as 1t present constituted,
rests upon paper basis, sensitive TO disturbance
as rpe metallic currencaes OF other countries. Our
national banks hold In reserve twenty five per cent
of ieral tenders 10 secure the deposits and circua-
iuQr. Tho M
supposed hold certain percentage OF gold To give
security for their notes ana confidence TO their de-
positors Bear in mind that paper, not gold, Is our
present basis and whatever affects that bas Affects
every interest the country, from The labor OF a
looking TINS fact Secretary McCulloch went work
70 contract aud he drew in the banks drew in,
for his contraction policy seeted their securities;
out when the banks began to contract the business
OF the country became disturbed all over aud Con-
Vress had to pass law restraining nun.
Now all these schemes OF contraction and undue
expansion are based upon wrong theory-so
wrong, indeed tnat ~ appears 10 ne surpts,ng M,
elaborate and long-winoed essays OF S0-calleo
nnanciers TO the dogs, aud what Is the pure and
simple ann should haves Tue resumption OF
specie payments. That secured, everything else will
right itself. How is that TO be dones Certainly
not through means OF the wretched petty plaa or
saving little money In interest. winch boutwell,
seems incapable OF risiRg aoove While he saves
OF millions OF dollars But the Treasury has no
policy The government at this moment Is founder
ing Ike drunken man seeking nis way home OF .
sumption with fifty millions III the Treasury,
and they also talk OF fixing day for such
Resumption. The only way to resume is tnis:-IeS
the government make an oflcial ann0uncement that
~hen n haa bcs S,,an Que huudred and lty and two
hundred millions Of dollars III gold IN the Treasury
It viii redeem its paper, without nxing any partcu-
lar time. .for SO dong. Wnat would oe the erect'
EVERY business IN the country would grow conserva
tive for we, the people, are the government, and it
10 every mans interest TO get BACK as quickly as pos
sIbe to a GOLD basis. The sales or government g0ld
would fail of. and, as consequence it
would remain In the vaults OF tAe Treasury.
The lmportauon Of lu1uries would diminish, and
as the premium on gold steadily went down all
tIe hoaTded coin in the country--aad there is an
immense amounE OF that locked w IN bureaus
would be put in crcula1on 10 gain the benefit OF tho
Iast failing premium Our securities aoroaa would
al otner matters would settle themselves quickly,
and the country would at last yet chance
to 20 forward In the glorious mission Tor
wbicn IL a destined. Now wsat Is Boutwell,
dongp Buying bonds tnat have afteen years
20 rnn for the sake of saving little Interest. Why