New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-05
GOLD-SPECIE PAYMENTS.
STEADY DECLINE OF TIE PREMIUM.


MENT IN WALL-ST. YESTERDAY-GOLD ll35-
RELATIVE COST OF THE NECESSARIES OF
LIFE-RETAU PRICES SHOULD COME DOWN.
One year ago yesterday Gen. Grant was III
augurated President Of the United States Gold was
then quoted 1919 Last night closed at llSi having
touched 1921 during the day. though but for oment the
reduction OF Isl per which has taken place during
the year adding another the list Of trumphs achieved
by the policy OF the Administration. The slow and
steady downward which has continued ever since
the bursting of the famous September bubble was yeser
day varied by sudden tumult which created profound
excitement financial circles. Gold closed on thursday
night at l15 and sold later at l4z and it was evident
early yesterday morning that the bulls were gong 10
have the worst it, The first sale was made at 49,
others followed at little higher figures, running up at
H. the highest point reached during the day;
then gradually 1utterng down to the lowest actual point
reached, 1871 and closing at ll3l.
During the day tumult reigned in the Gold Room The
thick. yelling crowd was thicker than usual and yoed
louder and every flushed and excited broker reared
gestcuated aud danced strainng eye and ear, "a II
sure that nothing but the eXertion OF every power OF
body and would keep him from sinking under this
terrible load of falling gold The Gold Room has not ex
pcrenccd such fervd sensation since that famous
Friday which 1t is to he hoped will ever remain unpara
leed Many small operators, including outsiders who
had tempted in by the puces of Thursday are said
to have been badly crippled yesterday, and some are
likely 10 come 10 grief permanently the decline
continues This fact will not in all probability materially
decrease the satisfaction which all good people feel at
the downward tendency which suggests so pleasantly
the approach OF the long wished for financial millennium
specie payments. Indeed some leading retail houses
were encouraged by the fan to make their change in sill
YER II Is authoratvey announced that several other
firms, both this city and Brooklyn. propose to adopt
this plan tomorrow. Silver is now worth about no.
These acts of small dealers restaurants however.
will be looked upon rather as fghty though shrewd
devices TO gain popular favor rather than as indicating
any permanent and settled resumption OF specie as a
basis Of trade But not the action of the banks,
some Of the wealthest and most promi-
nent OF which earnestly considering the
proprety Of making end of the unsettled condition OF
monetary affairs by boldly procaimng resumption. 1t
whispered on the street. yesterday, with much OF
Of authority, that in the event that no reaction
occurred to-day, the Chemical Bank would next week
announce the resumption Of specie payments That
wealthy influential and eminently conservative nstiu-
ton can well afford to lead Off in such movement.
As n matter OF fact, the Chemical never has
suspended specie payments. 1t has no CIR
culaOn OF its own, and IS not, therefore,
affected by the fluctuations Of currency When the Gov
eminent suspended at the beginning Of the war; this in
sututon. without formal act or announcement OF
suspension, began paying out currency where it had
before paid CON- and has continued TO do so TO this day
OF course, should it return 10 specie II must exact
specie or It's equivalent from ITS customers, or
must make some special arrangements with them
TO protect itself from being made mere medium
for exchanging currency into gold at par which no bank
can afford TO DO so long as there any premium gold
But most likely their purpose is to merely proclaim re-
sumption as q theoretical practice, which Will net be
without great inhuanca
But several other banks, winch really hFve circulating
notes aGoat, were mentioned preparing to resume.
ResumptlOn nv such Institutions means the sub
seauent redemption of their notes in gold; and
when that proclaimed by few OF the
leading banks the whole question is settled All similar
institutions must follow the example or suffer loss OF
credit II generally understood that most of the banks
OF the city have prepared themselves for such an alter
native and If any few all will follow the example.
Thus it il possible that before another week rolls around
we may be again gladdened by familiarity with hard
money circulating medium or that at least the cur
rency aoat will represent dollar for dollar the real com
The encouraging decline and fall in the price of the
specie basis brings mp the question Of prices in general
and leads M 10 talk with renewed interest whether the
prices of other commodities are undergoing correspond
ing reduction and whether the cost OF tue necessities OF
life now it's proper relation to the great indicator
Of values not he untimely then to compare some
Of The ruling prices of to-day with those OF five six
wears ago with the intention of making any broad
CONGRATULATIONS or Of discovering occult principles
that would not be possible a casual view OF such
occnt suhect-but 10 give clearer idea OF the state OF
things at present When people have facts they like to
construct their theories Of themselves
About the end OF the year 1864, just after gold had
touched its highest point prices of both wholesale aud
retail which had followed MP pretty closely on the heels
Of gold stood as high they have ever done On the
22d Of December 1885, gold quoted at 2224i on the
ID Of March, 1870 closed al ll5S The following state
men gives the prices of few leading staples the two
days ,o,, Mo TO-,
al "a. or md. n