The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-25
Tho Gold Market and MIR. BoutweII's
Financial Policy.


The Gold Market and MIR. BoutweIps
Financial Policy.
Mr.. Boutwell, fails in almost everything he
undertakes. His attempt to keep down the
last week six millions not only failed to have
the effect expected, but gold has actually gone
up about one and half per cent. On Mon
day, before the six millions were put on the
market the average premium was little
under fourteen, and on Saturday 1t was over
the Treasury and the gold market the Secre-
tary has been defeated. This has been the
result, too, in spite of the fourishes that the
Treasury and Syndicate rings had been
making, to the effect that gold must 60 down
under the grand financial scheme and new
departure of the Secretary in connection with
the syndcates. 1t was represented that this
scheme by the skill and able management Of
the syndicates, would not only check the out
flow Of gold but would bring supply from
Europe, and thus reduce materially the pre-
MUM. 1t is curious fact, too, that gold has
gone up when it is being shipped from Europe
to this country, though in inconsiderable
quantities, as well as at the time Mr.. Bout
well put six millions on the market. The
truth is there is no reason to suppose q
large amount of gold will be sent here from
Europe, and our shrewd Wall street specu-
lators, bankers and merchants know that.
From present appearances it is more likely
the syndicates will require gold to pay for the
bonds to be redeemed than that they will be
able to exchange the new five per cents for
them at par that is, if these syndicates do
what they are represented as having engaged
to do; and, here, referring again to Mr..
Boutwell, failing in everything he undertakes,
this syndicate business will probably fall
through. 1t wasa job from the beginning to
put money into the pockets Of few favored
bankers by doing that which the Treasury
Department could have done directly quite as
well or better. 1t must be clear to every one
that if the syndicates have bona tide pur-
chased the new loan, and gold remains up aud
the five-twenties to be redeemed should remain
below par in London, they must sink beneath
the weight. II they be mere agencies, as the
name implies, and as we believe they are,
then the Treasury Department will have to
bear any loss, and may become, in view Of
what it has undertaken, greatly embarrassed.
1t may be this state of things which the gold
spectators in Wall street are anticipating
and acting upon. Secretary Boutwell, is
involving himself in one blunder after another
through bis ignorance of financial matters, and
his overreaching efforts to make political
capital for himself and the administration.
That the small export of specie from abroad
to this country will soon be checked Is evident
from the action of the Bank of England. That
powerful institution, the managers of which
watch every movement in the financial world,
has begun to raise the rate of interest, or, to
use familiar expression, to put the brakes
on. Not that we suppose this has been done
with special reference TO the small amount of
specie recently shipped to this country. There
are, doubtless, more general causes, and
among them, probably, the aow of specie to
France, which the indemnity necessities and
reviving trade of that country call for. With
regard to ourselves, there will be not only no
considerable amount of gold shipped to
America, but there will continue steady
drain from this country until our exports Of
raw material and manufactures approximate
more nearly the imports. With imports
amounting to eight millions and half week,
as they did last week, which were million
more in amount than for the corresponding
week of last year, and with little or no more
exports, the balance must be made up in gold
or by securities. 1t is the balance of trade
that regulates the price of gold under our pre-.
sent abnormal financial system. Mr.. Bout
well is fighting windmills when he attempts to
control the laws of trade by his spasmodic
gold operations. Our whole financial policy
must be changed and better revenue system
established before we can expect any great
Improvement