The New York herald., 1873-04-09
The Gold and Money Markct-ImPorts
and EIports-The Financial Prospect.

since the last months Of 1872, when it was at
III, though fuctuating little at times accord
ing TO the exigencies of the market or the
operations of spectators. The trifiing
changes in the premium from day to day or
week TO week, however, were but fitful. The
steady and continual advance arises from gen.
| eral causes. While we may denounce the
cliqnes or combinations that create ephemeral
disturbances in the market, sending gold up a
few fractions one day or down another, to
make money out Of the operation, it is certain
they would not have had the power to carry
gold up from Ill TO 1l9 in the way it has pro-
gressively advanced If there had not been gen.
eral causes at work affecting the price Let
us not deceive ourselves. These gentlemen Of
the street, Of the Gold Board or the banks
have no such power. The few millions they
control are bagatelle in comparison with the
vast financial affairs of this country, the stocks
and movement of specie in the world or the
influence of commercial exchanges. They
simply watch the signs of the times in order
to profit by whatever changes are imminent or
inevitable in the future.
present premium from general causes superior
to those of Wall street speculation or combi-
nations, let us see what these are. First, and
principally, we must attribute the rise to the
excess of importations over Our exports, in
Guiding the export of the precious metals.
This calls for more gold than we extract from
the mines to pay for the balance of trade
against us, and is, consequently, depicting the
stock on hand. We need not philosopher to
tell us that rs an article in universal demand
becomes scarce it must become dearer. Every
merchant knows this. If diamonds were
more abundant they would be cheaper.
1t is the same with cotton or anything
else that mankind needs. If these things were
more scarce the price would be enhanced.
No article of commerce is more influenced in
value by the reduction or augmentation of the
quantity held than gold. 1t is as sensitive as
the barometer to changes in the weather, par
ticularly in countries where there is little or
no power to check its outflow. In England
they have a system of preventing a drain of
specie and of maintaining its value steady.
Immediately there is danger the Bank of Eng
land ''puts on the screws" as the familiar
phrase is, or, in other words, raises the rate of
discount, which both prevents gold from going
out and brings it in. We have no screw of
that Sort and, therefore, when we are called
upon to pay our debts in gold we have to pay.
According to the report of the Bureau of
Statistics the imports for the ten months end
ing October 81, 1872, were in excess of the
domestic and foreign exports combined to the
amount of $12S, 27S, 7S7 while for the CORE
spending period of 1871 the excess was only
SAG, TAP, ,952 This corroborates what we have
said with regard to the continual increase of |
importations over expectations, and conse-
quent augmentation of our Indebtedness
abroad But since the last day of October to
which date this report is made, we have been
importing enormously and beyond what was
ever known before. The importations during
the latter part Of Winter and the opening of |
Spring this year have been extraordinary.
From January / to April the imports of dry |
goods and general merchandise at the
port of New York alone amounted to
$120, 90S, 6l3. For the corresponding pc
riod last year the sum was S112, ,353, 304. If |
the balance in 1872 against us was over
1928, 600, 900, what will it be by October, 1873?
Here is matter of thought for our business
and financial men, as well as for the govern
ment. Let it be remembered, too, that
in the exports are reckoned specie and
bullion. The amount of merchandise
imported in the ten months up to
specie and bullion s1S, S,075, ,843, while the ex-
port of specie and bullion was SS1, 731, ,957 and
of merchandise 1855, TAI ,S44 that is to say,
our domestic EXPORTS exclusive of specie and
bullion, were less than the imports by
$217,737, 743. The export of specie and
bullion in excess of the specie i'm
ported was $685. 656, 116, far more than
our mines produced. After reckoning the
exports of foreign merchandise and specie,
in addition to that of domestic produce, and
including the balance Of S63, ,656, 116 of Ameri-
can specie and bullion, we were still left in
debt Sl2S, 27S, 7S7. How long can this go on
without disaster? Yet we are importing more
largely than ever 1t is not pleasant to lock
at these facts and figures, but it would be folly
to ignore them. We should not act like the
silly ostrich which buries its head in the sand
to avoid the disagreeable sight of danger.
We have not been informed how the ex-
port of produce and merchandise for the last
five months compares with the imports
Cotton has realized undoubtedly, vast sum,
for the price has been high and the crop was
comparatively good one. But this source of
means for paying our Indebtedness abroad
has been well nigh exhausted or discounted
for this season. Judging from the Custom
House returns of importations and the
expectations of specie since the 1st Of
January the balance of trade against us