New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-10

strength IN gold. We are now cohNihoeu va'
it is entirely possible for the treasury 10 pro
vide itself with currency for the rest OF the
year by selling gold; that there will be no
necessity if that course is immediately taken
of issuing a dollar moro of currency ID excess
of the 1856 100000, and that the present over
issue may be Withdrawn within ten days.
First as to the ability of the treasury 10
part with its gold The coin owned by the
Government
October T. was sfo'oii'''o
Customs, three months. will produce say SJOOOOo
ro,., .s79a1,sss
The payments will be at the outside;
For hye-twenties, past due, but not yet pre-
sented
November interest i'V'0'VOO
January interest -''o'
Leaving for sales, say ..-...'.-...''''''''' 4'''V
ra..i ........ .s7s $3.50
In December Congress will be in session
and can provide for the wants OF the Treasury
by additional legislation, and also make pro-
vision for the bonds falling due January 1.
We have not included above the S150O0,0OO in
fiye-twenties called for redemption November
f6. Considering the necessities OF Mr. Rich
ardson and the high quotations now ruling Tor
the new bonds, it is to be hoped that the Syn
dIcate will promptly provide the Treasury
with the funds to pay the called bonds in full.
However. if the settlement" as it is
called. ia DELAYED until after New Years,
according to the precedent already established
Mr. Richardson's difficulties will unquestlon-
ably be increased. Neither have we taken
into account the $5,7l3,00O of interest on the
Public Debt due and unpaid at the date OF
the last monthly statement, because at least
an equal sum will be left uncalled for at the
end of next January. Let the Secretary, then,
freely sell his coin, and look to Congress to
devise means for getting it back again, which
may easily be done by weekly sales OF new
fives for gold to the highest bidder.
Secondly, word or two as to the effect OF
these sales of gold on the gold premium.
They WILL of course, depress the value OF
gold, just as forced sales of cotton would de-
press the value of that staple. 1t is even not
absurd to suppose that the premium on gold
might for period entirely disappear. On the
9th of June, only four months ago, gold was
selling at 1881, and it has sold this year as
high as 110s. The price yesterday, III certified
checks, was nearer par than to the price OF
the 9th of June The value of gold i'll New
York depends, in the long run, on its
value throughout the commercial world. 1t
is absurd to suppose that the sale
of twenty millions from the stock
in the United States Treasury will have
the effect to depress the value of gold nine per
cent over the entire surface of the terrestrial
globe, but it may very likely produce that
consequence temporarily in York. Con-
gress might then settle the question of re-
sumption by providing for the conversion of
greenbacks into Understanding bonds, or by
adopting some other measure for increasing
the value of the paper currency. If no such
measures should be taken, the reappearance of
a premium on gold would be merely ques-
ton of time.
Admitting that the balance of payments is
now in favor of the United States and against
England, it does not follow that there is no
outlet for the shipment of surplus gold from
New York, or no alternative but the impOrta-
ton of gold from London. During the present
week no gold of any consequence has been
Withdrawn from the Bank of England for ship
ment to this port, thought at current rates of
exchange such shipments would yield profit
The reason is that the transmission to New
York of United States bonds is even more
profitable. Hence, bonds are sent in place
of gold, and doubtless will continue to
be sent until the exchange again rises
so as to make specie shipments unproft-
able. 1t should also be remembered that
the rates of exchange are now depressed
by the reluctance of importers to remit
in the present uncertain state of our credit
system. The balance of payments, which
is the more correct term for the fact partly
expressed by the phrase "balance of trade,n
is by no means certain, even in the pres
ent entirely exceptional state ,svOf our
foreign commerce, to bring gold TO New
York in excess of that now en- route. Gold,
like everything else, is attracted TO those
markets where most can be had for it. There
fore gold forced to par by overlooking the
market is not exactly the permanent fes6mp-
ton Of specie payments. If brought about in
the way we suppose, it will be an evil, but
still an evil of far less magnitude than the
expansion of our legal tender circulation to
s3J5 100000 or $3.50, 100000, and that imitation,
too without warrant of law. Let Mr.. Rich
ardson take courage, then, and sell gold,
needing the law rather than the clamor of in
hatiOnistS.