New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-29
TIE GOLD SPECULATION.
PRACTICAL CONSEQUENCES or SUDDEN CHANGES ~
TIE observation-disclosures DRAWN FROM
ACTUAL BUSINESS.

PRACTICAL CONSEQUENCES or SUDDEN CHANGES N
TIE NEUTRALITY-SUSPICIOUS. DRAWN FROM
ACTUAL BUSINESS.
To the Editor Of The Tribune.
SIR: Aside from those whose dealings are
directly affected by changes ~ tLa gOd plcu -, r.
persons appreciate the nal consequences To general
business OF the present speculation Hero are SON;
ustI3 lions That have come under personal Ob'erya
Jion friend has IA port a cargo heavy goods OF a
kind that are usually sold when landed gu he wharf.
Just bc.ore arrival there fair demand. aud, had
us vessel been here, might have taken the usual
profit of about per cent Now the marke. Is de-
m0rllzed, ami he a loss must 10 storing
expenses upon his goods. The explanation IS thls Buy
vi not agree q pay fair price IN gold for fear
tuat the Cirque" may be able TO get The premium o.lI
ughor 50, when pas day the cost u the pur
chase might in currency, much greater than an cI-
pated nor I'll the buyers Ok + pay currency prIce
based upon the present rae OF premium, iOr the
Clique may, any time, abandon the speculation and
let the prcmIm AL, when competitors II Ia ~, 81
womb be able buy for less money IN culrencv and Of
course position 20 underseh prese mt buyers
Again, kaow OF lot Of morchanlisc, now Ia store
that sold neither for gold nor for currency ez
ccvtng at a sacFidce, while the uncertainty ~ the
relative value OF these kinds Of money continues An
unfortunate case Is ihat OF a manufacture wno pur
chased crude material weeks ago and z eed 10
pay IN gold He now buy the god at its clrreut
rate and WILL therefore, find that the actual OF ais
invoices IS sufficiently great 70 consume his ordinary
profit
Your readerl are doubtless cognztnt Of many eases
similar to the examples OfInurY done by the gold
speculation. Let be borne in mind that the
profit III many branches Of wholesale trade is very
small rccntage upon the capital Invested. BY profit
| mean that sum which left after all expenses and
supl. interest have been paid for Interest must DC con
slderei Of money, and. whether payable to those
r...fF
cause The money, Il lieut. to Others, wonli yiell
by others, would yield rent. Theoretically, tie
sum IN currency pad by dealers ana manu-
facturers their supplies IL the basis Tor
nndiug their selling price, and, therefore, any
advance III the premium on gold s finally charged
the consumers OF the goods Practically, however.
the close competition among woud-oe sellers gives only
mat one VINO has PAID the least for HI goods chance
chance to supply the demand AMI alter MIN, MI e. ana
until Mr.. u, who has paid the nign premium on
gold comes TOR his share OF The trade. Now II Mr.
O. nnds any buyers left, ami II he has time 10 s!i Sc-
the premium ON gold has declined Mr.. q should be
very thankful To mind IL II evident that there Is
now no sufficient margin IN profits TO cover fluctuations
In the or premium on gOlI, aud thereto THESE
fluctuations help To prevent "a revival II business.
It's idle 10 tik OF laws 10 puglsh spectators IN gold
for laws been tried often ana nave always
failed The spectators taking advantage Of state
OF affairs Drought about by paper system,
tiOna waythat Of correcting the system by IL gold
is crowded out OF the country excepting "A few millions
Uf dOlars-so small III amount that II may, at times,
be locked up OF the OF merchants. While
Legitimate traders are Obliged to hggle over small
feIenees and petty quarters aud halves
per cent price, the big operators OF Wdii--t
are manipnlailuc the stock OF gold ana whisking
away Tue Luxurious calculations OF trade, servant
brushes down cOOwehs. WITH such powerful element
TO change prices. business becomes OF chance;
STILL conceive, the stock OF gold mot he aug
nented beyond tie control OF speculators, except 10y
maKng new uses for metal. II gold continu-
ally needed here lt obey memorable natural Laws,
aud y places where there Is cali for IL;
and III order give stability the price OF gold
expressed paper. ana avoid those variations ~
relative value that Injurious "a trade especially
sickly state IL Is absolutely necessary
make for gold 10 circulate among u.s. and give II
the character OF money instead Of that VI "a
modify. RADIX.
Brooklyn, March %. 1875