New-York tribune., 1875-09-13
4 cold coin. as measured by our deprecated

OF gold coin, as measured by our deprecated
paper:
1. The balance of trade prOper-will it be
more or less favorable to us than it has been
for the last twelve mOnthsf For our part we
see no reason to anticipate any considerable
change. Both the imports and tlo exports
have been diminishing in coin value and at
very nearly the same rate. The price of wheat
is somewhat higher than il was year ago, but
cotton is enough lower to offset the advantage
we might otherwise gain from an increased
demand for breadstufs. The state OF British
trade is ominous of diminished consumption OF
American produce, and the condition of busi-
ness in the United States points to no increase
of foreign impOrtations.
9. The credit Of the United States, public
and private-is it such as to warrant the ex-
pcctation that we shall borrow in Europe more
extensively this year than we did last we
answer this question in the negative. During
the last ten years we have exercised our pow
ers of borrowing abroad to the fullest extent
Our resources in that direction have been well
nigh exhausted. There is no disposition, no
necessity, and no power to make further drafts
on foreign capitalists. We of course DO not
overlook the odds and ends and petty move
ments to and fro of railway stocks, United
States bonds, and similar securities, but we
are still of opinion that at the end OF this year
the state of our account will not be very diff
ferent from what it was at the beginning.
g. The quantity Of our stagnant paper cir
culatiOn-will it increase or decrease This is
the question which it is most difficult to
answer. During tho last twelve months the
10 hna nI
withstanding that there has been net de
crease of about twenty millions III the total OF
greenbacks and bank notes in circulation.
The fact is shown by the increased greenback
reserves of the New-YOrk banks. When a
National bank fails Its note circulation passes
out of existence, its United States bonds being
Withdrawn from tho custody of the Treasurer
and sold, and their place being supplied tempo
larily with lcgal-tender notes which cease
to be employed for any other purpose than the
gradual redemption of the circulating notes OF
the bank as they are gathered in by the snail
paced operations of the Redemption Bureau.
It was the destruction of country bank paper
in 1S14-16 that raised the value of the notes
of the Bank of England to par III coin
similar destruction Of bank paper took place
in the United States between 1910 and 1913.
Whether anything of the sort is now impcnd-
ing we shall not attempt to predict. and there
fore must leave the third question unanswered.
Other influences remaining the same, gold
becomes scarcer and more valuable OD as the
gold value of the exports, by comparison with
that of the imports, dinnshcs; (2) as the
amount of our annual borrowing abroad de-
creases, and (3) as unemployed money accu-
~ Ant, ri
Conversely the gold premium will tend to fall
() as the gold value OF the exports gains upon
that of the imports (2) IA foreign investments
in our bonds and other securities increase, and
CD as unemployed money is withdrawn from
deposit with the banks of this metropolis.