Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-18
THE ANNUAL COST To THE PEOPLE
OF GOLD FLUCTUATIONS.

THE ANNUAL COST TO THE PEOPLE
OF GOLD FLUCTUATIONS.
What viii the gold premium be one
year hence? What VIII the greenback
promises Of Government be worth on
the Centennial Fourth of July? The
question is one that aflects all who
have money, or brain, or energy to in
vest in any industrial venture, and
their forecast of all the probabilities
largely determines the measure of gen.
eral confidence and general pros
perity- It is also apartment
question at this time, in view of the
construction placed ON the platform of
the Ohio Democracy by many unthink-
ing friends and willy enemies. If, as
Is contended, that platform means in
definite greenbsck initiation, its success
in the Presidential canvass would run
up the price of gold and depresiate the
value of greenbaeks indefinitely.
Suppose Farmer A, in virtue of fine
crops this year and economy since the
panic, finds himself in possession this
fall Of one thousand dollars in green
backs. He does not care to invest it
in lands, as he already holds more than
he needs. Shall he lend it to his less
fortunate neighbOr, or to the skilled
mechanic who proposes to start a small
pillow factory or some other industry at
the neighboring village? Suppose ne
lends it for twelve months, how much
Will he receive In return one year hence?
To-day at the ruling quotAtIons, his
81 900 greenbacks are worth $500 gold
One year hence, if indiscriminate in
fiatiOn should rule, $1,000 greenbacks
might be worth no more than $500
gold. In such a case he would net a
clear loss Of $500 IN gold! With pos
sibilities ike these in toe near future,
is it any matter for surprise that CAPT
tai is timid, that men of money are
slow to embark innew enterprises, that
industrial ventures languish and the
whole country is afflicted with stagna-
ton, while the money centers are glut-
ted with a surplus of currency
Of all cautious towards, CAPT
talists are the most cautious.
Take the case Of the merchant, i'm.
porter or jobber, who, in the course of
business must invest his capital in a
stock which he cannot work off under
six months. In making his purchases
and setting his prices, he must ealcu-
late the risk of gold fluctuations for
the same length of time. To do a safe
business he must add to the price of
his goods a certain per cent. for in
surance against losses by fire. On the
same sound principle, ne must add also
a certain per cent. as insurance against
loss from the fluctuations of gold. This
item enters into the enhanced cost of
everything consumers purchase, or
have purchased or Will purchase, so
long as our currency remains variable
in value. And it works both ways.
The merchant or grain Spectator,
in estimating the price he can
afford to give for the produ IT'S of
the farm, secures himself against loss
from gold fluctuations By making a
discount. Whether buying or selling, |
a varying currency tells against the |
workingman and the farmer. 1t is
part of the merchants business to cal
culate risks and chances, with a view |
to making proper provision against |
them. The money wasted on all We
buy and sell, by way of insurance
against the inscrutable designs of Wall |
street and a coming Congress, amounts
annually to tens of millions of dollars.
By a sort of poetic justice, the sum
thus thrown away, is about equal to |
the difference between gold and green
backs on our entire volume Of currency.
AS we have before remarked, we DO !
not attach national importance to the
Ohio platform, nor perceive in it the
germs of indefinite initiation. But
there are others who do 50. There are
thousands of men with capital who,
before parting with it, would like to
have a satisfactory answer to the ques-
ION with which We set out, viz: What !
VIII the gold premium be one year
hence? 1t is this uncertainty which |
keeps the currency in plethOrie idle
ness at financial centers, while the |
country furnishes for IT, This it is
which holds a myriad industries in
abeyance. To relieve this uncertainty |
is among the first duties of the Democ-
racy as the party of the people, of |
progress and prosperity. Our present
condition affords a sad proof of the IN
wisdom which makes finances depend on
politics. Gently, but firmly, they must be
divorced as DOsitively and completely as