Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-21
New York SD. Mareh Be.

Money Markets Of the WOrId-Pre.
ent MaRRuvres and Probable Re
suits.
New York Sun, March 10.
Gold is up, stocks are up, wheat is VI
everything is up, and a state of affair
seems to prevail Numerically opposed 3
that which is described in the old Germal
song:
Stock ist veg,
| Rock ist veg,
Allies ist veg
What does it all mean? Is it a genuint
revival of business, or is it mere gambling
on the part Of few powerful individual
who have made up their minds to maxi
money at all hazards? Most of our con
tempOraries say it is the beginning of Z
recovery from the depressed condition o.
trade; but to make out the truth concern.
| ing the actual state of affairs is by NJ
means an easy task. Jay Gould and the
''gOld pool, I" with Daniel Drew and Robin.
son at It's head, are supposed to be hercely
at war, but when it comes to disclosing
their mutual plans and giving a chance Of
escape to the public, they protect each
would have done.
ado you expect that if you come down
here as a newspaper scribe to spy out what
is going on, you will learn anything" said
friend to me the other day. "If you
want to know anything join the ranks; buy
and sell; lose or make money, and then you
will learn something. Could you ever set
out writing about AbYssinia after having
merely talked to II. n. Stanley or Billy
Russell, of the London Times? Certainly
not. The same thing is true in this case. T"
And so l came down here, and am trying
to make or lose money, and to learn what
can be learned.
The rise in stocks is a purely artificial
one, created by Jay Gould. The only Sc
curities in which transactions are brisk are
those in which he deals; all others lie
dormant as formerly. With gold the thing
stands differently; its rise is partially arti-
fetal and partly natural; and if wheat rises
in the West, it is solely because gold is
rising, and the farmer can obtain proper
tionately more greenbacks for his produce.
In this way the really important element
of movement is that of gold only, and il
will remain so, consequent upon the pecu-
liar commercial, political, and natural Con-
dition of this country.
To begin with, the amount Of gold held
by the nation is small, and the products
with foreign lands are all
raw, unmanufactured, and consequently
cheap articles; while the extravaganza of
the people surpasses all reasonable limits.
Everybody wants everything from Europe,
and the United States accumulates in this
way every year a debt of over Sl50,O00,0O0
with specie paying countries. Then, again,
all the freight and passenger money goes to
foreign countries. The gold which France
sends to England and England to France
returns again. The velvets and silks Of
Lyons, and the wines Of Bordeaux are paid
for in London in the same coin and to about
the same amount as Manchester
and Sheffield goods are paid
for on the other side OF the channel; while
in this country wheat and salt pork are
almost the only articles the country has 70
pay with for all the European products alb
sorbed by its fast and extravagant pOpula-
lion. The expectation that under such
the country will ever be
able TO return to specie payments in 1879,
Or even at the close of the century, is a per-
feet hallucinatiOn. The position Of the
United States IN the money market Of the
world is about as bad as that Of Russia,
and by far worse than that Of Austria or
Italy. Yet in none Of these half-bankrupt /
do people entertain any expecta-
lion of returning to specie payments with
in the living generation. In round num-
Ders there are some SS00,000,00O of paper
money in circulation against some S2O,- |
100000 Of gold in this country, exclusive
Of California. The interest on a debt Of |
81, T15, 100000 has constantly to be |
paid in specie, and absOrbs almost |
al that the resources Of the Union |
an be reasonably expected to produce. |
By tO-day's statement Of the Treasury |
here were STSOOO,OO0 in gold in the hands |
# the Government, Of which SZ3, 100000 |
we're deposited on certificate, leaving a bal |
lnce Of S55,OO0,000, which is just enough |
% cover the bonds called in and the May
interest. If to these natural circumstances |
IF the case are added the strong gambling
lrOclivities of the community, the prevail
ING practices of selling short and borrow
ng gold, and the reckless way in which all
business is carried on, the fact Of gold not
having long ago risen much beyond its
present quotation becomes a matter of
surprise. 1t cannot help going up to twen-
" per cent. premium, that is to say, to
about the same level upon which II stands
IN the empires of Alexander and Francis /
Joseph.
Basing themselves upon these general
considerations, a number Of men, headed
Dy Drew and Robinson, organized a
POOL, bought and locked up about six
1r seven millions of gold coin in their
safes, and are quietly waiting till it goes
lp. The foreign bills are to be paid
somehow, the Custom House duties take |
iaily about half a million, and the banks |
nave al. of them not more than a million
1r two in their vaults 1t might be sup
posed that merchants would begin borrow |
ing gold from England, but the moment a
movement of this sort begins, the Bank Of
England will raise its rate, and render ex-
DOrtations of metal impracticable. Besides,
England holds no end of American bonds,
and when asked to lend gold, she will send |
put these bonds instead Of metal. The
gold pool thus anticipates that its success
s assured, and argues that the higher the
,Old be, the more greenbacks the foreign
will obtain for his sOvereigns and
he more willingly he will come to this
market. They propose thus to fill their
OWN pockets and to confer blessing on the
That is an illusion, but illusions
are such pretty things that it is pity to
destroy them, especially at a time when
they are so rarely to be met with.