The daily gazette., 1879-10-14
From the N. Y. Herald.
HeaCy I,nl,OrfatiOns Of Gold
Dangers which Attend a Re
..s.,nI nf lbasn ~ N p9sffn

ciVaI Of Prosperity.
Recent statements made by Mr.. Bur- |
chard, Dire ctor of the Mint, enable us |
to measure, with tolerable approach to |
accuracy, the large volume OF the pre-
cious metals which Is flowing into the
United States from foreign countries.
Within the last three months our I'm
portations of coin and bullion have
amounted to S34,312, ,145, and there are
at present more than $5,5OO,OOO on the
way, making an aggregate of about
S4O, ,OOO, 600 for the three months. This
is at the rate of $l60, ,OO0, 900 per annum
or more than three times our average
expectation Of gold since the full ex-
plotations of the California mines.
| This wonderful reversal of the current,
this turning back of the outhowing tide
of gold and substituting for it an inflow
ing tide of more than three times the
amount, is SO contrary TO the usual and
natural course of things that II chal-
ienges the Thoughtful attention Of the H.
nancial world. As this country Is the
| largest producer Of the precious metals
they should be, in any ordinary condi
ton of trade, heavy article of export,
and not of import. The present great
!
things, be temporary; but the Director
of the Mint thinks 1t may continue for
at least six or seven months. Its ten
dency, while it la-ts, Is toward an en-
orInous expansion of our circulating
medium and general enhancement OF
prices. In other words, II tends to intro
duce a new era of speculation.
A vast and sudden Influx Of money is
| .l.,.. Ear.
perie need to its cost in the six or seven
years which followed the stuI eldous
4 French indemnity. Among the most
instructive phenomena in the financial
history of the world are the wonderful
r recovery of French prosperity during
4 those six OF seven years and the severe
business pros ration which ensued In
Germany. A sudden and enormous in
crease of the circulating medium of a
II countryis not necessa lily blessing.
e We are not blind to the advantages o.
p this great flow Of the precious metals in
to the United States. We share, to som'
extent, in the feeling of exultation whicl
it seems TO be exciting in the business
n classes. II insures the success Of on
n great experiment Of the resumption o
spr Gle payments, anc In this view 1t is
proper subject of congratulatioD. III
y had so hap ened that during tie frs
j. year OF resumption the flow OF gold ha'
~ Deep in the opposite direction 1t woul
have been difiicult if not impossible L
"' maintain the experiment. Fortunately
- we are relieved from ali anx iety on thi
ed great and vital point. We never at an
I, period of our history had so much gol
. in proportion to our population as th
W country possesses to-day, and the volum
IL is c, rtain To 90 on increasing for man
,er months to come.
But there turks danger even in til
brilliant success. 1t is the tendency of
hu redundance of money 20 foster spirit
'e- speculation. As tie circulating mediu
re- sSpanedss PriRgfffiis mari market all who are
W haste to be rich are tempted to buy H.
% only to the extent of their means but
u. the utmost stretch of their credit, in Il
90 hope Of great profits from the expect'
:" rise of prices. An expansion Of re
W money has this effect as well as expa
me son Of paper currency. We, are, ther
W fore, in imminent dan. .er Of new e
IiS' Of v lid and crazy speculation.
Wise legislation by Congress mig
10 avert this threatened evil and conv,
ol- the danger into triumph. Never "
as nation so favored by opportunity
as our nation is at present, if it will
anu M seize the occasion for retiring the gree
uS backs and substituting gold in tb
place. Before Congress meets there v
on be gold enough i'll the country to ms
law it easy for all the national banks to
o replace their greeubank reserves "
"" specie reserves and to fill the vacuum
re- the general circulation which would
and caused by the full and final relirem
all of the legal tender notes. The bugt
OF contraction which has been so pers
" ""o emily held up against this change has
iler, longer any terrors, and the withdra
enth and cancellation of the greenbacks VIC
ex- forestall the threatened evil of an G.
nous expansion Of the circulating
nor dium and new cycle OF wild and
luch chievous speculation.