Year: 1862




yielding the fruits that we predicted it would
when it was first proposed The following
is from the N. Y Tribune of June 10TH


Nearly two millions of dollars in coin
left our city on Saturday for Europe, and
the premium on specie rose to seven per
cent. We are assured that this rise was
Fictitious, and will not be maintained, but
the outward flow of gold is morally certain
to continue.


But even were no securities thus returned
upon US, we must expect TO lose specie heav,
lly. The Southern crops Of lS60-cottOn,
rice, tobacco, &c.-went forward little
more than year ago, furnishing over two
hundred millions of exchange. Much Of
this went to balance importations at North
ern ports. As yet, not ten millions worth
Of these staples has been shipped, and none
of this to the credit Of New York. Our
imports are about the same as last year, our
exports apparently as large, are really but
half so much, because the South exports but
very little, and OF that little no part is pla
ced to the credit Of New York, or serves to
balance imports at the North. In other
words we are fighting and consuming or
destroying the products that we have hither.
to exported, and must ship coin to pay for
goods tina. we import.


We had metallic currency-a hard mon
ey currency and the value of property or
promises to pay was based upon and regul a
ted by it. This circulating medium having
an intrinsic value of itself, and being Of
about the same value the world over, the
value of property and the system Of COM
mercial exchange was placed on firm basis.
Under the pan now adopted the paper
promises to pay of the Government take
the place Of gold and silver, and are made
standard Of value by which the worth of
every thing else, even gold and silver coin,
is measured. When the Government issues
on piece Of paper its promise to pay to the
amount of say one hundred dollars, and
makes it legal tender, just so far as the
law making it legal tender is operative it
must pass from hand to hand for one hun
dred dollars; but beyond the operation of
the law in countries where the legal tender
law has no force, the piece OF paper is val
ued according to the confidence parties have
in the ability or intention of the Govern
to redeem its promises. In all the loyal
States this paper mus. pass dollar for dollar;
but outside Of them, and in foreign countries,
moneyed men refuse to take ii on anv salts
factory terms. In the meantime we 90 on
purchasing Of Europe as usual, and instead
of these purchases being met as formerly bv
expectation Of cotton, sugar, tobacco, &c,
resulting in balance of trade in our favor,
the war has put an end almost entirely to
the expectation of these articles. Instead
of paying Europe for the goods we bought
of her with S20O,0OO,OOO worth of the pro-
ductions of Southern States, we are COMPEL
ed to send the cash--the hard money.
This is the secret of the coin leaving New
York city for Europe, as referred to by the
Tribune, and it will continue to leave until
the whole former legal circulating medium
of the country is exhausted, leaving nothing
but paper money. 1t won't be long, we be-
leive, befo twenty dollar gold pieces will
be curiosity.


At the time the Tribune article was writ
ten, specie was worth seven per cent. prem
UNI. This rise it said, was "facti,ious, and
could not be maintained" Instead of that
being the case, it has advanced to nineteen
per cent prenlium--in other words, Govern,
ment paper is practically nineteen per cent
below par but being legal tender the de
probation is estimated by an increased value
of specie. The eight hundred millions OF
coin made in the United States since the
formation of the Governmen: will 90 out of
the country except few pieces laid up or
hidden away to be kept as remembrances OF
the good old hard money time, and its place
will be taken by paper resting on no basis
other than the credit of the Government.


Instead of attempting to force Treasury
notes on the people at par, ia process that
in the end is entirely imperative, for specie
only advances in the place ofpaper declining)
we think the better plan would have been
for the Government to have placed its bonds
in the market, letting them be negotiated at
their real value, and then by raising reve
nue. sufficient to meet the interest, and also
providing Sinking Fund that would keep
down and eventually extingush the princiI
pal public confidence would keep the bonds
at a fair market value. We would also
stand in position to command foreign capi
tai to some extent. But the present fnan.
cia system is so paIpable deception, and
scheme so certain to end in grand
smash up, that it is ridculed in Europe and
distrusted at home. When the Government
abandoned the specie basis and launched out
on a wild gaper money scheme, it commit
ted great blunder. Colusa Sun.


STEAMBOAT DErENTloN-BARs IN THE RIv-
Err AT SACRAMENTo.-The Sacramento Union
Of August 5th says:


The Steamer Wew World was detained
some two hours yesterday after her usual
hour for starting to San Francisco, on ac-
count of the shoal water n from: of her land,
ing place at the foot of K street. For ten
days past the San Francisco boats have found