Year: 1869

SUNDAY, Nov. %, 1859.


the decline in gold has been the prominent feature
OF the week In Wall street. The price towards the
close on Saturday touched 1881, which is the lowest
since the OF 1868, when. after the victories
OF vicksburg and Gettysburg, Il fell temporarily to
122K. The downward tendency, which had been
partially interrupted In the beginning of the week by
fears OF trouble with Spain concerning the feet Of
gunboats now building In American waters for tina.
nation, was most marked on Saturday, when, upon
she publication OF the bank statement, IL was dis
covered that the banks held nearly thirty mil
lions in specie In looking for the cause OF
this sudden accumulation OF coin we snail
find that the growing credit OF the government under
the system inauguraed by General Grant, In enforc-
ing honesty In the revenue department, ana by Sec
retary Boutwell, In buying in the national debt
originally the cause Of widespread expectation IN
the mercantile community that gold destined to
lower prices. Hence the imports have been grad
ually falling OIL. Importers have been afraid to lay
In heavy stOcks and have conducted their business,
particularly during the past year, with great con-
servatsm. Gold has thus had double reasons for its
decline. 1t has not been IN demand for
export and has accumulated in the country.
To what extent the decline in gold Is gong
to affect the values OF commodities general Is
open question. II Is to be hoped, OF course, that
there win be general cheapening of all products;
but 1t remains to be seen whether, with so ex-
panded paper circulation we can attain TO old
time prices. Indeed, with specie payments t0-mor-
row we should have a total circulation OF thou
sand Millions while with the premium on gold thai
total Is confined to the eight hundred millions OF
currency. The fall IN Dreaostuis has been due not
SO much to the decline in gold as to the
enormous abundance Of the crops, and the de-
cline In cotton to the prospect Of q yield
wear tv0au tv nor ant han last We
think the merchants whose business is confined to
domestic goods have little cause to fear the effects
OF the decline in goa. While paper money Is 80
plentiful there can be little shrinkage in the value Of
the articles which they deal H. Indeed, greenback
prices have changed very little for other things tnan
produce and cotton. There Is an inelasticity IN
greenback values which Is strlkingy in contrast to
gold values Unless the volume of the currency Is
reduced land 1t Is hardly probable that Congress
will attempt so dangerous measure) there
can be no serious or sudden decline. The
paper circulation before the war was less than
three hundred millions With The wonderful pro-
gress which has been made in developing the coun-
try since the war is it not reasonable to infer that
within few years we shall grow up to condition
OF business activity That will employ every dollar Of
paper now in circuations In TACT, the West is now
calling for more currency, but the demand is an uI-
healthy One its object being to Inae prices, which
have been gradually falling as the greenback
currency has been growing more, reliable
and the crops more abundant. As to the
importing interest, the decline In gold Will
carry It's own remedy. The hesitation and
caution Of merchants in buying VIII tighten the
stocks OF foreign goods here and SO sustain their
price by their scarcity. Unless business affords
margin OF profit larger than the premium on gold
there wil always be danger OF loss in the importing
business until there is resumption OF specie pay
ments or more steady marEet for gold.


The money market during the week was easy at
nve to per cent, and some OF the governmen mt
dealers were offered balances at low as four per
cent. The weekly statement OF the associated banks
OF this city is quite favorable contrary to the general
expectation that the shipments of currency to the
West and Southwest this week would be reflected
in heavy loss Of reserve. Tie decrease in legal
tenders Is less than three hundred thousand dollars;
but as the banks entered on the week with balance
In their from last week, and the Sub-Trea-
sury operations during the current week have also
been In their favor the actual withdrawal OF legal
tenders from two to three millions Of dollars.
nearly two mions-and as the deposits have been
drawn down there Is an actual gam In reserve Of
over million and half OF dollars. The decrease
In loans, while small, shows a disposition on the
part OF the banks to be in readiness should the
balance Of the grain and cotton movement make
sudden and heavy demand upon their resources.
The totals Of this weeks average compare with the