Year: 1869

SUNDAY, May 80, 1850.


During the week which has just closed there was q
decline OF three per cent in gold comparing the clos
ing with the opening price. This falling on was due
In measure TO speculative influences, for the
cliques and combinations which few weeks since
were on the "bull side" and caused the sudden ad.
vance to las are on the opposite tack and oper
atng for decline. In these efforts they enlist popu
lar sympathy as the bear side Ia the one espoused
BY the general public, who look upon high gold as
the secret OF high taxation high prices and costly
living. It viii be interesting to watch, however
what course prices will take when the country has
grown up to specie payment The immense rise In
the price Of provisions. clothing, building materials
and real estate all over the country is due to the
expansion Of the currency, which, from three
hundred millions before the war, was increased to
eight hundred millions since that period. Now the
premium on gold is due to two causes-the inability
OF the government Immediately to redeem its pro-
misses to pay and the expansion Of the currency The
latter cause would not remain operative were the
former removed; but while the government cannot
redeem its notes In specie, the redundancy of paper
money keeps gold In demand. But the country Is
gradually growing to specie payments and that era
Will be reached within four, five or six years, ac-
cOrdng to different authorities. When it does come
il viii call into circulation at least two hundred
millions OF specie. Meantime the wear and tear OF
greenbacks and the withdrawal from business OF ma
tlonat banks will reduce the currency by perhaps
one hundred millions. The inference there
fore Is that with the return Of specie pay
ments we shall have circulating medium
OF not less than nine hundred millions.
Domestic prices, such as those OF wages, labor and
the like can hardly undergo any very sudden or
sharp decline. We may be able to buy foreign goods
more cheaply, but their very cheapness may tend to
repress the taste OF extravaganza for them. With
the volume Of money, whether coin or paper still as
large ~ 1t is at present the OF specie payments
hardly lead TO any crash crisis such predicted
by the more anxious class OF fnanciers. The vast
Development OF the country will require every dollar
OF paper money now in circulation This is already
felt In the demand for funds in the opening up Of the
country traversed by the Pacific Railway. A year
ago money in New York city worth only four per
cent Oh prime securities now 1t Is worth six per
cent on similar cOlaterals. too rapid falling or in
the premium on gold would be inimlcal to sound
business interests. Gold closed Saturday at 1885,.
Its proper price, taking all the circumstances into
consideration, Is about 133z. 1t was up to 145
by the great excess OF the imports over the ex-
ports and by q skilful speculative manipulation
or che fact. The exports are, it Is true,
some seventy millions less than the imports. But
Europe has taken from fifty to sixty millions of our
bonds in payment therefor, at about four-ffths OF
their value. There is still wide margin against u.s.
But itshoud not be forgotten that millions OF dollars
worth OF foreign goods have been sent here on COM
mission and are lying in bond at the large seaports.
They have not been paid for yet. They will not OF
course be returned, but they will serve to check im
portation during the rest OF the year, so that the
close OF 1869 Will show less disparity between exports
and imports than Is threatened by the headlong in
PRODUCTION OF foreign goods which has characterized
the past four or five months Again, the country Is
OF nana n'ho v.Dttta
cloud tdat can portend war; Minister Motley has
gone to Europe with instructions which will only
tend TO establish our peace with England on more
stable foundation. The Spanish question has adjust
ed and IL taking care OF itself. The range OF the
gold market during the week shown In the table,