Year: 1875

eDecie to terminateY Wnat ID Vo orinB ~ w
an endf Clearly not the "baance OF trade"
by which we mean here an excess OF mer-
chandise exported over merchandise imported'
The months during which the drain mas pech
in progress are the three Of the whole twelVo
in which our exports are most III excess Oh
the imports. The cause OF this Outflow
of specie is clearly the importation OF
securities, mainly United States bonds.
The currency prices of United States bonds
are higher than they have been at any time
since the war, and the tendency is still up
ward. There is, for the time being, lack OF
safe and productive investments for the saw
ings of the country. People are not now
looking out for railroads, iron works or fac
tories. or even real estate in which to put
their money. For the present United States
bonds are as profitable and safe an Quiet ior
the "lOanable capital' of the country as the
market affords. Bat in the existing state oi
things, the bonds must be imported from
Europe. and thus the exchange is turned
| against us.


| We by no means wish to be understood rs
regarding the export of gold as an unmixed
evil. 1t is strictly in accordance with the ln-
| evitable laws which govern trade. But 1T Is
| not at all imperative that the drain of go Id
should continue indefinitely. The premium
! has already advanced about three per cent,
and if it continues to rise we may either cease
| TO import bonds OF we may pay for the I'M
ported bonds by increasing our exports OF
cotton. grain, and provisions, or even by sell
! ing manufactured articles in foreign markets.
IL is quite clear that things cannot go on
much longer as they have been going. for our
stock of gold would be completely
exhausted. The state of trade ami crcdlt Is
such that the demand for United States bonds
will be strong for some months to come, SUD-
iect to temporary interruptions, perhaps, from
capricious advances OF the gold premium
The merchandise import trade is about As
much reduced in volume as, judging from past
expericnce. we can reasonably expect to see


it. After our surplus stock of gold has been
carried of. what means will be left us Of
settling our liabilities to foreigners but an


increase of our exports What other Instru-


ment have VIC of augmenting our exports out
an advancing gold premium


A higher premium for gold is strictly in ac-
cordance with all the facts Of the commercial
and financial situation, and also with the new
| UOllCS or tue secretary VI tfit lltdouisJ IL d"


guess may be hazarded as to what that policy


is, OF is to be. The gold sales have been
stopped, while the commercial supply Of gold il


lower than it has beon at this season of the year


since the suspension of specie payments. The


great reservoirs of Europe, the Banks OF En-


gland, France, and Prussia, are all kept wide
open to swallow up every eagle that we can
spare The Imperial Government of Germany
| is determined to get rid Of its silver coin and
substitute gold in place of 1t, whether I" the buS-
"ness interests" suffer or not. Unless this Cou-


try is prepared to undertake resumption in 1872
without anything to resume with, the tide OF
specie must be turned in this direction. The
only means left at the disposal of the
Secretary of the Treasury for accomplishing
such q feat is the boarding Of coin III the
| Treasury. If he locks up the coin the pre-
mum on gold must for some months. If not
years to come, be higher THAI it has been OF
late. This will doubtless be productive Of
many Inconvenience to the community, the
severity aud extent of which it is impossible
to forcsec Let il be remembered, however.
that if an incOnvertible currency had not its
inconvenience there would be 10 reason for
even wishing ever to see payments in specie
again.