Year: 1870

In the money article in the New
York Tribune of March 10, the writer,
after giving the fluctuation ofthe market
on the previous day, says:


1t is apparent to every intelligent OBJ
server that the market is governed by
no rules in this erratic course. The sim
pie fact is, any premium at all on coin is
now utterly unaccOuntable, and it is only
held in preference to currency through
force of habit. 1t is further clear that
gold is a drug in the market. We have
a greater supply than is needed for the
requirements of trade. If specie pay
ments were the rule to-day, greenbacks
would command premium over gold,
and no one would willingly receive coin
when he could get the Government
promises to pay. This is apparent from
the condition of the foreign exchange
market. The balance of European ex-
change is somewhat in our favor, and
bills on England are carried about Wall
st. in search of purchasers. This ex-
change represents gold. 1t is the medi-
um through which in former years we
have paid for our surplus impertatio ms.
This year we have shipped cotton abroad
i'm lieu of gold, and with our bonds rap
iuly dppleCidIiuS III Sdiuc, duu huuihS
ready purchasers throughout Europe,
and must send its gold to this market to
settle the balance. Hence it is that the
premium stes dily but surely declines,
and must continue to decline, until it
reaches par.


The tendency to this desirable result
is only retarded by popular buterroneous
han nf rni al
disasters. The prevalent idea is that all
values must decline in exact proportion
to the premium ON gold. This is on
ly measurably true. The current prices
of most staple merchandise inflated DUR
ing the war have already been approx
mated to gold standard. Other goods
have been recently put down by the
merchants in anticipation of the de-
cline in gold. AS a matter of fact the
most of our merchants have put their
houses in order, and made such full prep
aration for the inevitable return to q
specia basis of trade that they will be in
no serious manner affected by it. Real
estate will tumble; but there is room
for it to tumble. Spectators in grain
will suffer undoubtedly, but professional
spectators must inevitably suffer when
ever gold goes to par. They can suffer
'and bear it as well now as at any time.


1t is is idle, however, to speculate on
what is coming. Wall st. battles all
representations, and is As uncertain as
the weather. the great decline has
been brought about without any organ
ization, and at the present time there is
no combination either to put up or put
down the premium; and if the market
shall continue to be let alone the premi-
OF m al haf fnr M q "
more days.


1t is gratifying to notice that the
progress toward specie payment is be-
ing attended with SO little inconveni-
ence and embarrassment. At first the
result was to paralyze trade. Last
week our importers and wholesal mer-
chants wore long faces. Customers were
few and shy. Country dealers were
come into the market. But all this has
been changed. Buyers have been more
numerous, and business has been fair.-
The lateness of the season compels the
country merchants to seek supplies fer
their SpIing trade, or forego it altogeth-
er. Hence they are buying. though ap-
parently on a falling market. Therefore
they buy light. But the fact of so many
being behind hand in their purchases, +,
and that all are now rushing in to Sc
cure their stocks at once, makes brisk
and driving business. Some of the
heaviest buyers, both from the East
and West, are yet to come, and a good
trade may be looked for for several
weeks yet, which will greatly assist the
smaller class of merchants in getting
over the temporary embarrassment con
sequent upon the decline in prices.