410 



FINANCES OF THE UNITED STATES. 



highest, of themselves were of little influence 

 in stopping its rise. They served, however, to 

 turn the current of speculation from operations 

 for a rise to operations for a fall, which caused 

 gold to become cheaper, and therefore to favor 

 the interests of those who sent it out of the 

 country, thereby producing ultimately a greater 

 scarcity of the metals. It is obvious, that with 

 the rise and fall of gold the value of all goods 

 was changed in respect of the foreign trade. 

 A fall in gold favored remittances, and stopped 

 the exports of the regular produce of the coun- 

 try, because it lessened the ability of the ship- 

 per to sell his bills, and it was equivalent to a 

 virtual rise in the price of imported goods. 

 It nevertheless affected business, because buy- 

 ers of goods claimed a reduction in the prices 

 as the consequence of a lessened cost of im- 

 portation. It also by its effect on the prices 

 of stocks caused a large amount that had been 

 held abroad to come home, and induced the 

 realization of a considerable amount of debts 

 due here to foreigners, who seized the moment 

 of a favorable state of exchanges to get home 

 what was due them. The decline in the price 

 of gold then checked the exports of produce, 

 induced capital to leave the country, and stocks 



to come home, and promoted the export of 

 specie, all of which caused a renewed rise in 

 the price, which again reversed the movement 

 of international trade. It has been seen in the 

 table of prices above that commodities did not 

 fall so much as gold, for the reason among 

 others, that there was no depressive specula- 

 tive action exerted upon them. The renewed 

 rise in gold was simultaneous with a very ac- 

 tive fall trade. The rise in bills induced active 

 shipments of produce which enlarged the sup- 

 ply of bills. The same cause promoted an ac- 

 tive speculation in exchange. The rapid rise 

 induced numbers of operators to buy in order 

 to benefit by the rise. But the large importers 

 had also provided for their own wants by buy- 

 ing options of bills from banks, who covered 

 their sales by purchases of commercial bills, or 

 by the export of gold. The season was, on the 

 whole, a very successful one with merchants, 

 and closed with smaller stocks of goods on 

 hand than in many former ones. 



If there was little speculative action among 

 merchants, there was a great deal among stock 

 operators. The transactions under each gen- 

 eral head for each month through the year are 

 seen in the following table : 



SALE OF STOCKS AT THE NEW YOEK BOAED. 



The approximate value of the transactions 

 for the year was $1,437,075,050, against a value 

 of $651,090,165 in the preceding year. The 

 transactions, as measured in number of shares 

 sold, are by far larger than ever before. There 

 was some subsidence in the quantity of public 

 stocks that changed hands. These were mostly 

 State stocks. The heaviest transactions were 

 in the months of May and October. The coal 

 stocks were greatly affected by the invasion of 



Pennsylvania by the enemy in the summer. 

 Many, who had invested largely in that descrip- 

 tion of property, rather than to trust promises, 

 were, alarmed, and sought other material wealth 

 as a means of investment. Nevertheless, the 

 continued and rapid rise in coal sustained the 

 desire to hold that description of property, and 

 the values again rose after the retirement of 1 " 

 enemy. The following table exhibits the qc 

 terly returns of the New York city banks : 



NEW TOEK CITY BANKS. 



