The Press.
London, England, 1853-10-08 00:00:00

THE PRESS.

ductiun of free trade, have depressed this com-
modity below its natural level ; but a slight
detieieney iwour harvest, do mgh accompanied
with heavy crops in ditterent parts of the Con
timid, hum suddenly overcoma the depression,
and given a great linwtus to prices. (}rain is
now relatively as high, as most other commo-
dities. _ _

"rhe risen our markets is the more observa-
ble, as„they are now, by the removal of fwd•
fieiul restrictions, on a level with those of other
parts of the world. The advance on the Con-
tinent must have been felt more severely than
here, and it would be curious to compare the
rates of produce generally in the chief Euro-
pean marts with the average suttee 1s1).
Seeing how nearly the rise has corresponded
with the greatly-increased production of gold
since the discovery of the mines in California
and Australia, we can scarcely escape the con-
clusion that ono is intimately connected with
the other. The production of gold from the
new discoveries last year was probably four
times the amount of that from previously exist-
ing sources ; and it is a most moderate com-
putation to assume that Australia will now
send us gold to the value of at least one mil
lion sterling per month, which is about double
the amount that was estimated to be raised
throughout the world, previous to the first dis-
covery on the banks of the Sacramento.
As the price of gold is fixed, or remains at a
certain nominal rate—our pound sterling al-
ways comprising the same quantity, while
other commodities may by that standard rise
or fall to any extent—it appears certain that,
with any large or continuous increase in the
amount of gold, our prices must generally
continue to rise, though they may be subject,
from partial causes, to very considerable flue-
tuation. The diminution of the stock of gold
held by the Rank of England is only a proof
that the metal, as a circulating medium, is dif
fused more generally through the world ; and
it is a rational inference that, as that universal
stuck of gold which previously formed the
money, or medium for the exchange of COM-
IlleditieS, is increased, the commodities which
the gold represented will advance in value.
In other words, if the stock of gold from new
sources of supply be increased to the extent
of 30 per cent., that commodities generally
will advance to the extent of 30 per cent. also.
We believe that most practical and thinking
men concur in this reasoning, though there
are not wanting authorities to dispute it. The
course of events, however, superior to all de-
ductions of theory, is showing with sufficient
distinctness that nearly all kinds of product
and manufacture are rising in value as coin-
! pared with their standard ; and thus the effect
which was anticipated from corn-law repeal,
—and which, in fact, did for a time take place,
—is now being completely reversed.
Perhaps, as a body, the agriculturists of 0111•
kingdom were never better satisfied than with
the present state of things. Making their ar-
rangements on the supposition of a fall in
price, they are gratified by a rise far beyond
their expectations, and beyond what could
have been expected from the partial deficiency
in their wheat crops. Their prosperity—as it
will certainly give a wholesome stimulus to
industry, and lead to increased prottuction—
must ultimately prove to the advantage of the
country at large, though net without disturb-
ance to the relations of society.
There appears a strong probability that, so
long as gold continues to be produced at its
present rate, prices generally will continue to
advance, though the advance may be of a fluc-
tuating character. The question, from its do•
mestie importance, and its bearing on the com-
fort of families, or on industrial interests, is
fast assuming a shape to deserve very serious
consideration.