The Express.
London, England, 1849-01-08 00:00:00

• . see • is • IP'
1,111•0 • ' ' 1114-•
; • 11% • mh
OS• eweefini w itt 1.10
• • • sum
• •
plies! v is-7. YU • • thd can to bay
the precious nodule in say quantities; and is only
the richest of all countries that can afford s metallic
tri=l'ld. Bat then it is equally obvious that
belhot and.-most materially affected
by adi itegeand sadden moduli= of her standard
of vales; far though America would be enriched by
the fie, of the precious metals within her own
tertitthies, it is only because she would possess a
,largee fowl to exchange for more useful and necessary
?fagots of labour. Oold is only valuable in mepor-
ties to its whangsable capacity, and the -United
States would therefore send to Europe all the gold
t which their necessities did not require ; moreover, it
mould flow out of America naturally, by the ex-
bhailges favouring its exportation.
The adopt of specie which has lately passed
through this country, chiefly consisting of silver
bullies and coin, has been unusually large, and yet
without causing any material variation in prior--a
cfreamatuce rather extraordinary, happening as it
a 9094 to. of continental revolutions, and other die-
thrhdruses. If rich countries only can afford to
buy ;positions metals, how is it to be explained
that when the same coat tries are paralysed by revo-
lution, and credit Wet a low ebb, a greater demand for
silver should exist than before ? Without pretending
,to any accuracy on the subject, we may presume that
several causes have concurred to increase the move-
•nesiil of bullion from country to country : such as the
low state of credit and want of confidence that with-
draw from bills of exchange their ordinary security, and
the practise pf hoarding which instantly springs up
when the small black cloud is seen on the horizon. A
smaller circulation of metallic currency is required in
times of peace and prosperity, than at other times;
for credit in the one case becomes a kind of currency
of itself., When prosperity ebbs, gold and silver
leave the provinces and flow back to the heart from
whence they were propelled—the Bank of England.
With regard to gold, we may here observe that
within the last forty years a new source of produc-
tion hu time to light, unknown to our forefathers,
which, no doubt, has tended to keep op the supply in
Europe. The discovery of the art of refining silver
by sulphuric acid, or of separating gold from silver,
with which it is found incorporated, at a out far
less than by the old parting process with nitric acid,
his brought every grain of gold into profitable use,
where the contents in the silver exceed the expellees of
the operation. Thu, if we suppose twelve grains of
gold per pound weight to have been necessary to pay
the wet of the old process, less than three grains in
each pound of silver not only pay the expense of the
operation now, but leave a profit to the refit er ; and
thus it may be said that full twelve grains of gold, or
iavalue two shillings, have been recovered, which
were formerly lost; and this upon
.the vast amount
of silver containing gold must have been during the
lad forty years very considerable. The firms silver
frem China held twelve grains and more, which added
nothing to the value of the silver where it could not be
extracted ; but in Europe the gold enhances the value
by nearly the whole contents.
It is not easy to affirm the amount of gold which
would affect the value of the precious metals in Eu-
rope : but assuming that the mines at present ade-
quately supply our demands, and equalise from year to
year the quantity withdrawn from circulation, and lost
by abrasion and other causes, we should say that it
is quite possible the treasures of California may
effect such a result. It was a considerable time
after the discovery of America before the increase of
the precious metals was felt sensibly in Europe.
Twenty years and more had elapsed, even after the
discovery of the rich mines of Potosi, before any sen-
sible rise took place in prices. ADAM SMITH says
the effect was scarcely felt before 1570. But then it
might to be observed that the precious metals had
been gradually diminishing; that mining. was little
understood ; and that increasing civilisation among
mankind tended to a greater use and consump-
tion of the precious metals. Before the mixes of
America opened their prodigious treasures to the
cupidity of man, the proportion of silver to gold
was as 12 to 1 ; now it is 15 to 1. The amount of
silver therefore increased in a greater ratio to gold, as
might have been expected. The relative amount of
silver to gold has been computed at about twenty-two
time, mow ; but there scarcely can be any doubt that
thaproportion now is far hither, probably 50 to 1.
The best testimonies agree in the opinion that the
relative proportion in value is no measure of the rela-
tive quantity of the precious metals. All experience
confirms that opinion ; so that, in considering the
influx of gold into Europe, there are elements which
enter into the calculation beyond supply and demand.
Nevertheless, it appears probable that, considering
the limited market for gold and the extensive market
far silver in Europe, any considerable influx of
gold, while silver remained as before, would even-
tually change those proportions on which our
standard is based. The value of silver would not
fall, assuming the supply and demand to be
equalised, but gold would fall in relation
to silver, and the proportion of 15 to 1 could
no longer be maintained. Then prices would
rise of all articles now estimated in our curreccy— •
i.e., in ounce of gold would exchange for less than at
present. And, assuming the price of silver to keep up
as heretofore, about ss. an ounce, our soverign would
be valued less in other countries, and all exchange
operations would be sensibly affected. The only coun-
tervailing influence in the reduction of gold to, say,
only double the price of silver, would be an increased
consumption in articles of taste and manufacture,
which, however, can only be speculative and unc =rain.
It is said by the list accounts from California that
500 miles lie open to the avarice of gold hunters, and
that some adventurers have collected from 1,200 to
1,800. dollars a day; the probable average of each
man's earnings being from 8 to 10 dollars a day, or,
let us say, 21. sterling. The same authority avers
them is room and verge enough fir the profitable
working, to that extent, of 100,000 persons. And it
is likely enough before long that such a number may
be tempted to seek their easily-scquired fortune in
the golden sands of El Sacramento and elsewhere.
Now two pounds a day for each man would amount
to 200,0001, which, multiplied by 300 working data,
will give 80,000,0001. a year! That is, 800,000,0001.
in ten years! A fearful amount of gold dust, and far
more than enough to disturb the equanimity of ten
thousand political economists.
- - - • •

The gold utensils found among the simple-minded
and philosophic Peruvians (who wondered at the eager
desire of Christians for what they scarcely valued),
will be esteemed trifles with our golden palaces,
and halls paved with gold, when California shall have
poured this vast treasure into Europe. When
we conceive 100,000 gold-finders, we think it
possible; and when we bear of each man gaining
two pounds value of gold each day, the amount
seems too small to excite our surprise; but when we
ilemploy old COCKER to realise the result of a year's
working, then we produce something infinitely sur-
passing those fabulous countries where gold was a
common thing, and the works of those enchanters who
had uncontrolled command over exhaustless treasures.
Assuming in round numbers each 2,00011 w., or troy
ton, to be equivalent to 100,00 W. sterling, the above
amount in one year would represent six hundred tons,
and in tee years six th.usand tons of gold! The ima-
ginadhn 0 all-plodding industrious England is in-
capable of grasping so great an idea!
Cad there be any doubt, then, of a revolution in
the value of the precious metals? So far from this
prodigious amount of gold being necessary to that
end, we lave reason to think that a ten.h part, or
six millions a year, would materially effect a change
in prices ana exchanges. It is more than probable
that the produce of the Russian mines alone, which
is very great, though not on the increase, is adequate
to supply the whole manufactories of Europe, and
compensate for wear and tear of articles in use, and
abrasion of coined money; so that six millions ster-
n* a'yell i 'thrown upon the market would be a
superfluity..
In judging of the produce of California, as a new
source of supply to meet the probable exhaustion of
the Russian mines, and the falling off of those in
Brazil, which do not appear to defray the outlay upon
them, we must bring experience and probability as
our guides. Mining has always, we know, been a
precarious operation, ruinous generally to individuals,
but always adding something to the general stock.
And if Ste take as an example the actual
produce of Spanish America, which excited the
same sanguine hopes, aid compare the probable
prods.* of, California, as estimated on the preceding
data, which exceeds by far the whole from that