The Sun.
London, England, 1863-10-20 00:00:00

shillingsma y y e aar s
quarter previously,fo r
four no t ho
ra v ifinvge fluctuatedlmf or me thv
iaenw twob
e
nt aokwe na
stcheartt a
igno
bl gold
enxepveerri e
ucceano
fbteh
ei nfcarcet as swe
ill swo h aerh aws
ewa
re e can
now ascertain by experienceof the factswjth whichwe are ac-
quainted, beyond the rate at which we have to give value for
it, then so long as gold is only produced with the labour, or
equivalent value, it will only be,as I have said, accumulated
capital, and have little direct bearing upon prices. It goes
into every part of the globe as a representative of wealth—
it may be in the shape of coin, bullion, plate, jewellery,
gilding, or whatever other form the requirements of luxury
may cause it to assume—and that vast quantities are used
in these purposes is unquestionable. Thirty years ago the
quantity estimated as used in manufactures was £3,000,000
and the increase of population and wealth and luxury must
have greatly added to this amount. I believe that the in-
crease of the precious metals does not so materially affect
prices as is usually supposed. For 30 years I have been a
merchant and close observer of these matters,l have noticed
that for a series of years prices generally advance, they
reach a certain maximum, and again recede, and gradually
descend. This is quite irrespective of any circumstance,
such as the American war of the present day, which would
give us a solution of the matter. The real cause of these
regular rises and falls I have not been able to ascertain ;
but of this I have satisfied myself, that it is not connected
with the supply of the precious metals. I have ventured
to bring forward this subject, for if my paper has no other
effect, it may probably excite discussion. I am quite aware
that objections may be raised; one which probably will be
set forth in the rise in the rents and value of land in this
country; and, but in a less degree, of labour and cattle.
Yet the rise in the annual income from land, and of the
real value in the market, rather bears out my arguments.
The rate at which land sells has certainly increased in this
country, but not everywhere, as in many places it has been
falling in price. The causes are to be sought for the rise
here in the great increase of population, the skill and
science of our agriculturists, and the consequent superior
appliances which have been brought to bear on the cultiva-
tion of the land, so that it has been made to yield a much
which persons
in m
tso e casenteretsatinhroefeftohled a
s;
tand b
ilitaylseof
ttomoh hotserherecountry,confidenceremunerative
countriesiotwii invest gv
ns
ta ni
ty herewith ;
and capital
13. t
coo wn
si tehq dureanwe
ei to
ff from
higher civilisation, greater stability, speedy railway commu-
nication, by means of which the most distant parts of the
kingdom have markets brought to their doors; and by the
blessings of Free-trade, which admits of unrestricted com-
munication with all parts of the world, Credit has, after
all, caused the rise in land here ; for the belief in the stabi-
lity of our institutions is in fact credit. A man could buy
land for a mere fraction of British prices in countries whose
institutions are attenuated or have decayed, such as Italy;
or where no confidence is placed in the stability of Govern-
ment. Land was bought in France during the Revolution
at a mere song. In Africa, and some parts of America and
Asia, thousands of acres may be had for a fe iv toys or knives
—yet no one desires it, because, destitute of the appliances
which we possess, it is useless. Briefly, then, the rise in
labour is from the facilities for emigration of recent years,
which has equalised the rates between England and her
colonies. The advance in the value of cattle is more from
their increased weight than from the value of the beasts per
head ; and is from the superior knowledge of breeding and
feeding, while the demand for meat has gone on increasing
in consequence of the advance of wealth and civilisation and
the superior quality of food used by the middle and lower
classes; and that the rise in prices has not been caused by
an increase in the precious metals so much as from other
causes, for this country never had prices so high as when it
had to suspend payment in specie. The paper was as good
as gold, although itself of no intrinsic value. The great
panics in this country and elsewhere have sometimes been
attended with an abundance of the precious metals. Were
the standard of value a Government paper currency prices
would not alter so long as the credit of the Government
remained secure. Many of the Governments of Europe
have a very large portion of their currency in paper
not convertible. Russia alone has 100,000,000, and
Austria and other countries on the continent very
large amounts. They would prefer to have gold,
and will replace either by gold, or paper convertible at
pleasure into gold, which must therefore maintain its
value while this is being accomplished. So long us the na-
tions of the world can obtain it, they will secure it for future
emergencies, and, unless obtained at less cost, it is not likely
to become of less value. The great test of value in Scotland
is the price of corn, as the stipends of clergymen and many
other public payments are founded upon it; and I think to
Scotsmen, at any rate, the fact that it is stationary is pretty
strong evidence that gold is not falling. Free trade, steam,
and the advance of intelligence, national emigration and
c.)lonisation, will tend to prevent the very undue rise of
prices.