The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-12-28
would make the sacrifice Of q valuable certainty for
contingency that might or might not realize els hopes.


would make the .soriacs Of valuable certainty for
contingency that might or might not realize tis hopes
At any rate let something be done and done prompt
ly, by the Congress Of the United States for hs
government Of the American territory Of Cslifor-
From the Journal of Commerce. Dec. I'll
CALIFORNIA ooLD-ITs EFFECT PRICES.
Much speculation has been INDUCED in, as to whs.
the money and industry Of this continent The money
is always q mere atom, compared with the whole mass
from the gross national productive capital aud the
annual exchanges OF property require the uses OF cir
oniatins specie The annual production and sales are
dollar Of currency, It Is supposed conveniently ma
what Ia annually produced and sold The money OF .
country therefore, bears slight proportion to the
whole mass Of property of which it is much less than
q hun dredth part)-a fact but little understood by
those who fear that the quantity Of the precious metals
inadequate to be relied the standard by which
to compare value and effect the exchange Of other
commodities. This proportion between the measure
f 1t may be so called and what 1t measures Is always
very nearly preserved; and consequently, when
addition is made to the amount of money 1t Affects in
nearly the same proportion the Manageable vaue Of
the great mass Of products Thus, IL the whole pro-
auctive capital of the nation equal to hun
dred millions OF dollars and the produce that
capital, and the annual exchanges amounted to per
cent or 81 900 900, assumed, not being urate,
but to state the poson) to manage the ira usfsr Of
this conveniently would require, in the shape Of circu
and 50 ia proportisn for larger amount Should this
sum- however, $500 000) be doubled 1t would, the
rule IalQ down, double tho eXcnAuXeaDl0 value
Of the whole property, (s1Oo ooooooJ provided the
annual crop and sales remained at seven per cent.
on the whole o i s + not at all likely howsvsr
added to the ncy Of the world but much of IL
will go into Ia the arts and thus not much affect
the value Of other commodities must also be borne
in mind that the with which 1t lie produced there
will induce Others less favorably situated withdraw
from its production else where and much Of what will
be produced in California will be required to make up
this loss 1t clearly shown that the efforts of tho
most important commercial countries to substitute
m
nished the production Of the latter that In 1885, the
poorest OF the agricultural establishments and the
worst OF the manufacturing In Peru and Mexico,
were more profitable than the very best Of the minng
The discovery Of gold in Califoroia win have effect
establishments in the world, and drive of those
engaged in them into other pursuits that will afford
better reoompenss for their Tsbors. These prnoi
pies necessary to be borne in mind In considering tho
question to be discussed.
Much light is thrown on the question by what occur
red of like character the discovery Of America
The stock Of money current In Europe
at the time Of the discovery Of America
There va: produced in liz years after '-'''''''
allowing for wear and for what went
into the arts and to Asia 4S0,000000
Leaving in the year 1900 ..... S65OoOoo0o
In liz wears the quantity of coin in Europe had,
therefore, nearly quadrupled, the effect Of which,
cording to Jacob, was to advance prices In Europe
about four hundred and seventy per cent.
The coined money Of Europe in l700, amounted 70
about 81 ASS, 100000.
The advance in prices during this period did not
with the Of the precious metals because
the industry of the world had become so much stimu
by addition to the money,
that the of commodities and consequently Of an
nua sales became greatly increased SO as to require
more mel ey to circulate them.
In the year 1910, the stock of coined money in Eu-
rope after deductng what had bsen used In the arts
and been sent to Asie amounted to 50 00000 900.
But although prices advanced within the ITO years
thirty per cent IL s difficult to say how much Of 1t was
due in the quantity Of ooiu how much
to the increased power given to Its circulation by Inn
proyemen in commerce. and how much to the guam
tity Of paper money and bills which within that Pc
TO ths prsssL time quantit In Europe Il
| suppose to have diminished
Another important element Is now to be taken into
| view.
The activity with which commerce h., been pursued
and its to the remote corners of the EARTH
extend greatly which is to be nfuenosd by
additions to the coin At the time Of the discovery OF
me Ell. cts were In great ossree local. ana
Europe On small population, and over only q limit
I'd area the relations between debtor and creditor
aIec ted intensely, and all property Those
who had been supported abundant aan uities, be-
came very poor although the annuitis, were nominal
ly unchanged. Those who held land leases for long
| terms at rents fixed before America discovered,
grew rch and the lessor had to part with his lands;
discovery OF the rich mines of Potosi it was unknown
in Europe to the great mass what 1t was that produced
such great changes IN their affairs Bishop t.ti@es
attributed it to Withdrawing land from cultivation, to
be used for the pasuage Of sheep to forestaers &c
and after stating the increased price of various COM
modties he adds These things with Others
uuressonsby enhanced, and think verify that II it
thus continue shall at length be constrsined to
pay for pgge, poundn In thirty years that price
reached and by distinguished writer Of 1881,
attributed to the same cause which Bishop Latimer
had mentioned 1t was not until the events were
calmly surveyed by those who looked back With album
dant means at command, that the true cause became
known.
The coin which was produced BY the discovery Of
America acted hundred and thirty millions Of
The present stock Of coin Of the whole world is est
mated at twelve thousand millions Of dollars and II
the whole quantity produced after the discovery Of
America up to 1910 were added q period of upwards
OF 500 yeas) the increase would BE- but abo1s ONE
sixth on the present stoek-an increase which would
be counterbaanced by the additions likely to be made
to the great in the world from the
extension going on In its industry and population by
which larger amount Of coin than now used will be
required.
Its law about money, that it goes where 1T is of
most value; that is to say where prices conpss-
lively Iowa law which, in the present state OF
msrce tends to equalize prices everywhere That Law
is operating In California, whittier pro-
ceeds to buy gold dust at $40 per This illus
trates the mpossblity Of having the gold from that
region act the prices Of only single section elise
where; and is some proof of the position, that the
quetton being considered is to examined as to
! the influence the gold now discovered wilt have on
the Whole stock OF precious metals and not that
part of it merely which we have in this euntry.
Although gold coin is not legal tender for debts n
several countries yet the relative value of gold and sill
the principal trading places the world is nearly
likely to be affected much by events occurring in our
newly acquired territories
The immense quantity Of the precious metals the
world, the extensive surface over which thsy are
spread their grea. durability the various Witch
they are applied and wtbb Increasing luxury, be-
COM spilled prevent the increase California from
operating TO the extent which has been by many sup
posed, or TO any great extent
This matter needs to be examined carefully, how
ever, with rtf-rence to the coinage The quantity
OF gold obtained from the UraI Mountains (Which
divide Russia In Europe from Russia In Asia) ha.
lately been Immense and IL IL supposed that the
Dual Ireduotion frem the whole Russian Empire
amounts to NEARLY 600 Russian pounds per annun
single lump found the 7tn Nov lSi2, weighed
81 Russiah pounds. The Auriferous Zone, a 1t
Is called, extends, with Gee asional interruptions,
between the 6oth and Goth degrees North latitude,
over line which one half longer than the greatest
breadth on Africa" Whether the production Of
gold IN 30 much greater than that Of silver, to
disturb the relative proportions between them depends
on facts not sufficiently within my knowledge.