The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-02-05
The Eject OF the Gold Mines OF California
on tho supply OF Precious Metals In the
World.


ON the Supply OF Precious Metals In the
From the London News, Jan 81
In the descriptions of gold mines and rivers
flowing over golden sands, we must be prepared
for little overlooking and exaggeration. Mines
have always excited sanguine hopes and dreams of
exhaustless wealth; but they have as often been
followed by disappointment. The tongue wakes
eloquent on SO allurng theme. and the chance of
failure Is never once contemplated The dlsap-
pointed hopes OF former advenrurers, the dear
bought results OF experience, have little effect In
damplng the ardor Of those in quest of mineral
treasures. Mines are still rich, or still abundant,
and dividends In prospect always large; but the
reality eventually proves only a shadow Of the ex-
pecta'ion. The abstract calculations Of the poll
tcel economist, who closes mine the moment it
yields no profit, are contradicted often by expe-
rience, and we see mines now in South America
producing gold and silver abundantly, which give
of working exceeding the value of the produce.
Now, If the descriptions of the golden treasures
OF California be true, another element comes into
the calculation never anticipated by the economist
are found scattered on the surface of the earth,
and the fortunate adventurer may enrich himself
"beyond The dreams OF avarlce," almost without
labor, without capital, and with no care but what
the paths OF industry, he digs up the rich sand
with a rude instrument, washes II In us.ensils
equally imperfect, and discovers PARTICLES of
glistenng gold, as sediment, which repay him
principle that the value of the precious metals,
like other products of industry, is determined
primarily by the cost of production, and then
by scarcity, ideas OF utility, convenience, and
such like, seems to be neulr ased by this new dis
covery; and assuming that the precious metal is
found in anything like the quantities represented,
1t becomes curious question how far such dis
covery may eventually affect the value Of gold and
silver In Europe, elected standards OF value or
measures Of other things by certain peculiar attr-
butee, such as regularity of value and comparative
lndestructlbility and it is also worthy of inquiry
how Jar industry and production may be excited by
sudden and unusual increase Of gold; for there
can be no question that at least temporary stl-
muus Will be given to manufacturing industry,
though II cannot be said that the mere increase OF
the precious metals without respect to other things,
the abundance Of gold flowing from America to
Europe be such as 10 exceed the demand, the
value Of gold will fall, the price Of all other COM
modiies relatively rise, and the proportion between
gold and silver be disturbed, so as to affect the
standards OF value In each country, and the par Of
exchange between one and another. The steadi-
ness and regularity of price Of both metals which
nave prevailed 10 our experience, may not prove
the regularly OF supply from the mines; but they
certainly prove that the progress OF cvsatlon. the
increase OF wealth. commerce al entercrlse nd other
coenate couses, have by degrees absorbed a nv gu
peffiulty OF the precious metals. The increase of
wealth In modeI nations, almost universal, has
greatly increased the consumption Of the precious
metals in manufacture; and we may Reasonably
infer thst the calculations put forth twenty years
ago, Of the actual withdrawal of gold and silver
from circulation, and their absorption In the arts
are far exceeded In these times. Every one is
cognizant Of the vast increase OF gold watch cases
here, and especially on the Continent; and we NAV
undertake to cay the amount of silver plate Is very
much greater than it was fifty years ago.
There is no doubt the productiveness of the
silver mines greater and more regular than those
of gold, and the tendency would be slight varia-
tion in The relative proportion; but the enormous
ipcy nj oilve 0p he Cor
United States and even IN India and our own colo
NEE. has kept The price OF silver little below IS
an ounce. On the other hand, our stancard Of
value being gsld only, with the exceptional case OF