The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-02-05

to the Continent. There being no market Ia Eng
land Tor any considerable Quantities Of silver, the
foreign demands have been supplied and, on the
contrary. there being no considerable market tor
gold abroad, the price would tall, if sur standard
the mint price Of gold here-es lis. lloyd. an
ounce-and the price at which the Bank Of Eng
land are compelled to PURCHASERS lie. 3d. an
ounce-are causes which not only regulate, but,
within certain limits, determine, the price OF
gold throughout the whole world Suppose, for
a moment, the circulation of England, exceed
ing thirty millions, and the bank store OF fif-
teen millions, to be thrown on the markets
OF Europe by an alteration OF the standard. OF
vaue-how material would be the fall In price!
II is only rich countries that can afford to buy
the precious metals IN any quantities; and It Is
only the richest OF all countries that can afford
metallic currency OF gold. But then 1t is equally
obvious that Eng land would be first and most ma
terially affected by any large and sudden produc-
hon OF her standard OF value; for, although Ameri-
ca would be enriched by the discovery OF the pre-.
cious metals within her own territories, it is only
because she would possess larger fund to ex.
change tor more useful and necessary products of
labor. Gold Is only valuable in proportion to it's
ad to snd ne ali aod
which their necessities did not require more
over, 1t would flow out oil America naturally, by
the exchanges favorlng lts expo' tauon
The amount of specie which has lately passed
through this country, chiefly consisting OF silver
bullion and CON- mas been unusually large, and yet
without causing any material variation in price-a
circumstance rather extraordinary, happening as 1t
does IN lace OF continental revolutions, and other
disturbing II rich countries only afford
to buy the precious metals, how is it to be explained
that when the same countrles are paralysed by re-
yoluton, and credit Is at low ebb, greater demand
Tor silver should exist than before? Without pre-
tending 10 any accuracy en- the subject, we may
presume that several causes have concurred to in-
crease the movement of bullion from country to
country: such as the low state of credit and want
hal w nj q
their ordinary security, and the practice of hoard
ing which instantly springs up when the small black
cloud Is seen on the horizon. smaller circulation
OF metallic currency required in times OF peace
and prosperity, than at other tunes; tor credit in
the one case becomes kind OF currency OF itself
When prosperity ebbs, gold and silver leave the
provinces and flow back to the heart rpm whence
they were propelled-the Bank of En- land
With regard to gold, we may here observe that
within the last forty years new source OF prOduc
ton has come to light, unknown to our oreathers,
which, no doubt, has tended to keep up the supply
IN Europe. The discovery Of the art of refining
SILVER by sulphuric acid, of separating gold from
silver, with which it is found incorporated, at a
cost tar less than by the old parting process with
profitable where the contents the silver exceed
the expenses OF the operation. Thus, If we ST..
pose twelve grains of gold per pound weight to
have been necessary to pay the cost OF the old
silver not only pay the expenses OF the operation
now, but leave profit TO the refner and thus it
may be said that full twelve grains of gold, or In
value two shllhngs, have been recovered, which
of silver containing gold must have been during
the last forty years very considerable The Sycee
silver from China had twelve grains and more,
which added nothing to the value OF the silver,
where 1t could not be extracted but In Europe the
gold enhances the value by nearly the whole con-
tents. t1..
1t IS not easy to affirm the amount of gold which
would affect the value of the precious metals In
no fhaf he mil me- at nrea N
adequately supply our demands, and equallze from
year TO year the quantity Withdrawn from clrcu-
lahon, and lost by abrasion and other causes, we
should say that quite possible the treasures of
California may effect such result 1t was con-
siderable time after the discovery OF America be-
fore the increase OF the precious metals was telt
elapsed, even aftsrthe discovery of the rich mines
of Potosl, before any seneible rise tosk place In
prices Adam Smith says the effect was scarcely
felt before 1870. But then it ought to be observed
mnishIng; that min ng was little understood; and
that increasing civilization among mankind tend
ed to a greater use and cone umptIOa OF the
precious metals. Before the mines OF America
pIdity OF man, the proportion of silver to gold
was IL to now ii is Is to l. The amount OF
silver, therefore, increased in greater ratio to
gold, as might have been expected. The relative
about twenty-five times more but there scarcely
can be any doubt that the proportion now is far
higher, probably 90 to l. The best testimonies
agree IN the opinion that the relative proportion in
value Is no measure Of the relative quantity of the
precious metals. All experience confirms that
opinion; 80 that, IN considering the influx Of gold
into Europe, there are elements which enter into
the calculation beyond supply and demand Never
limited market for gold and the extensive market
for silver in Europe, any considerable influx OF
gold, while silver remained as before, would even.
tually change those proportions on which which our
fall, assuming the supply and demand to be
equallsed; but gold would fall in relation
to silver, and the proportion OF 10 to could
rise Of ali articles now Estimated in our
II. e., an ounce OF gold would exchange tor less
than at present. And, assuming the price Of sill
yer to keep up as heretofore, about 5s an ounce,
tines, and ali exchange operations would be sen.
sIbly affected. The only countervalllng 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, how
ever, can only be speculative and uncertain.
It's raid, by the last accounts from California,
that 500 miles lie open to the avarice OF gold hunt
ers, and that some adventurers have collected
from 200 to ECO dollars day; the probable
$40 day, or, let us say, CO sterling. The same
authority AYERS, there is room and verge enough
for the profitable working, to that extent of 900
persons, And il Is likely enough, before long,
tnat sucn NUMBER may De tempted 10 seek tnelr
easily acquired fortune in the golden sands of FL
Sacramento and elsewhere. Now, two pounds
day for each man would amount to Goo, 900,
which, multiplied by 300 working days, will give
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 phllosophic Peruvians (who wondered at the
eager desire Of Christians for what they scarcely
valued,) will be esteemed trlfes with our golden
palaces, and halls paved with gold, when Califor-
MIA shall have poured this vast treasure into
Europe. When we conceive 100000 gold finders,
man gaining tive pounds value of gold each day,
the amount seems too small to excite our surprise;
but when we employ old Cocker to realize the re-
suit OF a years working, then we produce sone-
thing infinitely SURPRISING those fabulous countries
where gold was common thing, and the works OF
those eDchanters who had uncontrolled command
over exhaustless treasures. Assuming, In round