The Arkansas banner., 1849-01-16
MORNING, JANUARY I6. 1879,
Icof.D.

EtAanclefS are efttaYsDE ttcir laEehufty tn feFe- tsElipg the azsef ofa fucTeaza in the qnAntity of geld upon the cnrrtcy sssl business cf tho conn tfy The authors ont seem 10 have any very definite iaea to q yalpe cf gold and sfgsers ef as to what will csicdit These metals have se.s. i've value. ss oihchricies of use have which ttse or fall as that Of otr articles do according 10 thsir plenty or scsrceness Suppose thefs he ROW In lhs world goid to shr a3o6nt of two thonsaad millions ofponnes-a very iage antimate, by the way, per- haps one-han gUIa9e. and thssappiy from sources heretofore known i$uificien to make up for tho annual cotsumptionof wear and tear. and suppose the mines recently dcovered in Califofna will add EsV,o08VeU mora P annum, it Will require only twenty years to add5U per cent to the snoant of gold now h use. Ifs not probable that other pro- ductiehs will be inctassd tO the same amount, or onehaf Of IL; so ihaiiis relative value of gold muA depreciate. In the hnpecase vicinity of tue gald region, the effect of ii abundant supply is felt ane seen. Wages arc e&rayggant A lientenaui says he gave his months aagesfof barrel Of -four. His fnonth's wages In gold AsuRted but little where every one had his pnc esa fail To De sure, thls state of things wilLnet last iong h California The markets will soon hssupgled with tued and cicth- Ting. astis teiy pfico fissn at they are hure, with inc usual profits h tssde, but the iacressed S1pply iR ihewotd wiif diminish the value of geld, 1t s distributed. 1his depreciation will be slow, and It's effects will Dc te give us geld currency.
 By law certain amount of geld Is a icgni tender for given pecuniary obligation. Debfs wlH ei course be paid in gold in refercnce to siIver and silver will go out of circulation. In l7I7, guinea was declared ia England b be 2l shfIlinrs. This over.vaiued the gold in tts guinea by from one 10 two per cent. The consauence was that gold be. came the currency, and silver disappeared. An op posite effect took place n France where silver was over valued; so nice Is the value of those metals adjusted in com,nerce-a value which arIses en- tirely from the supply. Indeed our gold coins are said to be over vaiued a, resent by about per cent
 Tn England ( is li39ol gralns troy of pure gold. and ( Is 1914 545 sains troy oi pure silver that by the standard the value of silver Is to that of gold as l to IA23t b the United States an eagle is 2322 grains pure old, and ten dollars are jnst 37l35 grains pure silver. By our standard, then, silver Is to gold as 10 l6.s90. which over valncs gold as we have Aid. Tue effect of thls is to substitute gold for silver currency. Benions gold bill has thus prediction of ifs author that tit would make gold fbwup the Mississippi Our gold coin passes for something more than Its real value, and if bank paps was out Of the way. the eff ct of making gold the.urfency would be obvious by the quan,ity in circliatisu.
 Silver Is oyer-valuad legally in England, and would soon he the excluSve currency of that coun- try, but for the fact that tuot legal tender for any sum over 4D shng
 Now If our standard of gold remains, and this supply m California Is a grsat bs It appears 1t may ba from recent and apparestiy authenticated &C., counts gold will necessarily depreciste in value several per cent per annin. Another effect will be, the increase of importation. of foreign goods; for the supply of gold will be frsf felt here. in high prices and shallow economists will terrify them selves with ie enormous exports of gold, which is always 10 rnin the country
 All this may bs mere srsuiatIon The supply of gold from these new mIes may not be so ma teriai us all accounts ncw hdicate; and at xny rate tho process vii moi 70 apid 10 derange the business of The country, an no revulsIons will fol- iowi for an additional sapIIv of gold Is not like overissuc o bank paper. lhistslier only indicates that the people realty tn debt to the banks aad the banks In debt 10 them Tome begin to fail und all fail together. The bank psper is only so much eyidence of debt somew bee. and somebody usust suffer in the windieg Gp unless aR are fostunu,e, which is unlikely; but an abtndont supply of gold Is no evidence of de5t any mbre than supply Of wheat. X handiu of bank totes is only so much deht which some one nnst lay; handful of geld is properly of intrinsic value not liable change, except by the regular aw q supply and derhaad, and tine supply must beveryex,raordinary 10 make change so sudden as lo deiange to any great ex tent the business of thecoaniry. The gradual pro- cess of depreciation vii give time to accommodate trade to the value of terurreucy without any cause for reyuIsiou in bnsineS