The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-03-20

would find his E3 interest purchase only what he
can now obtain tor El los, and II he were to sell
chasing power Of the product to be only EAT. For
the same reasons the rate OF discount would re-
main unaffected; man In business requiring
ElO0 now, tor whichhe pays three per cent, would
OF commodities, but although he would thus en-
ploy EGO, and pay E6 for It's US, the alteration
would be merely nominal, as the figures 200 and 6
would then be but different symbols for purcaas-
ing power, which Is al present expressed by 100
and 8.
On the other hand, investments In real property,
such as land, railways, houses, ships, canals,
docks, bridges, mines, &c.; would all assume
nominal value OF twice their present amount This
would not be real lncre ase, but while the annul-
tant would absolutely lose half his income, the
shareholder IN these concerns would experience
no such fate, but would remain precisely IN his pre-.
sent position. Where the landlord or The railway
or canal company, NC, now charge El for lands
let or goods conveyed, they would then charge e2,
and would thus double the dividends to their share
holders, no In turn would lind these nOminaly
double dividends eactly equal to their present
| But although these things would result from
direct doubling OF the supply OF gold IN the world,
| there are many modifying circumstances which
must arise from the change being gradual one.
In the first place, gold being the standard IN this
country, an undue amount would be likely to be
shipped here by parties who might permit 1t tor
some little time to lie In deposit, and as 1t would
| thus increase the circulation; without at the
momeat stimulating trade, its first effect would be
on The funds. The amounts shipped also tor re-
| turns In goods will create sense OF prosperity,
| which may act contagIOusly, and cause the funds
| 10 rise solely from sympathy. In this way they
might, without true reason, go above par, and thus
| enable the government To make another reduction
--frem which, however, the holders OF Three-and-
! a.Quarter per Gents would be exempt, the con-
dltlOn In their case being thar they are not to be
| deduced to three per cent TIL 1854 and that they
| are then to Ieman untouched TIL 1874.
On the opposite side, 1t must be taken into &C.
count, that many persons alarmed a, the ultimate
| prospect o the tundholder, may seek rapidly to
change their investments, to shares IN comp MES
| based on real estate. ConsOls might thus be I'M
warrantably depressed, and shares as unwarrant-
| ably raised. Again, It is impossible to calculate
how tar vague excitement may operate III indu-
| eng people TO melt down articles Of gold and to
| apply the proceeds to such investments, by which
they would still further be sent hey ond rational
price. In this way, shares OF land might come to
be bought SO much too high as compared with the
funds, that the quiet holder OF The latter might
after all be IN the best position. One thing cer-
tain, namely, that whichever way the public rush,
reactions will occur such to show those who do
not stir at all, that they have not suffered much by
| their supineness.
In estimating the various circumstances calcu.
lated to counteract the California supply of gold,
much stress has been laid on the additional guam.
tlty likely to be used In the arts, and also upon
the less profitable mines being thrown out Of
| operation. Neither OF these considerations seem
|
Indeed, it may be questioned If differences should
not be drawn of character directly opposite. It
would require considerable tall IN the value of
gold to bring II into greatly increased for do
nestle purposes, while on the other hand, the
| least commencement of decline might create
SILLY panic, which would not only bring boards Of
plate upon the market, but would also cause per-
sons TO torbear from purchasing; while as regards
the less productive mines, the immediate effect Of
| the Californian competition will be to stimulate
the use of improved arrangements. especially IN
the Ural and Siberia, by which much larger guam
tiues may be obtained with the existing amount
| OF labor. The avidlty with which other ira
dictionary gold mines In Ceatral America, Borneo,
and elsewhere, will now be sought out, must also
| be considered.
| h There is, however, one element OF the question
which, as il will tend to cause the effect of the
discovery 10 extend Ill great degree to silver as
well as to gold, will have equalizing influence.
On the continent, where gold and silver are equal
ly legal tender, silver has become the recognised
medium of payment, because, having decreased IN
| value as compared with gold since the standard
was instituted, II is the most profitable mode for
those who have debts TO discharge. Let the supply
OF gold, however, prove sufficient to do away with
the premium 1t now bears to silver, and from that
moment gold will, in these countries, become the
| common standard and the tall IN value will,
thenceforth, from The use OF and the dlsuse Of
| the Other be distributed to considerable extent
| between the two metals.
There also two other points of modification.
IL gold were reduced to half Its value, then the
paper CT CuldtlOn WOulu QesCcn0 as low as II, al
| the present moment, there were notes tor e. 10s
his would tend to render specie less necessary,
| and still further to decrease it's value. On the
other hand, the sovereign and the half sovereign
being only worth respectively los and 5s, the use
| OF gold tor small Gems would be increased.
Looking at the complicated interests which are
liable TO be affected, need hardly excite surprise
that propositions have already been put forth Eng
land Tor an alteration In the standard, in order to
prevent the threatened changes, It being urged that
without loss OF time silver should now be adopted
| IL may be feared that apart from what must take
| place on the continent from the effect OF great
supply OF gold, neither silver nor any of the pre-
clous metals will he nceforth be regarded as very
chaDgeess measures OF value. Be this, however,
as 1t may, there can be no shadow of plea for at.
tempting to alter all existing bargains, merely be.
cause The terms have turned out more favorable
Tor the debier than was expected At the termina-
ton OF the war the reverse was the case; but all
contracts were then fulfilled to their strict letter,
and the same justice must be meted now. Gold
was selected as a standard, not as an unchangea-
Bile, but as the least change able OF all commodities,
and there can be few VINO have not at times specu-
lated as to the possibility OF suddenly increased
supply, such as had once already happened
from the discovery OF America, and which
from unexpected causes was just as liable to
happen again. The contingency has been always
before us, and those who have overlooked
1t must not ask society to relieve them Of Its
consequences. There il no reason to suppose, If
gold mad become less abundant, which was quite
within the range OF probability, that creditors
would then have called tor law to enable their
Unfortunate debtors to pay silver in any other
different metal. In 1923, when such result was
anticipated from the revolutions in South America
nothing OF the kind was heard Of Moreover, it is
quite certain that 1t the sDtors, at the time when
they made their contract, had bound themselves to
| pay, not merely III god, but IN whatever metal
| might prove more valuable, IN case gold should
suddenly became cheaper, they would have been
entitled to better terms Than they ever obtained;
and that. the absence OF such terms il is plain
| the bargain was intended to be literal one.
That, while the majority feel eIaed, Il very large
body OF persons hear OF each contirmatory account
from California with confused feeling of appre-
hension and dlsmay, is fact TO be admitted with
pain, 'althoueh, perhaps, il directly questioned,
theyswoud confess that this is scarcely the spirit
In whIcb the oleDing up OF new store of one of
natures most useful gifts should be met. For our
own part, supposIDg il to be- confirmed, we shall
be dispose TO regard it as the CONNIE 1cemeut of