The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-12-16

Prem the London Times Nov. 201
sinOular rise ~ hich has haan Uc;~r m,


kess or tho World.
[Prsm the London Times Nov 2Sl
singular rise which has been going ON for
some time 70 the price OF silver has created much
inquiry. The idea that il NAV be owing to the in
lux OF California gold naturally occurs to every
one, and gives the subject its chef interest. In
ordinary times the question might be easily set
lied; but nom the peculiar state Of the continent,
together with the change recently made in the
Dutch currency, definite conclusion at present is
rendered impossible.
The three causes now in operation, namely, the
Californian influx, the requirements for the pay
and maintenance of the German armies, and the
substitution Of silver for gold in Holland have come
into active operation almost simultaneously. They
all have the same tendency; and the task, there
fore, simply is to discover the proporionate inhu-
ence OF each. For this, however, the materials
are wanting. We do not know with certainty the
total increase which has taken place in the supply
OF gold or, regards silver, the quantity absorb
ed in Germany, or on the continent generally,
either by the armies or from boarding, or other
causes; and, even if this information were before
us We should still be ignorant of the total stock of
bullion in the world, upon the amount Of which
alone could any accurate calculations be fou nded.
Although, however, we must thus wait until
some OF the perplexing elements of the question
shall have been removed-for if the war mania
gislailon had passed away, we should then have
no difficulty in looking TO California for its solu-
uon-there are many considerations thai may,
even now, throw some light upon the matter and
which may be usefully borne in mind in watching
the future
We have remarked that all the influences now
existing operate in one way. The only direct
mode in which any effect from the Californian
gold could first be observed, would be by looking
at the relative price of silver. We must measure
the state of the market for gold by the purchasing
power of that metal; and silver is the best commo-
dity wheIewith 10 test this purchasing power,
Is less liable to fuctuation than any other. In pro-
portion, therefore, the supply of gold increases,
silver will steadily become dearer-that is to say,
n UnfA -..ks II
will buy less silver than previously. At the same
time the purchases of silver by Germany and Hol-
land, must, of course, have a similar effect. They
are made by means, either of gold coin transmit
ted to us direct, of gold due from for credits
allowed or shipments received; our merchants, In
the latter case, being instructed, instead Of send
ing the gold that is owing, 10 send as much silver
In the combined action thus going forward,
enough 10 consequently presented to remove ali
surprise that remarkable results should already
have been observed. There are, however, some
MINOR circumstances TO be noticed which modify
these general operations, although, as il is impos
sible TO estimate their aggregate bearing, it can
not be 8scertained whether, on the whole, they
that has been in progress Among these, on the
one hand, is the demand for silver in California
and on the other, the alleged increase of produce
ton in the silver mines of South America, the ex-
silver has been displaced in Austria, and finally,
gradual displacement of silver by gold, which is
Observable in the United States.
Supposing it to be a question, whether the effect
OF the demand for silver in Germany has not been
counters to very great extent by the issue of
Austrian paper, and also if the supplies Of silver
quired at San Francisco have not been met by the
more abundant yield of the South American mines,
we should then be driven TO attribute the late rise
in this country mainly to the Dutch operations or
TO California, or 10 both The step adopted by Hol-
land, Of sling in her and 10 gulder pieces, took
place on the I'D of June, and the amount Of gold
disengaged by it has been about four millions
ling. As yet, however, not more than about
E500, 900 is believed TO have been replaced by sill
ys the s 1e%sinSSsg SeaR s
site amount Of silver can be obtained. Whether
this OF the possible fac, tia, fioyO:ooo Of gold
yield Of all the South American mines in lSi0) has
been suddenly added to the stock OF bullion in the
world, which some have copjectured not to exceed
c330, 0O0, 600 in ALL and of which gold constitutes
by fer the smallest proportion, may have had the
greatest force, is point which must be left for
speculation. 81.
But, whatever view may be adopted by each in
dividusl as to the Influence which has been pre-
dominant in producing the effect that has occurred
there can be question that that elect has been
Of most decided and important character. AT this
period last year the price OF silver was L. Had per
ounce, and IL 10 now Be- ID the rise being within
a traction of 3per cent? difference which (spart
from oiht considerations) is considerable, as at
tseting the seignorage on our own silver coinage.
This coinage based on the forming Of Go shillings
out ofevery pound weight OF standard silver leaving
a gross profit to the government, when silver was
at It's usual price OF Is I'D per ounce ol nearly
IL per cent, and which profit Is now reduced 10
about "a per cent Ia France the premium on gold
has fallen within the same period from 3A per mile
to "a per mile; 80 that IL Is now reduced to only
about per cent. Should any further important
decline take place, the silver coins Of that country
will then gradually be displaced by gold for they
will intrinsically be worth more than their nominal
value. Again, in the United States the same
effect is observable. Last year the hall dollar
all min SxUQ Mt mar Ia
premium. This will cause silver to be exported,
and it's place TO be supplied by increased coin
age ofRold dollars, half eagles, and ea2lee.
AT The same time Il is TO be remarked, thst In
proportion as silver thus comes TO be dspllced by
gold in countries where II has hitherto been IN ex.
tensve circulation. ~ further relative rise will be
checked, because ~ uscs, and the consequent de-
mand for Il, will be diminished. decrease ip the
intrinsic value Of each metal may then be looked
for, although not in equal proportions; and the
only way IN which IL viii be possible that this nll
can be traced thereafter will be by ascertaUDg
from time to time the general exchsnReable rela.
ton between them and other commodiiies so rs TO
compare The purchasing 20 yer Of both with what
IL was al former periods.
[From the London Globe Nov. 26l
That silver has, during the last twelve months,
risen In value from fs I'd 10 Be- III. an ounce, -
not only an interesting hut puzziIng fact. And
coming Immediately after, and in apparent connec-
ton with, the new supply Of gold from California,
il is calculated strongly to confirm the apprehen-
sions Of material disturbance of the standard Of
value already INDUCED in soine quarters. Expert
ence has repeatedly proved that the first requisite
to the profitable consideration Of a subject OF this
kind, is clear understanding Of the tact exciting
doubt In this instance we have first TO get nd OF
an ambiguity involved in the common mercaaiile
phrase. When we say that silver is A.. 1lAf. an
ounce, we do not mean that an ounce Of standard
silver is equivalent in Intrinsic value, To hive on the
English coins known shiilisgs, less the Ian
part Of q shilling Represented by half penny. IL
II were 60, the price thus expressed could have no
vsria ions For, active shilings, less 9th part OF
a shilling, will always, according to our present
mint standard for the silver coin, contain
about four bundpd and thiry-two grains and seven.
tenths Of grain Of standard silver, 81 much OF our
English coin cen never be intrnsicay worth either
more or less Of that substance. An ounce rroy)
coined at the mint into five shIngs and sixpeuce.
II s parent, then, that IN declaring is. llad, or
any sum under 81 Cd. 10 be the value OF an ounce