The southern press. [volume] (Washington [D.C.]) 1850-1852, 1850-12-21
Fl ON the London Times, .Nop. 26.
The Great Disturbance in the Silver Mar
ket Of the World.

Fl ON The London Times, .Nop. 26.
The Great Disturbance in the Silver Mar
ket Of the World.
A singular rise which has been going on for
some time in the price of silver has created
much inquiry. The idea that it may be owing
to the influx Of California gold naturally occur,
10 everyone, and gives the sub ject its chief in
terest In ordinary times the question might be
easily settled; but from the peculiar state Of the
continent together with the change recently
made in the Dutch currency, definite concu-
sion at present is rendered impossible.
The three causes now in operation, namely,
the California influx, the requirements tor the
paw and maintenance of the German armies and
the substitution of silver for gold in Holland,
have come into active operation almost smulta-
neously. They all have the same tendency
and the task, therefore, simply is, to discover the
proportionate influence Of each For this, how
ever, the materials are wanting. We do ne
know with certainty the total increase which has
taken pacei in the supply Of gold, or, as regards
silver, the quantity absorbed 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
pnorant of the total stock Of balion in the
world upon the amount Of which alone could
any accurate calculation be founded.
Although however, we must thus wait until
some Of the perpleXing elements ofthe question
shall have been renoved--for if the war mania
were to terminate, and the effect OF the Dutch
legislation had passed away, we should then
have no difficulty il, looking to California for
its solutlOn--there are many considerations that
may, even now, throw some hight upon the mat
ter, and which my be uselulIy borne III miAd
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 Cali
fornia gold could first be observed, would be by
looking at the relative price of silver. Wem
measure the state Of the market for gold by the
purchasing power Of thai metal; and silver is
the best commodity Wherewith to test this pur
chasing power, as it is less liable so fluctuations
than any other III proportion, therefore, rs the
supply of gold increases, silver will steadily be-
come dearer-that is to say, Is note, repre-
sentng n certain weight of gold, will buy less
silver than previously. At the same time the
purchases OF silver by Germany and Holland,
must of course, hay G similar effect. They are
made by means, either of gold coin transmitted
to us direct, or Of gold due from US for credits
allowed or shipments received; our merchants
in the latter case, being instructed, instead Of
sending the gold that is owing, to send as much
silver as it will procure
In the combined action thus going forward.
enough is consequently presented to remove all
surprise that remarkable results should already
have been preserved. u ere are, however some
minor circumstances to be noticed, which modify
these general operations, although, rs it is i'm
possible to estimate their aggregate bearing. it
cannot be ascertajned whether, on the whole.
they have tended to mitigate or to increase the
.b, t,,t has, ,., in, tb
on the ore hand Is the demand for silver in
California, and on the other the alleged increase
Of production in the silver mines of South
America, the expensive issue Of small paper
currency, by WHICH silver has been displaced in
Austria, and finally, II gradua displacement Of
silver by gold which is observable in the United
States.
Surprising It to be a question, whether the
effect of the demand for silver in Germany has
not been countcrnctcd to very great extent BY
the issue Of .tustri IN paper, and also ofhe sup
ri's Of silver required at S:n Francisco have
not been met by the more abundant Yield ofthr
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 TO both. The step adopted by Holland, Of
calling in her 5 to 10 guder pieces, took place
on the 22d Of June, and the amount Of gold dis
engaged by it, has been about four millions stcr-
ling. As yet, however, not more than abou'
E5OO,OOD Is believed to AVE been replaced by
silver. the remainder being represented by notes.
which will continue in circulation until the re-
Vuisita amount of silver can be obtairel -
Whether this or the possible fact that go 0O,-
600 Of gold (brin~ nearly double the total est.
mated annual WELD Of all the South American
mines in 1900 has been Suddenly added to the
Of nIli,D H., tho wnrI ub1b b,v,,
conrcturrd not to exceed f33O,0OO,OOO in all,
and of which gold constitutes by far the small
est prop"rti n. may have had the greatest force.
is q point which must be left for speculation.
But whatever view may be adopted by each
individual, as to the Influence which has been
predominant In producing the effect that has oc-
cured there can be no question that that effect
has been of q most decided and important char
acter At this period last year, the price of sill,
yer was Is. ! I'D. per onnce, and it is now IS.
3D., the rise being within a fraction o" per
cent Il difference which (apart from other con-
siderations) is considerable, as affecting the seg-
noras in our own silver coinage. This coinage,
based on the forming Of SO shillings out Of
every pound weight of standard silver, leaving
n gross profit to the government, when silver
was at the usual price of As. ll4d per ounce,
of nearly IL per cent, and which profit Is now
reduced to about II per cent. IN FRANCE, IN"
premium on gold has fallen within the same pc.
Rod from 1871 per mile to % per m lle so that
it is now reduced 20 only about t per cent
Should any further important decline take place,
the silver coins Of that country will then gradu-
ally be displaced by gold; for they will ntrnsi
cally be worth more than their nominal value.
Again. in the United States the same effect is |
observable. Last year the half dollar silver
conage was ut par. 1t Is now quoted 3! pre-
MUM. This will couse silver to be exported,
and its place to be sup lied by an increased
courage of gold dollars, half eagles, and eagles
At the same time it is to be remarked, that in
ms silver thus comes to be disp placed
by gold, in countries where it has hitherto been
IN extensive circulation, its further relative rise
will be checked, because its uses, and the con-
'equent demand for it, will be diminished A
decrease in the intrinsic value of each metal