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

change. And we have not at hand any me asure
applicable TO either metal that will solve the diff
Guilty, even by approximation. Both metals change
general demand, that q search for any other by
which their variations in value may be tested,
must needs be fruitless. We before noticed
the existence of several causes operating stimuli
tanesusly in the same direction, and tending
both to lower the value of gold and to raise
that of silver. The supply Of new gold now
being poured from California into the United
States and into England may be supposed to have
lowered the value Of that metal but this we consi-
der, as yet, the least effective of the disturbing
causes referred to. There is good reason TO be-
leve that before the Californian supply came into
the market the consumption OF gold. even in the
face Of the supply from Russia, was reducing the
stock in Europe at a rate that must, at no distant
PERIOD have raised its value percepibly, in spite of
the continued extension of banking facilities, re-
ducing the quantity OF gold coin requisite to the
Transaction of gwen amount of business. We
are strongly inclined to think that little more has
yet been done than to restore the equilibrium of
supply and demand, though the comparative sud-
gradual waste Of twenty or thirty years by a new
supply, poured in during one or two years-has ap-
parentIy thrown the balance the other way. What
We cannot but think of more importance in relati On
TO the present topic, the variations incident To
the effective value of such an enormous mass of
silver as that known TO be circulating the CONT
nent in the shape Of coin, under any influence that
may act upon considerable proportion of the per-
When revolutions shake down governments, or
hostile armies prepare for conflict, traders in the
neghoorhood grasp at every coin they can lay hold
OF, TO meet the engagements they have contracted
in the hope Of continued tranquility, and must meet
in any event. Action Of this kind communicates
itself rspidly TO all who, though not in the imme-
diate circle OF spprehended danger, have been
made cantious by past mishaps and experience of
the rapid transition OF such disturbances from one
part Of the continent to another. The busy trad
ing communities along the Rhine, and In the north
eastern departments of France, for instance,
have now been for some months in such dread.
They have grown TO wealth in generation of peace,
and have lately been warned how quickly and
how completely all their affairs may be thrown
into disorder by a revolutionary movement
They see heavy storm brewing, and they know
that there is no safety for individual traders apart
from good stock of the current coin of the coun-
try. Add to these the smaller boards of private
persons, whose recent experience has given them
a like tendency, and the boards made in lS4S, and
still held, and what must be required for the large
armies now on foot, or in process OF equipment,
and II seems anything but improbable that pro-
portion of the current coin OF Germany and France
has lately been withdrawn from circulation, large
enough TO create nearly the whele of the extra
demand now apparent in that direction. We have
also to allow for the change being made, during
the present year, by the Dutch government in
substituting silver for gold standard, and with
drawing its gold coin from circulation. This
operation will probably throw an addition of from
three to four millions sterling of gold into the
Lennon mdrket In exchange Tor SO much silver.
In comparing the present juncture with past in
stances of the disturbance of peace on the con-
tnent by fumors of war, we have to 60 long way
back-soms sixty years, at least. We fnd the
less, and the trade much less. lodeed,
there can be no comparison between the ex-
te Mt and importance OF the commercial trans
actioLs served by the coinage of the continent,
as they are now, and as they were in 1870, or at
any previous period-nor, consequently, any just
parallel between the effect of such q disturbance
as the apprehension of war is creating at this mo-
mt mt (backed by the bitter lesson of lS4) and any
similar conjunction Of circumstances in time pact
80 far as the probable demand fer extra supplies
fG,RpSI1ef tatt rs s ri e9Y2la ard
both come Of events hardly two years old, proba
bly, owe much of their apparent effect TO the sud-
denpess and rapidly of their action. But they
have already uncovered compromising process,
not hitherto sufficiently regarded, by which each
me tai tends TO render the value Of the other
ste ady than il would be alone. As each rises in
value materially, from any cause Whatever, the
other tends to take its place. While Holland, in
tear Of the Californian supply, is seeking safety in
a silver standard, the United States are bringing
their gold coinage into use, and the eagle is push
ing out the dollar. So in France, if the alteration
in the relative value Of the two metals goes but
monty current, and the confessedly inconvenient
i've franc piece will, in the same proportion, retire
In this way, the extended use Of gold coin may,
within a narrow range Of fall in value, open a new
d. mand for the mera sufficient to take of even the
enormous quantity our American friends promise
to dig for US out Of the sands of California.