The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-01-28

England or less hsnpered with engagements arising
out OF her commercial position should take the alarm
and endeayor to squalise their medium. Hence it ID
that Holland and Belgium, and doubtless France. haYa
adopted silver the metal least uctustDg In present
But the effect OF this change has been felt In Eng
ispd in form not generally expected Though it was
held certain by many that the action OF the Californian
lativsly speaking in other words raise the prices
Of produce and labor-stl 1t not clearly antci-
P.sed that y would have created that parade, which
days. namely, an increase in the value of money as
contra distinguished from aold,n with asupsrdux OF
cellars Of the Bank Of England The last weekly re-
turns Of that establishments show gold, /" coin and
bullion IN Its possession equivalent to 9lA 800 osa
when it only fisi54 1888 in amount; and yet the
sfsctn have been frightened out Of their wits by tho
fact that the Bank has placed the screwu on its
issuss- restricted, In .hort its aeoommodstion-by
Of petty panic has supervened upon this proceeding:
stocks have fallen In price, money has risen in value;
and the evil 1t is calculated to produce though per
haps, not very extensive, is sti considerable What,
then, 10 the expa nation Of this psrodox?
comparison Of the condition Of some Of the chief
banks Of issue In Europe will be necessary to the eli
mination OF the facts In reply to this question In
May 1s4s the amount of bullonshsld by the Bank Of
ly however it has exceeded els 600 ooo and in that
great increas there is doubt gold and silver have
been received indiscsiminately Again, in the Bank
OF Hosnd. where till lately gold and silver we're q
legal tender gold had accumulated to the amount OF
"a ESQ ooo and ct this moment, Notwithstanding the
recent change Of the law the gold there IL still held to
the amount Of f2 100000 Finally in the State Bank
ofSt Petersburg though its notes pay able only in
silver yet large portion Of the f0ooooOo to E22,-
600 Geo Of bullion held by that establishment has al
way been In god It Is clear, therefore, under these
circunsances from the monetary history OF the past
years that 40 long ss gold and silver continued to be
received ndiscrn ately by these establishments at
fixed relative ratss-so long the large reserves of
bullion held BY them from tre to time were allowed
Tn fnO - -~lA A.t
verso long the sctnai aggregate quantities OF each
might fuctuste very materially without pro.
values of these metals Ths reserve Of silver buien
in the Bank Of England has never borne any large
proportion 70 the quantity OF gold hand because OF
which alone all obligations forty shillings in
amount are legally payable; but, nevortheless under
that institution its powers and privileges one clause
Of which entities IL to retain silver to the extent of
one fourth Of value CT the gold bullion In Its posses
large quantity Of thst metal in reserve ON the 10Th
OF Sept, ls46, for example, that establishment held
in the issue department bullion to the amount Of
fl6,seie6o which consisted of fI3 1854 sss in gold
ana f27l0077 in silver At the beginning OF 1850
however while tn. Bank held bullion issue de-
psrtment amoustDg TO Sl0 fl596l 233 Of this
cum was In gold, and only f2T7,077 In silver; thus
showing that while f2, ,433 COO had been Withdrawn
rom tho Bank reserve in silver, Gz707 eco had been
added II In gold This however effected no change in
the value Of money such for the purposes Of
merce In this country because up that einaeed
ded the relative value Of gold and silver
from the just recited to be the same But the
N omtnf that Holland commenced TO take the nitia
tive and convert her reserve OF "a 100000 of gold
into silver considerable a demand for the one metal
10 exchange for the other occurred, both in London
and Paris. that silver began to rice la England and
gold bryan to fall the continent The result this
was the turn of the agio, exchange against Eng
lend, and the conviction that Belgium and France
would speedily follow in the course, com bined
v nth this sudden turn, gave considerable sbock TO
the money market Of TIE world To meet the difcuty
.ts..a. ..A. - D. - ~
course perhaps lei open IT, namely increased the
value CT money by raripg Its price for "sccommedA.
on and hence the re action that has taken place in
he value Of all direct representations OF value such
~ stook, shares. 40 How long this state of things
hall continue Is the hLai question 10 be resolved In
connection with this branch OF the subjsct
The production OF what are called the precious
mel ais" se a whole-viz gold and having been
more than doubled since the discovery OF the mineral
IN so far as may be possible to the future rate Of
their increase Accurate data are no doubt, wanting
ia this instance; and the best result that bs OBJ
tanned must Therefore be necessarily imperfect 1t
= however certain, TO begin with, that II their pro-
'uction n TO continue AZ the same ratio, and the
'nange must take place, both In the fixed relative
Tsue OF the two metals as well as 10 their combined
sue ~ regards their relation 70 other commodities
There is however reason arguing from analogy to
pppose th at Mt least for TO supplies
qual % least TO thoee Of 1850 will not be annually de-
i,sd from existing and new sources II such, then,
rove 70 be thecase and II the qua nifty Of silver pro-
uced shall continue ss stationary as X has absolutely
hat n closer approximation must take place between
he values of the two metals Already. indeed. the
alue OF gold n commerce has fallen 10 practice by Its
election ac q standard circulating medium for the
currency In one great commercial country Holland;
ma though nm artificial system upholds the nominal
rice In England it ia ystem that must be changed
or Il will either change itself By setting the
sw ri eetsnce-Ptel's Banking Act or end In almost
nconeesysble Injury 70 the mercantile aud trading
Hence u IL not to assume too much that
he condition created by the recent operation OF the
Sank Of Epssn3 H. one likely to be permanent II not
ILL., Il
in point Of fact, ls from the present
,erod Of time, never likely to be ruled any lower
han IL II at this moment
The effect upon individuals Of this state Of things
nay be- indeed must be, disastrous In . greater or
ssser degree but II II dsmonstrable that It's eject
,pon the country as whole, will be decidedly bens.
fFrom the French papers
At the last sitting Of the French commission on the
~ s.a Sas,on ne iono oslps PAPER, " pisisn
'roer of the Minister Of finapess"I had the honor
q Addressing 20 the Minister Of Finance, on the sth
ait. note, In which sndeaycrsd 90 show thst the
iecllne In fbs premium gold va to be attributed
more 70 ~ importation Of Dutch 10 DORM gold pieces
~ ih 70 ,n ne s.A,y q s.r ,s1t ir, ~ osos1 ahr
,ote on the measure. ~hch hc should adopt 70 pro-
ect the country against too considerable importi
ions. The difficulty Of solving tas question attses
rom the fact that l. pothstc 10 all the
Information that can be obtairei Thus, tiDoe the
'sciDa ,ys,em was adopted, there have been eoin.d
n France up TO the present. umein silver 2C0 ooof
u gold 1850 ooOf Serious men pretended some years
iute that We no losg,r had In Trance more than
rom l50 20 200 millions Of gold; and an experienced
panker estimated the amount at only g millions.
These amounts are doubles. below the reality,
or not be forgotten that there u much Of
gold IN Italy and that " day Of interest
mould induce the holders ~ IL 10 get rid of H. we
houid again zee II In circulation. ~ may therefore,
trhaps be reasonable 20 estimate the amount of gold
hs Bomlns value sf which IL guaranteed by the
tsmp Of the State At ffum soo 70 4e0 miicns. IL 10
nJ since lsss that there has been any question 81 the
a. California. The gtd of unknown origin
brought to the Mint amounted In lsss 70 22 5o0O0Of
n 1850, to ~ i00.oe2f know that all this aid mo-
'ome ffom California and IL would perhaps, be correct
N estimating the amount from that source ct two.
birds. According to the quantity which IL brought
rom iha. country u ~ probable that each state will
y supplied with gold more directly snd the resource
ost to US II the question only Of from u 70 20
ni.lion. per year, or even double that sum, there
woulc he reason for thinking much ot
Tor that quantity would oniy rsalits aorly the
iVsirs which France manifested some years since
70 see sold coin in eirculatiop, II Il be exact