The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-11-27

ffTtDs me London tunes o. -Vvc T.
Future OF GoLp.-The question as to the
probable effect OF an abundance OF gold Is again
in agitation. California has thus far realized
more than was expected by the most sanguine,
the product at the end of each year having ex-
eeeded the highest estimate at the commence
ment, and there are no W Indications Of a similar
promise from the new regions in Australia. A
disposition, however, still prevails to believe
that no extraordinary changes in the relations Of
money are impending. When the California
mines were FIRST discovered il WAS admitted that
anything like eight or ten millions sterling
should annually be prodlced for a series of
year,, there could be no doubt strange effects
would be witnessed. But it was coDtended
that instead of this continued yield, there would
be gradual decline after the first year or two
That idea now being efiectually set aside, a new
argument is adopted. The exports of gold from
California for he twelve months ending the 3lst
of December, 1850, were equal it is supposed,
to tl200O,000, while for the present year, judy
ing from the first nine months, they may be es-
timated at fl5000,0OO In the face of this
supply there mas been no very observable dis
tnrbance 10 the measure of value. 1t is there
fore assumed that the augmented quantity has
been met by an augmented demand, and that
with the increasing traffic Of the world, like
annual addition will hsnceforlh easily be ab
sorbed
This inference, although it is urged by some
able economical writer's appears altogether I'M
supported. The only tests of the result of the
increased supply would be an alteration in the
relative value of gold and silver, or a general and
unaccountable rise in the prices Of all articles
But the extensive displacement of silver which
has occurred in France, and which was plainly
forseen, has prevented the first of these from
being available, except 10 very limited extent,
while, with regard to the second, the changes in
our commercial system have been such as to
produce rapid fall in all commodities far more
than sufficient to neutralize any moderate intlu-
ences of an opposite kind.
Apart from free trade, moreover, there is
quite enough to account for the increase influx
having thus far produced no papabIe manifesto
tons. The Bank Of France at this moment holds
tSO0O,0O0 sterling, in excess of what she pos
sessed in l849; the extent to which boarding both
OF gold and silver has been carried on all over the
continent during the past three years. and es
pecially in Italy and throughout the Austrian
empire, has perhaps been unprecedented drain
no less remarkable has been caused by the
Irish emigration, which has carried large totals
to western America, where much Of it will long
remain; and finally, there has been the return to
India OF great portion of that specie which
of l847.
Exceptional circumstances exist. therefore.
sufficient to render it unnecessary to assume that
an increase in the demand for gold has suddenly
sprung up to an extent such as steadily to absorb
h'teen millions per annum. The tendency of
civilization is to render needless the use of the
precious metals for the purpose of barter, and
although new colonies and settlements for time
create fresh demands, there is no reason TO sup
pose that they more than counterfeit the econom-
zeal influences elsewhere in progress. Even
California herself is not believed to have absorbed
ia the shape of circulation more than two or
three millions, while on the other hand we have
to bear in mind the effects of extended banking
accommodation and the use of money orders,
postage stamps, and other similar contrivances,
which are more or less being initiated in every
part of the world.
Hence we may still infer that previously to
the discovery of California the production of
gold, increased as it has been by the large sup
ply from Russia, was equal most probably to the
annual demand; that its value is consequently
liable to be reduced nearly TO the extent of the
exports from California, and that such reduction
will of course be measured by the proportion
which the new supply may bear to the existing
stock. What the amount of that stock NAV be
is wholly unknown, but there can be little oues.
ton that % millions p,r aunum is not relatively
an insignificant addition to it, Some investiga.
tors have surmised that 400 millions is about
the total In circulation throughout the world. If
that can be taken as in any degree correct, it will
easily be understood that the California supplies
must soon make themselves seriously felt when
ever the condition of Europe shall cause the
quantities now eagerly secreted to return to ac
tive purposes.
But 1t is, after all, not question of an addi-
ton OF hiteen millions per annum. If any reli-
ance can be placed on ordinary evidence the
production from California alone is only likely to
be limited by the amount of population able to
reach the State and the rapidty of the arrange
ments for obtaining machinery. 1t is impossible
to name any other reason whv the fifteen millions
should not be increased to thirty or sixty. No
word of failing supplies has yet reached us. On
the contrary, the miner seem disposed to wei.
come as many fellow laborers as may seem fit to
join them, and every one asserts that the whole
country lie rich, and that as far as the present
generation are concerned, it may be pronounced
inexhaustible. The old impression that gold is
| never found in large or continuous quantities ia
wholly dspelled, and scarcely any news could
now arrive from California, Bolivia, Peru, or Aus
tralia, that could take the public greatly by sur
prise
In the face of these circumstances it must be
inJuriors to encourage the tendency, always too
strong in the majority of minds, TO believe that
the old routine Of things is to go on as il has al
ways gone 1t can do no harm to keep the nos
sibiites Of the cause constantly in view, so that
people may learn gradually and quietly to adapt
their interests to whatever may occur
Law AND AGENCY NoTySE,