The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-02-10
Gold and silver.

Ihe LONDON papers SILL advocate the gold depre'
citation theory butt it seems to with less energy,
and less appearance of confirmed conviction, than
at first, when the novelty of the idea and the plea
sure Of vaticnation engaged all minds in the at
tempt to unravel the coming wonders of a new era.
People do not seem to be quite so certain that the
world has yet been flooded with gold to such an
tent as to produce real alteration in the former
balance of value between it and silver; although the
disposition is to think that such flood ia mpend-
ing, and that such an alteration will by and by
take place. That gold is-for the moment, at
east-depreciated below its ordinary standard, 10
manifest enough; but there is, as yet, no evidence
that the evil Is more than temporary one; while
there is some reason to suspect that the would -be
financial philosophers across the seas have fallen
into delusion, substituting fancy for n fact, a
chimero for an ascertained truth, and that tho ex
stng state Of things is less due to the persuasion Of
what is than the fear OF what may be.
Were the present depreciation of the moro noble
metal actually attributable to its rproportion Of
quantity, the change would have been gradual,
We should have seen the operation commencing a
year or more ago Silver would have been quoted,
first, at an advance OF quarter or half per cent;
and the premium would have risen by successive
appreciations-not startled the world by one single
unheralded and unexpected leap of three per cent;
gain, as it were, in single day, equal, or more
than equal to the whole annual interest value Of
money in Eur ope. The suddenness Of the change
is, in fact, the best proof that it not owing to
| cause which necessarily implies slow and grow
ing influence. If California did produce fifty
a.
ever, did not-it must be remembered that it was
produced in year, not in day.
We pointed, in an article published some weeks
ago. to the revolutionary state OF the continental
countries, and the wars and rumors of war there
prevasnt-as state that always leads to the boarding
of coin by the timid-as sufficient explanation Of
the dearth Of silver, which undoubtedly exists; but
the immediate cause ofits sudden appreciation must
in Judgment be looked for in the act of the GO
vernIhent Of Holland. substituting silver alone
| a legal currency, in the place Of gold and silver.
This measure has not been sufficiently weighed; or,
rather, 1t has not been weighed at ALL The British
critics have been content to view II act OF
wise forecast and promptness, giving the Dutch
nancers the credit Of being the first to prepare for
| the coming storm. Il ia most probable it was go
meant, and that it was resolved on in the full belief
that the California gold would soon work entire
revolution in the relative value Of the precious me-
tails. To US the measure seems to have been an
exceedingly injudcious and hasty one. the dircc
and sole Of the sudden appreciation of silver
by which. if all Europe was made to suffer. Hol
land herself the first and severest loser. Thu
the Bank of Holland held the sum of &4 ,250, ,000-
or, in round numbers, $4,000, ,000-in gold 0
which, at the last accounts, it had succeeded i
getting rid of f ,750, O00-lcaving E2,50O000 still
| in its vaults. The gold panic commenced with
this change, and the Bank of Holland must have
lost half million Of dollars by the depreciation
| three per cent. on its own store Of the rejected
metal The loss Of value on the quantity still re-
manning on hand il above S350O00 We may ca
silly imagine the oss, in national point of view, or
OL Bolu uciu Dy INC suDJcCt5 OI INC klue
Of the Netherlands. The political economists o
Holland have perhaps had some grounds to regre
the wisdom which provided against questionabl,
danger by q remedy which has proved 30 costly
II is very doubtful whether we should have eve
heard OF silver being at premium of three PEE
cent, had it not been for this infelicitous nancia
change in Holland.
The question whether over production of golc
will not hereafter permanently lessen it's relatv,
value is very different from tho question whether
production has not effected that result already
In the latter may reason, in the former w
can only conjecture. On this subject we see nj
good cause for modifying the opinions we have
heretofore expressed. AL former history and pas
experience justify the belief that nature has formed
and stored away the precious metals in the eartf
in a certain proportion, which will always, in gene
raj, be found to be that proportion in which mer
have been hitherto able to obtain and enjoy them
If gold abounds to-day, the prospect is that silver
will take its turn to- morrow. The silver region
Of Mexico and South America have, as yet, only
been scratched over. The working Of the quick
silver mines Of California will, in all probability
give them a now life and destiny
philadelphia North American.