The New York herald., 1851-12-20

bullion deposited. that al Its means of turning
Out com nave been forsstaled for months forward
And therefore, but for the limit Of the power ofths
mint, oven larger coinage would have taken place
than has The consequence has been, now that
gold commands no agio, but that silver Is rather
st which they are fixed by law that gold has enter
ed to some extent into the circulation Of France and
has released corresponding quantity of silver
But large Is the quantity of gold coin Is which has
it must bear very small proportion to the snor.
nous circulation Of France where, from the absence
OF q local banking system, and from the frequent
recurrence OF periods Of discredit, the amount of
coin at all times in the hands Of tde public is rela
lively greater than in any other country of the
world. There is, therefore, still in France an ex-
tensive field for the employment of gold, and to
Whatever extent that metal is employed, silver
| will be disengaged
But to whatever extent all these considerations
may prevent, for long time to come, and psuha0e
altogether, any material alteration in the relative
value Of gold and silver, it is obvious, that the
more their value may be against any disturbance in
that particular direction, the more they point to
large increase Of the precious metals gold and silver
together And this is perhaps, BY far the most i'm
portant question for that portion of the public
whose incomes are fixed in q determinate quantity
Of the precious metals whether of gold silver In
former articles, We have carefully pointed out all
fected by such reduction in the intrinsic value of
the precious metals For the purpose of iilustrat-
ing the second important conside ration to which
we now wish to call the attention of our readers we
Will take, as an example, the owners of the pubic
funds, VINO, for every hundred pound Of stock, are
entitled to receive g3 per annum, or 339 grains Of
pure gold Whether that quantity of gold be-
comes Of less or more value, the contract by which
the debt is discharged by its payment cannot be
altered. but here arises an important considerar
| ton.
The intrinsic value of all com nodities is deter
mined by the quantity of labor required to pro-
duce them. The quantity of other commodities,
such as grain, tea, sugar, wine, or cloth, which q
given quantity of gold will purchase, must, there
fore be determined by tho relative quantity Of Ia
Dor which each requires for its production Sup.
pose the cost of the production of gold to ain
stationary while that Of oil other commodities is
being reduced the real effect is to cheaper the price
| Of such other commodities in relation to gold
This has already taken place to great extent
during the last thirty years. What with the change
| of our commercial policy, which has given new
and unexpected developement to our productive
| powers-what with the Introduction of steam and
mechanical aid-what with the cheapening of navi-
CATION and locomotion, and the economy Of time
what with the assistance Of chemical and other
sciences-and what with the rapid increase of capi-
tai and the reduction Of the rate of interest-the
production Of all the ordinary articles of con-
sumption has rapidly increased, AMI their cost
has been extensively diminished. But, till lately
the production of the precious metals has been
nearly stationary. The result has, therefore,
been, that relatively with gold and silver, every
other article has become cheaper. The recipients
| 0LQ6f
fixed in money, have been, therefore, greatly bene-
fitted by all the Improvements to whi,h We have
now referred, and, we may add, to which in gene.
raj they have contributed but little, and for which
ofevents has been one ofclear gain But We would
call especial attention to this one consideration
Suppose, since 1920, the increase in the production
of gold and silver had been as great the n,rease
has been in the supply Of tea and sugar, in the pro-
duction of grain per acre, in the manufacture of
cotton, w0oen, and silk in the means of ap and
rapid travelling, and in all that make up the sum
Of everyday wants, what would have been tho Of
fectl Why, only that the relative value of all
those commodities, gold and silver included, would
have remained the same-all would have been more
abundant, the productive labor country would
have become, as 1t has, more profitable. and would
change, but the relative value of gold and other
| commodities would have remained the same and
the recipients of 6xed income would have been
neither better nor verse off than they were in 1920.
. But what Is true in this reasoning, applied to
the past, is equally true as to the future. 1t may
be that gold and silver, from the causes to which
We have referred, will become, during the next
twenty years, much more abundant th an they are
now, in relation to other commodities But il will
be long time before their increased abundance
overtakes the increase Of abundance of other arti-
oles which has taken place during the last thirty
years, and restores the equilibrium Of relative val
ues ss they existed in 1920. But for the presen,
holders Of sxed annuiues, there is another still
more impostant consideration. Have the CAUSES
| Wnicu or yoers past nave been continually adding
to the abundance and cheapness of other articles,
ceased to operate Have the consequences of free
trade been exhausted Have mechanical nd sci.
ontifc improvements done oil they can for the
world Have cheap locomoti and navigation,
BY which not only the different parts of our own
country are brought so near to each other, but by
which the continent Of America and other distant
countries have been broueh almost de OF the
west coast Of Ireland been extended to tho limits Of
which they are capable On the contrary, consult
the highest authorities in every branch Of i'm
provement and progress, and you will be told that
they are all in their infancy The most successful
experiments have yet to be embodied In an extended
practice But If so, then greater and greater abun-
dance In every other production we'll as of gold
and silver, is certain to take place during the next
from the west coast OF Ireland to the United States
two or three times week, who will attempt to say
what the influence will be upon the comforts aud
the wealth OF the fifty millions Of human being, in
habitng the two countriesl With steam cornmu-
nication established with every port OF Europe.
evegy country In South America, with South
Africa, Australia, with India, Chins and the whole
Of our eastern markets: no one will venture to
predict the results OF such increased facilities dur.
Ing the next few years. The real question then is
| VIII California, Russia and Bathurst in their in
creased production of gold, outstrip the remarka-
Die agencies which are now at work for an increased
production Of all other ommoditiesl IL not, then
what have the recipients of fxed aunuities to ap-
prehendl II not, they will not be injured, while all
the productive classes in the world but especially
In this country, will be greatly benefited and much
| enriched
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