The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-01-16
PRENTICE.

In view of the scarcity of currency and
the higher prices commands in the specie ct
compared with gold, the following essay will be read
Interest 1t copied from the money article the London
Times Of November 26-Cooprso1n paper.
ALTERATION IN THE VALUE OF SILVER EUROPA sin.
gula rise which has been going on for some time in the
may be owing to the influx Of California gold naturally
In ordinary times the question might Be easily settled but.
from the peculiar state OF the continent, together with
change recently made in the Dutch currency, definite
conclusion present is rendered impossible.
The three now in oreration-namely, the Caor-
OF the German armies, and the silver for
gold in Holand-have into operation almost
neousy They all have the tendency, and task
therefore, simply is to discover the popoona'e influence
of each For this however the materials wanting
has taken place in the supply of gold regards silver
generally either by the boarding or other
causes and, even If this Information before u.s.
should still be Ignorant OF the total stock Of bullion the
WORLD upon the amount of which alone could
calculations be founded
perpe1ng elements of the question shall have been re.
movedfor IL the war mania were to terminate and the
then have difficulty looking California its sou.
tion-there are many consideration, that may
usclully borne in mind in watching the future.
We have remarked that all the influences existing
operate way. The only direct mode in which
feet from the California gold could first be observed would
be by looking at The relative price Of silver We must
power of that metal, and silver is the best commodity
wherewish to test this purchasing power as less liable
the supply Of gold increases. silver viii steadily become
deaer-that is say, E5 note, representing certain
weight OF gold viii buy silver Than previously Al the
time the purchases of silver by Germany and Holland
must Of course have similar effect. They made by
means either OF gold transmitted TO us dlrcct or Of
gold due from for credits allowed shipments received
our han latter case being instructed ns,e adj
Of sending the gold that is OWING send much silver
II will procure.
In the combined action thu, going forward enough is
consequently presented all surprise that remark
able should uready have been observed are
however, minor circumstances to be noticed which
modify these general operations although, II impossi
Bile estimate their aggregate bearing II cannot be a.cer
tanned WHETHER on the WHOLE they have tended TO mitigate
the change that has been in progress Among
these, the one hand, the demand for silver Csof
MIA aud the other the alleged increase of production
In the silver mines OF South America, the extensive
an% az ssss %
silver by gold, which is observable in the United States
Surprising to be question whether the effect OF the de-
mand for silver IN Germany has not been unteacted
very good ent by the issue OF Austrian paper and
been by the abundant yield of South American
mines, would then be driven attribute tho late
California both. The step adopted by Holland Of
calling her and 0guder pieces place on the 22d
about four millions sterling As yet, however, not more
abou, E5oo0 believed have re placed by
will continue in circulation un the requisite amount
silver be Obtained Whether this the possible fact
that 900 OF gold (being nearly double
mated annual yield of all the South American mines in
Isio) has been suddenly added the stock OF bullion
world, which some have conectuTed exceed E330
100000 in ALL and OF which gold constutesb by far the small
which be left for speculation
But, whatever view may be adopted by each individual
the influence which has been predominant producing
the effect that has occuued there be question thai
the effect has been OF decided and important char
AT this period last the price OF silver was Is
Ind per and Ii is 81. lid.-he rise being
within fraction OF cent difference which, apart
other considerable az Affecting the
seniorage silver coinage-his coinage based
on the loming of 66 shng Of every pound weight OF
silver leaving gross profit TO the government
when silver usual price Of Il. I'D. per OF
nearly n per cent aud which profit is reduced TO
about N per In France the premium gold fall
len within the period from I3A n per
mile that II now reduced 10 only about per cent
should any further decline take place. the silver
of that country will then gradually be by
gold they will inrnsicaly more than their
nomns value Again, in the United States tho sam. eec,
observable Bast year the hadoar silver coinage was
par. 1t Is now quoted IT premium. This will cause
silver be exported and its place be supplied by An in
creased coinage of gold dollars, halfeagles eagles
AZ the same time II IL remarked that in proportion
silver thus comes to be displaced by gold in countries
where II has hitherto been in enve circulation
Their relative rise will be checked, because
consequent demand for 1t, will be diminished decrease
IN the intrinsic value OF each metal then be looked
although not in equal proportions and the only Ia
which will be possible that this fan be
alter VIII be by ascsrainng from time time the
excbanseable relation between them and other commod
ues 40 ne to compare the purchasing OF both with
what II was at 10 mer periods