The New York herald., 1851-12-23
TIE California Gold Mines and the Bullion
Markets of ur0pe.

From the London Chronicle, Nov. Fl
The rich produce Of California begins to make
Itself apparent here, where it necessarily must first
manifest its effects, in the greater financial and mo-
netsry transactions OF the countries most exten-
.ivey engaged in commeroe. and chiefly in eur own
country. Within the last ~ hours the Three per
Cent CoHsols approached within lis Cd. o! par and
the Bank Of England announces its inten ion of
ducipg the rate of Interest to = per cent These
remarkable indications, is true, may be accounted
for in part By the languid condition of commerce
and industry generally, produced by free trade,
which closes 80 many opportunities Of profitable in
vestnent, but undoubtedly the unequivocal plethora
otweal,h in the Bank and upon the stock Exch ange,
must be in great degree owing to the late influx
Of gold which, if II continue at the rate ut
which II has begun, must raise CoIsols above par,
thus giving an opportunity Of reducing the public
debt and all other debts. too, by new and unex.
pecied process. The Bank of England, it is said,
has, within the Last few days added largely to its
stock of bullion. Whethe. the addition is voiun-
tary or involuntary, We cannot at present say-but
willing unwilling, II the iIfux Of gold coatinue,
the Bank will find its cellars overloaded before
not very remote day. We are reminded by an in
telligent correspondent that by clause in the
Bank Act of lsIi, and Victoria, 32 (Sir
that " on and after the 2i.h Of August, isil, all
persons shall be entitled TO demand from the
issue department Of the Bank Of England Bank
Of England notes in exchange for gold bullion at
the rate of E3 LIS. "a per ounce Of standard gold
Now, gold was freely sold at san Francisco. at the
time when the last accounts came away, for
f 5s or less the ounce Of pure unalloyed gold, Of
course OF higher value than the gold spoken o! in
the clause quoted but say that standard gold can
be purchased at San Francisco for three pounds
four or I've shillirgs, as most certainly it CAM and
allow shilling er two Ter commission, freight, and
irsurap.e-an enormous allowance upon an ounce
Of gold-t is plain that the precious metal may be
brought to London for three pounds seven shllings
the ounce, as much has been brought with enor-
nous gain to the importers. Every one, however,
bringing the ounce OF gold TO the Bank Of England,
which cost him, say three pounds seven shilllngs,
may peremptorily demand from the bank three
pounds seventeen shillings and nnepenee-ten shil-
hngs and nineIenee p'oht on each ounce \; is no
doubt true that if the importer carry bis sixty four
or sixty five shilrgs worth Of gold to the mint, it
will be raised TO even more than the seventy
seven shllings and rineIenee by the royal i'm
press but for extensive dealing the bank will be
preferred, and that corporation would do we'll to
prepare for the change that inpends, Some modi-
6eation Of the law u 1874 will be necessary to pro-
tect 1t from great inconvenience As regards the
public, 10 will benefit whether .he importer carry
bic gold to the bank the int for the increase OF
money will be the sane whether the money be Of
paper or Of gold. The rate Of interest will decline
(the interest OF the public debt included) and
prices, that is the remuneration Of industry an!
labor will rise in a ratio q which, at present, few
can form an adequate notion. All no doubt de-
pends upon the continued pfoductiveness Of the
gold helds kow oIen, but Of this continued produce
tiveness there seems little reason 10 doubt the
gold received from California at New York alone,
M the ten months Of ISL, ending the first
instant, amounted to much more than seven
millions sterling, and New York is but one
port, and as every one who looks at the map will
see, port the reverse Of conveniently circum.
stsnced for communicstion with the gold country.
II, therefore, New York has received more than
seven millions sterling in ten months, II is not
sonsble 20 suppose that all other p0rts taken toge.
ther, have received twice ss much, and this would
raise the produce Of California 20 above twenty NIL
lions sterling per annun, which IL, as we have
every reason to believe, the truth. Counting
nothing, therefore, upon Australia though We
think that we may count a great deal, the Cali
fornisn supply would amount 70 more than twenty
millions sterling per snnun This Is a rate Of in
crease greatly beyond the rate % increase in the
10th century, yet pri:es generally stiplied nearly
ioufiold ia that century. Elizlbsth was enabled
10 restore tie purisy q the current coin, the
most ardHous Of al her undertakings In com
pairing England to the nineteenth century, with
England in the sixteenth century, We are to remem
Der nat three hundred years 20 this country had
rot the commercial aScendancy which she at present
poftesees. The low countries, France, Spain, then
including Portugal, ltaly-in fact, the whole Of
Western and southern continental Europe-had
the advantage other, and Of course derived earlier
Prtht from The gold importations; yet We what
the ithuH Of gold did tor England during the Tu-
sor dyIssty May We EotexIect like consequences
from Ike cause
will De curious lesson in the moral and polit.
cal history OF our race, II the ut discoveries shall
Dave bafhed AL the calculations aud devices OF the
great Statesmen, as We have been accustomed TO
call them, Of our age.
After all, there is but solid foundation for na
tional prosperity IN any county, the land and the
cultvators Of the land in peaceful and piosperous
Ger rdtion. Make sure Of this, and the auctaations
Of money or Of current wealth Of any kind never IAN
very iniuriously affect areoIle