The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-11-26
From Ms London Times, NoUemtsr G.
The Eneets OF an Abundance OF Gold


MIA has, thus far, realized more than was expected
by the most sanguinc-the product at the end Of
each year having exceeded the highest estimate at
the commencement, and there now indications
of similar promise from the new regions in Aus
tralia A disposition however, still prevails TO be-
lieve that no extraordinary changes In the reia-
tions of money are impending. When the Cali
fornin mines were fret discovered. il was admitted
that, if any thing like eight or ten millions ster-
ling should annually be produced for series OF
years, there could be no doubt strange ELECTS
would be witnessed. But it was contended that,
instead of this continued yield, there would be
gradual decline after the fret year or two. That
idea being now effectually set aside, new argu-
ment is adopted. The exports of gold from Cali
fornia for the twelve months ending the 3lst De-
cember, 1850. equal, it is supposed, to El2,-
OOOOO while, for the present year, judging from
the nrst nine months, they may be estimated at
El5.0O0,0O0. Ia the face of this supply there has
been very observable disturbance in the mea-
sure OF value. IL is, therefore, assumed that tho
augmented quantity has been met by an augment
ed demand, and that, with the increasing traffic Of
the world. like annual addition will henceforth
easily be absorbed.
This Inference although it is urged by some able
economical writers, appears altogether unsupport-
ed. The only tests Of the result of the increased
supply would be alteration in the relative value
of gold and silver, 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 ioreseen, has pre-
vented the fret of these from being available,
cept to very limited extent while, with regard
to the second, the changes in our commercial sys-
tenn have been such as TO produce rapid fall in all
commodities far more than sufficient to neutralize
any moderate influences OF an opposite kind.
Apart from free trade moreover, there is quite
enough to account for the increa5Sd influx having
thus far produced no pal pable manifestations. The
Bank OF France Mt this moment holds ES 900
sterling in of what she possessed in lS49 the
extent of which boarding, both of gold and silver,
has been carried on all over the continent during
the past three years, and especially 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 oft will long remain; and finally, there bas
been the return to India of great portion of that
specie which suddenly drawn to England after
the panic OF lS47.
Exceptional circumstances exist, therefore, suf-
cent TO render unnecessary to assume that an in
crease in the demand for gold has suddenly sprung
up to an extent such as steadily to absorb fifteen
millions per annum. The tendency of civilization
ia to render needless the of the precious metals
for purposes of barter, and although new colonies
and settlements for a time create fresh demands,
there is no reason to suppose that they moro than
counteract the economical influences elsewhere in
progress. Even California herself is not believed
to have absorbed, in the shape of circulation, more
than two three millions; while, on the other
hand, we have to bear in mind the effects OF ex-
tended 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 tho
discovery of California the production OF gold
increased as it had been by the large supply from
Russia, was equal most probably to the annual de-
mand; that its value s 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 sup
ply may bear to the existing stock. What The
amount of that stock may be is wholly unknown;
but there be little question that fifteen millions
per annum is not relatively an Insignificant addi-
ton to il. Some Investigators have surmised that
four hundred millions ia about the total in circula-
ton throughout the world. If that can be taken
as in any degree correct, it will be easily under
stood that the California supplies must soon make
themselves seriously felt whenever the condition Of
Europe shall cause the quantities now eagerly Sc
GREETED to return to active purposes
But ii i5, after all, not question of On addition
oil fifteen millions per annum. If any reliance
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 arrangements for ma
chnery. IL is impossible to name any other reason
why the fifteen millions should not be increased to
thirty or sixty. No word of failing supplies has
yet reached us. On the contrary, the miners seem
disposed to welcome as many fellow laborcrs
may fit to join them, and every asserts that
the whole country ia rich, and that, "a far the
present generation arc concerned, it may be pro-
nounced inexhaustible. The old impression that
gold is never found in large continuous quaint
ties Is wholly dispeled; and scarcely any news
could arrive from California, Bolivia, Peru, or
Australia, that could take the public greatly by
surprise.
In the face of these circumstances, it must be in
furious to encourage the tendency, always too
strong in the majority OF minds, to believe that the
old routine of things is to 60 as it has always
gone IT can do no harm to keep the possibilities
of the case constantly in view, that people may
learn gradually and quietly to adapt their interests
to whatever may occur
At the same time it may be questioned if the
changes destined to be produced will not be SO
balanced in their operation greatly to diminish
the relative disturbance among the various inte-s
rests that must be affected by them. On the Dad
February, lS49 the Times gave an outline of the
urinary effects To he looked yetri
alteration of the relations between the precious
metals and property in general, and the subject has
been dealt with elsewhere, and on other occasions,
until the public have become familiar with it. But
although the fact ia understood that real estate and
all properties, the rent charge for which can
be raised at viii, are secure from depreciation
case OF an reased currency, while the property
annuitants, on the contrary, will be exposed TO it,
there are vast number of notifications to be
taken into account by which this course of affairs
may be sngulary influenced. The impulse of
many, when they first glance at the question: is to
sell annuties and buy land Others think Justly
that railways, steam vessels, houses, machinery,
&c, must be equally or still more desirable. The
march of progress however, which has brought.
about tho late discoveries of gold, must also bring
changes that will effect in some measure the fixed
meas even of these possessions. While the distance
between the United States and England is being
lcssened year by year in way that bids fair to
constitute them neighboring countries, the fact that
lands are to be had in abundance at from 5s to 20s
per acre on one eide, must operate powerfully on
the value OF similar holdings the other The
improvements in modes of building, such as have
been foreshadowed by the construction Of the Crys-
tai Palace, must likewise impart more temporary
character to existing house property. The same in
to be said with regard to chips, railroads, canals,
and all things that come within the range Of scen-
tifc advancement In this way it will be seen that
while the annuitant will be unable to rely on Ia
perpetuity of his income furnishing him with an
exemption from the necessity OF vigilance, labor or
enterprise, the samo fate awaits most of those who
are embarked in different investments. The alarm
of one class, therefore, may be mitigated by the
fact that all others will be less affected by
analogous conditions; and the promise for the lu-
ture is, that while it will be difficult for persons of
wealth to find any secure resting place for indo-
lence, the universal activity that will be called up
will furnish continuous rewards to sagacity and
cxertion such as have before been offered in
any age.
ARRowRooT IN FLoRIDA.-A correspondent lT
the Florida Sentinel. writing from Dade county, in
that State, gives some interesting information in
regard TO the manufacture of arrowroot thcre-a
business in which he il engfSed himself The
plant from which the article is made is known by
| the Indian name OF "Comta.' II is indigenous to