The New York herald., 1851-11-22
The Effects of an Abundance OF Gold.


The question as to the probable effects Of an
abun dance Of gold, Is again in agitation. Cali
fornia has, thus far, realized more than was ex-
pected by the most sanguine-the product, at the
end Of each year, having exceeded the highest
estimate at the commence ment, and there are
row indications OF a similar promise from the new
regions In Australia. disposition, however, still
prevails TO believe that no extraordinary changes
in the rel elations Of money are impending. When
the Californian mines first discovered, IL was
admitted thai IL thing like eight ten millions
sterling should annually be produced for series OF
be witnessed. BUTT contended that, instead Of
this continued yield there would be a gradual de-
cline after the first year or two. That idea being
adopted. The exports Of gold from California,
for the twelve months ending the 3lst December,
1850, were equal, II is supposed, to l2,0O0,o00;
while, for the present year, judging from the first
SIS OOO 600. In the face Of this supply there has
been no very observable disturbance in the mea-
sure Of value. IL is therefore assumed that the
Augmented quantity has been me- by an aug
mer ted demand, and that, with the Increasing
rsHic OF the world, like an aual addition viii
henceiorth easily be absorbed
This inference, although IL is urged by some able
economical writer's appears altogether unsupported
The only tests of the result Of the increased supply
would be alteration In the relative value Of gold
and tilver, or general and uuaccountable rise in
the prices Of all articles But the extensive dispace
N ment Of silver which has occurred in France, and
of these from being available, except TO very Ii
miied extent, while, with regard to the second, the
changes in our commercial system have been such
as TO produce rapid fall In all commodities, far
ore than sufficient to neutraliz any moderate in
luences of an opposite kind.
Apart from free trade, moreover there is quite
enough to sccouHt for the increased iniux having
thus FAR produced no palpsble manifestations. The
Bank Of France at this moment holds G., 900 900
sterling in excess Of what she possessed in lSt9 the
extent TO which boarding both osgold and silver has
been carried all over the continent during tho
past three years, and especially IN Italy and through
cut the Austrian empire, hss perhaps been unppe-
cedented; drain no less remarkable has boen
caused by the lri5h emigration, which has carried
large totals TO Western America, where much Of II
will long remain; and faally, there has beez the
'eturn TO lndis OF great portion Of that specie
which vas suidealy drawn TO England after the
tsnic Of l-i7
Exceptional circumstances exist, therefore, suf
fcient TO eadfr il unnecessary TO assume that an
increase in the 5emaud for gold has suddenly
spfuDg up ~ an xtent such steadily to absorb
6ftetn rziUions psr annum The tendency Of civi.
zatioo s TO render nee dess the Of ths precious
metals Tor purposes Of barter, and although ne~
colc1jes and settlements for q time create fresh
f<mands, there is no reason to suppose that they
more than counteTsct the esanO nieal influences
.'sevhtre in progress. Even California hsrselfis
not believed 70 have absorbe J. in the shape Of DIR
.,lstion. more than two three millions while,
ta the other hani. we have to bear IN mnd the
gtct Of extended banking accommodation. and
be use Ot money orders. passage stainls. aud other
silnilst euntriysnces. Vhi "a are more less Deug
Initiated in every part Of the world