Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1851-03-24
Eeom HIM.. Mer11an,.. narn-in..
The Gold Of California

1nc GOiO Oh Cal1fOruE1.
A writer in the Cincinnati Chronicle
and Atlas, abiding to a speculation raised
as to the effects likely to he produced by
the large increase of gold from California,
and being as he informs us, satisfied that
great misrepresentation exists as to the prob
able effects Of California gold upon the
monetary transactions of the world, offers
a few facts and observations in illustration
of the position he assumes, viz, that there
is mo danger Of gold being materially de-
preciated as the standard Of vaiue, Sc
Believing the subject to be one ofinteres,
to the readers of the Merchants Magazine.
and that its free and fair discussion will
tend to its calculation, we transfer the re-
marks ofthe writer in the Chronicle to our
pages le
Unless the yield from the California
mines greatly exceed what appears prob
able, feel no hesitation in SAYING, that
there is no danger of gold being material
ly deprecated as the standard Of value,
and the idea ofits ceasing at no distant day
to be the standard ofvalue, In consequence
Gifts reduction in price, is an extravagant
and wild Imagination. Upon the most
reliable data, Mr.. jacobs a person suppos-
ed to beof high authority in monetary
matters, estimated the total coinage of the
world in 1880, at G3l3, 100000, or ST.
1920, 000--an amount lessby ae60,O00,-
900, or $500, 400, 900, than the supposed
coinage of 1908. If we may suppose that
the esentcoinsge Of the world is only so
large as that supposed in 1880, to wit,
sl.5A,92o,o00, 1t will readily be perceiv-
ed that 1t will require no inconsiderable in
crease ofthe precious metals to tell sensibly
upon the existing coinage.
"But it should be borne in mind that
the coinage of the world does lot by any
means embrace the largest proportion of
the. total amount of the precious metals
1t does not embrace, probably, more than
one-third. 1.-THE coinage of the world be
100000, we may estimate the to-
tai value Of the precious metals at S4,544,-
760. 1t is likely that the yield of the Cal
itornia mines will be large enough to tell
materially on this large amount of precious
metals, when we consider the continual
loss to which they are exposed from abra.
sion, ship-wreck, and other casualties?-
In the connection with this view, it may
be as well to mention that few years ago
the Emperor of Russia threw one hundred
millions ofdollars in gold, the produce Of
his Cral mines, into the money market and
that neither the currency Of the world, MOI
the price Of gold, has been sensibly affect
ed by it.
"But the misapprehension on this sub
ject arises chiefly from failure to consid
er that the demand fer the precious meta:
increase toa very great extent, with the
increase oftheir supply. 1t is this princi
pie which has keptup, in "a great measure
the price of these metals, Notwithstanding
their enormous increase, consequent upor
the discovery of America. And it is this
principle which will prevent the increase
consequent upon the discovery of the Cali
fornia mines, from materially depreciatine
gold, even although that increase should
be much greater than it is probable that il
really will be.
"Mr. Say, in his excellent treatise on po
htical economy, estimates that while tho
Increase OF the precious metals consequent
upon the discovery of America was ten
fold, the reduction of their value was onl,
iour-fold. The reason why the reduction
OF value was not commensurate with the
increase of supply was, that there was ;
eotemporaneous increase of demand. .Th,
cost y objects that none but princes could
before aspire to possess, became attainable
by the commercial classes; and thcincreas
ing taste for plate and expensive furnitur,
created great demand for gold and silver
to be employed on those Objects 1t i.
true that a number of circumstances con
splred with the increased supply of GOLD
and silver TO extend the demand for them
The opening Of route to the East In
dies by the Cape of Good Hope, the gen
eral advance of Europe in civilization, anc
the discovery of the new world itself, ex
erted material influence in extending tn,
operations of commerce, augmenting
wealth, and charging the demands for tn,
precious metals. The increase of golt
from California will be attended by cir
cumstances of a similar nature. The es
tabllshment of the European race upon tn,
shores of the Pacific, and the direct com
munication thereby created with CHM
and the Sandwich Islands will widely ex
tend the operations of commerce, and o
pen new Springs Of wealth If the Cali
lorna mines, therefore, should increas
the supply of gold by ten-fold, we nee,
not entertain any uneasiness on the score o
the metals becoming too much degraded t,
answer thepurposes of a convenient com
mercial currency. We may safely conclude
from the results of former experience, tina
an that case, it would not be deprecated
more than four-fold. Even with that re
ductlon of value, it would be much NOR,
precious than silver, which is fount
to answer very well the purposes of cur
rency. The value Of gold as compared
with silver, may be stated to be in Europ,
about as Is is to one, although acoordin.
to Baron Humboldt, it is in China only a
LA 13 to one, and in Japan only as eigh
or nine toone, With the supposed reduc
ton, its value in Europe would still be t,
silver as 81 to one.
''But Will the California placers an,
quartz rock increase the gold fthe worl,
ten-fold! | answer emphatically, never
All the mlnas ofAmerca only effected sucl
an increase ofthe precious metals at TIM
when their amount was at least ten time
smaller than at present. Mr.. Jacobs est
; mated the total currency of Europe in tn,
: 10th centuryat se33, 000,000 and it was no
probably much more at the period of tn,
discovery of America. Its a much easie
: task toincpease f33 ,000, 000byten-foldtha
f3l3,000,000, the present estimated cur
rency ofthe world. 1t is not at all proba
bic that the California mines will do .oor
than IN double the supply Of Ca ed, in the mex