The Sumter banner. [volume] (Sumterville, S.C.) 1846-1855, 1852-08-03
p O L I TICAL.
Consequences of the Increased
supply of Gold.

years ago, were almost derided as to
the probable effects Of the iucre ased
supply of gold, are now assuming
1 prepondcrence over all other subjects.
The anxious pause of curiosity is la.
ten., but it is nevertheless fel, by ev
& cry one, and it is easy to understand
why it has not hitherto been more de
cidcdly expressed. The land own.
ers do not care to avow the full ex
tent of their hopes, and to stimulate
cry from the annuitant class for
preventive meddling. That class.
on the other hand, together with the
u.uch larger body who dislike every.
thing that upscts routine and ncces
states thought, endeavor to persuade
themselves into indifference. Their
i original disbelief having been forci.
bly, overcome, they seek new refuge
,tin the conclusion that fresh uses for
the precious metals will prevent an,
alteration in value. The remaining
class, consisting of ordinary men of
business, who are not affected by the
bias OF either the landlords or the
annuitants, hesitate to discuss a sub
ject which they have no time 10
work out, and on which nevertheless,
they are expected to he perfectly
clear. Under these circumstances.
> although it may involve " repetition
of former statements, it will be use.
full to review once mare the general
bearings of the whole question.
TO arrive at an exact solution, i
would be nee .ssary.t to ascertain the
amount Of gold and silver in tn
world, and the present annual con.
sumption for coinage and the arts
This is impossible, aud comjrctural
quantities must consequently be tax,
en-. The total Of coin has been
guessed at e400.00O,OOO. Of this
1 9150 ,Oeo 900 may be assumed t.
a.l be gold, and ESQ, 900, 900 silver
The annual consumption Of gold is
believed to be under te6,0OO.OOO
Starting with these figures, if the
demand for gold were likely to con.
time limited to its ordinary a,nnunt,
an estimate of the effect Of the sup.
plies now pouring upon US could
easily be torne'l-l'hpse supplies
within the few years since the discov.
cry Of California, have probably in
the aggregate left us an. excess oil
upwards Of 900 900 over what
has hitherto been fonnd sufficient for
current wants and TO maintain an
equilibrium i'll the general relations
of property. The increase, there.
fore, has been equal to twenty pel
cent, Oh the whore sum III existence;
In other words the measure of value
would appear to have extended one.
fifth Gust as if Il twenty-five inch
measure were extended to thirt,
inches,) and hence the effect to bt.
looked Tor is obvious where gold is
the standard, the price Of every arti.
Gle adjusts itself TO the relation j!
bears to that metal. If sovcrelyns
were twice as numerous, man would
demand two where he now takes one.
An increase OF twenty per cent, in
the supply should therefore, have
been followed by proportionate al.
vance i'll the nominal value OF all
things.
But signs arc wanting Of any such
general advance. 1t is necessary,
therefore, to inquire-first whether
any absolute test is available b,
which the change can be shown to
have taken place in some one III.
stance, although it may have been
cJunteracted III others; AMI nrxt, If
il this be impossible, whether lhc ap-
parent anomaly can be explained on
different grounds.
The most direct test would be
sought in the price Of silver, that ar.
ticle next to gold having hitherto
been the least liable to variation. =
But 1t was long ago pointed out that
IN those countries where gold and
silver constituted equally legal ten.
der, one metal as it became more
abundant, would dlsplacc the other,
and that the surplus Of gold would
thus be reduced, and large amount
OF disengayed silver be thrown upon
the bullion market in its stead
Previously to the Californian dlscov-
cries, silver was the circulating me
dium both in France and the United
States, because since the periods
whom the double standard was fixed
III those countries it had increased
moro rapidly than gold, and all per
sons having payments to make SC.
lected it, therefore, 20 the best me-
dun, Its relative chcarncss in
f.taacc, l'oweHcr, as comlarcl With