Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-03-13


$816 is reduced TO be worth only IL. 47S-lO0O
Such the effects which would have naturally flowed
from constant tendency towards contraction in the stand
ard Of value upon which contracts based The at
tempts which made TO relieve these evils
skfu and often mscheyous but these expediens were
sometimes called for by the necessities of the times and
the evidences IL not the remedies for mischiefs ac
tualy endured To have prevented the contraction OF
the specie standard of value it necessary that the
precious metals should have increased fast as the resi-
due Of the property of the world but know that before
the discovery OF America the annual supply OF the precious
metals was very small whilst it is notorious that capital
and property accumulate rapidly in times of profound
peace That this must be SO becomes still more evident
when trace the history Of the precious metals since
the discovery of America and during period when we
have better for ascertanng facts in relation 10 the
relative progress of specie ard property That capital
has increased with great rapdty even in the last TWO
centuries although there long periods OF wastefu
warfare in BOTH there is abundant evidence Since the
time Of William of Orange capital in Great Britain and
perhaps in Europe generally must have doubled Ior the
rate of interest Notwithstanding the increasing demand
for capital from increasing population has diminished
nearly half The legal rate Of interest in England
during that reign was eight per cent? and money may now
be borrowed for one-half of that rate less The I'M
mense impulse which has been given by discoveries to the
productive power only OF but of material agen
cies increased vastly the property Of the world But
for the last century the increase of the precious metals
has been comparatively slow The amount produced
nuay be accurately asceraned for any period Of
time but statement made by Brognar Of the produc-
ton Of the precious metals see Doc. No III 99 from
1890 to 1902 places it at $45 2l The entire pro-
ducon the mines of America from 1892 to 1885, see
same Doc p. 101,) according to table compiled from
the statements Of Humboldt and Ward, amount to
&c. 200 100000 The quantity existing in the world at
the time of the discovery of America and that added from
other since that period to great degree
jectura but it is probably not under $4,000 900 OO0
See table Now, if 45 800 900 be taken as the ave.
rage annual product during the last century and doubt
less until within the last ten years. this estimate is suf
fceny large and if deduct for the annual abrasion
and waste $500 000-end Humboldt computes for the
waste in plate alone in Europe So 500 900 (seo same
Doc then the average annual addition to the stock
of specie not quite oneha Of cent Indeed
this addition is probably overesmated here, for Mr.
Gallan estimated the annual supply from 1909 to 1929
at l8 600 600 in silver and 49, 000 900 in gold making
but S27, 900 900 in all.
Who suppose but that property has increased at
far rapid rate Population has certainly increased
at much more rapid rate than cent annually
see table F. and shall hereafter show that the pro-
perty of the world has grown faster than its population
In 1916 the ascertaned public debt Of Europe alone was
$8 GOT, (see Statistical Companion, by Banhed
and Weld pages % and "a and all must admit that this
constitutes but small portion of the capital in those
countries apply the term only to those products
in which labor enters element When we consider
how small portion of the capital Of the world is invest
ed in public debt may form some conjecture as to the
vast amount of commodities which the value OF
the specie of the world That this stock increasing
much faster than that of the precious metals is also highly
probable. IT, notwithstanding the increased demand for
capital which increased population produces there is
fall in the rate of interest there reason to presume
that the increase Of capital is faster than that of popua
on that is to say unless extraordinary circumstances
have occurred to produce greater relative waste either
of population capital But the period between 1900
and 1850 has not been marked by such circumstances
From 1901 to S4l population of Great Britain has in
creased from GAG to 1894 and in the United
States from 1900 to 1850 the population has increased
from 925 to 30 488 but during this period the
of interest has greatly diminished Now, capital
had increased precisely in the same ratio with population
the interest would have been about the same in
1900; but this last having diminished have in that
fact proof that capital has increased faster than popu
lation.
IT. then we had possessed currency but SPECIE and
stock about what has been estimated it wouldhave
required much larger annual supply Of specie to have
maintained the standard of value it in 1900.
But instead of that the relative of property has
been constantly increasing How, then we fear that
any supplies Of the precious metals likely to be derived
from California, any mines now known can affect in
uousy the standardo of value? The probable amount of
specie raised annually does not exceed 000
see table which is sum far below what would be
cessary keep up nvarable relation between the
specie and the constantly increasing property of the world
The effect of this contraction of the specie standard has
been paated by reductions in the amount of fine metal
which contained in coins of given denomination
Less gold and silver made from time to time to re-
present the values; and, although this made to
extent for deficiencies in the production of the pre-
cious metals yet its operation upon existing contracts
and especially those which required long time for their
fulhlmen must have had depressing effect upon enter
prise and production The best maured schemes for pro-
tabe adventure might thus dsappoint expectation
because calculation, far founded upon known
data was imperfect but because of contraction in the
standard of value. What could be better calculated to
discourage enterprise depress the spring human pro-
duction? How much Of the depression of commerce
during the middle ages from the decline Of prices
consequent upon dminuton of the stock of precious
metals, has probably been sufficiently estimated
And yet comparison between the deep decline Of all the
great interests connected with and human in
dustry during that period and the wonderful impulse
given all sorts of productive enterprise after the dis
80
which the existing state of the standard Of value produced
during the two periods But may be asked why it is
that this contraction Of the standard Of value has been
seriously felt in modern times II in truth the rea
tive additions made to the stock Of specie and property of
the world were much larger in the latter than in the for
mer case If all the pecuniary transactions of society
had been settled in currency, and there had been
rency but specie there is believe that the pre-
state of things would give unmisakabe evidences Of
the effects of contraction Of the currency upon
terprse and industry But since the general of bills
exchange currency has not constituted the only
of settling pecunary transactions and since the middle
Of the seventeenth century, when banks began TO be felt
in commercial affairs specie has not constituted the only
currency Of the world but this last has been largely
composed of paper that cannot omit its consideration
in any question connected with standard Of value
Perhaps discovery in the whole machinery
has been important to the world than that Of the
bill of exchange. None which saved SO much labor
in its processes which so efficient in keeping
up some approximation between the real and the money
standards Of value Of the world Accounts which former
required long expensive and hazardous transportation
OF the precious metals began to be settled by offsets
or exchange Of balances mutually due by distant
bankers and thus transfer Of entries upon their
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