The republic. [volume] (Washington [D.C.]) 1849-1853, 1852-03-13
Gold and Silver.

A late number of the Journal DIES Debats at
Paris contains an article on the relative values
of gold and silver, Of which we make the fol-
lowing translation
.GoLp IN FRANcr.-It is now ascertnined
fact that there in Australia vast auriferous de-
posts of alluvion. To the causes Of the deprecia-
ton of gold which exist in California, therefore,
are about to be added another, which may prove to
be very powerful; for the mines of Australia appear
TO be rich they extensive, and the spirit oil
enter prise is very energetic among the Australian
colonets. This Is, then, an additional reason why
| the government should engage with earnest soil
ctude in the revision Of our monetary laws, that
may prevent the depreciation OF gold from hap
pening to our special disadvantage
"The naked truth of the matter is this. France
requires about two thousand f1Ve hundred millions
of francs in specie for its business transactions
| Until 1850 she had might say nothing but sill
| yer Tor this purpose; but since that time gold has
been precipitated upon US with constantly IN
creasing impe,uosiy. The mint OF Pans, (the only
one where gold ID transformed into money! which
formerly only coined Insignificant sums, now lab
| ricaes unexampled masses.
'In lS45 it had only coined one hundred and
nineteen thousand francs; in 1851 its coinage had
risen to the exorbiant quantity Of two hundred and
for silver in our monetary system; and what be-
comes Of the silver thus displaced, 1t is inevitable
that passes almost entirely into the state Of bull
lion, serving for the necessities Of the general com
merce of the world; because the entire scale of our
operations will hardly require more than fixed
amount of metallic money. and, if gold enters into
our circulation, nearly an equivalent quantity OF
silver will go out of it. The phenomenon which is
taking place. therefore, 10, that q few years since
We had only silver specie, whereas we are now
gradually reaching state of things in which gold
will be our only specie.
'If gold not in course of depreciation,
there need be regret at this substitution OF gold
for silver; but we are warranted in saying that
nothing has heretofore existed to produce such
immediate influence on the fall of gold the dis
covery Of these deposits, richer than those of
any of the mines heretofore explored. In word,
silver fulfls ut the present moment, much better
than gold, the essential condition of good money
fxednoss of value in the metal.
'If, them the present state of things is permitted
to go on, Franco will continue, in common with
the United States and England, by its coinage, to
serve receptacle for the gold furnished by the
mines of California and Australia, not to speak OF
others 1t will serve, too with greater disadvan-
tage than the two countries named, since it will
give along with the silver, merchandise, which we
are at this time justified in considering as invari-
able in it's value, and give it for gold, that in TWEEN
ty or thirty years is to lose probably one half or
two-thirds OF its value. In short, shal play the
part of dupe, and still more than the English
or the Americans, for the that neither Of
these have any silver money to lose.
we shall play this sad part very grand
scale; and in fact, however much silver money
we may have left, shall receive the gold at the
seeing that our monetary system recognises
this basis OF valuation. We shall thus receive two
thousand millions, and perhaps more, of the two
thousand five hundred million francs of about
which our monetary mechanism is composed and
II tho subsequent depreciation is half or two
thirds, there will be loss of one thousand millions
or one thousand and three hundred and thirty three
millions
"Such is the disaster which it behooves TO
ward eff The remedy is known, and is simple
and easy. Small States have already given US an
example oft We must abrogate the law in our
monetary system which provides that gold shall he
received at the rate of fifteen and half times the
value OF silver. The relative values of gold and
silver are essentially variable, just the relative
value between lead and brass, a that between
bread and meat. In the year XII, when the law
yet in force passed in regard to the coinage OF
gold, this relative value fifteen and a half
to one; but henceforh the strong tendency will DO
the other way. To perpetuate the law Of the year
AI' therefore, would be TO perpetuate false.
hood -