The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1852-05-06
THE EFFECTS OF THE LATE GOLD
DISCOVERIES.


Nearly the entire newspaper press, both OF
this country and Europe, are engaged in
specializing upon the effect which the enormous
amount Of gold discovered in California and
Australia will have upon the business OF the
world. Upon all hands, il seems to be agreed
that, the relative value of gold and silver, win
undergo very rapid change, and some even
apprehend that the metal which is now consi-
dered the bsser OF the two, may. at no very re-
mote period, come to be regarded as the more
precious. There seems, at the same time, to be
but one view with regard TO the effect which it
will have upon prices all over the world
These, il is supposed. must inevitably go up,
as by the increase Of the circulating medium,
money becomes cheaper. The most serious
apprehensions are entertained with regard to
the effects which are 10 result from the specu-
lating mania which an unusual expansion of
the currency has never failed to engender, and
which has always, in the end, proved disas-
trous, not only to those immediately concerned,
but to whole nations, and even to the entire
commercial world.
That there is great justice in these specula-
tions we have no doubt. That great disasters
will occur in the commercial world before
things shall have subsidized TO their proper
level, we firmly believe. Yet we are of those
who have always believed that an expanded
currency was beneficial to nation, enabling
it to undertake great things, and to perform
what ii has once undertaken. The currency
of Great Britain. during the wars Of the French
Revolution, was enormously expanded, and it
was to this expanded currency that she owed
not only the mighty achievements of her army
and navy, the continuance Of those vast COM
binations which she effected upon the conti-
neni, and the final overthrow of Napoleon. but
the quiet of her own island, the preservation of
her commercial credit, and, finally, her very
existence as nation. Nor is this the only in
stance in which an expansive currency has
enabled nation not only to do great things,
but to save itself from absolute destruction
Rome was preserved from the arms of Hanni.
bal by an immense extension of the. Italian cir
culating medium. Our own revolution was
brought to successful issue in the same way,
and the assigaats of France enabled her ar.
minis to ovefrun nearly the whole of continental
Europe. 1t has been said. on the other hand,
that the decay of Rome was owing less to the
courage of the barbarians, and the infbecility
of her children, than to the failure of the gold
mines of Greece and Spain. Subsidiary TO this,
it is well known that the progress which the
human race began to make in the beginning of
the sixteenth century has, by the same autho-
rity, been attributed to the discovery of the
mines of Mexico and Peru, and the continual
rise of prices during the two centuries, which
took place all over tine world, from the constant
influx of the precious metals.
We apprehend that disasters, such as those
to which we have alluded, are the result, not of
an expanded, but of contracted currency
As long as the currency continues expanded,
and money continues to be plentiful, bank
ruptcies are seldom heard of. 1t is when the
circulating medium is suddenly reduced, and
it becomes difficult to lay hands upon the
ready, that men fail to meet their engagements
that protests and bankruptcies become the
order of the day-that merchants close doors,
and banks suspend payment. If the influx Of
gold continue to be what it is now, two tons
week from Australia, and $100,000000 per an
mum from California, we see no reason to ap-
prehend a contraction for many years to come.
IT should berecollected that expansion or con-
traction does not now, as it had done for many
years previously, depend upon the action Of
banks, or of the legislatures which call banks
into existence. They depend upon nature her.
SELF She alone has it in her power to expand
or contract the circulating medium, and thus
far she has evinced no disposition to prove her
self a step-mother. The discoveries in Cali
forna have been, indeed, characterised as the
great currency extension act of nature. No
complaint can be made against the currency
which it has given to the world. 1t is not rag
money or shin-plasters. 1t is gold itself-the
quarter Of the world constitute specie-the very
metallic basis on which banks are supposed to
rest, when they are allowed to deluge the
world with their representatives of value re-
ceived.
Those who fear the sudden rise of prices all
over the world, to the debasement of the gold
coin, and the consequent arrangement of BUSH
ness, do not appear to us to have sufficiently
considered very important element that
should have entered into the calculation. We
allude to the enormous increase in the number
OF persons among whom this coin is to be cir.
culated, as compared with those among whom
the gold and silver brought into use by the dis
covery Of America, circulated. For two hun
dred years there was regular annual increase
from the mines of South America and Mexico
Of $25.0O0.oOo. At the period of the discovery
Of America, trade was confined to comparative.
y = very few Of the European States. Spa;n
Portugal, France, Venice, Naples, Genoa and
o'nsr Italian States, Great Britain, Holland and
.ne Low countries generally then belonging 10
SPAN, and portions Of Germany, seem 10
Asse monopol'zed it all. We have no means
y aseei'ainlng the amount Of their aggregate
pODulafa0n- knt - u.