The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1852-03-08
THE CURRENCY.


men profess TO be very wise, but on which there
arc fewer persons really well informed than
upon any other subject Of political economy.
The causes of its Gibbs and flows are equally
matters OF speculation with those OF the tides.
The currency is indeed the "pons asinorum
Of political economists, and they are very much
given 10 travelling over it. They seem none
the user for their frequent crossing oil H. in
spite of oil their speculatons and prophecies,
the currency continues after IFS own fashion,
not violating any Gifts own laws; but setting at
noush the rules the wise-acres are constantly
LAYING down for its government Withoutpro-
Tossing to know much about it ourselves, we
give below some OF the facts Of the day with
regard to il.
The great production of gold on this CONT
nent, and elsewhere, within the last three years,
has begun to have an effect upon the relative
things, and with relation to each other. The
Bank Of England, according to late accounts,
had G superabundance Of gold. and had deter
mined to reduce the price of American, French
and Dutch gold so as to stop the Influx and
limit !, to English. The English are begin
ming to be perplexed as to what they shall do
with the gold, which continues to pour in from
California and Australia. A letter by the last
steamer says:
The accumulation of gold at the Bank of Eng
has induced the Directors to reduce the price for
American eagles, French Napol ons and Dutch du-
cats, TO 76s ltd per ounce as advised you on the
9Th Feb II the standard of American gold was
the same as ours viz 90 carats fine gold and alloy,
the Bank would be obliged, by Act OF Parliament,
to give It's Cd. per ounce for 1t. But there oelng
more alloy in the esgles than In the sovereigns, a
certain expense must be Incurred, before the for
rner an be coined into the latr an hence the re
duction of the price The Bank was losing money
at 76s I'D at least it is alleged and the bullion
Office being full to overlooking, they were not un.
willing to discourage further accumulation. Should
California and Australia combine to swamp US with
gold, We shall ere long be puzzled what to do with
Our own currency ia full, about forty millions Of
sovereigus and will not admit of any incre use, I'D
India though ateiy ms able In its thirst tor silver
will not take gold France, last year, coined ABOUT
eleven million sterling, bui the exchange has at last
turned in cur favor, and gold has ceased to 60
there. Till now, change has occurred In the
relative value of gold and silver as the advance OF
the latter about per cent has been caused entirely
by the demand fJr India, in consequence OF an ad'
verse exchange. But should the golden food con
hnue undimiGishcd sooner or Letter, it must affect
the vall of all commodities, the influx of the
precious metals from America did three centuries
ago.
1t WAS stated however, that the regulation
of the Bank of England had not succeeded in
bringing down the price of gold; outside buyers
having purchased that which arrived after the
regulation of the Bank was adopted. Yet the
action of the Bank shows how the importation
is working.
In this county, we are embarrassed by the
appreciation of silver, which is bought up for
export With such avidty, that the Banks are
compelled to refuse to puy ii out, to prevent
the expectation ofthe entire supply of that me-
tai. Dir. BENTON, who, in '32 caused, in his
wisdom, the standard of gold to be changed,
in order to make it n common currency in the
daily business Of trade, did what now increas-
es our embarrassment. The difference be-
tween gold and silver is made the greater by
the in creased alloy of the gold his bill es-
tablisted. But even this has not prevented
the expectation of American gold coin. Every
steamer carries out large quantities of il, while
the greater part of that which is brought from
California takes the sumo destination. 1t had
been supposed that the California gold would
have remained here as basis of our Bank cir
cuiation; but the result proves that even this
country must submit to the principle, that the
country which produces gold cannot retain it.
1t becomes an article of trade that must be
parted with in the regular course of commerce.
It has been conjectured that, but for the Cal
onld sbnplt ba hui IN rastn
pressure in this country. The foreign debt
was so great that this result would have been
inevitable but for the large shipments of gold
our importers were enabled to make. But ii
has no, only been employed in that way our
importatons have gone on without ceasing, and
we buye continued to exchange the gold as
fast as II came, to pay for them.
In the mean time, that very gold which we
arc sending away TO help to glut the English
markets, is invested in our States secu-
rites, and we are to become the borrowers Of
the money we have parted with tor foreign
2 per cent, while our States are becoming the
borrowers at 5a6 per cent.
What the effect of this course of things is to
be, we don't pretend 10 say. We feel assured
that the public works we are constructing with
the money borrowed. will fully enable the
States to extingush the debt incurred in their
construction in due time. But, that we are to
escape occasional pressure and embarrassment
from the heavy debt we will have to pay for
goods imported and in the way Of interest upon
the American securities held in Europe, we
have not the slightest idea. These conse.
quences must be looked for as among the GER
tainiies.
With regard to American coin, Congress
mus, do something. Their values have been
too considerably unsettled to allow them to
remain as they are. Mr.. Benton's standard
for gold will have to be changed; and to retain
silver in the country for the purposes of trade.
an alteration of the standard valued of silver