Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1852-08-06
From the Glasgow (Scotland) Examiner, June L..
VIII Gold Deprecinte!

rorous metals had arisen from eleven millions in
ISIS to twenty millions in 1885, thirty-four
millions in 1851 ard this year, there every rea-
son to expect, they would amount to fortythree mil
lions being four-fold increase in many years
The greater part of this increase is in gold, for,
While only four millions were produced in l848, the
nroIucton in 1851 swelled to twenty-five millions,
y nd they are annually and rapidly increa ing
What has hitherto made gold valuable? 1t |
has been its scarcity, and the quantity of labor
ouired to produce it. Limitation of supply has i'm
narted high value to this metal and whenever it |
becomes of easy access and abundant, it is certain
70 fall in price Diamonds alone more valuable
in prce entirely the result of their being scarcer
not six are in existence above ounce each in
weight, and the King of Persia possesses bracelet
worth million sterling because it includes of
these Were locality discovered where they could
be obtained as abundantly acorns, they would be
in the possession of all. Take for another example
the article of Guano, which, though great descent
from gold illustrates principle. About ten years
ago it only procurable from Peru. and was sold
at about twenty pounds the ton large deposits
were discovered at chabOe, on the west coast of At
RIGA and, consequence. the price fell from SIX
to eight pounds. Apply this principle of scarcity to
whatever commodity we think proper, the result will
be found in every case, to be the same while album
dance as uniformly produces an opposite result.
As natural induction from these premises we
NAV confidently infer that gold, owing to its great
abundance, must speedily fall in price The fall
number Of years,and the effects will not beso mark
ed as they would have been were its value reduced
in a convulsive manner. There is difficulty in
connection with this inject which it is not easy to
remove and on which the most contradictory opin-
ions arc entertained By act of Parliament the Bank
of England is compelled to give G3 lis. 102d for
every ounce of gold offered it for sale and it is
general opinion that the Bank will be relieved from
this liability and allowed to diminish the price
which is EUw the standard Those persons who so
no Annt oOfrr roll
during the war, and affirm that from 1871 to 1915
it varied in price from "a Is to E5 los. the ounce
and in the latter year alone while in May it was G5
Is. in December it had fallen to "a Is. However,
aced in quite different circums tances at
that time to what we are now for when the war was
carried on large supplies of gold required for
expectation to pay soldiers, and also subsidies
to the European powers to enable them successfully
80 repel the inroads of Napoleon: hence it became
scarce and dear but at the present time have
attained state Of complete surfet and scarcely
know what to do with superabundant supplies.
Independent of the scarceness abundance of
gold, however there is want of defniteness in the
ideas Of those who conceive that lower price will
be given for gold What is the obligation of the
Bank of England? Simply to return weight for
weight for what is deposited with it. its equivalent
in bank notes. payable on demand 1t is matter
Of perfect Indifference what specific value is attach
ed to the ounce of god-as the Bank neither
gain nor lose 10y the transaction, being only bound
to return what they had received, but with the
sumption of another form. AS commercial COM
munty must possess standard Of value that
various transactions may be balanced and regu-
Lifted in exact manner, and we have chosen gold
for this purpose from its compactness and compare
tive scarcity, and therefore value, the great
gllatOr Of exchanges. 1t is a mere matter of
convenience and we are almost singular in adopting
this Standard the other nations of Europe and
also the United States of America, have chosen sill
yer standard. The Islanders in the Indian Archi-
peIago have shells, and in byssnan they have salt
to serve the same purpose.
1t is, however, apparently contradictory to assert
that the standard of gold will remain unchanged,
and at the same time become deprecated; but our
meaning will be better understood, by affirming that
while gold retains fixed value the price of all 9th
or commodities and productions will be enhanced in
relation to it, Surprising gold becomes in the course
of six years, deprecated to the extent Of twenty
five per cent, and surprising pig iron to be now
worth forty shillngs the ton, it will that period
bring fifty shillings During the interval, the la
Dor required to produce gold having diminished
has cheapened it to that extent, and the labor re-
qured to produce pig iron having remained station.
arv has resulted in this striking change The real
value Of gold has diminished, but its nominal value
its exchangeable value is unaltered. and hence
the value Of all other commodities will be enhanced
in their relation to gold fixed and Interchangeable
standard.
1t may illustrate our subject still better if we af
real value Of gold has increased twenty five per cent
Though nominal its value is the same, for its stan
dard price is unaltered yet its ability to employ la
Dor, to purchase commodities, to command produc
tons, has very greatly augmented. In that interva
our ma iOnal taxation has undergone dimnutiOn tt
the extent of almost twenty millions and the reduc
ton has chiefly taken place by repeating redu
cling taxes upon articles of consumption, which ha;
considerably diminished their prices; tea coffee, su
gar and corn, have all fallen in price or, in Other
words, sOvere On will command almost fifty PEI
cent Of these commodities at the present time
than it could in 1920. In manufactured articles
whether of cotton, silk WOrSted, similar, and a.
great reduction has occurred in their relation t.
gold standard of value Money has been con
tinually enhancing its Importance. and large cap
ltastS have increased their stores without risk in
Cured, intelligent effort. tinspired the deep
est fear for productive classes to anticipate th
process to be continued for another quarter of
tury, but California and Australia have opened
their golden treasures when the clouds dar
and lowering. and hope almost about taking he
dcparture--they have arrested the cheapening pro
cess, or in clearer language. cheapening gol
and bringing it to Il level with other commodities
which event will introduce an unexpected but brgh
day in history.
We have shown that gold while it maintains it
present standard of value, will also, owing to it's a
bundance, fall in price, that it will require
greater quantity of it to purchase products tina
it does at present: maintain this to be e.
tabli>hed and ncontroverbe fact from con
mercial history during the past thirty years,
which we find that gold, though always Of the sam
standard Of value has really increased in price, fl
lis power iii purchasing products has been grea
ly augmented the large supplies we recei
ing will equaze the relative value of all these art
cies much to our national advantage In nel