Richmond daily times. [volume] (Richmond [Va.]) 1850-1853, 1853-03-04
Ftih the Republic. r,
The Gold Discoveries and their Probable


The Gold Discoveries and their probable
Consequences.
sThe gold question" is occupyina the attention
of the economists of Europe. who find their old
theories and calculations sadly disturbed by the
present enormous production of the precious me-
tai. There. more strongly than here, the con-
viction appears to be entertained that the con.
tinued influx of gold at the prevailing rate is
destined to exercise marked and nn early inf1u-
ence upon POLITICAL mercantile, and social affairs
1t is perhaps because any considerable change in
the relation of values is calculated to disturb the
system of old countries more than of our own,
that the question of the probable consequences of
the recent discoveries has there assumed more of
a controversial aspect than with us. With a
more generally diffused prosperity, and with
fewer membranes to weigh down the energies
of peopls, the question is not, indeed, likely
to awaken extensive apprehensions in any quar-
ter. But In Europe where subjects groan under
enormous debts and taxation, and where large
and almost helpless classes depend upon the
maintenance of existing interests, the case is diff
ferent. reduction in the value of gold iu En-
gland, for instance will be reduction in the
amount of debt; and though that result will bring
relief to the masses from whose industry the mil
lions of yearly interest are derived it will be
also fraught with misery to the tens of thousands
offeebe men, aged women, widows, and orphans,
whose sole means of sustenance are invested in
the debts thus affected. The object of British
monetary legislation, especially of the measures
originated by the late Sir r. Peel, has been to
secure the value of the debt and consequently of
the interest, from fuctuation to constitute
the debt into certain and immovabe bur-
den; to be borne by the producing classes
for the benefit of those dependent upon fixed
money incomes. Regarded from this point
OF lew, the discoveries in California and Austria
liza may be considered proofs of the folly of le-
gisatve attempts to control the future. They
are piece OF retributive justice, reversing the
wrong done by privileged classes, and furnishing
the folly which at the close of the last war sacri,
feed the rights of the British people on the
shrine ofexpediency.
1t is worthy of note that all the Euro pean
writers on this question-so far as we know with
out an exception-regald a revulsion in values as
certain if the production of the newly-discover-
ed mines continues to lie as large as it is. When
California first sent forth its stream-tiny as IL
was in comparison with that which now flows
Mr.. McCulloch, writing in the London Times.
foretold this result Mons. Michel Chevalier, the
French economist, Mr. Hankey, governor Or
deputy governor of the Bank OF England, and
Mr. Stirling. a Scotch writer, author of the
PHILOSOPHY of Trade" have since written upon
the subject, with a more perfect knowledge of
the extent and productveness of the auriferous
regions, and, though differing widely on con
troyersi al points, they are agreed this--that
the supplies, if continued, will produce an un.
precedentedly rapid advance of prices involving,
of course, proportionate diminution OF the
present vulue of money.
Mr.. Stirling, the latest of the writer's referred
to, starts with the principle that 'sthe cost of
production forms the point s'about which all ex-
chageable value, all price oscillates-the centre
of repose and continuance; and TINT, taking the
world at large as one great market, nothing will
universally and permanently either elevate or
depress the value of the precious metals but a
permanent change in the conditions of their
production" This change constitutes one of the
most remarkable features in California and
Australia, where gold is obtaned-eyen includ-
ing the labor of all those who are engaged in the
search and get none-at a greatly din inshed
cost. AS rule, no complex machinery, no capt.
tai, is necessary; even hired labor is employed
but seldom; the supply being more directly the
product, so far as value is concerned, and more
exclusively represents wages than any other
whatever. In both countries, the gold
is not only greater in quantity than has ever been
obtained from mines before known. but it is OBJ
tanned by comparatively much less aboc. Hence,
according to Mr. Strings principle, the source
of the value OF gold-the cost of production-has
been much diminished by these discoveries; and
NE SOlu III lilo WOllu, ko has
been deteriorated by the discovery of cheaper
gold, or improved machinery. Mr. Stirling es~
Inmates that in 1852 the yearly increase of gold
rom California and Australia was two and half
lines more than annually obtained from all
other, sources up to 1916; and on this, as we
hink, moderate calculation, he remarks:
"That these extraordinary supplies of metal forming
he universal standard of value produced by the sim
oest labor in ready for the market the day ater
dug from the earth washed from the sands and at
almost other cost than the manualabor employed in
gathering ittha these supplies if continued, will pro
luce rise of prices in England and in all countries using
gold standard to extent to which recent times fur
,ishes example, it impossible for any accus
omed tothnk upon such subjects to entertain
Die doubt"
my deliberate conviction is that if the present rate
If production is continued but for avery few years Ion
GER great mercantile and social change may be expec.
eda disturbance of the existing relations of property
uch the ord has not for nearly three centuries
and that shall deceive ourselves by false analogy if
cude that the flood ofgold which is pouring
upon markets from Russia from California and from
australia, added undated SUPPLIES from older Sources
will be tardy in it's operation upon prices ncreas
ed supply OF silver was In tormerdays
Contemplating the national consequences of
his change, more particularly in their bearing
upon the circumstances OF Britain, Mr.. Stirling
anticipates a result directly opposite to that
which we have predicted. He thinks that he
pressure of taxation, instead of being mitigated,
will be more severely felt; for though the public
nay get rid of burden equivalent to $4,000
300 of debt, in proportion to the reduction of the
,aue of money, the pay ofsoldiers sailors, and
al the servants of the public will be increased
n still greater ratio. English history supplies
parallel to the case supposed. We again quote
rom Mr.. Strings works
During the whole period which interviewed between
he middle of Ezabeths reign when the mportations of
he metals from America began produce their effect
prices down to the Restoration, successive govern
nents had to struggle with inadequate revenues and
constantly increasing expenditure England in fact for
more than quarter of century. resembled patient
vthing under mysterious organic disease ascribing
nancial difficulties may again occur The same causes
re work, and may be followed by the same effects
wisdom, therefore, be prepared. If general
rces ADVANCE taxes must advance along with them. -
land nd