New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-02-24
INFLUX OF GOLD AND ITS EFFECTS

other day, in our remarks upon the effects of
the influx Of the precious II tals from CalifOr-
MIA and Australia. We hoped by doing this to
disentangle a knotty question, and separate
and lay its parts in due order, where all could
see them, and TO thus furnish clear and solid
starting point for reasouings or speculations
| upon the subject. The gist Of our observa-
tons was, that California and Australia are
adding about four per cent. annually to the
existing stock Of precious metals, over and
above the regular supply, and that the natural
appreciation of prices consequent thereon, is
in the ratio of that increase, or four per cent
also, annually A conclusion certainly of very
great significance, if soundly bottomed.-
Whether this proportion Of increase be lit
tie more or a little less does not materially
alter the case, and upon il opinions cannot
materially vary. II may be otherwise in re-
spect Of the influence of that increase. One
man may reason that the commercial move
ments of this era are so much accelerated by
the fast influences of our times, and that
steam and electricity have SO much lessened
the distances between the various parts OF the
earth, that less money ia needed now than
heretofore for the purposes of trade and CON-
merce; and that consequently, the effect of
the supplies Of gold we are receiving will
be greater than that of similar relative
supply made three hundred years ago
While another will find good ground for hold
ing the opposite opinion; namely. that the
effect of such addition will Be less now than
then, for the very reason that the ease aud ra-
pidity and universally of exchanges which
marks our age, and the wider increase OF indi-
yidudl comfort, and the consequent more gen
eral diffusion ofmoney, superadded to the in-
creased demand for the precious metals for use
in the arts and for ornamental purposes Undue
Cd by extended habits of luxurious living, will
create much greater relative absorption ofthe
supplies of Gold and require larger proper
tiODal quantity to meet this demand. In brief,
that, ON the one hand the same amount of
money does more now than il did 800 years
ago, and, on the other, that more money is need
ed now than then Chat is greater proper
tional quantity to serve the multiplied de-
mands for il. We shall not undertake to hold
the balance between these twodiverse opinions.
We are content to let one offset the other, and
to hold fast to our original idea, that a
given proportion Of addition to the stock
Of precious metals will produce about
the same effect at one time as another
We find striking coroboration of this view
Of the case in the advance of the Government
stocks of England and the United States since
le49; both Of which have been scarcely inhu-
enced in their market value in any appreciable
degree, by any other circumstance than the
comparative plentifulness Of money. We pur-
pOseh omit reference to the stocks of other
European Governments, because they have all
been more or less affected by the disturbed
state OF their political affairs during the last
five years The price of British Consols in
lo49, ranged from 81 TO 90; they are now
nearly par, or exhibiting an advance of or 9
= cent American 1868 - cents were worth
in April, lS49, lO7 to los; they are now sell
ing for lis, showing an advance of : TO : y
cent. This criterion of tie enhancement of
prices is surer and better than any based upon
prices Of articles OF commerce, which are al
ways affected more or less by the constantly
changing conditions of demand and supply
And it shows that our calculation in regard TO
the real appreciation Of prices can not be
far out of the way.
Assuming this TO be the case, and assuming
our calculations of the extra increase of the
stock of coin to be about eight per cent. since
1850, We come 10 the practical conclusion that
the advance of prices, already caused by the
influx of gold, is far greater than the metallic
additions to the currency will warrant. In our
own markets, the most striking Illustrations Of
the fact are observablein the enhanced prices of
building materials, ARTICLES always among the
first TO feel the impetus given BY the advancing
wave of a swelling currency in the high rates
Of living, increasing rents, numerous "strikesn
for higher wages, and above all in the swollen
and still rising prices of real estate in all our
principal cities, but more particularly in
this. The great feature N New.York
trading operations at the present time ia
the traffic in Real Estate; in lots of all sorts
and sizes, occupied and vacant, from the Bat.
terry TO Harlem River: and in stores and
dwelling houses all over the City. Plices Of
these have everywhere advanced, at some
points enormously, and at all to greater or less
extent Ard the California and Australian
gold is at the bottom of the whole Of it. OF
course some allowance must be made for the
natural growth Of The City. the gradual sc-
CT wealth, the vas, emigrssi,u 10 |