The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1853-03-25
Gold, and farmers Prices.


marks. "Our world Of credit, like the
world, Of the Hiodoo philosophy, rests
upon, an elephant, which is supported byI
4 ,ofIoise. The elephant is our bank
note circulaiion; the tortoise, a few mil
lions Of gold in the offers of the bank of
England"
Tho wealth Of the world consists not
in the amount Of gold and silver posses
ses, nor in the amount Of bank note cir
culalion on the basis of these metals =
Real geallh Is full suppy Of the com-
forts and and necessaries OF life, in the
form At good homes, good Grmes con-,
ecni4ni public and private conVcyances
for the people and produce, the supply of
all articles for the qualifications ofperson.
al wants, and for the ptomotion Of intel
ieclual culture.
Small circular discs or certain metaIs
called money, coQId supply none Of these
wants, il, there were not a general under
standing and ag,cement among men, that
they shall be the representatives, of
wealth, A precisely similar. but more
limited agreement, makes bank-no'es the
representative of these discs, aud conse-
qncnIy Of wealth itself. A third repre-
sentative is "credii," strictly called so,
which is still more limited in The extent
Of its action. A man furnishes commo-
d,ies 10 his ncighbor, and charges him
on book account. This book account
is the representative Of wealth, for il vii!
bring the money or other goods in due
time. Or he furnishes goods ior bank
notes, which are alike its representative,
for they too, according TO agreement, will
bring it. Or, he sells for gold coin, be-
cause il represents wealth by a more
universal agreement, and will everywhere
command lis possession.
The amount Of gold and silver is much
greater at present than two centuries
ago, and tho prices of commodities, rep.
resented by these metals, are much high.
er, BIZ, prices would not probably be
any higher than formerly, If gold and
silver were the only med um foS trade Z.
The commercial business Of the world
has increased enormously during this
period, and BY far The greatest portion is
carrIcd on through the medinm Of credit
either by book account, checks, prnmls-
soty notes, or bills of exchange. How
ever excellent the "cash system, may be
in many instances, the great convenience
of credit will do 4btless keep up lis use
as long as men do business with each
other. 1t will be impossible to estimate
The smoun, of business thus. transacted
al the present time, Il $50 that dur
ing the greatest actse "a The grain
trade in England, some YEARS since, there
were persons emp loyng a capital Of only
FIVE thousand pounds; who carried on
business by means Of book transactions
to an amount Of five OF SIX hundred thou.
sand. The bills Of exchange alone, in
circulation in Great BIiiain. have been
supposed from calculation to amount to a
hundred million pounds; at the same
time that the bankmpote circulation has
been less than ery millions. The
the irausac,ioM d bic London Clearing
House are saAD! be about thrce million
pounds daily, rtqudaied by means OF
more than two buudred thousand in bank
uo.es. We state these facts to show
how small shate money has directly in
the accumulation and transfer Of the
wealth Of the globe.
What effect, then, it may be asked
will the present accumulation Of golc
have upon the prices of lands and itsspro
ducts? This is a very important 4 ues
lion to such as may be about to purchase
farms with long period Cor payment, or
to those who may sell under like circnm-
stances. Ii man sells a farm at fifty
dollars an acre, and before he gets his
pay, it has risen to a hundred dollars
am acre, and all the necessaries, have risen
in like proportion, he will feel father dis
satisfied with his bargain. A glance al
,be past may throw some light upon the
subject of rise or fall in prices. ...
During the sixteen,h century, when
the amount of business transacted was
small, prodigious increase Of prices
took place by the long continued llfnx
Of silver, consequent on the discovery Of
the western world. This increase has
been estimated as three hundred per
cent. The value of gold became nearly
doubled; or one pound Of gold which was
worth only nine or'ten pounds OF silver,
afterwards exchanged for fifteen pounds
of silver. Atlhe present time the reverse
is taking piece, though ina far less de-
gree, yet sufficient TO dive the present
silver coin uut of general use. During
the seventeenth and eighteenth centuries,
The increase Of the precious metals produ-
ced, in the space OF about fifty years, an
advance Of twenty or thirty per cent. in
prices. ..
Whether corresponding increase in
prices will lake place in the next fifty
gears, is somewhat involved in conjecture.
An exchange of commodities may be
carried on to am unlimited extent with.
out money,or with only enough for the
payment ofsthe balance. The rapidly
increasing facilities for conducting Iusi.