Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1853-10-22

FROM NEUTRALITY-SUSPICIOUS.
LONDON, SEPTEMBER 20, 1858.

party attributes the rise IN price o ahost uli ar
ticles Of consumption to this discovery ana also the
high rate of interest, the scarcity OF money, the alb
straetion of labor from agriculture and manutac-
lures and the introduction Of spirit Of adventure,
Speculation, and commercial gambling among the
hundreds Of thousands of previously plodding pains
taking men who are now toiling in the "diggings'
or assisting in the various avocatons connected with
the gold mines. Commerce is disturbed and dis
tracted from its regular channels, say these people,
labor diverted from its legitimate pursuits, and good
morals and all the best interests Of society endan
gered by reckless pursuit after wealth, which is
to be pounced upon by lucky hit, irrespective of
industry perseverance, or good conduct This is
certainly an view of the case nevertheless it is
entertained by many enlightened and good men, Then
there cdcua protectionist party which asserts
that If England has not been ruined by eade she has
only escaped that ruin through the aid of the newly dis
covered gold mines We cannot afford time to conrovert
statements which have only assertion for their basis We
do believe that England has been either saved from
ruin or is about be ruined by the influx Of gold
Whatever theories may hold to the currency, or
to political economy in general it quite clear we
think that there such things crises and pancs in
the commercial, political and social world, when capital
is scarce confidence shaken and business of all kinds in
confused and disjonted condition. 1t will also be adj
itted that there periods Of directly opposite char
acer, when money is abundant, credit firm and secure,
and industry and judgment steadily pursuing their track
along all the WELL rodden and distinctly marked thorough
fares of and employment. 1t is not always
very easy perceive what have led to these oppo
site condons probably general rule has been can
be enuncated for il it could, business Of every kind
would to be speculative adventurous and would
be pursued by established SYSTEM thing by
to be desired for it would deaden energy, depres in
qury and stuty much that at present gives impulse
to all the higher powers of and aids the great
cause of human progress.
The discovery of Australian gold has, think been
made in time ha.ray, if we may SO speak, between
the extremes of commercial transition. The year
1851 in which this country beginning, for
the first me truly the tone and strength which
had been deeply impaired by the terrible crisis Of lS4
The savings of the country beginning to accumulate
and the loanabe and dsposabe capital to augment and
at the time the tendency Of commerce rather to
restricted and limited undertakings than to the
bold and vast enterprises in which, the extreme point
of its prosperity, it is accustomed to indulge The
tural effect according to preceding experience of this
augmentation of the of the country would have
been increase of trade multiplication of transactions
more inquiry, to speak technically and generally
brisker demand These are, may be assumed (since
it has often been proved in theory and is rendered
miiar in practice, to OF business by daily expert
ence the consequences of welsupplied money market
nnoSe ihuuenCSs subtle ramlncatlonS,
extend into all descriptions of business and reach into
every part of the country The gold discoveries began
their operations during this state of things. Gold
for the first time, in any large quantities. imported into
the country The stock Of bullion in the Bank Of England
rose to p sterling and the rate of Bank interest
fel to one and hree-quarters per cent, although the
gold remained in the Bank; yet the best practical men
coincide with the most influential theorists in opinion
that by doing, and producing increased plentiful
in the discount market it had far powerful
and rapid effect than if had been doed to the
muniy in coin. At this period there is every
believe that the loanabe capital Of the country had been
materially increased theorists supposed would be,
by the influx Of the gold. The export trade TO Aus
traa though beginning TO be brisk, was in comparison
with its recent and present magnitude altogether rhng
Much Of the god il is probable remained TO be paid for
Australia being at the time, suppose, considerable
creditor Of England The colonial trade at that time
conducted in far greater degree than il is at present.
with the private capital Of the English merchant and
therefore subsracted far less in proportion than it
does present the dsposabe funds Of the Bank
the brokers in Lombard street 1t is therefore think,
very probable that the increase Of demand and the brisk
Of trade which have resulted in the present advanced
prices have a certain extent been produced by the
stimulus Of the gold thrown into the country. But
we think that these effects have TO at least equal
tent brought about by the accumulated savings and
augmented capital Of the country.
1t is curious observe how remarkably this position
contrasts with the present state Of things We now in
the opposite crisis when money is and dear and
mercantile confidence rather declining AT this moment
Australia far from being the creditor is to very large
extent the debtor Of the country The colony has at this
time from the mother land much larger guam
tty Of capital than has sent into it, The oanable CAPT
tai Of England is materially reduced by the
with Australia the millions Of gold which
the latter has transmitted The rate Of interest which
was at FIRST depressed has risen to great extent,
and is still rising higher and higher. The demands for
the outward trade greater than the immediate
turns Of the homeward In the manner though
operating reyersely il view be correct in the sum
mer Of 1852, the available funds received from we're
greater than those withdrawn by the Of Eng
land with her southeastern colonies.
No doubt the gold discoveries have been in consider
able degree and in remarkable manner the stimulus to
new industry, md, by arording vent and employ
ment to more capital than they have introduced among
have caused the rate Of interest to advance There
is also doubt that these discoveries have been the
proximate Of the advanced price Of many articles
Of consumption They have also directed capital and en-
terprss into new channels they have probably induced
unwse and ruinous speculation and have led many men
to become dggcrs for gold who had better have remained
at home but to saddle the gold regions Of the EARTH
for the first time yielding up their rich contents with all
the consequences which mans folly, or ignorance,
welcomes 10 from thing which he