The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-03-24
The Gold Product.

Inc Oou FfOuuCl.
The decrease in the value of gold, arising from the in
in the quantity of that metal, has given rise to
rous specuations to Its effect commercial affairs
Some persons think that will lead Immediately nan-
cia embarrassment, and will PROSTATE commerce; while
others apprehend danger from it, either Immediately or
remotely Looking to the condition of country, do
not apprehend any greater evil than have already
perenced in the expectation of silver unless pros.
peny, extending confidence and credit, should multiply
banking institutions, and add 10 the of fictitious
currency in the country The fall in the value OF gold
compared to silver, with the relation between them
fixed by law forced the expectation Of that metal whose
actual value was less than lis legal value. The vast
supplies Of gold received from California gave Use
TO the expectation OF specie-the silver going abroad
frs, from the cause just mentioned. When this export
commenced, the protection advocates attributed il 10 the
bill Of ls4o and used with great zeal, but with
little success to create prejudice against that measure
But party camor has been silenced. The specie ex-
por, is attributed 10 the real cause and begin 10 in
quire the effects which will flow from the gold pfo-
duct OF California and Australia, which has increased the
quantity OF gold in greater ratio than the increase the
demand for it arising from the requirements OF CON-
merce
Thus far the fall in the value OF gold has been gradual
and the decline yet TO take place will, in all proba
bi,y, spread considerable period of time. The
wages OF labor will be gradually advanced and prices will
be enhanced Everything being affected alike, neither
good evil will result, except by removing distrust.
and impatng activity to capital and enterprise the
people-a benefit which will not be lightly estimated
by those who have witnessed the effects OF dsuust
in times OF commercial embarrassment A gradual
l T. =. a. n IL -
ment and changing hands rapidly, is not felt inju-
riousy by any except pensioners, annuitanis, officers
with fixed salaries, and creditors holding obligations
which do not for long time /; and even these, IL
they have other Interests compensated 10 ex-
tent by the general prosperity and activity which full
supply OF sound currency fails to produce. But
when consider the federal and State Indebtedness the
benefit which the confederaey may derive from the fall in
the value of gold cannot be overlooked denied That
Indebtedness was contracted when money was higher
than IL is now and il be paid in the future when
money will be lower than 1t il the fall in the val
OF gold should continue The holders OF stock cannot
complain for they agreed to take the hazard OF increased
prices when they made the investment Had there been
rise in the value oil money they would have profcd by
ard had they boarded their capital the loss would
have fallen on them. Their risk is that which neces-
sary attaches TO every species OF investment The com.
munty gains what the public creditor oses and when
the government Indebtedness becomes due il is discharged
by the payment OF money deprecated the full extent
or satisfied by the proceeds OF loans on more advan
tag eous terms.
A general and gradual rise in prices is evidence Of
prosperity and does tempt 10 unwhoesome specua.
tons. A sudden rise in prices occasloncd by the in
creased price Of great staple is apt to have it's origin
in some temporary cause, and TO produce. If il does not
spring FROM speculation But the in prices caused by
the increased production Of gold is gradual and natural
and has, in the indesrucblty Of gold. permanent ound-
alton to support it. The rap'dy with which commercial
operations are now conducted scaters the gold product
quickly throughout the commercial wed, and prevents
the evils which might arise otherwise from unnatural
Accommodations al particular points, When prices are
borne up by bank issues then there is always danger
for IL confidence is destroyed. portion OF the
circulating medium becomes worthless, and the evils OF
deficient currency added to the natural effects OF ds-
trusaxation becomes grevous, the debtor class is OPP
pressed the creditor class loses by insolvency than
would have los, by any possible depreciation Of the
precious metals is parayzed and the credi, Of
governments disappears
We appr.h.ud no evil effects springing directly and
immediately from The gold produc, Of California and