New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-02-07
EFFECTS OF GOLD DISCOVERIES IN
CALIFORNIA AND AUSTRALIA.

solicitude among thinking men than that which
relates to the effect of the vast additions now
making to the stock Of the precious
metals, arising out of the gold discoveries
Of California and Australia. There has
been a vast deal Of vague speculation
and anticipation upon the subject, but We
have seen no views presented which afford
any satisfactory solution Of the problem which
these discoveries have originated, and which
is constantly provoking desires for its solution
Without pretending to exhaust OF even to
90 cursorily over the whole subject, we yet
propose to present tie results Of a briefsurvey
Of the topic in question, which may not be al
together useless or inoppOrtune.
As near as can be Judged, the present stock
Of precious metals is not far from Twenty-Five
hundred millions Of dollars. At any rae, it is
cOniectured that it cannot be over three
thousand millions At the discovery of Ameri-
ca, say in the year 1900, the estimated stock
in Europe was in round numbers, one hundred
aud fifty millions of dollars. the supplies
from America had by the year 1900, according
10 the most authentic calculations reached,
includingthe exports to Asiaduring that period,
70 near seven hundred and fifty millions Of dol
lars, or Just about FIVE times the original guam
tity. During the century following, an equal
sum is presumed to have been added to the
stock, aside from the large quantities which
lad begun 20 be used IN the arts so that the
stock by the year 100 had risen TO something
like .f)loen hundred millions, or rather more
than one-hslf the estimated quantity in exis-
tence in 1850.
These calculations are the result OF long and
diligent inquiries into the subject and while
from its nature absolute accuracy is impossible,
they may be deemed to be not very wide of
the mark, and as affording sufficiently reliable
data for some conclusions in regard 10 the eff
feet of the immense additions to the stock of
precious metals, now being made from Caliior-
MIA and Australia
An inquiry into the rapid rise Of prices
which took place between 1900 aud 1900, in
consequence Of the supply Of god and silver
from America, seems 10 intimate general law
20 the effect that prices rise in proportion
to the increase Of the stock Of coin, though
Influenced and qualified often, as regards par
ticular countries, by the use of paper money,
ard by the immediate direction Of the current
of supply frcm the mines. This general law is
most felt in the ultimate settlement OF prices
changed by the augmentation Of the stock OF
precious metals. The prices OF commodities
are estimated TO have advanced, between 1890
and 1900, or the century after the discovery of
America, free foid, or in tie same proportion
with the stock of gold aud silver. This esti-
mate is based on variety Of calculations, Of
which, the relative prices Of wheat, of labor,
and Of land are the most important elements.
Yet the rates Of wages do not seem to have
risen in the same proportion with other COM
modlties, or Of even with the necessaries Of
life
Assuming the law ofprices TO be such as We
have indicated, aud which many curious facts
connected with the expansions and cOntrac-
tons Of our own paper currency during the
last fifteen years, 60 far TO establish, we shall
find little difficulty in proceeding to calculate
tho effect Of the influx of coin from California
and Australia, taking the data We have laid
down as TO the stock on hand at the outset of
these extraordinary additions.
The coinage of the L. s. Mint during the
gear loj2 was over fifty millions Of dolaIs,
nearly all Of which was the fruit of the Califor-
MIA mines In addition 10 this, those aurifer.
Gus regions supplied many more millions TO
other parts cfthe world. The export OF gold
from Australia during the year ending IN Octo-
Der, 'sJ2, was e, $4,000, or about fcrty.fye
millions of dollars. From this data, We assume
that the combined yield of gold from Califor-
MA and Australia, has not been the past year,
and viii not be the coming year, less than one
hundred millions Of dollars. II may be more.
And we think We may further safely assume
for the purposes Of our calculation, that the
e1fra additions 20 the stock Of the precious met,
as. over and above the ordinary Ante-C California
supply, and over and above the more extended
uses ia the arts and for ornamental purpo-
ses to which their increased abundance has led
and will lead, Cannot be less than one hundred
millions Of dollars annually. Taking the stock
on hand in 1850 81 twenty five hundred millions,
this il vii be seen, amounts 10 sn annual add
ton Of four per cent TO the existing stock and
ordinary supply; and leads Us TO predicate
therefore, four per cent as Tie natural extra
enhancement of prices for the first year OF
such extraordinary addition. But it VII be
remarked, that though the supply Of the pre-
cious metals may be the same for coming years,
the ratio Of increase in the prices of commodi-