The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-20

Grand total, 1854 and 1850 ............... 1871 3 g
In addition the shipments Of gold by the same y Of
steamers this year have amounted to no less than
941 but the bulk OF these latter remittances ha
destined for Malta and Alexandria.
ii will be noticed that the exports OF silver have IN
creased enormously during the last three months. -.
tie present moment the drain is at the rate Of abot
million err mouth. These last figures become inca. j
With great importance when we bear in mind the Direct
Of the influence thus exercised upon MOI;
market As an illustration We win suppose the case q
London merchant who receives from India an order o
transmit forthwith say f1o0,C COO worth Of silve-. 10
make up the amount II will probably be necessary for
ward buying orders several the leading continent al
markets. The silver is there collected and sent 0
England where il must be packed up, and despatched
the next steamer leaving Southampton for Alexand.
London buyer Of this silver would probably find II e
cheapest plan TO remit gold to the continent in pam,
and supposng no recent arrivals Of gold to be
in the market the sum would have to be taken from
Pank Of England at the fixed rate OF f3 It's. lels
per ounce. The bank notes for 100000 paid int
bank for this purpose i Is impcrtansto nstce are
issue them unless against fresh deposit Of gold. A
matter Of course due consideration is received in
commodity other from the buyer Of the silver in India
but the fact remains that immediate consequence
Of the operation in question, the amount Of bank notes
circulating here diminished by flo0 000 Under these
circumstances becomes highly important to invest
the and probable extent of the Eastern demand
for silver One OF the most patent Of these is the civil
war in China, which has led during its entire con.inu
ance to the steady absorption and secretion Of
nous mass Of silver coin. The coins with which the
Chinese chiefly familiar the old Spanish pillar
for this quarter, the available supplies Of the
former coin have now become extremely scarce and
the bulk OF the shipments consequently consist at
present Of Mexican dollars As regards the probable du
ration Of the Chinese demand it would be hazardous
express decided opinion, il-niormed as we are
the Position and PROSPECTS q The Ssontendng parties
scarcely active at present It few months back
Turning to the second great absorber Of silver ndia
find reasonable ground for the belief that the drain
is not likely to suddenly. The demand shows no
signs OF dimnution and Is even causing large masses oil
French FIVE franc pieces TO be bought up refined in Paris
and sent over here In the shape Of bar silver The same
process has also been carried Brussels and Is
known that portion Of the gold lately withdrawn from
this side for the Of the Bank Of France
paid for by these silver remittances During the 6st
pressure Of the Chinese demand large quantities Of silver
were drawn nom India and from various por
OF the Eastern thus occasionng a de-
6ciency which necessated an immediate appli-
cation for European supplies. But the progress Of
in the whole Of those extensive and popuous
regions Affords the chief explanation. In India silver Is
the only currency the natives knowing Of coin be-
sides the familiar rupee silver coin OF about the size o
form. Gold mohurs used be held in some cases
chiefly by the larger capitalists, less bulky than sill
ver but this coin was SCARE, and no longer a
legal tender in India Probably tine commercial progress
OF the country Ia best proved by the recent marked
tension Of its banking system Only few years ago fl
c,ies Of this nature very circumscrbed whereas
now banking institutions have sprung up the whole
country extending even into the Himalayas At the
time this system has failed 20 produce its usual
effect Of an increased economy OF the precious metals
The usual mode OF remittance adopted, n bet ween
dherent parts OF the country Is by means OF drafts
orders granted by one bank upon another; but as
medium 81 circulation amongst the community at large
The rupee maintains Its solitary position British India
has yet experience the advantages Of the bank
system and thus Il follows present circumstances
that the larger the number Of banks the greater the
demand for silver There has also been great increase
of late years in the number and wealth II the native
pitalts whose avowed business Il Is lend mepey at
interest. Several towns Of British India may bepoued
out forming sort 81 general rendezvous for these
money lenders whose aggregate operations in many
cases of,urrising extent he INTRODUCTION and extern