The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-25

question Of time under well recognised principles.
Now, however, matters are entirely different. We
have had no speculation, overtrading, no excess
Of imports. We have no large stock OF goods in our
warehouses; on the contrary, they have seldom been
empty Of some of the most important articles OF
consumption. Nay, so far from an excess Of Inn
ports, most OF the largest articles show in the pre-
sent year considerable decline thus
nPoRrED-JANuARY TO sfIrliaIgRl l.
Corn and -four Of all kinds qrs.. 659S,OO0 I472, 900
flax cwts........,............ Dol VOJ i,0ou
Xix, lhs..... .......... boI40 4I!4WU
Brandy gais................... 1ss9 600 1872 600
Wfne.. .....,......... fI4o, 1UW noV wv
lotion cwts................... . aas,oo0 oooouoo
WOOL lbs. oso0o 00 oo @
sugar cwts ''..... 55ooosi 4aoo,75o
Under these circumstances prices have been rising,
not from speculation but from actual scarcity-fOr
the most legitimate reason that the supply has been
unequal to the demand. Thus, as it may be easily
conceived, there has been no unusual abundance Of
hills on England abroad the exchanges, therefore,
have not been adverse but, notwithstanding, we
have had great drain Of bullion, and more rapid
increase in the demand for accommodation ut the
Bank than has been experienced for many years.
The bullion has sunk in short period by more than
f5 900 00 while the amount of bills under discount
has increased by nearly the same sum. Now it is
quite clear that neither the the other to be
attributed to the operations OF trade. The figures
we have quoted show that so large an increase OF
bills has not been caused by our imports that dc.
mand for bullion has not been created by balance OF
trade against u.s. in the ordinary acceptatiOn OF the
term isnot within the scope of our present remarks
to trace the causes OF these phenomena; but those
who have carefully perused the Economis for the last
two months must be familiar with them. Our OBJ
ject now is to show that the same easy and simple
on former occasions Is not at hand. We have
no large stocks-on the contrary, our warehouses
are baie-prces are not likely to be materially low
in some cases they rather likely to be higher
To talk therefore, OF lessenng our imports In order
to correct the exchanges would only be to aggravate
the present arcity further to enhance prices and
tn n nov md inn In
an the refusal to discount bills connected with e
Ultimate trade would only the more certainly lead TO
The export of gold to effect purchases which would
otherwise he made through the ordinary credits Of
business While therefore, the of the present
drain differs from all former ones, and while the same
simple natural and sure remedy cannot he relied upon,
yet IS certainly that SO far as regards the operations
Of trade they not likely to be much inlpeded,
nor are the sacrifices Of merchants likely to bear
any comparison with those which they suffered at
former periods. So far as the price Of produce is
concerned it cannot be said that any sacrifices Of
moment have been made, or are likely to be made;
and, therefore, there is no reason to apprcaend q
recurrence either of the dscredit the ruin which
involved the commercial classes in lS47. In these
remarks We confne ourselves entirely to the posi-
ton OF produce and in way include the question
of Investments in shares Of all kinds. The value Of
those must depend entirely upon the value OF
money, and their price must to considerable ex-
tent fall as money is cheap or dear, and as
other channels offer less temptation FOR its
occupation. The same reasons which are likely to
protect merchants from losses produce, viz, the
smalness OF the stocks and the necessity OF mporta
hOns, are likely to lead to reduction In the price
Of shares, by furnishing more tempting and profit
able use for capital.
TIE PRICE OF GOLD AND GRAIN IN EUROPE.
From ths London Globe, Nov o.
Everybody expected an ultimate rise Of prices
from the gold discoveries in California and Austria
ia. And we do assuredly experience rise OF prices
10 the articles which most attract attention. because
hey those of most indispensable necessity.
That rise believe to have been owing in very
siderable measure to the gold discoveries, from
which rise of prices was as we have sad expected.
But it has not taken place in the manner expected.
i has indeed taken place in so indirect manner,
That the whole result s popularity traced to the war
or to any other than that which we believe to
have very mainly conduced to it.
There can be no doubt that the war has c0ntr
buted to raise the prices Of agricultural produce
in Western markets, in so far a. 1t his checked
production in Russia, and has also with the
assistance Of the Russian government) INSTRUCTED
the outlets for such produce as has been raised Bot
Russia Is, after all only one field Of production, and
its yield by no means proportional to its extent
Russian inroads have indeed Temporarily injured
others, which still OPEN such as the DanuDian
provinces; but the active and passive part Of Rus
ia, and the direct and indirect effects of the war,
will by no means entirely account for the present
prices of the first Decessares Of life throughout the
commercial world. The best proof of this is that
which is stated by morning contemporary-the
Daily Ntre-yiz that in February, lo54, the price
stood ut 72s sd. Those high prices were not caused
hy the war, which only began In March, 1854 After
the war was declared, in September 1854, the price
vas 56s. I'd.
We must look farther back for the first sources of
The dearness (Which means comparative scarcity of
the first necessaies And we agree with our above
cited contemporary in referring This universal pho
aomenon in great measure TO the prOdigious stinu
us afforded By TIE Californian and australian gold
discoceries 10 commerce To commerce-rathcr than
in the first instance to agriculture. The stimulus snow
acting on agriculture likewise. But the growth Of
food is not accomplished In day-the seed is not
put in at one end of the machine and the harvest
drawn out of the other, after the manner OF modern
manufacturing operations The first effect oil the gold
discoveries was to stimulate mining and trading ad
venture to an extent unprecedented. Since lS4S,
when the average price OF wheat was about $685. the
exports of Great Britain have risen from f52 600 900
TO f97 eco 600 in 1854 The exports from Hamburg
and Bremen to Australia and the South Sea Islands
rose IRON, ,c.s than 100 900 thaers in 1862 10 $500
600 thalers in 1854
In The United States the operations Of agriculture
had siackened chiie our enieyprising kinsfoM
migrating to "Cahforny,h driving the Pacific a. we
were driving the Australian trade building ships,
making railroads, and adding year by year to their
town population. Thus, throughout the commercial
world, the nj, mbers Of consumers Of agricultural
produce were increasing more rapidly than those OF
producers. The balance is now in course OF b ng
redrossed Throughout the United States and
British America, well a. in this country, an in
creased impulse has been given to cultivation. But
the effect OF the enhanced value OF the first nc
cessaries OF life, as compared with all other pro
ducts, mining or manufacturing, has necessary,
been slower in bringing up the supply TO the
demand than in the OF products which a.
capable OF immediate and indefinite multiplication
BY mere mechanical neans In word, gold has
been playing its usual tricks and like the loadtone
mountain IN the arabian Nights has been loosen
ing every screw of sober ploddng industry by ~
overpowering attraction. Immense activity has
everywhere been called into exercise; bot the agti-
cult has al o.
ieet.
To this, which we cannot but regard a. one main
source Of the present dearth OF agricultural pro-
luce and other articles Of provision, a must b.
admitted that war taxation aud war demand also
contribute their share in raising prices. The opera.
lions OF increased customs excise duties Is obvious.
But the operation Of increased expenditure for main
tanning native or foreign troops, &c, is not quite
equally So 1t must, however, be plain, ON little
reflection, that such purcha er in the market as the
gorannent-- with increased revenues, and loans be
sides, TO effect whatever purchases II WILL and re.
strained by none Of those prudential calculations
Yb;oh oornne1 cnpilali-ta ia cauai,l.r