The Placer herald., 1855-12-01
Gold Question.

gold. The precious metal which-from the
placers of California, from the digglngs OF
Australia, and the sands of Oural-rolls in
the channels of general circulation, flows
through our country, and substitutes itself
for silver in our monetary system. The
State aided this movement first, in decreeing
the coinage of 10 and even franc pieces.
From 1S4S to 1854 our mints struck in gold
of all denominations, ,1S7 millions of francs,
or nearly within one million of all previously
coined since the commencement of the cen
fury. 1t is Just one-fourth of the production
of all the gold countries in the last six years.
During that same period the coinage of sill
yer has reached SAB millions. In 1854 the
coinage Of this metal was only 2,000,0OOf
These circumstances have renewed the con-
troversy which from time to time has occu-
pied economists during the past century, viz:
Whether it is advisable for a nation to admit
into its monetary system the two metals on
terms Of equality.
The question was raised by NJ. Michel
Chevalier, Councillor of State and Member
of the Academy. The honorable member
determined the question in the negative, and
has since, five or six years, acted as sort
of Peter the Hermit in a crusade against
gold. From thcmonctarv system established
in France by the law Of April, Of the year
XII, there is, according to him, grave perils
to flow, in allowing the sudden invasion of
gold. lie sees resulting future at no dis
tant period, Of great ruin and enormous en-
barrassments. The monetary system is one
of the most complicated OF social economy.
1t involves credid, circulation, prices, salaries,
customs, &c, DC. We leave to Others better
acquainted with the subject the task of treat
ing the subject with that comprehension
which its vastness deserves, and limit our
selves to expose the facts and to some obser
vations on the proposed reforms.
All the erttiques which, since the 18th cen
tury, tinaneiers have made on the simutane-
Gus employment of the two metals, resolve
themselves into two principles:
lst. 1t is impossible to fix for a long period
the relative value between gold and silver.
I'd. There are always between the COM
merclal relation of the two metals and their
legal relation to each other ascribed to specu
lation, differences, which affect more or less
the general circulation, and, in certain cases,
cause great perturbation i'll values. History
LIDS lcCOluttt anu nave pltpditu
lists Of the principal variations between gold
and silver We will recount some of them.
The laws of Manou attributed to gold
> - times the value of silver. NJ. Dulau
de la Male thinks that, from the 5th to the
9th centuries before Christ, the relation of
gold to silver in the Indies was or s to |,
and about II to l in the time of Xenophon.
In consequence of the conquests of Alexander,
| liberating the accumulated treasures Of the
Kings of Persia the relation fell to 10 to |
during the century. An immense oscillation
followed the taking of Syracuse 10y the Ro-
mans. Silver being the basis of the treasures
of that Republic, that metal fell so low that
II livers OF silver sold for one liver of gold.
Caesar, after his coup d'etat gave up to pill
lage the 1000 millions held by A1rarium.
AS gold there predosninated, the proportion
fell to 8 to |. Under the Emperors, the pro-
duetion of gold WAS less, while the rich silver
mines of Thrace, Asia and Spain were work
ed to advantage SO much so that at the
epoch Of Iheodosius, the younger, the rela-
ton of the two metals was raised to II to
|, relative value maintained nearly through
out the 18th century.
The eruption of the barbarans caused
all money to become scarce, and thus gave
the preponderance to gold, which could be
better concealed and transported than silver.
Under Charlemagne, the Francs having
pillaged the treasures amassed by the Huns
and since Attla, the relation of gold to silver
fell to II to |. 1t fluctuated from to -
during all the middle ages, even to the mid
die OF the 10th century.
The discovery of the New World did not
at first bring any great changes in the rela-
tive value of the metals. 1t was not until
after 1545, the epoch of the mines of Potosi,
or rather after 1915, the epoch of the in
vention of the process of anal gamation by
Bartholomew Medina that sensible varia-
ton was seen. The proportion rose to IA to
l. 1t rose to Is to ! in the 18th century,
under the yield of the mines of Zacatecas
Sombrereto and Guanaxuato At the COM
mencement of the 18th century it is calcu
lated that the relation of gold to silver was
about Is 12 to |. In 1926, after the fall Of
the system, it was fixed at IA l-2 to l. 1t
was Is l-2 to in 1885. Under the minis
ter Calonne, at the establishment of the
present monetary system, the law fixed the
average at 14.l-l0, or Is at the most for l..
But since that period the relation has follow
ed some variation. The value of gold has
been sometimes more than Is for l, but has
generally fuctuated between IS 2-3 and Is
3-4. Under the Influence of the arrivals
from California, Siberia and Australia, ii is
certain that further changes should occur,
and we have the proof in the fact that since
ls47 gold has lost per 1000, while silver
has gained l3 per 1000.
The legal difference between gold and
silver money is only the recording, at a given
time, what appears then to be the CONNER
cial value. Scarcely, however, is that value
legally fixed when some occurrence, the dis
covery of mne amelioration in manual