The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-25

The constant Gov Of silver to the East forms ono
Of the most remarkable commercial movemeufs OF
the day. Its importance consists In tine IN thas
it is not Q mere temporary feature, exercising
momeDtary iDfOoOco upon the money market On
the contrary. the eux has been stesduy in ,reasing
for some years, and has now assumed suca proper
upon our money market is direct and important for
causes the instant diffusion over the Continent OF
the gold which is imported in such enormous guam
titles from Australia and the United States, and
considerable extent II it were not used TO pay for the
silver which we import from the continent in rider
to be transported 70 the East Nor il the interest
felt in the question confined to this country for Q
serious monetary arrangement has been created
nearly throughout Europe by this silver movement.
We zee Ii estimated that in some instances upwards
Of hundred thousand pounds worth of silver mas
been conveyed to this country IN single steamer
from Antwerp Very recently it was mentioned in
the Belgian Chambers that three millions of francs
ABOUT fl20 900, in silver, had left Antwerp by
one vessel for London. OF the f4S8 0S5 in silver
taken out by the Indus the 10th inst about f45O
900 is estimated to have been drawn direct from the
continent, chiefly In coin. or course, when we, AS
purveyors of silver to the East, obtain the metal
iron the continent, We make payment for it ia some
shape, either In gold or in other commodities. As
the commerce Of Europe is undeniably increasing
year by year. L. reasonable to assume that for all
the silver coin withdrawn from circulation proper
tonate quantity of golo is coined. Neverthe ess, it
is quite evident that this pyocess of the displace
nent Of sIusr by gold in n,awy European countries
cannot 20 on al The present rate soitAout serousy
disturbtng the money market, and, in many cases,
dermging the balance Of commercial transactiOns.
The constant movement of gold and silver In large
masses from place to place Of itself involves
siderable demand for money. Besides, the exchange
Of gold for silver in the continental cities ia not ef
fected by means of one single transaction. For in
stance, we vii suppose circumstances which hap
pened latelJ namely, the receipt in London Of news
of q rise in the exchanges in India Largo buyers
Of silver for the East Immediately come forward and
our market being very scantly supplied with the
orders for the collection Of the requisite quantity
upon the continent. Amongst the markets thus ap-
piled to viii be, probably, Hamburg. In tina. city
the English demand, coming in addition to the de.
mands Of other markets, has In several instances Of
late caused q sudden, though perhaps Temporary,
rise in the value Of money. The pressure at Ham
burg reacts in . still more violent manner upon
other contiguous but more limited markets.. For
example, within the last fortnight the rates Of
discount for good bills rose at Copenhagen to 8 and
10 per cent, owing chiefly to the extensive with
drawsls of silver. Doubtless the equivalent Of the
commodity withdrawn win be eventually restored in
due course Of trade but this consideration does not
tend to diminish the pressure for the time. The
inconvenience someti mes accustomed being thus
severe, it is not surprising that the silver
movement is watched almost as narrowly on the
continent as in London The great current Of sil-
flowing constantly to the East is mainly fed, so
to speak, by rivuets from every country in Europe
and there Is reason to believe that within a few
years the montary system of many continental
States will be subjected to important modif cations
arising out of this one potent cause.
We have remarked that the drain OF silver east
wards is increasing in severity. Means for proving
the assertion are afforded BY some remarkable
tables compiled by Mr.. James Low, the details Of
which are given in our city article. During
the year about to close the direct chip
menfs Of siirer alone from England to the
rarious Eastern ports haze amounted to more
than ftrelre millions sterling; the exact sum II
fl2, Ills 1856. 1t would be an important point to
ascertain how much Of this immense mass of silver
has been drawn from the metallic circulation of the
continent, but reliable statistics upon this sub
ject are obtainable There is ground to believe,
however, that the larger proportion Of these twelve
millions has consisted of continental silver coins,
chiefly Of French and Belgian fve-franc pieces.
During the first six months OF the year the total
shipments Of silver were CA ys9s sos. During the
last six months they have increased to 81 220,077.
In the former period THE monthly remitances varied
from f4sl SIG to fsA,3ls, and in May reached
minimum monthly amount has been II ,l04 ,ss2; and
the largest amount fl ,2s6, ZIG, has been shipped
in the current month of December. Whilst the ag-
gIegate shipments of 1856, as already stated, wee
fl2, lis 1885, the sum In ls55 was CO, &Qe,sS9; IN
1854, 60 ,l32 003; in 1858, Sl.7lo,S65; 10 1851,
f2,630 ,23S; and in 1851, fl Tic, 100. During the
last sir years The English bullion dealers hare thus
supplied the East tcih f30,7l7 $50 in scsr. IL in
well known that this branch of business pays WE'LL
and the profits realised by the collectors, exporters,
carriers and sonsgnees Of this vast mass of treasure
must represent very important sum. England
will probably always remain the greatest market In
the world for the precious metals but the French
dealers show also an increased disposition TO embark
in the Eastern bullion trade. In addition TO the
already recorded g, sl3 $50 Ia silver has been
RENTED during the last four years direct 70 the
East from the Mediterranean. In 1856 the sum has
been FL 9l6, Of which 81 s42 ole was despatched
from Msrseilles alone
Il will be noticed that Of the fl2 lis es5 in silver
sent direct from England 70 the East in the year
about 10 close, the proportion des patehed TO China
was f3.l67 ola. the rest being absorbed by In Ia
and the Straits settlements AT certain periods OF
the year the demand for China has been extremely
animated, whilst that for India hiss slackeped. At
other periods-and this seems TO be the case now
the Indian demand has proved active, and the
Chinese moderate. From one source or another,
however, there has been q continual demand
throughout the year; and the probability is that the
drain both 10 China and to India will continue heavy
for considerable time TO come. The great houses
engaged in the tea and silk trade unanimous in
thinking that in the present state Of China cash NUE.
lie remitted to great extent In payment Tor the sup
plies OF these ARTICLES OF produce; That poPulous
country In still internally distracted and the native
dealers want silver, not goods in exchange for their
commodities. The failure Of the French silk GROW.
and the Extraordinarily high price ,rich that drfio.'
commands, must render considerable shipments ~
JuDion 10 China matter If certainty for na~y
months 10 conn., Within the last few weeks, more
over there has been sensible rise in the price OF
tea and this circumstance will also exercise some
influence in the same direction, though to Q minor
extent.
But Il is 10 India that the bulk of the silver flows
and 10 the social and commercial progress OF India
we must look for the explanation. statistics pre-
viously quoted have proved that great proportion
OF the silver introduced into that coustSy Is ct
converted into its most useful form-that OF coin
and conveyed into the interior. All the
commercial details trans nittcd from India tend
to show that the absorption Of silver 10 a necessary
consequence OF the steady development of trade.
The last annual report on the trade of Calcutta,
tending 20 May last, showed an increase OF some
eight millions sterling in the aggregate movement OF
the commerce OF that port, a. compared with the
previous year. All the staple articles Of export.
especially indigo, rice. silk doth raw and msnuac
iured), jute &c, present largely increased totals
Increased exports OF produce involve, OF course, In
creased payments TO the producer; and the Indian