Polynesian., 1858-08-21
Gbe 1Dolpnesian.
California and its Resources,
By ERNEST SEYD.-London, 1858.

years, we quote the following:
The discovery of gold in California and Austria
liza forms the commencement Of a most important
in the commercial history of the world or, to
use even q wider term, in its general history.
The great progress made since the beginning of
the present century in the mechanical arts, and
the numerous inventions of labOr-saving machine
ry had materially changed the features of industry
and commerce; and the cheap production and con-
sequent consumption of most articles Of necessity
and luxury had greatly increased
We will not enter into discussion on the nature
of this change; but there can be no doubt that
this enormous increase in industrial and other
products had created n desire for the more conve-
nient exchange OF all commodities, thereby causing
an increased demand for the representative medium
of all values-the precious metals
Whether this demand for a greater supply of the
precious metals was severely felt at the time, and
whether the expansion of trade in general was Sc
rlOusly impeded, may remain a matter of con jec-
ture; but it cannot be disputed that the discovery
Of gold in California and subsequently, in Austria
liza, gave i most powerful impulse to commerce in
all parts of the world.
The large amount of gold becoming current in
so short time, and swelling the mass Of the cir
cuating medium, facilitated all sorts of CONNER
cal operations. The export trade, especially to
the gold countries, became extended. and whilst
the gains acquired by miners, merchants, indus
trials and others who participated in them, directly
indirectly, circulated freely among all classes of
society, industry and trade at home a. e., in the
old countries) largely increased in consequence.
These effects, We believe, are universally ac-
knowledged.
For the last eight years the stocks of gold bull
lion have increased by about 200 millions sterng
or ) 900 millions of frances
The world has become richer by these large
sums-enriched by the actual possession of more
treasure Whatever fictitious or real claim as to
lasting and intrinsic value gold, silver jewels, and
other highly priced materials may have, the more
we have of them, the more value we possess-the
richer we are; and this principle applies much
to the world at large, as it does to the wealth of
an individual. And besides the immediate stimu-
lating influence of such increasing riches upon our
industry and commerce, we believe that the gener
al welfare of the world depends as much on these
effects as it does upon the actual positive posses
sion of the valuable substance, whatever be the
secret of its lasting value.
WedO not purpose here to speak at length Of the
intrinsic merit, so to speak, of these gold discover
les; but will suppose, for instance, that instead Of
the value represented by such large amounts of
gold, we had received from either country equiv
alent in other produce in cotton, corn, sugar silk
or other necessities or luxuries of life, would the
world generally be better off than now Or, have
we gained more by the additional quantity of vir-
We incline TO the latter opinion. Although
the value of gold in figures may theoretically
to depend on the existing quantities of commodi-
ties Tor which 1T forms the exchange, still, the
verse is actually the case. Recognizing, as we do,
that gold is substance of such high value and,
on account Of its virtues as the most noble Of the
metals, making use of it as the representative Of
all other produce natural and artificial, the latter
thus becomes in reality dependent upon the stand
ard value of the precious metal. Mother earth
furnishes us with constant supply of nOurish-
ment and we can at any time draw on her stores
by the simple exercise of our physical powers and
by these same powers We could also increase almost
indefinitely our industrial produce but lUe cannot
make gold The general and steady advance Of
late years in the value of labor and produce has
been caused by the greater amount of gold exist
ing generally.
certain kind Of philosophy induces most men
to reflect occasionally upon the question Why is
gold so rdlndbLe1 All these reflections end in the
same unsatisfactory manner definite answer
can be given. Many of these philosophers even
evince hatred against gold and its satellite, silver
NOT against these metals themselves, for they
are only too eager to obtain them-but against
their overwhelming and almost boundless influence.
But however strong this hatred, it is totally pow
erless either to successfully combat secretly
dermne the wonderful power which these metals
exercise. The ocean wave, which dashes in its
blind fury against some adamantine rock, and re-
coils its foaming rage after each repulse is fit
emblem of this hatred and its impotence to affect
in the slightest degree, the stability and magnitude
of the power of gold.
Who invested this old, and yet youthful, tyrant
and its vassal, silver, with such irresistible pow
er 1t cannot be simply because mankind, on i'm
imaginary grounds, have agreed to accept it as the
great representative or circulating medium, that
it has acquired such Importance.
II.
otherwise uninhabited island finding gold of little
or absolutely value, whatever quantity he might
possess, is quite true and would be almost equal
ly SO one or two hundred, or more, similarly stua
ted. But place larger number, say 10, 900 or
20 900, in position where they will fairly repre-
sent the general social system of mankind, with
all its refnements its advantages and defects, and
gold will Immediately assert its power.
Again, from the fact that, some hundreds of
years ago, a certain piece of gold would purchase
ten sheep, whereas it will now purchase but one,
and 50 forth. it is argued that the more gold We
get the cheaper it becomes. This fact is also in
eontrovertible, if accept sheep the represen-
tatiye value; but we may reverse the case, and,
baslng the argument upon our own theory, say
that sheep and other things have become more val
liable in consequence of an increase of gold and
any general increase in value is an evidence of i'm
provement. In support of this, and similar views,
we have again the indsputable fact that the power
of gold is still undminished-nay, that it has ma
terIally increased in its universal action.
The rise in the price of living and dead produce
is secondary upon the effects of the gold supplies
upon the value of labor and long this latter
is kept above the value of commodities, the bene-
fits to society in general are evident.
Again. it is asked how it happens that pla:ina,
for instance, a substance scarcer than gold,
and just noble in its nature, is not of greater
value! Well, if platina were discovered in larger
quantities, sufficient to form currency, we have