The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-31

miters buy bills on that market Looking, there
fore, to the TACT that the English and Hamburg re-
turns are made chiefly in goods it is a natural con
clusion that the silver chiefly falls to the lot of the
continental traders; and it will follow as the bills re-
mitted to Paris, Havre, Rouen, Bordeaux Lyons,
able in London, the bullion will be withdrawn.
In all likelihood, if q French, Spanish. or Genoese
line of steamers were to be extended round Cape
Horn, we should lose much of the West Coast bullion
remittances, and those on continental account would
20 direct as is the with tn ose from the United
States, that We have no longer the modopoiy Of
the carrying but that direct lines VI steamers carry
specie to Havre and Bremen
At present q large proportion of the remittances
are brought in transit to London which has become
undeniably the great bullion market of the world,
the G Of be sGe
lombia and Buenos Ayres and the gold dust Of Bra
zl and Africa. In the operation OF parting or pu-
rfying these metals carried on upon gigantic scale
by the Rothschilds, at the Royal Mint works con
siderable quantity Of gold, silver and platinum, with
small portions of palladium and rhodium, are Oh
tanned. England has likewise the monopoly of sepa-
and the West Coast, carried on at Swansea, and oc
casonay extracts large quantities from Spanish and
other lead or lead in the desilvering works at
Newcastle. England now produces no mean quant-
ty of silver from its own sver-lead mines. All this
serves to build up we may say the bullion marke
here and to create a considerable profit in dealing
with the commodities; though II is evident that a.
to much of the bullion we only interested az car
riers in transit warehousers.
The demand for this bullion in France rs referable
to two cansesrst, for the supply OF manufactures.
which constitutes permanent demand and second
y for coin for current circulation and for hoarders
which is to some extent casual, irregular and ad
ventitious demand. France, Switzerland, Italy aud
Western Germany produce only fractional quantity
of gold or silver. and MarseiIes has only casual
share in the refining Of Spanish produce; the de-
mand, therefore, for the goldsIniths, silvenmths,
for gold leaf looking glasses and for other purposes.
both for home consumption and for export is very
raaf md ynuQt no mn Q1 Ao he
direct imports from the United States and South
America are limited, the supply must pass through
this market.
The demand for boarding in France is undoubtedly
very great-frst, because the population is ignorant
and an ignorant population always boards; and Sc
condly, because great political dstrust and CONNER
cia uneasness prevail. There must he large per
manent demand for coin for boarding in Franco
among the peasant prOprietors and the amount dis
gorged for the socaled voluntary loans during the
Russian war is sufficient proof of this Although
such large then let loose there is not the
least ground for believing that the peasants more
enlightened or less disposed to hoard: on the CON
rary there is good ground for the surmise that they
are now engaged in restoring their boards to their
former amounts. With such consumers of coin
legislation and reasoning will have no effect, and
there is course left but to submit easily may
be. The same remark applies to such hoardings.
now going on in Europe, as are attributable solely
to feelings of political or commercial mistrust. Such
boarding viii only cease with the mistrust which
causes il.
"
Notwithstanding its high price, bullion is steadily
exported to the East; the drain of silver has cont
nued in peace and in war. In India there is de-
mand for bullion on account OF the improved condi
ton of the population enhanced by the consequent
| rise in prices. A government which has protected
the population Of India from external aggression.
although it has not always succeeded in aboishing
internal oppression has allowed the resources OF the
| country to be further developed The exports are
but part of this result, as there has been an en-
HANGED consumption in the country, which, with tho
exports. gives the measure OF the total increased
production. Little comparatively as has been DONE
still the means Of transp rtation and consequently
| OF exchange of commodities, have been greatly in
creased by road, railway, river and sea From Cow
ries. the currency Of district has advanced to cop
| per- while another has advanced from copper to sill
ver and other portions of the country circulate
gold mohurs in addition to silver rupees Thus there
is yearly aagmenting demand for bullion for circn
! lation, boarding and personal ornaments-another
| form OF boarding This demand will not decrease
! for the extension of railways among one hundred
and eighty millions OF people will raise wages and
! prices to something like European standard; and
II bullion is supplied in corresponding degree. ID
may readily be Judged the demand will be great.
| The only remedy propounded for this demand Is q
! government paper money; but this will be Of very
partial effect, as paper notes will neither do for
boarding. nor for bangles and nose Jewels Still
ultimately with greater rise of prices paper money
will be 10 some extent available. One remedy avail
able Is to make the rupee Of the same denomination
as the horin, to make them convertible. to make the
sovereign current "a a mohur Of ten rupees. and 10
decmatize the rupee on the mill system, giving the
cuma and pie different values. As the rupee has
been lately altered throughout India, the new varis
ton will be little felt there. and uniform decimal
currency will he obtained for Eng and, India and
Australia, avoiding recoinage simplifying the ope
rations of remittance and circulation, and prepar
ing the way for the extension of uniform currency.
| In time Of peace the demand for India is great
end on the commencement of the instruction some
! authorities considered that this demand would be
/ forthwith stayed, as the commercial operations
slackened, This assumption, however, was founded
| on forgetfulness Of the new class of demand
brought 10 bear for the purposes OF the war: first
because the disturbed condition Of India restrained
the circulation Of the currency then existing and
next because in state OF war troops, II they
can make acquisitions, must be chiefly dependent ON
purchases by coin. Bullion In the military chest
one of the first necessaries Of army. Tor free
market Is quicker and reader than forced
| acquisitions for supplies Wellington has well laid
| down in opposition TO the practice OF Napoleon
Such bullion as the elder Rothschld showed in his
evidence before the Bank Inquiry Committee. {. $,
not enter into circulation, but must be constantly
supplied as the peasant liable 90 acquisitions and
| forced contributions boards whatever coin comes
| into his possession. Thus, whether ia peace or war
and although the neck OF the rebellion Is broken, the
agitation OF the country viii not he repressed fot
some time; must still look upon India as large
| consumer of bullion; and the demand being partly
political for the purposes Of the Indian government
will not be subjected to psrely commercial cons
| dcrations.
| China is undergoing an economical. as well AZ q
| political revolution. The active emigration to Aus
| tralia and California, and the return of emigrant,
with their savings have exercised a great influence
not only on the maritime provinces but inland: end
there is demand for bullion which can only be sup
piled by importation. The political difficulties OF
the country stimulate boarding, the chief antagon~
tic influence to the free circulation Of coin Specu
| lative writers look upon circulation as the living
| function Of coin; the Spaniard or the Hndoo con
sides boarding its legitimate destination and We
may TO this day zee large masses Of gold and silver
coin of the seventeenth century unfarnished and un
worn. AS the passion for boarding allows Of no
alternative, IL must I've satisfied. We may extend
our imports Of tea and silk and may increase our
1 exports Of English manufactures. but the demand
| for bullion we must continue 20 supply.
| We have now enumerated the various causes, pW
manent and recurrent. which have combined to
drain the Bank Of England of its bullion 30 efectual
y "a TO induce the suspension Of the Bank Charter
| Act a second time The yaIue Of An act which MI