Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-06-04
mGOLD-ITS EEFECT.n

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"GOLD-ITS EFFECT"
Hunts Merchants Magazine says Ten years have
now elapsed since gold was discovered in California
and seven eince similar discoveries were made iu
Australia" The Magazine then gives the amount oi
gold added to the circulation of the world for each
year from lS4S to 1887 inclusive-from New South
Wales 81. .022, ,795 Victoria E59 6ss, Califorpia
E93 672 OOO-tots El59 SU7 ,3s4; the total result has
been addition Of $sOOUOOOOO to the gold currency
of the world in ten years. NJ. Chevaer in 1850 esti
mated the quantity Of gold and silver existing in var
GUS FORMS in lS4s at $40 OO0 of this onetbird
was gold. The annual production of gold from 1900
to 1850 had been E3,25S,OOO from all sources. NJ.
Chevaer and other writer's agreed, "that the contl
nued production of gold from California and Austria
liz at the annual amount Of E2OOOO,OOO would pro-
duce an important decline in the value of that metal
relatively not only to silver, but to all other commo
Is to say all prices would rise, while fixed
iecomes and annutes, payable in gold, would an
puay depreoiate to the 6nal impoverishment Of the
annuitants, by commanding less of the products OF
industry. In consequence of this Holland rejected
gold as tender, aud adhered to silver. The
United States abandoned silver and adhered
to gold; France adhered to both. Ten yeaIs
have elapsed and the annual average product
IN sSO,OOU,O00. II N. Chevaer was correct
that in lS4S there was In existence f3OU0 O0OOO0 oi
god and the old sources Of gold have sustained their
supply, they would have given 32,OOO,OO0 The
wear and tear would have been made good by
s15O 600 UOO-leaving the California and Australia
supply of $500 OUO QUO, in addition to the existing
la kha haa innr
25 per cent in ten years. M. Chevalier remarked
in 1850: "If we suppose, ss We have reason 10 De-
ieve, that the new produce yielded, BY the sources
of supply in California and Australia amount an
nusly to f20 0OO, 900, few years will lead to an
important alteration In the present eIcbangeabe va
Ius of gold" The London Times argued, that al'
though gold might not vary in relation to silver
there would be slow but certain reduction IN their
intrinsic value" This idea was generally entertain
ed, and it gave great impulse 10 business, since all
wished to participate in the anticipated rise in goods
| That impulse to enterprise was continued through
series of events adverse to the development Of the
effect which was expected from gold. Simultane'
ously with the gold discoveries came the revolutions
in Europe, which destroyed large amount OF wealth.
and caused desire to hoard money quite sufficient
| 10 absorb all the new metals produced. As these
political difficulties were brought to end in 1851
simultaneously with sdecline In The price Of food
consequent upon the good harvests that succeeded
the famine Of ls47, money became very cheap
Throughout the year 1882 it was per cent in the
Bank Of England. These circumstances renewed
the speculative disposition.
| The Austra allan movement then became developed
| by which an immense amount of gold was ex.
! ported from England and the United States to
the gold countries. The amount of capital so sb-
serbed was largo. In the next year the hsrvestf
were again Short and prices began 20 rise. Al
the same time the Russian wcr occurred, absorbing
| a very large capital in men and money. Following
! the war; in the United States an immense railroad
development took place, which absorbed very
large capital. The s6OO,O0O,U9O, which in ths
period have been spent upon railroads IN tht
United States, has caused large demand for goods
material and produce. and has sustained the higt
prices of other commodities in the face of shortsup
ply Of food. In the year 1854, Franc" ant
Eueand together spent Sl35 900 for grain, in con
sequence of the loss Of crops The havests
we're short while the expenditures for war; railrosd
and manufactures, were everywhere large. Thes'
4
pricea independently Of any effect of gold. Th'
prices in their turn proc iced another effect viz: t.
attract unusal quantities OF raw produce from remote
| countries to the common financial centre Of th'
word-London, With its vast warehouses -whenc,
| they were re.distributed to consuming countries
The produce 30 attracted must be paid for and silve
| was the medium Of payment Hence, we find tha
the arrivals of metals in England were quite equa
| to the annual production, and the exports were no
| less in amount. Asia has been the chief source o
demand for silver. The effect has beer
the immense export of silver to the East, reaching
| S25O, 900 600 in the last elk years.
The panic of the last fall haa pat violent stop tc
all this movement. Tha consumption of goods anc
! produce :eems to have reached the lowest minimum
! and prices are now lower than six years since.
| ln our own country the prices Of market produce
labor, and materials requiring labor for their produc
ton, all increased from thirty to Gfty, and in some
instances, to one hundred per cent? and are now
fallen back to old rates, notwithstanding the con
nued supply Of gold. There is consequently up to
this time, no change relatively to commodities IN the
value of gold. Nor does it appear that there any
change in the relative value Of gold TO silver, not
withdrawing that Asia has absorbed such large guam
titles. Standard silyer in London 10 q commodity
and its price per ounce varies daily in the market &C
cordipg to the demand. 1t is generally low in the
Spring, and advances to the close of the year. The
years Of the revolutions in France ls4S and l9l9,
9sys an increase to the silver in France oil
80 900 over the last elk years. There was then
no credit no sense Of safety, no property changed
hands except for silver and the silver 90 produced
was boarded. Property in Paris at that time had nc
value, and all French stocks, and the products o
French industry were to be had very cheap ior sil
YER, and silver went thher it appears. in e3traord
nary quantities, reaching 900 900 In two years
The silver, as il lowed into France, was it appears
boarded until confidence gradually returned. Their
il came out into circulation and found ts way to the
bank, whence il was again drawn of by war ant
| famine. The Iadla drain has since caused gres
substitution of gold for silver. The effect Of revolu
ton, war and short harvests, to diminish the
whole mixed mass of money-god, silver and paper
diminishing the circulating medium fully to the e1
tsut 10 which it was supplied from the gold countries
The effect of the India drain has besn, aat SO much
to diminish the whole mass co to substitute gold and
paper for silver. These causes hayes subsided, and
the vho,s mixed mas of money is in great supply
without the metals having changed their relative value
Suoh has been briefly the course of events since
the gold discoveries. The late panic has put change
upon the whole face Of affairs. The harvests are now
abundant in all dirsctions all suPplies Of food and
metals are good; consumption has reached its mini
msr, aad production Of goods came nearly to
s.snd still in face of the . of prices If the e1pendi
tures upon rail roads are done, the money is not lost
the works are then ready fulfil their functions, and
With great national wealth the worlds peace aesms to
be assured.
The gold which commercial activity had scattered
is now accumulated as follows:
SPECIE IN RANKS.
le4S. 1859.
Rate .. in.eross LOao per lse eGHt soS
Banks of England, Dec a5 S!3ia3m s,i1' ooooSO S
France, Dec. 25 20 5oe,oSs ilao4i'ooO