Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-06-01
For the Enquirer.
LETTERS,
on HE RESOURCES, IMPROVEMENTS, A'pCoh
MERGE OF VIRGINIA.
No. ANXIlI.
Tn, Dr,.,.yv Nrf1iS,

t--
account of their great scarcity or the cost Oh OBTAIN
lug them. Blu; in the political economy OF na''"-'
and in fact the world, silver and g'id aSSu"'S i"
;mnor,snt nosi,ion. and becomes valuable as a repre-
sentative of wealth. The intrinsic and h'gh value u
gold admits of its being divided into convenient p''
ticles or pieces, each representing or bearing " GER
tain worth, and passing current throughout 'he "oru'
because the real value as a metal is acknowledged 10
DO equal TO the sum it claims, with ss!lgat eAceP''on
Any metal or material, such DIS diamonds anu "'he'
precious stones and jewels generally WHO" III h"'
difficult to obtain than gold, represents sui greater
value, according to size and weight or oeau'y VI
form or appearance: 1t ia evident that the oaser me-
tails could not be conveniently converted mo cur
rency or the means of exchange, since Their bulk and
weight, according to their real value, would ehectu
ally debar them from becoming the medium of great
or even limited financial transactions. Neither could
a paper currency take the place OF goid ana silver
since it would be vslueless within Itself, anu couid
only receive credit where the name ana standinS ol
the party or institution by which ii was issued' were
known and acknowledged. But all such lesues are '"e
mere representatives of wealth, or real value, and are
simply worthless Under any other CONDITION hanK
notes and bills Of exchange and bonds are valued
according TO the stability, we"ith ana influence OF
the party or power from whence they lssue and their
means of redemption. Hence II is, that Western
notes are below par in the East, aud hence, too, We AR
ashamed to cay, New York bills pass at par in Fr-
ginia, while our bills are below par in that great
money market Of the new world. Gold flows towards
that great centre of trade because we purchase from
her, and she compels US to pay in gold or its equiva-
lent; therefore, the influence she exerts is from actual
wealth, which gives her money dealers the power to
charge such rates of discount as they may deem most
profitable. But that wealth has been acquired and
is retained by means that are open to all; commuui.
ties are much like individuals, though more stable.
1t is plain that they who deal in money, and have a
controlling power, will buy as cheap and sell as dear
as they can. Gold is hard to acquire-it actually
costs more ~exertion and labor and general expense to
procure a ton of gold than the many thousands OF
tons of iron or coal or other material which that
amount of gold would purchase: therefore, labor can
be more profitably employed in almost any other
pursuit; except in rare Instances; and hence, zoo,
gold possesses a real value which can scarcely de-
preciate. If the precious metals, however, could
be obtained with az much ease as iron, they would
10 ITO ~ oSPtSs'ot9 eN
a circulating medium, because they would not only be
too plentiful but we would require a great weight
and bulk TO represent a small value and, therefore,
could not facilitate the means of exchange. Econo'
nists may argue that the requirement Of the
precious metals is not real evidence OF
increasing wealth, and that the fact of HI
inward or homewsrd flow of gold does not
convey indications OF prosperity; yet it would be-
strange indeed to find a prosperous country, from
which more gold is exported than imported. Califor.
MIA and other gold producing countries may make
rare exceptions occasionally, but even those will
scarcely stand the analytical test, even though it
is their ostensible pursuit. To produce s50.0oO.NOo OF
gold from California per annum, more labor and sacrl'
fee has been required than England has expended i'll
manufacturing 3 5000, 600 tons Of iron, which is worth
at the lowest estimate, more than double our anh'ia!
supply Of gold from California. 1t is thus evident that
gold cannot be obtained, even under the most favora-
BILE circumstances, without sn expenditure OF labor
means even greater in reality than the value OF
the gold obtained-since gold mining, at best, is ex-
tremely uncertain.
To chow that all the gold Of California has not Ell.
riched us, or even increased our metallic currency,
we need only allude TO the scarcity OF The precious
metals during the last winter and even now. But a
quotation from a London paper, published long before
the monetary crisis Of 1857, will indicate where the
money goes and why We cannot or DO not retain our
gold
eOut of the $780, 0O, 900 raised in our Australian
Colonies, and shipped 10 England within the last two
or three years lin '54h we have a stock in the bank
~ E..I,,l e,a-o.ly n . lprpa "a Va had DrayiOuS TO
the gold discoveries, and our monetary requirements
are moro stringent than ever. The United States,
although parting with Sl9O,0OO,O 600 of the S2SO,0OO,OOo
still find the balance OF coin slip
ping out of their hands in Il continuous stream.
The European States and Eastern countries seem
profting most by the absorption OF bullion. The
void in the metallic currency OF most OF the cont.
mental nations is fast filling up, and deprecated pa
per currency has been to a great extent Withdrawn
Still, like quicksilver, you can scai cely follow the
Of specie, for it travels rs rapidly from
place 10 place as the electric fluid
Since the time when the above was penned. almost
double the amounto of gold specified has been produced
and sent to foreign countries. Now such a state ofthings
proves fret, that the gold has coat us more in labor
men and means, than it was worth; and, secondly,
that we buy more thsn we sell; for in no other way
could we enrich the nations with whom we trade di.
rec:iy or indirectly. Al! the gold Of Mexico and
Peru did not enrich Spain. In Englands Ease. it IL
rather astonishing that ahe should lose by her gold
mining speculations in Australia. Yet ii is even 70;
when We consider that she does not protect her
though che encourages it in every other
we can see some light on the subject. In
:. -l.r -. --I nit ~
,crstch the earth over and over again, drawing Cat
ts strength, until HI acre Of ground will not produce
TWO barrels of flour, and these we sell for Il few rags OF
cloth. or a bar of iron, which We might make at
nome, with half the labor bestowed on the wheat or
The flour, consequently cur capital ia always depre'
eating. Gold always follows the raw meterial,
the manufacturer, who comes TO Us for
cotton, tobacco, or even sugar, in a raw state,
will not return it in q manufactured condi
ion, for the price he paid US originally. On the con-
rary We must pay double, and frequently several
qundred per cent. more than We obtained; or else we
would not be a good customer. II he did not profit by
lis traffic with LIZ he would not come to buy our stu.
flour raw produce was manufactured at home,
hough We paid higher prices for it, we should be
much the gamer, since the manufacturers would no:
lees produce, flour, grain, &c, here than
here, and what we now pay for manufactured articles,
gould be- retained in the country, and the stream Of
would then flow hOmeward.
II cannot be Of much avail to US that We have a
ich and prolific cocn,ry, when we pay strangers,
whose interests are quite Inc reverse Of ours, millions
II dollars for work which we might have done at
We have paid 10 foreign manufacturers hun
lreds Of millions of dollars in hard gold, and We have
for railroads, &C., many millions of dollars
# foreign debts, in addition TO the exports Of hun.
ireds of millions in raw materials. Such a course
Trains our country of that circulating medium which
3 60 hard TO obtain and so necessary to our prosperity,
md places our producers in the position Of a man
capital, who lives from "hand to mouth" or
just for what he can get, and not for what his
took may be worth. Does this not put us on a par
the laboring classes of Europe, or even below