The Kansas herald of freedom., 1859-05-28

No subject has so much perplexed
hnanciers, capitalists, merchants and poll
teal economists, as the Justification of all
the commonly received opinions and the
predictions concerning the increased pro-
duction of COLE. The Daily advertiser
OF this morning, has an article on Cob
den's translation of Chevalier's treatise
"On the probable Fall OF Gold" In this
treatise it is stated that fifty years ago the
annual production Of gold was only about
$12,OOO,000 Ten or fifteen wears ago
Just previous to the discoveries in Cali.
iornla and Australia, it had reached $780,
OOOO0O, and since these discoveries. the
annual production has risen to the enor-
nous amount of $170,OO0OOo.
In allusion to the predictions based
upon this great increase in the supply of
gold, the AduertiSer says, SO far from the
general rise in prices, which was expect
ed, taking place, it is difficult to point to
any change having been produced from
this cause, and when articles have risen
the rise has been produced by other causes
than any marked change in the standard
of value.
The Aavsrtiser then proceeds to sneak
OF the large demand for silver in the East.
1.-THE philosophy of which it has been
found difficult to explain" as operating
to counterbalanco the increased quantity
OF gold. We do not think there is any
difficulty in accounting for the shipment
OF silver to the East. 1t is a natural
consequence of the increased demand
made by Europe and American upon the
raw materials and agricultural produc-
tons of Asia. AS Europe and the United
States have but limited quantity of
merchandise, which will 90 towards nav.
ing for these Asiatic productions, the diff.
ference must be made up in silver, which
is the currency ofthatregion. Moreover,
such has been the demand for Asiatic pro.
dace, that the price oflabor has risen in
China, India, Burmah, Siam, and other
countries of the orient, Gas a rough esti-
mate say from four and five cents a dav
to eight and ten cents a day, and this rise
OF 100 per cent. in the price of labor.
among so many hundreds of millions Of
people, requires large increase in the
circulating medium in those countries.
The drain of silver to the East, and
the filling of this displacement in the cur.
rency Of Europe, with gold, does but little
towards answering the questions of finan-
ciers and economists, in this matter. be.
cause large as have been the shipments
they have probably not exceeded a tenth
certainly rot fifth ofthe increased SUP,
ply OF gold. The increased business Of
the world, consequent upon the settle
ment OF California and Australia, and the
lnroads of civilization upon India and
China, have caused necessity for more
gold in the currency, but even this ac-
counts for but a small part of the great
amount of gold which has thus been so
easily and imperceptibly absorbed by
Christendom. When we come to the
actual truth, underlying the whole matter
we shall fiud that the immense volume of
paper currency which has been EMPLOYED
by the business world completely antici. |
pated the gold discoveries, and it is pro.
bable that all the accessible gold of Cali !
fornia aud Australia will be exhausted
before it reaches an amount materiallv
affecting the vast volume ofpaper credits |
upon which the business of the ciyilizad |
world has been predicated.