New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-11-18

! pftJuulcCs dcii Tue IvNtir vi NATURALIZATION"
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CO5NEEC9SL DIsTUREANCEs.
The steady rise in the price Of gold as com
pared with that Of paper, is one of the fea
lures of the times. AS there are conflicting
/ theories touching the cause, not only OF The
rise itself, but of its extraordinary suddennes'i
so there are facts connected with the question
of the general gold supply about which there
can be no theOIizing and which 1t may be
useful to revive. In every country whose COM
mercial machinery is well organized, the me-
talilc currency remains nearly stationary. II
il true that the quantity increases with popu-
lation and at more rapid rate; but con-
irvances for dispensing with the use of metal
lie currency in commercial transactions are
being continually suggested and adopted.
Whenever paper, or n transfer of credits, can
be safely used, it is eagerly adopted. The
most commercial communities are the first to
engralt these oXpedeuts on their system oi
business. Thus the London Clearing House, in
1889, Effected daily liquidations Of $4,000, GOO,
or E9j0, coo, 600 annually, by tho daily Use OF
only goo, 900 OF specie. Bat Notwithstanding
Tie yast increase Of British trade and COM
merce since that date, and that 81 tho London
Clearing louise the accounts Of individuals,
traders and corporations without number, come
to be liquidatcd through the medium OF their
bankers, yet the vast balances which are daily
settled there, are now adjusted without the
use Of shilling OF coin. The uso Of even
bank-ncte is dispensed viii, aud ihe whole mass
Of debt and credit is adjusted by the transfer
Of sums from one account TO another on the
books Of the Bank Of England. This system
las dispensed with all necessity for the metallic
currency OF the nation increasing in equal de-
gree with tho general volume OF business.
Y bile the latter i. indefinitely progressive. the
former remains comparatively stationary.
1t ia through the nicely adjusted oquiposc
Of her commercial machinery that England
ia enabled 70 enlarge her !rade' AMI msnufIc-
ture. without ProportionateIy increasing her
metallic currency. As the former grew, il
became evident tina. the supply Of bullion was
paper devices now recognized 10 commerce.
Deprived OF them, the word would cease h.
do business ana NATIONS would reapse into
the commercial barbarism Of tribes whose
currency is either cowries OF wtmpum. The
gold currency Of ell Christendom il estimated
at 1870, 600 900; but in England alone in
1855, there were 600, 0O0, 900 Of bills Of
exchange and $40, 600, 800 Of bank notes afoat.
The average annual increase Of bills Of eI-
change il estimated by careful writer's at
cls, OO0, GEO. thus making the present clrculs-
ton of this one substitute for 4 metallic cur
rency 10 DO 1926, coo 600, or more than the
gold currency Of AL Chrstendom. The aver
age annual increase OF tue bank note clrcula.
ton of England is only ca $50, lees than half
the average increase oi bills OF exchange. THIS
must be- because the issue OF tho former is
restricted by law, whiio that OF the latter II
not. 40 both are constantly Increasing, il 10
clear that both Government and psoplc have
combined 10 carry Oh the business Of tie King
dom with tho mninum of metallic currency
so long as this macs Of paper continues con-
veriible into specie, tho commercial macliH.r ~
may move on without general disturbance
AID the two currsncies viii circulate az equal
values. Az credit is the bash OF al paper, so
il il an essential part OF tho commercial ma
chincry. Destroy, or create even strong sus.
pcion Of the former, and tho latter VIII either
be wholly stopped or dangerously disturbed.
II il when great Disturbances of the com
mercsl machinery Of a nation take place that
lis metallic currency becomes the barometer
by which the extent of the disturbance may
be measured. The rise Of gold ia no unusual
occurrence in Europe, nor is it evidence Of
poverty either in Government or people. If
tho United States are now buying at hiqh
premium, England las purchased at as high u
rate. The Bank Of France, in tie
two and hall years ending with
January, 1888, purchased S27O, 200, 900
at gross premium of s2,S0O,OOO. Vari-
Gus Powers have at times been compelled
TO buy at even higher rates. The fact of pur-
chase was evidence Of ability, and all have
proved it by their continued existence. The
commercial machinery Of oil those Powers was
more or less disturbed by war; famine, aud
widespread insolvency among tho people, or
great oonvvsion IN other countries whose oom.