The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-09-19
The SUPPLY OF GOLD AND ITS STANDARD VALUE.

From the Lendon Times, Sept g.
In the discussions on the possible depreciation OF gold
there point which all parties are agreed. and
which, indeed 1t would be almost impossible TO dispute.
Whatever may be the case hereafter no material depre
citation has occurred yet Some nqnirers, such as MIR
Stanley Jevons whose letter published yesterday,
conceive that an effect visible but as broad matter
Of fact il is both certain and evident that the influx OF
the precious metal during the last fifteen years has occa
stoned no material arrangement II is admitted. also,
that this fact is 10 conraventon OF the theory the
subject. Gold ought. according TO the laws Of to
have been deprecated long ago: but every writer
in succession has been compelled to acknowledge that
the result was wanting to conHrm the argu'
ment and that some explanation or the anomaly
on Of Europe TO the subject Ave years ard whose
learned treatise was promptly translated BY Mr. Cobden
considered that the surplus gold absorbed in France
by the Substitution OF gold for silver currency; that
Franco thus served "paraehute 10 retard the fall
which would otherwise and that the effects OF the
the conversion CT franc pieces Napoleons had BEEN
accomplished. Ibis was extremely plausible; but:
the influx OF gold has continued ever SINCE we
cannot avoid seeing that either the saturation Of
or that some other outlet exists for the overflow
OF the metal SO little has gold been deprecated
that within the last two months has been actually at
premium; the Bank OF France elected 10 make its pay
ments silver, and small consideration had to be Civ
for gold coin. after the fashion Of twenty years SINCE
year. he admitted last year. that the predictions OF
economists this question yet unfufled; but
exports Of specie to the East This IN substance the
argument NJ. Chevaliers since 1t is only through
the ow Of French silver to India and China that France
acquires her capacity for absorbing god. Mr. Fawcct.
however, like N. Chevaer and MIR. Golden, thinks
that with the closing Of these outlets our immunity
will end Some day. or other India vii! DO full Of
silver and France u gold and then the depreciation
will begin, The only confession of any skepticlsm
So Tho B6ip was made In the Edingburg Reyec two
three wears ago. when writer who criticised NJ. Cheva
lers treatise with great ability frank enough, while
acknowledging the force Of the arguments produced to
the estimate He did not think that the explanations
were sufficient @ Account Cor the result and recorded his
had unaerrated the dimensions or some clement al Work
OF which knew nothing at all. This we think must
be the conclusion OF every unprejudiced mind and
pass over without vsrGcation OF the scientific theory
what was probable in 1859 is almost certainty now,
and It becomes OF the utmost interest TO ascertain, pos
sble what the conditions circumstances which so
ectualy neuraze the operation of an otherwise ire
The least careful OF readers will readily understand that
portion only OF the new gold will enter into the cur
and he balance only is available for the purposes q
coinage Consequently there were two considerations
Affecting the conclusonrst that Of the extent to which
the precious metal might be absorbed appliances Of
luxury; and next, that OF the which the re
nainder, whether much little, might be spread Each
occasion year TO observe that, In opinion,
H. Cbevaer had made far too little OF the outlet which
arts and manufactures supplied and the mscacuation
suspect, 50 great that We call attention 70 IL
again.
metals in the sixteenth century did produce fall 10 the
value OF money not only in this country but in Spain
and France he asks whether like effect was produced in
countries previously better provided with these metals
the Venetian domnions for instance at Constannopc
at Florence. Have not been applying universally,
and without Discrimination precedent really applicable
only TO countries 10 particular condition. Al The
In queon the Western States OF Europe possessed little
specie. and the sudden influx Of the precious metals
caused revolution in prices but was that the case
where specie plentiful already To give idea Of
the argument lot compare the influx Of gold TO the
opened to IT, but before settling on the surface
would MI up the holows and II would be only whom
these filled that tho general depth OF tho food would
be cacuabe. In the sixteenth century England was
hollow, with but little water at tho bottom and tho
golden flood rushed into II accordingly At the present
timc England is q high table land and many hollow
must be filled before shall find much experience OF
the food Prices will rise, doubt but II Is elsewhere,
ard % level that they will Iise Steam and trade
have now brought into contact all the nations Of the
globe and there many thirsty land to be saturated
before the rise Of the waters viii homo TO Such
the view OF tho propoundcd, and we commend II
10 tho Judgment OF the public In the interval is salts
factory that proportion the question Is dis
cussed the interest but the alarm decl nes