Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1866-05-23

Cullough estimated the entire produce of pre-
cious metals at $4,000 600 per annum. 10
1916, the California mines were discovered,
and soon after those of Australia. | take
from the Railroad Record the following state
meut of the production OF 1852, which is very
nearly correct -
Gold prod uc, Of Califor mia $50 eco ,000
Gold product OF Au aha 20 Dp0 0o0
God product - aussia is 400 600
silver mines of Mexico and .. America 10000 NO
Gold aud silver from other sources O00Ooo
Total product per annOm 4loo, ,0Oo0 600
In round numbers, one hundred miliOns of
dollars per annum of the precious articles
we're prod Gced from 1851 to 1855. Now bear
in mind that the largest product of precious
metals ever produced In the world previous 70
that period was forty-three millions But
what has happened since ? Australia has pro-
duced much larger rate, and has again fall
len OF. But to the other sources OF supply
are added the mines of Nevada, Idaho, and
Montana, which, in the current year, may be
estimated at toll twenty five millions. De-
| Quoting several millions for Australia, it is
moderate estimate to say that the mines of
precious metals are now producing full one
hundred and ten millions per annum.
Thus we have two striking and enormous
| facts IN the wotd of commerce First, That
| from 1852 to 1866 there were added more than
a Thousand millions of dollars to tt e quantity
of precious metals commerce Second. That
there is now an annual production OF one
hundred and ten millions per annum. | reed
add no more to my first proposition, that gold
| is now mere staple product. like grain OF
potatoes, 10 be cold market like tn IN
Mark, also, that recent discoveries show that
there is no more limit To the production Of
gold than there is to that of any other pro-
duct. L must leave for another article the
question OF supply and demand, and it's bear
lngs on currency. | merely add here, that,
If the popular theory that gold is q standard
of value be true, it follows, of course that
gold is the basis of ell other currency, and
that the value and amount of paper currency
based upon 1t will CORE spond with it. If, as
is certainly the TACT, gold is employed in this
country almost only In the redemption of pa
per currency, 1t follows, that, If the gold ba-
sis is enlarged. the paper structure upon 1t
will be enlarged also. Now, let US see what,
on that theory, would he the currency now
| In 1880 ION authority of Mr.. Galiatin,) }
there were S70OOO,O00 in circulation, of
winch $40 900 900 only was specie. And
remember, thai, In 1880, the commerce and
| Fl ances of this country were In very
| healthy state. On the lsu of January, 1886
the Treasury Report made Sl93,000, 900, of
which Sl20 900 900 Was paper money. There
! was in dctice circulation about ttOO dollars in
paper 10 one in specie. This much un-
der tie usual average bat let us take that as
a unit OF proportion what should be the
result now We have not less than 5000
OOo 900 OF gold in this country to maintain
, tne same proportion, you may have $780,
900 900 IN PAPER. The popular theory Ia,
tis.t gold the base of all values (although
| don't believe it.) | have right to apply
th, theory which bankers and merchants have
almost universally adopted. The consequence
Is, that, having increased your gold basis
fou riold, you Inevitably increase your paper
baSIs to correspond. If you have no more
than $6OO.0O00OO OF paper, you can resume
gold payments with impunity. You need not
b. disturbed about foreign exchanges for
cotton will Kill gold the Exchange, as sure
as the sun rises. But OF that and several
other questions involved IN the problems
h4ve SEATED, | must speak hereafter In the
IL antime, | nope the readers OF the Times
Wlu receive kindly, even on thIs dry subject,
their OLD friend, the VETERAN OBSERVER.