The Elko independent. [volume] (Elko, Nev.) 1869-1872, 1869-07-31
Moyenen, Of Bullion.

Movement Of Bullion.
Gold and silver are used as the principal
means of liquidating balances that may have
accrued in the interchange of merchandise.
Paper. no matter by whom signed, settles
nothing. If 4, who lives in Chicago. buys of
b, in New York. dry goods TO the amount of
ten thousand dollars and sends him but nine
Thousand dollars worth of pork. he must pay
the odd thousand in gold and silver, either
from his own Golfers from his neighbors
The paper that represents this gold that must
pass from the smaller seller TO the larger one
is exchange. and the amount that the debtor
merchant must pay for this paper over and
above the quantity of gold i; calls for, is the
price of exchange. Now, this is what con-
trolls the movements of bullion. The nation
that buys more than il sells, must make up
the balance in the precious metals. When
ever this happens, the notes of the creditor
nation are at premium, and this premium is
an infallible sign of the condition of trade
between any two nations. This is what con-
trolls the movements of our staple. We are
constantly in debt TO Europe for goods, and
are constantly sending them the products of
our mines, to settle the balance that is against
us. But few know how much we suffer by
this arrangement. The nations Of the East
are the great consumers of silver. To them
steady stream Of silver pours year after
year, and is lost in the almos; countless mil
lions who inhabit India and China. These
countries are the great consumers of our
staple product, and TO them il should GO bv
the shortest and least expensive route, but it
takes the longest and most costly Every
dollars worth of silver that leaves this Stat.
for India or China, by way of New York and
London, gets clipped twenty cents before it
reaches its destination. One-ffth of the en-
tire amount must be expended to get the
other four-fifths to the end of its journey. l;
would cost to send the same bullion to the
East by way of San Francisco and the China
steamers, less than one-fourth of that amount /:
but this does not stop the bullion from travel
ing its roundabout and expensive road Why?
Because at every step of its journey it pays a
debt If it once gets to San Francisco, back
1t comes over the railroad on It's way to Chicago
and New York. The San Francisco merchant
has been unable TO ship hides, wheat and old
rags enough to pay for the silks, candles and
iron he has bought in New York and Chicago.
and must make mp the balance in gold and
silver. The same thing happens over again
with the merchants of those two burgs they
have bought pocket-knives, false hair, broad-
cloth and cosmetics to such an amount that
it has swallowed up the carGoes of wheat and
bacon they have sent over the water, and IA
large balance is still due. Again, our product
is called on to settle the score and AWAY il
goes into the vaults of the Bank of England
or the Bank of France. The English and
French merchants have done no better than
the Americans, for they have not been able to
keep even in trade with the copper-colored
rascals who live "around on the other side. -
and our bullion takes another and final trip
This would be all well enough were it not that
our silver has been nibbled by brokers, bankers.
ship owners and insurance companies until il
has lost one-fifth Of its value; that is 10 as
for 1t is the producer that in this instance
bears the cost of getting his products tc
market.
So long as the balance of trade is against
the United States, so long will our bullion fine
its way two-thirds around the globe to ge
one-third, for this balance must ALWAYS h,
paid in the precious metals. When we car
purchase the teas and silks of China and pu
them down in New York at Il less price than
the English merchant can, We shall divert :,
much of the stream into the shorter channel
and save at least fifteen per cent. to the pro
Queer Of the precions metals, and not unit
then. Until we cease to purchase in Europ,
greater amount of her products than sh,
takes of ours, we must use our precious metal
to make up the balance and must submit I,
be dragged Mt the wheels of financial kings o
the Old World. The Pacific States hav
twice saved the nation from bankruptcy b,
producing gold and silver enough to settl
our balances in Europe, but the balance o
trade ought not to DO much longer ngains
such, a people rs wo are.
Tfa
ARRIIc OF TnE PASTA few DAYS apo,
very ourious and interesting relic was pre-
sented to NIKE n. Robinson, of this CITY
lis ring, within staple attached, and wa
found ncar the eehtre of on oak tree nearl,