Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1871-08-31
a.la-snv..-Fa1.sa f.s.,.
tyiom tn. 8. F. Alta, Angus. SOL


Iron the 8. F. Alta, August SOL
Twenty years since when California
gold discoveries had become fully
demonstrated. a sort of panic set In
among tho Governments OF Westsra
Europe, to a lesser extent In England,
and more modified In the United
States. The question which presented
itself was the probable change In the
value Of gold consequent upon;its In
creased abundance. It was supposed
that, both In relation to silver and
to other commodities, gold would have
a lower value ; that's, that a perpetual
fixed income, like an annuity, or a
revenue from Government stocks, or
ground rent, would gradually diminish
In real value 80 that the recipient Of,
say 81 per annum, would gradu-
ally get less and less for the money as
its purchasing power Diminished.
Most Governments appointed commits
slons to investigate the matter. The
United States passed the Mint bill Of
1852, which made gold alone a legal
tender. The French did the same
but Holland, under the superstition
that If gold alone was produced In
greater quantities II would lose Its
relative value, but that silver would
maintain Its position, adhered to silver
alone as the standard by which per-
manent incomes would retain their
purchasing power. IL happened, how
ever, that for the first ten years Of gold
production here, aided by Australia,
gold did not much d~eteriorate In value,
and Its relative value to silver, 15H to
l, was not changed. In the last ten
years, however, q change has taken
place, not In respect to silver, but In
relation to commodities, and the fact
shows itself In greatly increased ex-
penses Of living all over the world.
It Is estimated that In England 81 now
Is not more than equal to IS ten years
since. On the continent Of Europe
the change is still greater, and still
more In Australia and tile United
States. But throughout India the
purchasing power Of money has I'M
dergone still greater reduction. An
important element of this change In
the last ten years has been the United
States war. When the war broke out
there was In circulation $500, 600, 900,
bank notes, and $500, 000, 900. coin.
There Is now In circulation $780, 00,-
900 Of paper money and little or no
coin. The latter has passed off into
the markets Of the world, greatly In
creasing the general supply. At the
same time, there was q great reduction
In the quantity Of commodities pro-
duced-cotton, tobacco, rice, manufac-
lures, shipping, etc. Of the first artl-
Gle India became the source Of supply,
and silver poured out of Europe pro-
flsely into the Indian market for raw
commodities and for railroad con-
struction, so Cutting It that English
official reports show that the natives
used the silver for wagon-tires and
other unusual purposes. The gold of
the United States and Australia more
than supplied the vacuum caused by
sending the silver to India, anda rapid
decline In the purchasing power OF
money has taken place. Such a mo-
ment Is the favorable n for q return
to specie payments In the United
States ; to call In the superfiuous paper
money and substitute the coin. But
there are no signs as yet Of such a
consummation. The prospect now Is
Of reflux from the India market and
from China, while the production Of
silver coin on this coast promises to
more than rival that Of gold. A Lon
don financial authority states IN rela-
ton to the Indian flow Of silver /:
1.-The reader can draw from this his
own conclusion ; for, 1t Is undeniable
that the yield OF silver is rapidly In
creasing on the Pacific Slope, and soon
will attain to such dimensions that
there will DO q material fall In the
value Of the metal. The broad rule
ought therefore to be kept In view
that a fixed income Is less desirable
than all income derived from real es-
tate or industrial undertakings, for 1t
~undergoes a diminution In Its purchas-
ing power through a constant, If slow,
process, which must, however, be felt
severely at the end Of ten or twelve
years." Without asserting to the full
scope Of this proposition, since there
will no doubt be a restored activity In
the production Of commodities, which
will tend to compensate for the in-
crease of the precious metals and MAIN
tain all equilibrium, there Is no doubt
but the part California Is to play In
the worlds operations will be more
important In the future than In the
past.