The New York herald., 1872-11-15

Total. 322, ,652, $50 f16, ,632 643
The total previously reported to the 7th OF Sep
tember was f14.125,474, showing on increase Of
e. 5U7 100 in the five weeks between that date and
the 18th OF October or at the rate OF f5Oo 900 per
week. There has thus, at the latest date, been no
been ed in progress for many months. In these
circumstances notification Is stated in the Ger
IN s aes 1873 % M
tends to keep on increasing the amount OF Its gold
coinage. IL intends to coin in that year,
15S40,000 twenty mark pieces. ELS, $40 900
1890, 600 ten-mark pieces. 1,9SO0O0
II this programme is carried out the German de.
mand for gold for coinage Is likely to be as great
for year to 1t has been In the year.
while the supply will be much more difficult, owing
to the depletion OF the markets. The average an.
nual yield OF the god-producing countries or the
million pounds, SO that the German demand alone
would absorb very nearly the entire amount OF the
current annual production.
THE CIRCULATION or GOLD IN GERMANY.
To THE EDITOR OF THE ECONOMIST
SIR-Havng read your valuable article on the
attention, with regard to German finances, to
certain facts perhaps unknown or msunder-
stood in this country. ! quite agree with you
twenty millions disappeared from the Paris
Bank since 1870, IS OF the many millions more
mentary documents the military chest, as you call
1t, holds OF 1t only one million and hall sterling
more than 1t always had before 1870 or 1866. The
already into the new German money are GER
tainy in circulation or at least as mucn open to 1t
as any hard cash in the Bank OF England and If we
do not yet discover much OF 10 in the hands or
pockets OF the public in general 1t is because since
the admission OF gold in Germany as Legal stan
dard with a great chance OF soon becoming the
sole legal standard the German banks, private
and public try to keep their spare cash quietly in
the new gold coin and to get rid OF their silver.
The present overwhelming demand for gold Is,
therefore, not the consequence OF German dnan-
cial msmanagement, but naturally follows out Of
the adoption OF . standard alteration In a country
where checks and Clearing Houses are almost un-
known, deposits therefore insignificant. and where
no central bank, as the Bank OF England, balances
hundreds OF millions without the use OF single
sovereign bank hOte. Yet Germany Is as thriving
o country as any in Europe. But we have to deal,
under these circumstances, with the sudden change
OF money standard, suggested and supported by
q colossal ransom to be paid In hard cash within
given time, which will, and must, drain the gold
market TILL either the retaining OF the double
standard Is settled-a question expected to be de-
cided by the next Reichstag-or till better outlet
Tor silver than at present facilitates the exchange.
The raising OF the discount In this country cannot
certain changes, and possessed OF ample means to
do It, on the contrary, the higher the premium the
more these means will lead to o command In tlis
market; and although by that process we
shall undergo certain temporary ease, we
must expect for time sudden nuctua-
ti0ns, and will again be made aware
that we labor under Bank act based more on q
figure than principles figure which at time
when TO- 600 900 OF gold were considered comfort
able stock at the bank because IL allowed an issue
OF l6O per cent uncovered noteA with D.o0ooW or