The Columbia herald. [volume] (Columbia, Tenn.) 1850-1873, 1872-08-02
80, 1855, N5, 90


T0t0. teS, SoosSeo$'SV
1t is difficult not to believe issys the
Economist that 80 large an addition to
the previous amounts of the gold coin
age can have been without important
consequences, both direct and Indirect.
OF cuuree, deduction ought 10 be
maize for re-cOlnsgcs-the same gold
having sometimes BEEN coined twice
over in different cOuntries-but even II
the old coinages of the United States
and Australia had been re-coined in
England and Fruncc-and this Is most
uniikely-the sum of $1,000, OO0, 90,
which would remain. would still be an
immense amount. To appreciate the
MAJ nitude of the run, 1t Is only neccs-
sary to remember that the current es-
innate of the gold ia the world In 1913
was s., son, UOO,UO. Assuming that es-
timate to have been approximately cor
rect, we have a coinage In twenty-fOur
years equal to the whole stock of esti-
mated gold existing at the commence
mcnt of tire period.
An important fact shown by the
alb We figures is the enormous ahsorp-
ton of coin 10y a single country
Frame Indicating that there was in
op ration q very special new demand,
aud in consequence that q large paItOI
the new supplies Of gold was not
thrown i'm to compete with the old
stock. France coiued, in round num-
beers, between 1SiS and 1869, the large
sum of 81 ,30I, OOU0, 5000, more than twice
the amount coined in England in the
same per cd, although that country
has SO much more trade, and virtually
coin, for Brazil, Portugal, Egypt and
other countries, rs well ms for itself
| Nearly hat the new coinage has In fact
been for France, which has thus 10y it,
self absorbed large part of the new
god. OF course it may have been en-.
abled to do this because of the geld
failing i'm value, but the absorption
followed as quickly on the events o
1913. that it would operate in time t.
check a very extensive fall.
No doubt the low average OF the las
five years in France is partly caused by
the cessation of coinage operations
which we assume to have taken place
i'm $50 and 1871 because of the war ant
the If. TIC of incOnveytihle paper; bu
even if an amount equal to the addition
OF the paper circulation had beer
coined, the average for the five year
would sLiIl have been much under tn,
average OF the period from 1852 10 1851
Thus the new demand of France wa
most effective when gold was coming
forward I'm greatest abundance, and .
course would tend, at the most ciitGa
period, to check the effect on prices o
the new supplies.
There is thus some reason to con
clu,lc, from the intrinsic evidence 0
the figures, that in the actual circum
stances of the world there must hav
been a good deal to counteract the fal
in the valde of god, which we shoul,
look for as the effect Of d largely in
creased supply. The assumption rs t
the effect of supply on prices is alway
made on the condition of other thing
being equal; but in the ease Of gold
other things have not been equal.
we inquire further we shall fiud that
besides the new demand for Franco
which Is exhibited in the figures them
: selves, there have been numeruu
causes at work since 1S4S, partly az
gravating and partly neutralizing tn
effect of an increased supply of gold.
We conclude, therefore, that Will
the effect Of the new supply of gold, q
shown i'm the enormous coinage sine
1913, would naturally be great reduc
ton III its value, there Is at least som
evidence for holding that this natura
effect has been largely checked O
counterbalauced by : other circum
stances. France has caused a larg
new demand by substituting gold fO
silver, and the great go!d-uslng com
munities have increased cnorlnousl
, in population and industry. Expedieni
, for ecunom'zing money have, on tn
other hand, Increased as well, an
issues of inconvertible paper in Franc
. and America tend to increase tn
abundance of gold. But these cause
are difficult to measure, and have q
yet been partial in their effects. 1t
curious that, as regards the future, tn
influence of increasing population On
increasing commodities will apparent
Iy operate rs powerfully as hitherto il
checking the effect OF an over-abundau
supply. The issue of incOnvertibl
pal ier by France is being balanced b.
the adoption Of gold currency il
Germany, and the approximation il
the value Of paper 10 gold i'm America
coupled with the limitation of paper
will tend to increase the demand TO
cDin there.