National Republican., 1886-01-02
GOLD FEVER OF FORTY EIGHT
THE EFFECT OF THE CALIFORNIA DIS
C0vERIEs ON PRICES.
An Instructive Investigation of the
New York Herald FiIes-some PERTH
nentPoints Having Anaioglcal signifi-
cance in the silver Agitation.

The New York Herald Of December IL,
1s4S, said in an editorial on the probable
effects Of the California gold manla "The
effect will, we think, be favorable not only
to this country but TO the world at large.
% AS for the immediate effects
there can be little doubt, we think, Of their
being favorable, and that a surprising stim-
ulus will be given to every branch Of our
Industry
The article on the ''money market, Of
the same date, speaking Of the "past week"
as being full Of excitement, largely owing
TO the discovery Of gold, says: 1--WE have no
doubt temporary imitation in prices will
take place-the result Of speculation-but
currency would doubtless soon become
equalized and the actual value Of property
preserved. An increase OF one
hundred millions Of dollars Of gold would
add another three hundred millions in
paper to the currency, and this imitation In
the currency would initiate prices for every
species Of property. II Is esti-
mated that, II the collection Of gold
in California continues Of the rate IL
has commenced, by next April the re-
ceipts here will amount to two or
three millions Of dollars per month.
The receipts thus far have been nearly
5000, 1000, part Of which has gone into the
TnlDJ IOr coinage. " An immense
impetus has been given to the shipments of
goods. An imitation has already
commenced in stocks, and the fancies have,
since the official reports appeared, ad-
vanced several per cent. AS the gold ex-
citement increases the speculative move
ment will, doubtless, extend and affect
many articles Of merchandise"
The money article In the Herald OF Dec.
| 12 says "There will be, without doubt,
an immense speculative movement In
stocks. The brokers have already been
| very much affected by the mania; and II the
outsiders become inoculated with the
disease, the fancies will rise more rapidly
than has been known for years"
The Herald Of December 20 says: "Prlces
Of stocks have advanced several per cent.
within the past month. This is the result
Of the increased demand produced, par
TALLY by the greater ease in the money mar
ket, and partially by the speculative move
ments growing out Of the gold excitement.
| The impetus given to speculation
by the discoveries recently made In Califor-
MIA has been greater than anything of the
kind realized since 1886, and the movement
is likely to continue until 1t nearly reaches
the same extent. The addition OF large
amount to our present supply Of gold would
create an enormous expansion In our paper
currency, the effect OF which can be very
easily imagined. The receipt
OF $20,000,OO0 Of gold would increase our
paper circulation full 100000, ,000 This
imitation Of public credit would create, OF
course, a corresponding imitation In private
credit, acting In all the departments Of In
dustry, and as natural consequence, an
advance in prices for property Of all kindsn
The Herald Of Jan. 22, 1S49, the day fol-
lowing the arrival of fresh batch of news
from California, confirming the reports of
the discovery Of gold mines and Of the in
tpnEa pyaitpmant kNTha rrinna nf
every description of produce or manufac-
lures have risen tremendously, and the
same results, on o wider scale and on o
more extended basis, will be produced by
the influx annually Of a hundred millions
of pure gold throughout the commercial
world, and particularly in this country and
Europe. Such vast addition to the gold
currency OF the world will at once disturb
the prices and value Of all productio ms and
merchandise to similar extent to that
which We see in Monterey and San Fran
cisco. The prices Of every commodity will
therefore, rise extravagantly during the
next few years, according to the produce
Market. everything prospers, every one
gets rich, civilization expands, In
dustry increases, and all orders Of societ,
are benefited. As soon as the first
crop Of gold from California reaches
New York, the impulse which II will give
to commercial enterprise and the advance
in the price OF everything which 1t will
cause win be tremendous. The bank cur.
rency will be expanded, for the basis will
be abundant; real estate will increase II
value, agricultural productions and agri
cultural labor will advance at once, ten
fifteen, twenty, thirty, or forty per cent
even to as great an extent, perhaps as wa
witnessed, when the demand came from Ire
land for the food OF this country to fee(
the starving Irish. New York and he
sister cities will be the center Of all thos
revolutionary movements which are Ger
tain to spring from the gold production
OF California on the commerce of tn
whole civilized world. Shipbuilding will
,, increase In value, steamboats, will be wanted
the railroads projected across the isthmu
and In various places In Mexico ana Centra
America will be all pushed to completion
and we would not be surprised TO see al
active attempt made, under the auspices o
the federal government to construct rail
road across the continent, through the Soutl
Pass, from st. Louis, or some other poin
ON the Mississippi, to San Francisco. Tn
discovery of these great gold mines will
no doubt form the agent Of the creates
, revolution In the commercial centers O
the world, and on the civilization of tn
human race that has ever taken place sine
the first dawn of history"
The money article In the issue Of the sam
, date says: II having been satisfactoril
i settled that the accounts from California
revative to gold, are no fiction, 1t is yer
important TO know what will be the effec
olthis immense supply Of precious metal
/ | this enormous accession to the specie cui
\ rency Of the world. We have already see
the effect Of the abundance Of gold In Sa
/ Francisco, upon'prices for every species G
property; we have seen an advance OF three
) four, and five hundred per cent. in the MAJ
| kat yalna Of nr0viainna nradnaa and m
1 ufactures Of every kind, and tremendou
! increase In the demand for consumption
: This is q natural effect OF such sudden II
' crease In the supply Of gold and silver, an
! would bc realized as soon among savagei
, who could not trace cause to effect, as l
any civilized community. What has alread
: taken place In California must soon sprea
. over the world; but, as 1t extends, the es
1 pansion viii become lessened; or, we Nigh
: say, the imitation of prices will be less pei
' ceptible, until they will ultimately becom
uniform and settle down upon a: perml
r nent basis.
To give some Idea Of the probable effec
Of this influx Of gold upon the currency {
the world, we annex statement exhibitin
the estimated amount OF gold and silver, an
the representatives Of these metals, In circr
lationi
AGGREGATE CURRENCY OF THE woRLD-cIRcI
LATloS OF GOLD, SILVER, AND PAPER.
Bank Specie in Specie II
currency. banks. circulation
United States $685. 900 900 S75 900 600 500 OOO OF
Great Britain l50OO0,OO0 9O,O00,00O 75,000OC
France go. lO00OO,0O0 100000 60,OOO0C
, rope, :...I. sOOOOo,OOO 2OO,OOOOOO 2OO.OOO,OC
Rest Of the
z world. 100000 100000 100000
0 Total..... ESQ 600 A5,OOO,OOO $50, ,OOOOC
The financial column Of the Herald {
Jan. 20 describes how the exhibition
Wall street Of q small bar Of Callforni
gold gave q temporary boom TO stocks.
The following day the Herald said
| ltfT1.a synld sfaxyar "a n,au hfUh a., tha atroa