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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..6b5e59e --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #50581 (https://www.gutenberg.org/ebooks/50581) diff --git a/old/50581-0.txt b/old/50581-0.txt deleted file mode 100644 index 1f63567..0000000 --- a/old/50581-0.txt +++ /dev/null @@ -1,3352 +0,0 @@ -The Project Gutenberg EBook of Remarks on the production of the precious -metals, by Leon Faucher - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: Remarks on the production of the precious metals - and on the demonetization of gold in several countries in Europe - -Author: Leon Faucher - -Translator: Thomas Hankey - -Release Date: November 30, 2015 [EBook #50581] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK REMARKS--PRODUCTION--PRECIOUS METALS *** - - - - -Produced by deaurider and the Online Distributed -Proofreading Team at http://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - - - - - REMARKS - ON THE PRODUCTION OF THE - PRECIOUS METALS, - AND ON THE - DEMONETIZATION OF GOLD - IN SEVERAL COUNTRIES IN EUROPE. - - BY - MONSR. LEON FAUCHER. - - TRANSLATED BY - THOMSON HANKEY, JUN. - - SECOND EDITION, REVISED. - - LONDON: - SMITH, ELDER, & CO., 65, CORNHILL. - 1853. - - - - -TO MONSR. LEON FAUCHER. - - -MY DEAR SIR, - -I have fulfilled the promise I made you a few weeks since, by -translating, I hope intelligibly, your remarks on the subject of the -Production, &c., of the Precious Metals, which I read first in the -August number of the “_Revue des Deux Mondes_,” and which have been -subsequently published, somewhat amplified, in the reports of the -“_Académie des Sciences Morales et Politiques_.” Since the date of your -remarks, the production of gold in Australia has been greater than you -anticipated; recent reports estimate the amount shipped, or ready for -shipment, from thence, at not less than £8,000,000 sterling; at which -figure, I think, we may safely place the produce of 1852. - -A gentleman who was with me a few days since, just arrived from -Victoria, told me that the gold diggings at Bathurst were nearly at an -end, and that he did not believe that any more gold would be shipped -from Sydney. Although Sydney is only one of the ports of Australia -from which gold has been shipped, this would appear to confirm your -views, that the first gatherings cannot fairly be assumed as data -on which to found estimates of future production: at the same time -when we hear of so great an increase of production in other parts of -Australia, I can hardly agree with you, that there is so little ground -for alarm as to a depreciation in the value of gold, in consequence -of these late discoveries. The effects of the production in Australia -can hardly be felt at present, considering that the export of English -gold coin has been, up to this date, I think, equal to the amount of -gold we have received thence; but when the sovereigns lately shipped -are found to be in excess of the wants of the community in Australia, -and are re-shipped to this country, together with the produce of the -gold workings between this and next summer, I cannot but believe that -the supply in the market of the world will be found in excess of the -demand, and that ultimately a considerable and general alteration in -prices will ensue. - -I shall be very glad if I find that by this translation I have in -any way contributed to increase the circulation of your remarks in -this country. The subject is one of considerable interest, and I -hope that you will, at no very distant period, give us some further -observations, and let us know how far your first impressions have been -then influenced by events which may have occurred subsequently to the -present time. - -I am, my dear Sir, - -Yours very faithfully, - -THOMSON HANKEY, JUNR. - -_London, 30th November, 1852._ - - - - -_The Foreign Weights and Monies have been converted into English, at -the following rates._ - - - Dollars and Piastres, at 4s. - - Thalers ” 3s. - - Florins ” 1s. 8d. - - Francs ” 25 to £1 sterling. - -A kilogramme weighs nearly 2 lbs. 8 oz. 3 dwt. 2 grs. or nearly 15,434 -grs. Troy. - -Do. of gold at the standard value, viz. 77s. 9d. per oz. is worth about -£125. - -Do. of silver at 5s. per oz. is worth about £8 0s. 9¼d. - -Do. of quicksilver weighs 2·2055 lbs. avoirdupois. - -Do. Do. is worth about 5s. 1¾d. or 2s. 4d. per lb. - -A Spanish marc weighs 7 oz. 7 dwts. 22½ grs. - -Do. of gold at 77s. 9d. per oz. is worth £28 15s. - -1 lb. of gold is equivalent to 46²⁹⁄₄₀ sovereigns. - -A poud is equivalent to 36 lbs. English, and worth about £1679. - -The weights and measures not enumerated here are explained at the foot -of the page in which they occur. - - - - -REMARKS ON THE PRODUCTION OF THE PRECIOUS METALS, &c. - - -From the commencement of the 19th century, gold appears to have been -always esteemed in Europe above the price at which it has been legally -fixed in relation to silver; the commercial value of the metal has -remained on an average about 1 per cent. above its legal value. In -England alone gold circulates as money: in those countries which have -maintained a double standard, gold, rarely coined, became immediately -an article of merchandize, and disappeared from circulation. Gold -regions were discovered without restoring the equilibrium of value -between the two metals. Civilization, in its development from -historical times, has but realized the legends of ancient fables. Gold, -from its importance and constancy of value, appeared likely to remain -for ever the symbol and the essential agent of wealth. - -In this regular course of the progress of the precious metals, a -pause, or rather a deviation, appears to have occurred. Gold seems -to be tottering in its monetary supremacy; the fortress appears to -have succumbed in a paroxysm of alarm. Ten years ago, every one was -frightened at the prospect of the depreciation of silver; during the -last eighteen months, it is the diminution in the price of gold that -has been alarming the public. Some countries, which, but a short time -since, were but too anxious to attract and retain gold in circulation, -even at great sacrifices, have already shown a feverish anxiety to -banish it altogether. - -Holland took the lead in this movement, and in July, 1850, demonetized -the gold 10-florin piece and the Guillaume. Portugal has partially -followed this example, by prohibiting any gold to have a current -value, except English sovereigns. Belgium, which in order to increase -its gold circulation, had given a legal value to our 20 and 40-franc -pieces, and had struck, in 1847, a mixed coinage of gold and base -alloy, has demonetized its gold circulation, both home and foreign. -Russia, by a ukase of 29th December, 1850, wishing to maintain the -former equilibrium, has prohibited the export of silver. The French -Government itself, struck with the novelty, and the sudden change, -issued a commission for the purpose, as the Minister of Finance stated -in his minute of the 14th December, 1850, of examining the questions -connected with the simultaneous use of the precious metals, gold and -silver, as a circulating medium of value. - -From public authorities, alarm has spread to private interests, and -the price of the precious metals has experienced in European markets a -very sensible disturbance in value. In the space of only a few months, -the premium of gold has given way to a reaction, only checked by the -tariff. From 1st July to the 25th December, 1850, the price of English -sovereigns in Paris has fallen about 2 per cent. On the Amsterdam -Exchange, the fall in the price of gold, in the same year, amounted -to 4 per cent.; at the same time silver rose in London almost as much -(from 4s. 11½d. the ounce, to 5s. 1⅝d.); the relative value of gold -to silver, which our laws had fixed at 15½ ounces of fine silver to -one of pure gold, and which the constant premium on gold in Europe had -raised in the Spanish tariff to 15¾, fell to 15¼ in Holland, Belgium, -and Hamburg; in all places where gold, from having been demonetized, -had become a mere article of merchandize; almost realizing, in fact, -the tariff of Russia, a country where the abundance of gold and the -scarcity of silver had induced a legal relative value of 15 to 1. - -However great the present depreciation of gold, the depression appeared -likely to increase still further, and the gloomy forebodings of the -press have added to public alarm. Newspapers of all parties, and -of all countries, prophesied that, under the combined influence of -California and Siberia, the value of gold would soon fall to nine -times that of silver. Whilst crowds of emigrants were forcing their -perilous way across the Rocky Mountains, or doubling, for economy, Cape -Horn, or, in their impatience, taking the shorter but dearer passage -by Panama, hurrying on to the capture of the golden fleece, this very -treasure which they were unduly _appreciating_, was becoming as unduly -_depreciated_ in Europe; the article, which but six months before bore -the greatest fixity of value, seemed rapidly undergoing an important -change, and to the _Auromania_ of ages, an _Aurophobia_ appeared to -be succeeding. England alone has shown no sign of fear. During the -period of continental alarm, the Bank of England was not afraid even -to check the export of its gold; as in the beginning of 1851, the -directors raised the rate of discount from 2½ to 3 per cent., and -almost immediately the exchange turned. The pound sterling, which fell -for a short time to 24 fr. 70 cents., equal to a fall of 2 per cent., -rose in a few days to 24 fr. 95 cents.; it oscillates now between 25 -fr. 35 cents., and 25 fr. 45 cents., which is equal to a premium of -½ to ¾ per cent. upon gold. Again, the mint of Paris, which received -gold by millions in December, 1850, and January, 1851, has seen this -influx slacken until its weekly receipt now scarcely equals its former -daily supply. At the present moment, the oscillations of the market -seem to have terminated; a calm has succeeded the storm, and the value -of the precious metals seems to be in almost a normal state. The -present moment, then, appears to be a fitting one to examine if the -late disturbing causes were of an ephemeral nature, or whether they are -likely to be permanent in their effect. - -On this important subject, the French Government, which at first -appeared ready to attempt an immediate solution of the question, did -not hesitate to recognize the necessity of more profound examination. -In the _Moniteur_ of the 15th January, 1851, it is stated, “that the -commission of 14th December, presided over by Mr. Fould, Minister of -Finance, for the examination of the subject of money, is of opinion, -that the late depreciation in the value of gold has been produced by -causes of an accidental nature, which are beginning to be less sensibly -felt; that influences of a permanent character bearing upon this -depreciation cannot at present be sufficiently ascertained; and in such -a state of affairs it is necessary to have precise information as to -the production of the precious metals in California and in Russia; and -that with its present knowledge of facts, the Commission is of opinion, -that there is no ground for a modification in our monetary system.” - -This determination was a wise one, and subsequent events have justified -it; while on the one hand gold has again risen to nearly its former -value, and on the other, the discovery made in 1851 of rich deposits of -gold in Australia, renders the subject worthy of further investigation; -the present seems a suitable opportunity for the renewal of a -controversy by no means exhausted. - -In default of official documents, we have the stories of the -adventurer, and the statistics of commerce. Sufficient light appears to -come from the north, the south, and the west, to enable us to form some -opinion of the results of the general movement regarding the precious -metals. I would add, that we can approach the subject now, freed from -some of the questions which appeared to encumber it; the trade in -the precious metals appears to be again in its natural channels. The -phantom of rise or fall does not appear to be materially affecting -trade: quite lately, to prevent the export of gold, the Bank of France -raised the premium for purchase. In London and in Paris, the metallic -reserves are full. The Bank of England has above [1]500,000,000 francs, -and the Bank of France above [2]600,000,000 in their vaults. The import -of the precious metals goes on but slowly. Nothing opposes, then, such -a patient and careful examination of the subject as can alone satisfy -the inductions of science. - - - - -I. - - -The value attached to the precious metals in their character of money, -is not of an arbitrary nature. Neither governments nor councils can -change it at their will and pleasure. The power publicly possessed -in this respect is but the organ of facts, which it submits to and -proclaims as law. The head of the Government stamped on the coin -creates a value only by the declaration of its intrinsic weight and -fineness; but the price of the gold and the silver is exactly that of -their commercial value in exchange. In this consists the stability and -the regularity of the circulation of money. - -The cause which determines the value of the precious metals is the same -as that which affects the price of every other article of merchandize; -the supply and the demand--the comparative abundance or scarcity of -gold or silver in the market. The larger the metallic supply, the -smaller value will it bear; its commercial value will vary in exact -proportion to the increase in quantity. On the other hand, the smaller -the quantity of money in circulation, the larger will be the value -attaching to each separate piece; a smaller quantity of such money -will then suffice to buy a larger amount of goods, and goods are said -to be cheap--or what if in effect the same, money,--may be called -dear. This money, in the time of Charlemagne, possessed a power eleven -times greater than at present--that is to say, it was eleven times more -scarce. It is well-known that the discovery of America, in overpowering -with a fresh supply of the precious metals the metallic circulation of -Europe, brought about a sudden and large depreciation of their value, -which, notwithstanding a variety of oscillations, has been generally -maintained to the present time. Not only does the state of the market -mark the value of _gold_ and _silver_ with reference to other articles; -but there is positively no other base on which the comparative value -between the two metals can be determined, but the _abundance_ or -_scarcity_ of either. - -The relation between gold and silver is variable in its nature. In vain -has Garnier, the commentator on Adam Smith, attempted to establish -his position, that the value of gold in ancient times differed little -from its value in our days; and that it then represented, according -to Herodotus, and under Darius in Persia; and again, during the time -of Plato, in Greece, weight for weight and purity for purity, about -fifteen times the value of silver. Criticism has not failed to demolish -entirely this ingenious but frail hypothesis. It has been clearly -demonstrated that silver did not hold in ancient days, the important -place it has obtained in ours, and which has subsequently rendered it -the all-powerful agent of circulation. - -When we seek to examine minutely the various monetary changes which -have occurred, and to lay hold upon some principle to guide our -inquiry, we quickly recognize the fact, that the difference in value -between gold and silver increases in proportion to the development of -civilization and industry. It is not without some show of reason, that -mythology, transporting the analogy of the physical into the moral -world, made the age of silver succeed that of gold. Historically, in -fact, the discovery of and the working of gold preceded that of silver. -Gold is almost always found either pure or mixed with silver. In -searching the beds of rivers and streams, it has been obtained by the -mere process of washing. This work is within the reach of the rudest -state of society. It appears like a treasure spread over the surface -of the earth, under the very feet of the first occupier of the soil. -Silver, on the contrary, is embedded in rocks of primitive formation, -and is seldom found near the surface of the earth; its extraction -requires a combination of science, machinery, and capital. It is -the work of a state of civilization already far advanced and firmly -established. - -In almost every age, whatever its social position, the use and the -value of gold has been known. From India to Iberia, and from Ethiopia -to the Poles, there is not a race which has not attempted to discover -this source of wealth on its surface. What country has not had its -Pactolus! What Prince or Satrap has not been a gold collector, like -Midas or Crœsus! The luxuries of ancient monarchs appear to prove an -abundance of metallic treasure, which has been subsequently unequalled, -but the sources of the supply have faded away in their turn. Dureau de -la Malle observes, that from the death of Alexander, the golden sands -of Asia and Greece appear to have been exhausted; those of Gaul and -Spain seem to have been abandoned after the fall of the Roman Empire. -Gold has long since disappeared from the surface of the older inhabited -countries; there is only now to come, in quantities of appreciable -amount, or capable of affecting the circulation, the produce of those -countries which have been unknown to European commerce, or which have -been discovered in modern times. - -Referring to history, we find that the employment of silver as money -is of no very ancient date, and that it was introduced as a medium of -exchange, not by conquerors, but by people of industry and of commerce. -It would be sufficient to cite the Phœnicians, those planters of -colonies,--the Athenians, and the Carthagenians. On the first discovery -of America, silver money was found in use amongst only two nations -holding any political position--Peru and Mexico. And again, if silver -at a later period has taken the place of gold in circulation, it has -been maintained with more regularity and permanence. The mines--from -wherever it has been extracted, penetrating into and ramifying -throughout the bowels of the earth,--are almost inexhaustible. It -is thus shewn that the production of silver is found to continue -where that of gold is at an end, and hence the variations which past -experience has shown to exist in the relative position of the precious -metals. - -The learned researches of Boeckh, Letronne, Humboldt, Jacob, and Dureau -de la Malle have thrown much light on the causes, and on the importance -of these monetary oscillations. They agree in the admission, that -originally the value of silver in some countries has equalled, if not -exceeded, that of gold. The laws of _Manon_ state a value of gold as 2½ -times that of silver. M. Dureau de la Malle considers that between the -fifth and sixth century before our era, everywhere, excepting in India, -the relative value of gold to silver, had been 6 or 8 to 1, as it was -in China and in Japan at the end of the last century. It has been found -to have been as 10 to 1 in Greece, in the time of Xenophon, 350 years -before the Christian era; and even 100 years later, the treaty between -Rome and Etolia proves a similar ratio. - -In the present day, the discovery and the working these new metallic -stratifications are the only causes which can materially change the -relative value of the precious metals. Formerly, conquest, by which one -nation became rich at the expense of another, or the pillage of those -great reservoirs of money called public treasures, throwing suddenly -vast sums of money into circulation, could not fail to depreciate -either one or other, if not both, of the precious metals. It was -thus that the conquests of Alexander, opening the gates of the East, -inundated the Greek world with the precious metals, which were lowered -in value by their abundance, and dissipated from their very excess. -After the capture of Syracuse by the Romans, silver, the foundation -of the treasure they had seized, fell suddenly in price, so that -seventeen pounds of silver were valued at one of gold. A little later -the relative price was as 12 to 1, when Cæsar, having plundered the two -milliards contained in the public chest, so reduced the value of gold, -which then predominated, that the proportion fell to 9 to 1. Under the -Roman Emperors, the production of gold began to slacken,--the progress -of mechanical science, on the other hand, gave a constant impetus -to the working of the silver mines of Asia, Thrace, and Spain. The -comparative value of the two metals again changed; it was as 18 to 1 in -the time of Theodosius the Younger, 412 years after the birth of Christ. - -At the commencement of the fall of the Roman Empire, in the 4th -century, the value of the precious metals approached that of our own -days. The invasion of the barbarians, in dispersing and dissipating the -accumulated treasures of the West, destroyed for a time the industry -required for their renewal. Money, on account of its scarceness, -acquired an extraordinary power; the price of every article fell, -or, in other words, the value of silver rose to a most extraordinary -degree. Not only did the value of money and of the precious metals -increase in that long dark night of the middle ages, but the relative -value between silver and gold, which had been established by the -progress of industry, again changed. The value of gold, in relation -to other commodities, was preserved longer than that of silver, owing -to its greater general value, and to its being the less destructible -metal; and also because its supply was fed by the washings of the -golden sands; a fit occupation for the knowledge and tastes of an -ignorant people. The working of the silver mines, on the other hand, -being a work befitting a civilized and scientific people, was naturally -interrupted, and languished during a period of spoliation and endless -warfare. Hence, as we may suppose, arose the scarcity, both relative -and absolute, of silver; the comparison with gold remained at 11 and -12 to 1 from the 9th to the middle of the 16th century. It required -the excessive and sudden abundance, springing from the working of the -mines of Potosi, and in Peru, and of Zacatecas in Mexico, to reduce -the proportion to 14 and 15, the average rate at which it remained in -Europe until the end of the last century. - - - - -II. - - -A change in the relative production of the precious metals does -not necessarily alter their monetary value. In order to create -an alteration in the relative values of gold and silver with the -quantities annually produced, the disturbing cause must be of a -somewhat permanent nature. Moreover, it is necessary to examine, in -connection, either with a greater or less production, the causes which -might add to or diminish these results; such as expenses in working, -the varied wants of consumption, and the greater or less destruction of -coin by wear and tear, &c. - -Monsieur de Humboldt remarks, that during the ten years, from 1817 -to 1827, there was coined in Great Britain, above [3]1,294,000 -marcs of gold; that is nearly one milliard of francs, and more than -[4]100,000,000 francs per annum, without any influence having been -produced by such extensive purchases on the relation of gold to silver: -the proportion, which was as 1 to 14·97, never exceeded 1 to 15·60; or -shewing a rise of not more than 4²⁄₁₀ per cent. Such was the case when -England, which for above twenty years had had only a paper circulation, -re-established a metallic currency, and attracted the coin and the -bars of gold dispersed throughout Europe. During these ten years she -absorbed, or nearly absorbed, an amount of gold which perhaps equalled -the production of the whole world, and certainly exceeded the import of -gold, during that period, into all the great commercial depots in the -civilized world. It would not enter into our subject to examine at what -sacrifices England made this monetary revival; but the equilibrium once -restored, and the empire of Britain having placed herself in harmony -with the rest of Europe, it does appear wonderful that it did not -cost more than a premium of 4 per cent. to have attracted a quantity -of gold, probably equal to the half or one-third of that possessed by -the whole of Europe. And the wonder increases when we remember, that -the Mint of London, which in 1814, 1815, and 1816, had not coined a -single sovereign, issued at once, in 1825, £9,520,758 sterling (about -240,000,000 of francs), which must have been consequently abstracted -from trade in the course of a few months. Political commotions brought -about other variations in the price of the precious metals. It is well -known, that on the news of the landing of Napoleon in 1815, gold rose -10 per cent. in London. - -To explain how this sudden collection of gold, effected by Great -Britain with as much perseverance as vigour, did not bring about a -general crisis; it has been said, and not without reason, that the -quantity of the precious metals now existing in the shape of money, -rendered the oscillations in its production and supply as money, less -sensibly felt. It should be recollected, that if the metallic values -were so greatly depreciated by the discoveries of America, this state -referred to the existing condition of Europe, exhausted both of silver -and gold. The difference thus exhibited between the two periods is -very evident; but it does not appear to be sufficient to account for -the facility with which the circulation may increase in the present -day, without affecting the price of silver or gold. It may be as well -to add, that this movement, which appears to convey life throughout -every artery of commerce, is not fed now solely, as in olden times, -and during the middle ages, by the precious metals. Metallic money now -forms but a small portion of the total circulation, if we take into -account the mass of bank notes, bills of exchange, drafts and bankers’ -cheques, which complete the amount of a circulating medium of exchange; -this, at the present day, taken as a whole, is something almost -indefinite: it appears to defy all calculation; and we might almost -say that the excess in the production of gold and silver now need not -necessarily produce more influence than the waves of the sea on the -permanent level of the ocean. - -At the same time that the depreciation of gold and silver under -any general form becomes less probable, the increasing facility of -communication, and the greater mutual dependence of nations in matters -of credit, renders any great local difference in the value of money -more improbable. Whenever the precious metals become in excess in -one country, the surplus quickly reaches its neighbour. Let a sudden -scarcity of food, or any other cause, create a drain of specie, the -consequently increased value of money will soon draw back that which -has been exported. The cost of transport, and the premium of insurance -of gold, are the limits of the variations in the rates of exchange; and -the charges are being diminished every day, thanks to railroads and -steam communications. Before the wonderful progress in the development -of industry from the commencement of the nineteenth century, we have -seen the changes occurring at different periods, in the relative -production of the precious metals, without any corresponding alteration -in their relative values. At the close of the fifteenth century, it is -true, that America, furnishing nothing but gold, and this metal having -accumulated in Spain, Queen Isabella of Castile was forced to alter -the relative standard of gold and silver. After the first half of the -16th century, the production of gold having ceased to preponderate, and -silver being imported in great abundance, the value of the inferior -metal underwent such a depreciation, that the governments of Europe, -yielding to the force of circumstances, changed its relative legal -value; but with these two exceptions in the monetary laws, one purely -local, and the other European, we observe the production of each metal -extend and diminish alternately, without any relative alteration in -value of sufficient importance to attract public attention. - -“From the year 1645 to the commencement of the 18th century,” says -M. Michel Chevalier, “silver took the lead in a most remarkable -manner. Then occurred the bright days of the mines in Potosi, and the -production of silver exceeded that of gold, weight for weight, in the -proportion of 60 to 1; after that, and without any diminution in the -produce of silver, came the glorious time for the Brazilian gold mines. -Simultaneously appeared the auriferous regions of Chico, Antioguia, and -Pepayou. The commercial world received from America 1 kilogramme [5]of -gold for every 30 kilogrammes of silver. Thus passed the middle of -the 17th century. Then the silver mines of Mexico put forth all their -splendour, and the proportion increased to 40 to 1. The Brazilian mines -began to diminish, whilst those of Mexico continued to increase in -production; and, at the beginning of the next century, silver exceeded -gold in the proportion of 57 to 1. In 1846 the production of silver -still continued to predominate, and we are now at the proportion again -of about 40 to 1.” - -Humboldt’s calculations differ but little from those of M. Michel -Chevalier. This great authority considers that the import of gold until -the first years in the 18th century, bore the proportion to silver of -1 to 65. Let either of these suppositions be true, there can be little -doubt, that the relative weight of supply of the two metals varied -by one half, without any serious alteration in their relative price; -which surely proves that gold was essentially required, and that the -increase of production did but fill up the gap, which, as far as the -18th century, the progress of civilization and of luxury had created, -without an adequate means of supply. - -In ancient times, the relative value of the two metals appears to -have been almost entirely governed by the quantities produced and -brought to market. A pound of gold was worth eight or ten pounds of -silver, according as the quantity brought to market varied in the -like proportion. The simplicity of commercial interests, in a state -of society when neither luxurious arts or industry were thought of, -offered no inducements for the collection of gold or silver for their -use as money, excepting on account of their relative scarcity; but when -fighting ceased to be the principal occupation of mankind, and labour -began to be held in some estimation, an end was put to this patriarchal -state: if the people lost their primitive simplicity, the relation of -supply and demand no longer depended exclusively on the proportionate -production of the two metals; other causes affecting a rise and fall -began to operate on prices. - -When the precious metals were nearly absorbed in the supply of money, -their commercial value had no other element to influence an alteration -than the requirements of circulation; the monetary value governed the -commercial price. But, at the present time the contrary is the case: -the greater the degree of civilization, and the greater the increase -of a taste for luxuries, the more does the demand for the precious -metals for other objects exceed the want of them for coin. Mr. Jacob, -whose work on the precious metals appeared in 1831, places a value of -[6]149,000,000 francs on the gold and silver annually used for articles -of jewellery and plate in Europe and America. - -During the last twenty years the progress of luxury amongst the -industrious and commercial nations of the world has been enormous. -The moveable wealth of France and England has made prodigious -accumulations. What family is there so poor as not to have some article -of plate? Gilding is no longer confined to the decorations of temples -and palaces; it is found in the most humble cottage. To what a length -may it not reach if the taste should increase for gilding the dresses -of ladies, and for covering the uniforms of our men with gold or silver -lace? - -On the whole, then, it appears that the demand for gold and silver, as -articles of commerce, is likely to exceed the demand for the precious -metals solely for use as money. This is a new point; and we must not -lose sight of it in endeavouring to appreciate the effect which an -increase or diminution in the production of the precious metals may -have, both on their price and on their relative value. - -Without noting the variations which have occurred from one century -to another, in the production and in the importation of gold and -silver, in order to recapitulate the quantities of the precious metals -which America has poured into the European markets in 318 years, -from the discovery of Hispaniola to the revolution in Mexico, M. de -Humboldt considers the production of gold to have been [7]2,381,600 -kilogrammes, and that of silver [8]110,362,222 kilogrammes: making a -total value of about [9]32 “milliards” of francs: the weight of gold -imported represents about ¹⁄₄₇th of that of silver. It does not appear -probable, that the produce of gold in other parts during these three -centuries has materially altered these proportions. Admitting that -when first the Mexican revolution retarded the working of their silver -mines, the amount of coined money throughout Europe represented a value -of [10]8 “milliards” of francs, of which [11]6 “milliards” were in -silver, and [12]2 “milliards” in gold, the relative quantity in weight -would still have been as 47 to 1; and yet the relative monied value, -thirty years since, varied in Europe between 1 to 14½, and 1 to 15¾. -Thus, in the value of the precious metals, the difference was three -times less than in their weight. - -Nothing is more difficult in matters relating to money than to present -statistics which may be considered as an approximation to truth. It -would appear that as gold and silver are used as the denominators of -value, generally, throughout the world, all the phenomena connected -with their production and circulation ought to be noted with the -greatest precision: they ought to be the points to which the attention -of statisticians should be “_par excellence_” directed. What can be -more important, in an economical point of view, than to establish a -regular scale, indicating the rapidity of every movement connected with -the subject, and acting as a gauge of its extent? - -Divers causes appear, however, hitherto to have prevented such a -desideratum. In the first place, gold and silver producing countries -have generally been in a rude state of civilization; and as unable to -apply rules for the public weal, as to employ machinery to aid their -industry. Thus, even in the registry in Mexico under the Spanish -rule, of all the money coined at their mint, and for ascertaining -the amount produced in the mines by the proportion of the tax due to -government, which ought to be levied thereon by the hundred-weight,--it -is absolutely necessary to take into account all that quantity which -escapes the vigilance of the tax-collector, and which is either sent -into the interior, or exported clandestinely. - -What is the sum of the precious metals really produced at any given -time? What is the proportion of such production which, when exported, -acts as a regulator of the prices in Europe? How are the channels -formed which sometimes direct the stream of commerce towards the east, -and sometimes towards the west, in the distribution of the metallic -wealth of the world? All such problems, as regards the past, must -probably remain unsolved. The enquiry becomes more easy when referring -to our own times; but even then large allowances for incorrectness of -data must necessarily be made. - -At the beginning of this century, according to M. de Humboldt, -gold and silver were imported annually into Europe in the relative -proportions of about 1 to 55; that is, [13]15,800 kilogrammes of gold -to [14]869,960 kilogrammes of silver. M. Michel Chevalier, stating, -not the import but the production, calculates it at [15]23,700 -kilogrammes of gold against [16]900,000 kilogrammes of silver, or in -the proportion of 1 to 38; but the gold of Africa and Asia, comprised -in this statement, never really found its way into European markets -except in the smallest quantities, and in such amounts as could have -no appreciable influence on the commercial prices of the metals. From -1810 to 1830, according to Mr. Jacob, the produce of America diminished -by one half. As the reduction refers principally to silver, that is -to say, to those mines which required both capital and labor, it is -fair to assume that, at least during the first part of this period, -the relative proportion of gold to silver would have increased; but we -have no means of verifying figures which appear to justify what would -otherwise rest solely on the analogy of the case. - -In 1847, when the general working of the auriferous region of the -Oural Mountains was at its meridian, M. Chevalier considers the annual -production of gold throughout the world to have been [17]63,250 -kilogrammes, and that of silver [18]875,000 kilogrammes. This would be -[19]25,000 kilogrammes _less_ of silver, and [20]30,000 kilogrammes -_more_ of gold, than at the beginning of the century. At these figures -gold stands in reference to silver as 1 to 14. The return from these -gold regions appears to have been greatly over-estimated. I find in a -table, published in the “_Times_” of May, 1852, statements which appear -to be founded on correct data, and which bring the production of gold -up to 42,800 kilogrammes--that is, to [21]147,400,000 francs. - -This result, then, is remarkable. The 17th century produced 1 lb. of -gold to 60 lb. of silver. In the 18th century the production was as 1 -lb. to 30 lbs. At the beginning of the 19th century silver was again -abundant, and appeared in quantity as 1 to 50. Towards the year 1847 -the production of gold again increased, and the relative proportions -were as 1 to 20. The development of the Siberian mines, which has -so materially changed the relative production of the two metals, has -produced no sensible alteration in price. Will it be the same with -the wonderful discoveries in California and Australia? To solve this -question, it will be desirable to examine accurately the actual state -of the production of gold and silver throughout the world. - - - - -III. - - -Before entering into this inquiry, it may be worth while to examine -a circumstance of late occurrence, relating to monetary statistics, -which has given rise to some discussion, but which has not yet -been explained; I allude to the fall in the price of gold, and the -corresponding rise in that of silver, throughout Europe, towards the -end of 1850 and the beginning of 1851. - -At that period Russia had rather less gold than usual to exchange -against the produce of the West; and since 1847 the working of the -Altai mines had been on the decline: at all events, the government did -not appear inclined to allow gold to be exchanged; for in 1848 and -1849 its export had been forbidden. In 1850 the state of the exchanges -did not admit of an export of gold, and a part of the 4½ per cent. -loan, contracted at that period by the Cabinet of St. Petersburg, was -remitted to Russia, both in gold and silver, from England. Doubtless, -in spite of the prohibition, Russian gold found its way into other -parts of Europe; it was calculated that between 1849 and the first few -months of 1850, the great commercial towns in Western Europe must have -received from [22]60,000,000 to [23]70,000,000 francs from Russia; but -this was not equivalent to the large sums paid for grain imported from -Odessa and Riga during the famine of 1846-1847. There could have been -no real increase in the metallic reserves of Western Europe during that -period. - -The same remark will hold good towards America. The import of gold -thence in 1849 and 1850 could not have done more than replace the gold -coin exported to the United States two years earlier, in payment of -bread stuffs and salt provisions. A proof of this will be found by -examining the official reports of the mints of the United States. These -mints, which from the year 1834--that is, since the working of the gold -fields of Carolina, had coined gold at the average rate of 2,500,000 -dollars ([24]13,500,000 francs) per annum, in 1847 put into circulation -about 20,000,000 dollars ([25]104,000,000 francs). At that time -Californian gold was unknown: the rich “_placers_” of that country did -not begin to kindle the gold fever, first in America, and subsequently -in Europe, until 1848. Californian gold, before it found its way to the -Old World, had to supply the wants of the New. It is exported thence -in the shape of eagles and double eagles, bearing the stamp of the -Republic. In 1848 the coined gold in the United States did not amount -to [26]4,000,000 dollars, and it did not exceed [27]9,000,000 in 1849. -With this small supply an export could not be expected. In 1850 the -Californian stream began to flow, and the mint of the United States, -having received gold dust and bars to the extent of [28]40,000,000 -dollars, coined [29]32,000,000 (about 171,000,000 francs.) Supposing -that the bulk of this coin had been exported to Europe, such a supply -would but have restored the loss in the circulating medium which had -occurred in 1846. We had exchanged our gold against grain; it was -returned to us against the silks, wines, and other articles from -France. The monetary disturbance of 1850 must not therefore be set down -to the score of an excess of imports: the rich supplies from Siberia -and California could then only have acted prospectively. The real cause -is to be found in the measures hastily and somewhat rashly adopted by -various European governments. To prevent future evil they created -immediate mischief; and, in order to shelter themselves from the risk -of a future depreciation of gold, they directly produced it. - -The crisis of 1850, thus examined, explains itself. On the one hand, -silver, being annually taken out of the market by circulation, was not -to be met with for other demands; on the other hand, gold, excluded -by some governments from their circulation, flowed to those countries -where it was still used as legal coin, and produced there, at least, a -temporary superabundance. Then occurred the fall in the price of gold, -and the rise in the price of silver; which together shewed a divergence -of 8 per cent. between their former relative prices. - -The explanation we have endeavoured to give appears to become clearer -as we investigate further into the subject. Let us first examine the -facts relating to the scarcity of silver. England, the principal -market of Europe for the precious metals, witnessed, in 1850, a -reduction of about [30]27,000,000 francs in the ordinary import. This -applied principally to silver. Remittances from India, generally about -[31]20,000,000 fr., were almost completely stopped; those from Turkey -and Spain were materially diminished. At the same time about £1,000,000 -sterling was required to be shipped to India, and remittances were made -by Messrs. Baring to St. Petersburg of [32]8,000,000 to [33]10,000,000 -francs more, in silver. Germany and Holland required more than their -usual supply. The Société Maritime of Berlin had imported silver -to the extent of [34]3,000,000 or [35]4,000,000 thalers; so that, -altogether, the import into England, having diminished in 1850 to the -extent of about £1,000,000 sterling, the export had been in excess -by about double that amount; reducing the metallic reserve by about -[36]75,000,000 francs. In addition to which, Spain and Russia, having -prohibited the export of silver, the exchanges with those countries -could hardly be operated upon effectively by the transmission of -this kind of specie. It is easy, then, to conceive, that where no -modification of the monetary laws had taken place, the premium on gold -passed to a premium on silver. - -This will explain the reason for at least a temporary abundance and -depression in the price of gold, especially on the gold market of -Paris. There is no ground for imputing the change to California, from -whence the supplies were of little moment, until the end of December, -1850. England so far had only received silver from the United States, -and the Californian gold, which had found its way by Panama, during -the year, did not exceed, according to official returns, £682,000, -or 17,050,000 francs. The Mint in London did not coin gold to a -greater extent in 1850 than £1,492,000, or 37,300,000 francs, which is -conclusive against any very large importation. - -The market of Paris might have experienced a superabundance of gold, in -consequence of the demonetization of gold coin in Spain and Portugal, -and by the influx of Belgian and other foreign gold coin which had been -circulating in Belgium; and it should be added, that England imported -into France, for the payment of railway shares, probably to the extent -of £1,000,000 sterling; but the predominating cause of the depreciation -was undoubtedly the demonetization of gold in Holland, for that step -had the immediate effect of cancelling at once the value of the gold -coin there in circulation, and of throwing simultaneously an amount of -gold on the commercial market, almost equal to the whole of the annual -quantity of gold produced in California. - -From 1816 to 1847 Holland had followed the example of France in -admitting a double monetary standard. Gold and silver were both -received in legal payment. The law of November 26th, 1847, altered this -state of things; one standard only was allowed, and the silver florin -of 3 grammes 450 milligrammes fineness, became the monetary unit: this -simplification of the national coin, however, was adopted in theory -only; the application of the system was postponed. - -The article 23 of the law decreed, that before December 31st, 1850, -other legislative arrangements should be enacted concerning the gold -coins of five and ten florins, but that till these new arrangements -were carried out, the gold coin should continue in legal circulation. -The Dutch government might, therefore, retain the legal circulation of -the gold coin, by applying to the States-General to prolong the period -of the law of November 26th, 1847; but it preferred to carry out the -system to its fullest extent. On August 6th, 1849, the government laid -before the Assembly, the scheme of a law to “demonetize” the pieces -of five and ten florins, and leaving to the administration the moment -for its execution. At the same time the government demanded authority -for the issue of notes to the amount of [37]30,000,000 florins, to buy -in the gold coin, which although not in legal circulation, might yet -continue to serve as payment at its conventional value. - -In the “_Exposé des Motifs_,” the Minister of Finance, M. Van Hall, -acknowledged that the depreciation of gold would not be immediate. “We -must examine the question,” he said, “in order to know whether the -proportionate value of gold and silver has undergone much variation in -consequence of the discovery of the Californian mines. The government -is of opinion that as yet this is not the case. In fact, a document -communicated to the Assembly proves that the proportion between gold -and silver of 1 to 15·60 has been found to exist but once. Sixty-eight -quotations of the Exchange of Paris mark the price of gold higher, and -only four lower than this proportion; at the Exchange at Amsterdam, -we find fifty-five quotations above, and fifteen only below. For the -present there is no fear of too much gold being imported for the -purpose of exporting silver. It should also be observed, that the high -price of gold in France has latterly been occasioned by political -events. - -“It is well known that the price of gold in Holland is regulated by -the exchange on London. If England sends more gold to the Continent -than she receives from it, then the rate of exchange on London rises, -and gold is obtainable only at an agio. On the contrary, if England -receives from the Continent more gold than she exports, the exchange on -London is low in Holland, and gold is plentiful. Peculiar circumstances -may of course modify these general rules; for instance, it is possible -that England may have payments to make in Holland greater than Holland -has in England, while the case is the reverse between England and -the other countries of Europe; then the state of exchange in those -countries would naturally react upon ours. - -“It often happens that other circumstances occur seeming to contradict -these principles. Thus in August last (1849), pieces of ten florins -were in demand in Holland for foreign remittances, although the price -of bar gold was only at 1¾ per cent. agio. Again, the influence of the -state of exchange on the importation of gold may recently have been -observed; not long ago, gold was exported from England to the United -States at the very moment that gold was supposed to be arriving from -America in great quantities.” I have repeated at full length these -remarkable admissions, to prove that the Dutch government was not -arming itself against a pressing or even nearly approaching danger, -and that their precautions were not even taken with foresight. -To theoretical errors were added practical faults; the Minister -of Finance had not measured the importance of the operation with -sufficient accuracy; he estimated the amount of gold coin in Holland at -[38]96,500,000 florins; it proved to be [39]172,000,000 florins. - -The law was voted on September 17th, 1849, and the government received -the full power they had demanded. A royal command appeared on June -9th, for the execution of the measure. The following are the principal -articles: “1st. The pieces of ten and five florins shall cease to be in -circulation as legal payment from Sunday, June 23rd, 1850, but they may -continue to be employed in commerce: that is to say, that these coins -may be accepted in payment at a conventional value. 2nd. These coins -shall be received in payment by government, and by the collectors of -the revenues of the kingdom, at their nominal value, till July 31st, -1850, inclusive.” - -At the time this notice was published, it appeared that the exchange -of gold for bank-notes would take place under the most favourable -auspices. Gold was at a tolerably high premium in the market of -Amsterdam, bills of exchange on foreign countries were scarce, and -consequently the payments of international commerce could very -advantageously be made in the precious metals. Moreover, the government -treasury was full, and the Netherlands bank declared itself ready to -assist efficiently in the operation. But all these chances of success -were destroyed by the precipitancy of the government. A complete panic -was occasioned by the short period granted to the holders of gold coin: -the people hastened to pour their gold into the state treasury, (which -could not receive it all) or else to send it abroad. The government -had imagined that the sum likely to be exchanged, would no exceed -[40]30,000,000 florins: they had miscalculated by two-fifths; for the -sum amounted to [41]50,000,000 florins. The 30,000,000 of paper money -that they had been authorized to issue, together with the money in the -treasury at their disposal, not being sufficient to pay for the amount -of gold presented, they were obliged to have recourse to the bank of -the Netherlands, and to borrow a sum of [42]6,500,000 florins, at an -interest, moderate it must be admitted, of 2½ per cent. per annum. - -The exchange being effected, it was necessary for the government to -find a means of disposing of the gold withdrawn from circulation. It -could be sold only in foreign markets; and there, private industry -had forestalled the government, and the price of gold had fallen in -consequence of the number of Guillaumes brought for sale. At first -the Dutch government suffered only a small loss, owing to a momentary -reaction in favour of gold coin; but the first sales having increased -the depreciation, they were obliged, for fear of greatly adding to -their loss, to stop after having disposed of [43]21,836,000 florins: -the loss then amounted to [44]244,446 florins, being about 1¹²⁄₁₀₀ -per cent. By the middle of October, gold had fallen in value 2½ per -cent. below the legal price, and by the middle of December, 4 per -cent. At this period, the pieces of five and ten florins, banished -from Holland, were scattered about in the different markets of Europe: -London had received them to the amount of £600,000; Paris to the amount -of [45]63,000,000 francs; Germany had absorbed the rest: excepting from -[46]28,000,000 to [47]29,000,000 florins, still lying unsold in the -treasury of the Netherlands. - -The Guillaumes have continued to be melted and coined, in Paris, into -20 and 40 franc pieces; for I find in an official record furnished me -by the President of the Mint, that Dutch coin was exchanged at Paris in -the last six months of 1850, to the amount of [48]40,934,053 francs; -and in the first six months of 1851, to the amount of [49]70,901,597 -francs,--altogether [50]111,835,650 francs. - -The gold coinage of Holland, from 1816 to 1847, was 172,583,955 -florins, equal to [51]362,000,000 francs. Supposing that of this only -two-thirds was in existence in this shape of coin in 1850, there -would be 115,000,000 florins, or [52]236,000,000 francs, all at once -withdrawn from circulation, and thrown upon the gold market: is it -possible that the price of gold could be otherwise than affected? -The gold thus suddenly demonetized equalled at least twice the annual -produce of the world, previous to the discovery of California. The -Mint of Paris alone, which had not struck above [53]27,000,000 francs -in gold during the year 1849, coined [54]85,000,000 in 1850, and -[55]269,000,000 in 1851. - -Fortunately, the crisis was of short duration; the gold coined in Paris -rapidly flowed either towards Piedmont, to pay the first instalment -of their loan, or to Milan to pay for silks bought by Lyons and St. -Etienne. Credit is at a low ebb in Italy, there is little paper -circulation, tending to simplify accounts, and taking the place of -specie in the adjustment of debts; gold is therefore always in demand, -and the supply was speedily absorbed. Certainly, the apprehensions of -the Dutch Government have proved hitherto groundless, and the desired -object has been but partially attained: silver, having become the -sole standard, has found its way (somewhat in excess) throughout the -country, but the loss of gold coin has given rise to a small note -paper-circulation: there is now a paper money of 10 and 5 florins (21 -francs and 10½), which, although at first but provisionally issued, -will probably become permanent circulation. Holland is following the -steps of Prussia and Austria. The Dutch Government supposed that, -notwithstanding the demonetization of gold, the coinage might remain -in circulation, and be voluntarily accepted for its _intrinsic_ value. -This was a misconception of the nature of money, which is accepted as -a circulating medium only on account of its _positive_ value. As might -have been anticipated, gold has ceased to circulate in Holland, and -paper has taken its place. It is doubtful whether the nation has gained -by the change. - -We think we have sufficiently considered the subject of the fall in -price of gold in 1850. During the last eighteen months the production -of this metal has made immense progress. The crisis, which was then -imaginary, may have taken a more serious turn, and may become hereafter -a reality. This we will now examine. - - - - -IV. - - -The three great gold districts, which have lately grown into -importance, are, the chain of the Oural and Altai Mountains, -California, and its extensions to Sonora and Oregon, and the eastern -and southern districts of Australia; let us consider each in its order. - -The washings of the Russian streams first aroused public attention -from the languor into which the question of gold-working had fallen. -The deposits of the Oural, where the first discoveries were made, -never gave any extraordinary results; the workings appeared almost -impracticable above the 60th degree of latitude, and although begun -on a great scale above half a century ago, they have remained almost -stationary for the last fifteen years; the annual returns, divided -about equally between the government and private individuals, scarcely -exceeded [56]5,000 kilogrammes. - -The Altai gold district was in a very different position; in spite of -the rigour of an inhospitable climate, and the difficulties experienced -from any work of labour with a scanty population, the development of -produce was extremely rapid. Begun in 1828, the result, after the first -eight years, was [57]1,722 kilogrammes, but from that time it increased -in a geometrical proportion; it rose to [58]4,000 kilogrammes in 1840, -to [59]10,000 in 1842, and exceeded [60]20,000 in 1847. - -The year 1847 appears to have been the culminating point of the -position of gold in Russia. The “_Administration des Mines_” report -a produce of [61]1744 pouds, or [62]28,521 kilogrammes, as the combined -working of the Oural and Altai; admitting that one-fifth of the produce -escaped the government tax, the result of the gold produce of 1847, -would be at least [63]110,000,000 francs. From that time the decrease -has been continuous. The official reports of 1848, give the figures -at 1,726 pouds, or [64]28,252 kilogrammes; 1592 pouds, or [65]26,077 -kilogrammes in 1849; 1485 pouds, or [66]124,324 kilogrammes in 1850; and -1,432 pouds, or [67]78,000,000 francs in 1851. It is to be observed -that the reduction refers exclusively to Siberia, east and west; not -only has the activity of the workings in the Oural been undiminished, -but it has slightly increased: the produce of 1849 was 342 pouds, being -[68]244 kilogrammes more than in 1845. - -The decrease of production appears to have been principally caused -by excessive taxation. The working of the Siberian gold districts is -divided between the Government and private owners, and in the division, -the eastern side of the mountains has been retained by the former, -whilst the latter have worked the western. The result has been an -immense loss to the public treasury, for whilst two-fifths of the -washings of the Oural are from the government reserves, the Altai -districts do not yield above 5 to 6 per cent. of this produce. The -Russian government has endeavoured to collect by taxation what is lost -either by abstraction or the washings. The tax was at first one-tenth -of the net produce; it was then raised to 15 per cent., and has since -been further increased. The new tax, however, only applies to Siberia, -east and west. It is a progressive rate, divided amongst ten classes, -the rate varying from 5 per cent. on the raw produce, when the working -was from one to two pouds, up to 32 per cent. when the working amounted -to 50 pouds per annum. The whole tax, however, was, in addition to -another tax called “minier,” also progressive, and varying, according -to class, from four to [69]ten roubles per pound of gold. - -These exorbitant taxes may have acted in two ways, either as an -encouragement to fraud, or as a discouragement to production. At the -distance at which we live from Siberia, a country where the light of -public opinion has penetrated even less than the rays of the sun, it -is difficult to decide between these two consequences, both perhaps -equally probable. But the fact of the decrease remains undoubted, and -this decrease has been to the extent of one-seventh in three years, or -about [70]4,000 kilogrammes. - -The working of the gold regions of Siberia has not been of the -democratic character which it has assumed in California and Australia. -There the first comer, provided he were furnished with a pickaxe, a -bowl, a cradle, and a small store of provisions, might, without further -capital, pitch his tent over some square yards of land, and dig until -he has made his fortune. With a license costing 60s. in Australia, -and with a tax of 20 dollars a year in California, he may go where he -pleases. It is not the government which fixes his boundary, but the -regulations of the republic of miners, forming a community along the -banks of a river, or at the foot of a hill, forbidding one man to usurp -a greater space than he can work with his own hands; the miner himself -possessing nothing, and therefore, risking nothing, may dispense with -all calculations of profit and loss. If the spot he has selected does -not answer his expectations, he shifts his ground, or his occupation. -Under any circumstances, the tax, not bearing upon capital, and being -moderate in amount, is easily paid; a few days work is sufficient for -it; the remainder of his time during the year with his bad or good -luck, is at his own free disposal. Such is not the case, in the Altai, -where the aristocratic forms attaching to all industry, either at the -will of the state, or from the force of circumstances, have exerted -their influence over the first commencement of working the mineral -districts. By the terms of the imperial decrees, concessions are only -obtained on special application, and for a term of twelve years, and -the portion assigned to each person never exceeds 100 sagenes (about -[71]250 metres) by five wersts, (about 5335 metres); the same person -may, however, take several lots, provided they are separated by a -distance of five wersts. These contractors engage a certain number -of workmen, whom they provide with utensils and machinery, besides -feeding them and paying them high wages. Everything connected with the -arrangements entails considerable advance of capital, and when the -chance of a small return, or sometimes of no return at all, is added to -the heavy deduction to be paid to the state, out of the raw material, -is it surprizing that members of this community are frequently -unwilling to extend their operations, and almost always anxious to -conceal the magnitude of their working? - -It is said, that in keeping up the amount of the tax, the Russian -Government has had less in view the advantage of a larger participation -of interests than a desire to check a kind of industry very -demoralizing in its nature. If such is really the motive, it might be -less critically censured. Whatever the reason, so long as the Russian -Government considers it advisable to keep up the present taxation, -it is not likely that the increase of production of gold will be -considerable; it appears to be limited for the present to an amount -probably not exceeding [72]90,000,000 to [73]100,000,000 francs per -annum. - -The Spaniards--those indefatigable treasure-seekers--who discovered the -hidden riches of the Cordilleras, had been in possession of California -for above two centuries. From the year 1602, Sebastian Viscaino, the -founder of Monterey, had learnt from the Indians, dispersed throughout -that country, that it abounded in gold and silver. Nevertheless, -instead of planting a colony of miners to examine the soil, the -Spaniards sent thither a body of missionaries, who proclaimed the -gospel, and at the same time instructed the natives in the rudiments of -civilization and of agriculture. - -In 1846 there was scarcely 10,000 of the original Spanish creoles, -when a body of some hundreds of adventurers from the United States, -under General Taylor, invaded and took possession of the country. The -Government of the Union, in demanding its cession from Mexico, thought -chiefly of an aggrandisement of territory; they wanted ports on the -Pacific and a rival colony to Oregon. Little was it expected that in -the valleys which descended from the Sierra Nevada would be found mines -of gold likely to become the principal attractions to colonization, -and a district whose exuberant products would be shortly disseminated -throughout the markets of Europe, as well as of America. - -The extension of the population of California which so speedily -occurred, is greatly due to the truly fabulous success of the first -washings; the miners naturally first planted themselves on the richest -“placers,” they rather culled the produce, than exhausted it; they -frequently discovered “pépites” weighing several ounces, if not pounds -of gold; a clever workman made his fortune in a few days. - -In June, 1848, Mr. Larkin, Consul of the United States at Monterey, -valued the day’s work of a gold seeker at an average of 15 to 25 -dollars ([74]133 to 267 francs). Colonel Mason, in his report of -August, considered the produce of a day’s work of 4,000 European or -Indian miners at [75]30,000 to 40,000 dollars, giving an average of -about 10 dollars [76](53 francs) to each workman. Captain Folson writes -about a month later, “I do not think that there can exist richer -deposits in the world. I have myself ascertained that an active workman -can collect from [77]25 to 40 dollars per day, valuing the gold at 16 -dollars the ounce.” Mr. Butler King, whose report is of still later -date, places the average day’s work per man at about 16 dollars, or one -ounce of gold. - -During the second period of working, when the miners flocked to the -“placers,” and disputed every inch of the golden soil, the yield -began to diminish in a very marked degree. A local mining journal, -the “_Placer Times_,” of 26th October, 1850, giving a _resumé_ of the -proceedings of the season, including the encampment from the River -de la Plume to the River Consumnes, covering an extent of about 100 -miles, and occupied by 60,000 gold-seekers, estimated the mean result -of a day’s work at from six dollars on the River de la Plume, to four -dollars on the l’Yuba and Ours, and five dollars on the American Fork. -The information collected by our consuls at the beginning of 1850, -gives a result of one to two ounces per day in the Valley of the -Sacramento, and from one to four in the newer regions of St. Joaquim. -The diminishing produce, comparing one year with the other, was not -without some compensation. If the miner gained less, he did not spend -as much. The extravagant rise on all sorts of provisions, clothes, -and tools, had been brought down to a more reasonable limit:--they no -longer paid [78]one dollar for a pound of bread; [79]eighty dollars -for an outer covering; [80]fifty dollars a-day for the use of a cart -with two oxen, or [81]5000 dollars for a cask of brandy. An artizan -could no longer command sixteen dollars for a day’s work. Europe, the -United States, and other nations, shipped to California cargoes of -provisions and of manufactured goods; competition soon lowered the -prices. Roads were made from the “placers” to San Francisco; bridges -were thrown over the rivers; they established stores of provisions -and merchandize at every canteen. Towns sprung up like mushrooms, and -in 1850 San Francisco numbered 50,000 inhabitants. The production of -gold in California appears to have now arrived at its third period. -The miners have acquired a certain experience, their modes of working -are less primitive, and they are more settled. The want of order is -diminishing, and the average produce is increasing. The accounts from -San Francisco in April, 1852, mentioned “placers” in the valley of the -Sacramento, where a day’s working yielded from [82]fifteen to twenty -dollars, and others on the frontier of Oregon, where the average was -from [83]five to ten. On the frontier of Sonora the washings of the -auriferous clay yielded [84]seven to eight dollars a day with the -roughest description of work; all agreed that eight hours hard work -should produce everywhere from six to [85]eight dollars, if the plain -be rich; and as the miner could live on from [86]two to three dollars -a day, he might reckon on a gain of from [87]400 to 500 dollars during -the season. However, by the latest accounts, it would appear that the -“placers” are beginning to be exhausted. 100,000 miners turning over -continuously for three years the alluvial sands, (already successfully -explored by the first comers in 1848 and 1849,) could hardly fail to -extract everything of value. It remains now to explore the auriferous -quartz veins which may extend to the centre of the Sierra Nevada. This -new work, however, requires large capital, and extensive combinations. -The success of such operations has hitherto been but moderate. - -The auriferous richness of the quartz rocks in California appears -sufficient to remunerate the speculator; and foreign capital is not -deficient at St. Francisco. Whence is it, then, that the quartz mines -have hitherto been but slightly attractive? It has arisen from the want -of the requisite and essential conditions for the progress of such -undertakings. - -Property in “placers” or in mines is not yet sufficiently secure; it -is neither yet placed fully under the safeguard of law, nor is it -protected by police regulations. Anarchy still reigns in this new -country;--not only have the miners to defend their persons and their -acquisitions against the incursions from Indian tribes; not only are -crimes and offences common (lynch law maintaining a permitted existence -instead of laws and police); but every one appears to hold his property -by right of first comer: a miner chooses the spot he likes best; a -strong arm and a carbine, with a steady eye, are his title deeds. To -seize upon a rich “placer” from a miner too weak to resist, is called -in the slang of the district, to “jump a claim.” The President of the -United States himself, stated in his last message, that “The mineral -lands should remain free to every citizen;” and the Secretary of State -has added, “that the right of occupancy should be submitted only to -such laws as the miners themselves thought fit to make.” - -The continuous flow of emigration, and the continuous working of the -gold districts, appear to indicate, that in spite of many reverses -and sufferings, the mass of emigrants consider the result as likely -to be profitable. Without approaching to the fabulous accounts of the -early adventurers, these results have certainly largely exceeded in -magnificence those of any former period in history; let us endeavour to -particularize some of them. - -Mr. Butler King, in his report to the Secretary of State, in 1850, -after a careful examination of California, values the washings and -gold working of the two years, 1848 and 1849, at [88]40,000,000 -dollars. The basis of this calculation, the first officially presented, -was a produce of 1000 dollars ([89]5350 francs) per miner, per annum. - -According to Mr. Butler King, American emigration hardly began to -flow towards California until September, 1849; up to that period, -foreigners, principally from Mexico and Oregon, had reaped all the -profit of the washings. The _San Francisco Herald_ estimated, that at -the end of 1850, the gold produce of California, for the twenty-one -months between 1 April, 1849, and 31 December, 1850, at the sum of -68,587,591 dollars (nearly [90]367,000,000 francs). According to the -documents published in France by the Minister of Commerce, which appear -to have been derived from local statistics, the produce was rather less -than the above. From 1 April, 1849, to 31 March, 1851, in two years, it -was raised to [91]329,000,000 francs. - -Monsieur Emilie Chevalier, who has just returned from a government -mission to Panama, in a report to the Minister for Foreign Affairs, -considers the result as having been much larger. The gold brought as -freight by steamers in 1850, he estimates at [92]50,306,525 dollars. -The author of the report adds, on the testimony of a person whom he -considers as competent to give a sound opinion, that the sums carried -by passengers are not less than three fourths of the amounts brought -as merchandize; and thus he arrives at the extraordinary figures of -88,000,000 dollars (more than [93]470,000,000 francs) for a single -year. At St. Francisco, where they are able to form probably a more -correct estimate on a subject so difficult to trace accurately, -they do not value the amount of gold carried by passengers at above -one-fourth the amount taken in freight. Even on this supposition there -will be a sum of 25,000,000 dollars, or above [94]133,000,000 francs -to be deducted; but it appears to me very doubtful, if the produce of -1850 exceeded this figure of [95]329,000,000 francs, according to the -French documents already referred to. We have more valuable documents -of another kind to rely upon, in the quantities of gold coined at the -United States’ Mint; the following are the official figures:-- - - SENT TO THE MINT. COINED. - - 1849 12,243,175 dollars £2,448,635 9,007,761 dollars £1,801,552 - 1850 38,365,160 ” 7,673,032 31,981,737 ” 6,396,347 - 1851 56,867,220 ” 11,373,444 62,812,478 ” 12,562,496 - ----------- ----------- ----------- ----------- - Total, 107,475,555 ” £21,495,111 103,801,976 ” £20,760,395 - ----------- ----------- ----------- ----------- - -All the gold sent to the Mint did not, however, come from California. -A part consisted of specie sent from Europe, in exchange for American -stocks or merchandize. The treasure found in 1848 in the Valley of the -Sacramento, belonged, as it has been stated, principally to foreigners. -Up to the month of March, 1850, the United States’ Mints had not -received above 11,000,000 or [96]12,000,000 dollars of Californian -gold. At the end of August in that year the amounts paid in did not -exceed [97]24,500,000 dollars. A year later, the mints had received in -gold from that source [98]80,000,000 dollars. - -The United States have naturally sent the larger number of the -emigrants to California. It is with the United States principally that -the trade is carried on. It would appear, then, to be natural that -the principal flow of gold from the Sierra Nevada should take that -direction. Doubtless a portion of the gold found annually in California -will remain there, and form the circulating medium. Considerable -amounts also will have been spread throughout South America, and -amongst the various commercial countries of Europe, either in payment -of goods shipped, or as the free capital arising from the accumulations -of labor. I shall not be exaggerating, however, in supposing, that -seven-tenths of the gold annually produced is coined in the United -States, and that one-tenth of the produce only is shipped directly to -Europe. Thus, then, the United States having received from California -[99]100,000,000 dollars up to the end of 1850, the total produce of the -four years, including 1848, (during which year there did not appear to -have been any coinage from Californian gold), ought to have been from -[100]750,000,000 to [101]800,000,000 francs. - -The gold exported from California in 1851 is estimated by the Custom -House returns at [102]56,000,000 dollars. According to the calculations -of the _St. Francisco Herald_, for the first three months of 1852, -the total produce amounted to [103]14,656,142 dollars; at this rate -the produce of the year 1852 would not be less than [104]62,000,000 -dollars. The export of April is estimated at St. Francisco, at -[105]3,422,000 dollars, rather more than [106]18,000,000 francs. The -produce of the “placers,” according to the latest reports, although -still abundant, is decreasing; nevertheless, if Australia does not -attract the most experienced and the most greedy of the work-people, -the mines of California appear likely to yield this year not less than -about [107]300,000,000 of our money; that is six times the amount of -the production of gold at the beginning of the century, throughout the -civilized world. It is twice the amount of the production of gold in -1847. It is hardly needful to exaggerate these figures, as many writers -on both sides of the Atlantic have already done, in order to prove that -a change is occurring in our monetary values, and that the _status -quo_ which has lasted for above half a century, is not necessarily to -continue for ever. - - - - -V. - - -Of the three great gold-producing countries of modern times, New South -Wales is the one now most attracting public attention. This country -enjoys several advantages over the others. - -The climate is mild and healthy, the land is neither occupied by savage -tribes nor infested with wild beasts. In a country where drought is -the principal obstacle to successful cultivation, the gold regions, -situated on the slopes of the highest mountains and near the sources -of the principal streams, are naturally the best watered. They appear -to extend from north-east to south-west, following the direction of -the Murray, the largest river in Australia, and over an extent of 1,400 -miles, [108](2,452 kilomêtres) by 400 miles (643 kilomêtres). This -surface is larger, by four times, the extent of California, and five -times larger than Great Britain. - -The effects of the Californian gold have been principally felt at a -distance from the producing country. The valleys of San Joaquim and -the Sacramento were, before the extraordinary discoveries of 1847, but -a desert, with but an occasional “oasis” of cultivation; California -had neither population, agriculture, commerce, or industry. The -“rancheros,” half farmers, half hunters, raised cattle for no other -purpose than for the value of their hides; the discovery of gold could -hardly disturb any existing trade. The production itself was then the -cause or the motive power, creating a new state of society, a new order -of things. - -In Australia, on the contrary, and long before the consequences of the -discoveries could be appreciated in Europe, the working of the mines -was of itself a revolution. The first washings occurred in May, 1851; -at that time the English colonists in that part of the world were in a -flourishing position. The population of European origin did not exceed -400,000 in the whole Australian group of islands. New South Wales, in -which division Victoria was included, recently elevated into a separate -colony, numbered more than two-thirds of this total, and formed the -chief seat of its industry and wealth. The inhabitants, principally -the descendants of convicts of the last century, obtained, in 1850, a -representative form of government, and now make their own laws. They -have upwards of fifty-one newspapers, and they have also public schools -and banks. Their principal harbours are on a large scale, and the -inter-communication by steam-boats and roads excellent. Their principal -cities are Sydney, with its 50,000; and Melbourne, with its 35,000 -inhabitants, which are lighted with gas, and have an organized police, -as in London. - -The luxury of living and of dress defies comparison, and affords large -profits to tradesmen; they have already begun to make two railroads. -Australia has its commercial fleet, which entered into competition -for the supply of flour to California in 1850. The trade with England -is of twice the magnitude to that which existed between England and -her American colonies at the time of their separation. The colonial -revenue, exclusive of the sale of the Crown lands, which forms the -foundation of the emigration fund, nearly amounts to £1,000,000 -sterling, per annum. - -Australia produces wheat, Indian corn, and barley, in abundance; they -have planted vines, from which they are making good wine; tobacco is -successfully and extensively cultivated; but the principal source of -wealth is derived from the growth of wool, for the production of which -the lands watered by the tributaries of the Murray are as well adapted -as the valley of the Mississippi is for the production of cotton. -Australia takes a prominent position with respect to civilization, in -the midst of the pastoral employment of her population. It is a vast -arcadia, the poetical side being cast into shade by the industrial -occupation of its inhabitants, and perhaps somewhat damaged by a very -natural corruption of morals. It has been called a mine of wool and -tallow; 20,000,000 of sheep are said to be pastured on its plains. -In England the use of Australian wool has almost entirely superseded -that of Germany and Spain, and the Yorkshire manufacturers cannot now -dispense with it. In 1850 Australia exported 137,000 bales, and in -1851, 130,000; 130,000 bales are worth about [109]65,000,000 francs. -The mother country receives, then, from Australia about £3,000,000 -sterling of raw material in exchange for £3,000,000 of English -manufactures; the result is most profitable for capital and labor; it -is to this beneficial and flourishing trade that the sudden appearance -of gold has threatened a most unexpected and alarming interruption. - -Sir Roderick Murchison, whose opinions are considered as of high -authority, commenting on the writings of Count Strelecki on the geology -of New South Wales, announced, in the year 1845, that gold would be -found in the sides of those great chains of hills, which may be called -their Alps or their Pyrennees. At different times, fragments of the -precious metal had been brought either to Sydney, or to Melbourne, -without having excited the belief in the minds of the public that they -were really the product of their own soil. In the month of March, -1851, a person, less incredulous than his neighbours, a Mr. Hargraves, -struck with the similarity of the geological features of the country to -California, whence he had lately arrived, made up his mind that gold -must be to be found in New South Wales, and set himself resolutely to -work to hunt for it at the foot of the mountains, and in the beds of -the adjacent rivers. Having found some small portions, he followed the -pursuit until he had satisfied himself of the existence of gold in a -great number of places. He then went to Bathurst, an advanced post in -the country, called a public meeting, openly announced his discovery; -and in order to give practical proof, took many of his hearers to the -seat of his own exploits, in a little valley at the foot of Mount -Sumner, where he employed nine miners to dig actively, and to wash -the earth. Four ounces of the purest gold were brought to light, as -the produce of three days’ labor; each man had gained £2 4s. 4d. (61 -francs) per diem; but this was not considered by Mr. Hargraves as above -the half of the probable gain to be obtained by an experienced workman, -and with proper implements. - -This happened on the 8th May, 1851. The result of the experiment was -immediately blazoned forth: three persons started for the washings, and -returned in a few days with several pounds of gold. At the same time -a geologist, ordered by the local government to attest the statements -of Mr. Hargraves, at once stamped an official authority on the actual -existence of gold mines. This news created an immense sensation, not -only in Bathurst, but beyond, and in the capital of the colony. On -the 19th May, there were 600 miners at the “_placers_;” an enormous -immigration to a district where the population was but thinly scattered -over an almost indefinite extent of land. On the 24th, some of the -people wrote to their friends, that they were collecting from £3 to -£4 per day. One party of four miners had in one day, obtained thirty -ounces of gold, and had found a “nugget” weighing one pound. In three -weeks time, one workman alone amassed £1,600 sterling. - -We would remark, in running hastily over the account of these early -experiments, that from the first, the inhabitants of Australia -foresaw the serious consequences of the revolution about to occur. -The colonial journals were filled with lamentations and direful -forebodings, and cursed, both in prose and in verse, the mania for -gold. The solitude of the towns, at the expense of which the deserts -were peopled, the abandonment of labour, the disruption of all social -ties, flocks left without shepherds, and crops destroyed for lack of -harvestmen: in short, every kind of misfortune from which the colonies -are now suffering, were seen in perspective. The greediest seekers -for gold might well take alarm; the epidemic, however, stopped not, -and soon spread in all directions. The Government took the lead, by -largely rewarding Mr. Hargraves, and appointing him the “explorer of -the mineral districts.” A proclamation immediately appeared, claiming -the precious discoveries as Crown property, and announcing a rate of -license for working gold mines at 30s. per miner per month. A wild -spirit of speculation soon sprang up in every direction. The municipal -authorities everywhere followed the example of the Government. -From the Bay of Newton to the Gulph of St. Vincent, over an extent -of 2,000 miles of shore, there was no town or village without its -sought-for neighbouring “placers.” In many districts, associations were -immediately formed, offering premiums for the earliest discovery of -gold. - -The locality of the first operations was situated at the junction of -two little valleys, whose water-courses fell into the River Macquarie, -a tributary of the Murray, and which soon received the scriptural -name of Ophir. The early successful workings in these “placers” were -soon cast into shade by the more brilliant result of the works on the -Turon, and its tributaries; here gold was found not only in scales, -but in pépites or nuggets. Whilst the Ophir digger was making his 15s. -or 20s. on an average day’s work, the people at Turon were counting -their gains by ounces. The more primitive process of washing had given -way to the more philosophical system by amalgamation. The operation -was sufficiently remunerative to repay a simple mechanic at the rate -of 20s. a day in addition to his keep; but the miners no sooner -obtained money enough to buy a license, and some implements, but they -set to work in a more business-like manner. They formed themselves -into parties of three or six, the day’s work of each party sometimes -producing several ounces of gold. The weight of the pépites varied from -one-fifth of an ounce to many ounces. - -Towards the middle of July, Doctor Ker found in the valley of Meroo, a -few miles from Wellington, a lump of quartz weighing 3 cwt., containing -more than 100 pounds of gold. Later, again, they found three “nuggets,” -each weighing from 26 to 28 pounds. In the month of August, the export -to England commenced; the first remittances of gold dust amounted to -£50,000 sterling. The washings at the Turon and Mount Ophir were then -producing £10,000 to £12,000 sterling per week. - -The treasure of Doctor Ker, exhibited first at Bathurst and then at -Sydney, soon drove everybody wild. The very newspapers which had first -maligned the discovery, now sounded the trumpet in praise of this -wonderful piece of good fortune. “The news,” says the _Morning Herald_ -of Sydney, “will astonish Australia, will astonish England, Ireland, -and Scotland, will astonish California, and will astonish the whole -world. On the arrival of the packet in England, when every newspaper -throughout the United Kingdom shall have repeated the news of the -discovery as the wonder of our age, the sensation will be profound, -and will exceed anything hitherto talked of, or thought of; from the -queen on the throne to the peasant in the fields, there will be but one -united exclamation of surprise and astonishment; from the palace to the -cottage, from the drawing-room to the stable, from the schoolboy to the -philosopher and the statesman, there will be one universal talk of this -mass of gold, and of the country whence it came; from all the ports in -Great Britain and Ireland, ships will be freighted with passengers and -goods--population and wealth will rush to Australia like a torrent. -Port Jackson will be the best filled and the most flourishing harbour -in the world, and Sydney will take its rank amongst the most opulent -cities. New South Wales will be looked upon in England as the queen of -her colonies.” - -Waiting the impression to be produced in the mother country by the -news of the “golden land,” to use again the expression of the _Morning -Herald_, the population of Sydney flocked to the diggings; the numbers -who left were about 400 a day. Sailors deserted their ships in the -harbours. Government, on account of the dearness of provisions, -doubled the salaries of their officials. In every direction there was -a general hunt in quest of new “placers;” and the districts South and -West of Sydney were explored by miners to the extent of 200 miles. -Auriferous deposits were discovered in the counties of St. Vincent, -Argyle, Dampier, Wallace, and Wellesley, as well as in the basins of -Murrumbedgee Shoalhaven, the River Hume, the River Peel, and the Snow -River. At the extreme north of New South Wales, in the district of -Moreton Bay, the diggings are in full work at the several branches of -the River Condamine. Nearer to the capital, in New England, gold has -been found in abundance in the basin of the River Macdonald. 200 miles -south of Sydney, at Braidwood, one miner realized £30 sterling in five -weeks; another £42 sterling in fifteen days; and a party of three £200 -sterling in one week. Nothing was more common than a produce of two -ounces per man per day; and not unfrequently it reached as much as one -pound. Women also set to work. One widow and her two daughters are -said to have collected an average of two ounces a-day. - -The district of Turon did not lose its repute. Such was the attraction -for gold hunting, that a labourer at Meroo would not undertake to work -for hire at a lower rate than £3 a-week, in addition to his food. Up -to October, 1851, the Government had given out 8,637 licenses; 10,000 -miners were at work in the province of Sydney, and £215,866 sterling, -(about 5,500,000 francs) had already been shipped to England. - -In December, the yield of the “placers” averaged £40,000 sterling per -week, a sum equivalent, after deducting the stoppages during extreme -drought and rain, to £2,000,000 sterling per annum. - -These results, however brilliant they appeared, were soon eclipsed by -the accounts from the province of Victoria. Gold was first discovered -at Ballarat, where it was found at some considerable depth from the -surface; then at Mount Alexander, where it was dug up merely by the -pickaxe, almost on the ground; at Caliban, fifteen miles further, at -Albany, on the Murray, and on the east coast at Gipp’s Land. - -It is asserted that the chain of hills which separates the province -of Victoria from Sydney, and which are known by the name of the Snowy -Mountains, is one vast mine of gold. Every day announces some new -discovery, and that of yesterday is almost always surpassed by that of -to-day. The mines of Mount Alexander are in extent about ten miles, -and the earth is said to be full of gold; they find the precious metal -in a gravelly clay, and in the interstices of a slatey formation. It -is sufficient to dig six inches of soil; and already, in the month of -December, 1851, there were 15,000 miners at work, and the deposits -appeared inexhaustible. - -Here occurred the most extraordinary events. Amongst ordinary cases, -seven workmen were cited, who amassed 500 ounces of gold in three -weeks, which at £3 sterling per ounce, the then current value of gold -in the colony, was about [110]260 francs per day each; at another -time, two miners, in the same space of time, collected 400 ounces, or -[111]735 francs per day each. One carman, who had never even removed -the earth, made up a bag of £1,500 sterling in five weeks. A convict, -but just freed, made £150 sterling in sixteen days. A workman, who had -never exercised any trade but that of shoeing horses, was somewhat -less fortunate, but brought home £100 sterling, clear, after paying -all expenses, and working five weeks. A boy of fourteen, in less time, -collected £400 sterling; and another of the same age, £120 sterling; -but the ambition of the workmen knew no bounds; there was scarcely a -man who set to work digging a hole who did not expect to come home at -night with £40 or £50. These expectations were kept up by some most -wonderful instances of fortune, the recital of which, repeated from -group to group, amongst the diggers, soon became matters of history. -One spot of a few feet square produced [112]45,000 fr.; four sailors, -after six weeks’ work, loaded their cart with a case containing -two hundred pounds of gold, about [113]260,000 francs; four other -workmen, after two months’ labour, divided [114]1,000,000 francs. -One workman was spoken of who gathered twenty-five pounds in two or -three weeks, and another was known to have amassed eleven pounds in -forty-eight hours; another, in less than one hour, made up a package -weighing thirty pounds, worth at least [115]38,000 francs. It was said -that the miners would no longer pick up gold-dust, it was not worth -while; anything smaller than a pin’s head was thrown aside as too -insignificant for notice. There must have been fine gleanings from -these fastidious reapers. - -In the “placers” of Mount Ophir, and of the Turon, where the profits -and the workings were on a more moderate scale, there was less -difficulty in preserving order and good behaviour. Captain Erskine, -of the Royal Navy, who was there about the end of July, 1851, reports -most favourably in this respect. The miners received him with the most -perfect civility; order and good feeling was the general rule. Captain -Erskine only saw one man drunk on the placers. The sale of spirituous -liquors was forbidden, and the Sundays religiously observed. There even -appeared some traces of regular industry. The neighbouring “placers” -of Port Philip presented a perfectly different scene. There, mining -appeared to be considered as a complete lottery. The coolest heads soon -grew as wild as the steadiest--passions and extravagance broke loose in -all directions. The consumption of wine, beer, and spirituous liquors -was enormous; gambling tables, quarrels, and prize fighting, desecrated -the Sundays. One man was quoted who placed a £5 note between two pieces -of bread and butter, and ate it as a sandwich. Another rolled up two £5 -Bank notes, and swallowed them as a pill. A third went into a pastry -cook’s shop to eat a cake, threw down a Bank note, and refused to take -up the change. The miners appeared to have no idea of the value of -money; they bore their losses with the most perfect philosophy. One -man, who had had a draft of [116]3760 francs stolen from him, and on -enquiring at the bank, finding it had been already cashed, exclaimed, -“Bah! there is no want of money now.” - -A “_placer_” in the colony of Victoria presented the appearance of an -immense encampment, with thousands of tents of all sizes, colours, -and shapes; the bivouac during the night was illuminated with fires -in all directions, and noisy with the discharge of guns and pistols; -every miner was armed to the teeth, and could only trust to himself -for the protection of his booty and his life; every one kept himself -on the _qui vive_, and took even the precaution of daily discharging -and reloading his firearms every evening at sunset. Government offered -a weekly transport to Melbourne at a charge of 1 per cent.; but as, -notwithstanding so exorbitant a charge, this transport was without -any guarantee against robbery, the miners formed themselves into -parties, when tired with making their fortunes, and escorted their own -treasures. The bandits from Van Dieman’s Land came down like birds of -prey, and fell upon the miners, and in such numbers and with such fury, -that when a murder was committed the local police were not unfrequently -afraid to go amongst them to seize the murderer. The authorities of -Melbourne were unable to give effectual aid under such circumstances; -for their own city police, with the exception of six, had all gone off -to the diggings. A cry of despair and indignation was universally -raised. “The imbecility of our Government,” says the _Argus_, “has -compelled us to take the police into our own hands, and to make lynch -law the rule of action.” The _Morning Herald_ says, “The Government -must act with energy, and without loss of time, or we shall become a -second California, with mutiny and lynch law established, and crime in -its naked deformity.” The Governor, Sir G. Fitzroy, responded to this -appeal by sending home for more troops, and by recruiting his police -by discharged soldiers. Will it be sufficient for the preservation -of this community, scarcely yet formed, from the threatened danger -of disorganization, to send a vessel of war to the station of Port -Jackson, and to Port Philip, and to reinforce the garrisons of -Australia, as Sir John Packington proposes, with some 400 or 500 -soldiers? - -Fortunately, such a state of disorder is not likely to become chronic; -when public authority, which ought to suppress it, is declared -incompetent, society, alarmed for its own existence, steps in and -at all hazard gets rid of turbulent characters. What is to be as -much feared, especially in a community of such recent formation, is -the attraction to a spirit of gambling, from fortunes thus suddenly -acquired. Men, fascinated by such a magnet, abandon all productive and -useful employment. Neither their ordinary vocations or their known -duties will retain them in their ordinary habits; no rates of pay can -follow the progressive chances of the miner with his pickaxe; the -trade of gold-seeking supplants every other occupation; a whole people -are bowed down to the earth, and absorbed in a work which brutalizes -them, and they abandon to others all the cares of and attention to the -cultivation of the soil. - -From the beginning of November last, the towns of Melbourne and -Geelong were forsaken. Out of this numerous population the women alone -remained stationary. The proximity of the “placers” at two or three -days’ journey rendered the access easy. It was not necessary, as at -Sydney, to equip for a long journey, or to lay in a stock of provisions -and money. Men deserted, in crowds, flocks, farms, ships, workshops, -counting-houses, and shops; no wages would induce them to remain. They -flocked in from Sydney, Van Dieman’s Land, South Australia, and even -from California. Vessels arriving could not discharge their cargoes -for want of hands; goods perished on the quays, where they had been -piled up. In many districts of the colony business and cultivation -were suspended; hands were wanted everywhere. When shearers were to be -met with, they asked the enormous price of 3s. 6d. for twenty fleeces. -A month later, and Adelaide, the capital of Australia, realized the -picture of the “Deserted Village.” Traders, artizans, proprietors, and -capitalists, all were either ruined or had emigrated to Port Philip, -to escape from inevitable ruin. The shares in the celebrated Burra -Burra Copper Mine, which had been sold for above £200, found no buyers -at £60, and their 700 workmen had disappeared; prices of all goods and -wages rose in a frightful degree. - -We read, in a letter from Melbourne, of the 17th January, 1852:--“In -the Banks and at the Post Offices, the clerks work double tides; other -public services are at a stand for want of hands. There are no male -servants to be found, even at exorbitant wages, and women will not -remain, unless at considerable increase of pay. I requested first the -waiter, and then the maid, at the hotel where I was stopping, to send a -small parcel of linen to be washed. They told me that they could find -no one who would wash. I was obliged to go to a shop and buy some new -things. If you want a pair of boots, you must pay £2 10s. (63 francs). -A pair of shoes cost 20s. (25 francs).” - -Another letter, of the 1st January, adds again to the picture:--“In my -opinion, this town is threatened with complete ruin. Last night, two -men arrived, announcing a discovery of gold deposits in the district -of Gipp’s Land; they had brought £10,000 sterling in gold, and said -there was enough there for all the world. What shall we do for want of -labor? Suppose that 100,000 immigrants were to arrive here next year, -would one of them remain in the towns or at the farms, earning a few -shillings per week, when they can go to the diggings and gather £50 -in one day? At this very moment I cannot find one man in Melbourne who -can mend a pair of boots at any price. I get bread from Collingwood, as -a great favor, and the baker will not engage to supply me regularly. -I pay 5s. for two buckets of water, and 30s. for as much wood as a -horse can carry. One can hardly find a man with a handbarrow to carry a -portmanteau, even at any price he chooses to ask. The servants of the -Judge have all left him, and he cannot use his carriage; his sons clean -the knives and shoes, and drag their invalid father to the court in a -wheel chair.” - -An inhabitant of Melbourne, himself reduced to the necessity of looking -after his horse, whilst his wife attended to cooking the dinner, -writes:--“One of the members of our club, a large sheep-owner, and who -cannot obtain shearers, is gone to the diggings to try and hire some -men. He asked them what wages he should pay them, they replied that -they must have all the wool; and, as he was leaving them, they called -him back to say. ‘We are in want of a cook; we will give you £1 a day -if you like to take the place yourself.’” - -At the “placers,” a mechanic is worth at least £1 a day. The people who -return to the towns with their little fortunes will no longer work, and -consider that they have a right to live on in idleness. All provisions -are dear. At Mount Alexander, flour was sold at 5d. a pound (which is -equal to [117]60 centimes the demi-kilo.); oats at 18s. the bushel, -or [118]64 francs the [119]hectolitre. In August last, wheat was not -higher than 3d. a pound, and oats 4s. the bushel, in the Sydney market, -a higher price than in any famine year in the European markets. - -Two causes have been acting simultaneously in creating this great rise -in the price of all the necessaries of life, in those countries where -the gold finders have become suddenly enriched by the discoveries of -these “placers.” In the first place, population increasing more rapidly -than the supply of food, has necessarily caused a rise in price, and -this consequent increase in price, is out of all proportion to the -deficiency of supply. Who does not know that a deficiency of one-sixth, -or even of one-tenth of the crop of grain, frequently doubles, or even -trebles, the price during the famine. Such was the case in France and -England in 1846; and without facilities of communication, and the -cheapness of carriage, the result, even at that period, would have been -much more calamitous. Can we be astonished, then, that in a country -where civilization is but just established, where roads, canals, and -railroads are wanting, the evils must be felt in a greatly increased -degree? - -Another cause is the very abundance of the precious metals. Gold, -when amassed by handfuls, instead of being collected in very small -quantities, and with great labour, must necessarily lose a large part -of its value. The diminution of the price of gold and silver is, -generally, only shewn by the increase in the price of every other -article. The nominal value of the monetary sign remains the same, but -its power diminishes in proportion to its increase in quantity, unless -some counteracting cause, such as an excessive supply of provisions, -&c., should step in and re-establish the equilibrium. - -Up to the present time, every progress in mining in Australia is -retarding the proper care and attention to the breeding of cattle. Van -Dieman’s Land, which produced food for other districts of Australia, is -likely, it is said, to require an import of food for her own people. It -was true that the crops at the end of 1851, presented every appearance -of a magnificent harvest, but how could a harvest be got _in_ on an -island inadequately supplied with labour, and where the people are -deserting daily for other places? - -The position is certainly critical; with any other people than those -of Anglo-Saxon race, it might be desperate: a few months more delay, -and the wool shearing will be lost; for the flocks, no longer watched, -will have strayed away, and possibly will have perished. It was the -work of a quarter of a century to have accumulated the capital employed -in Agriculture in Australia; without an immense immigration, not of -gold seekers, but of shepherds, and persons accustomed to a pastoral -life, before the end of 1852 all this capital will be inevitably -destroyed. England has awakened rather late to the danger, but she -has now to work in good earnest to apply the remedy. The Governor of -Australia witnessed the daily arrivals of emigrants with alarm, so -long as they added only to the crowds of miners, and who by their -competition still further increased the price of provisions; he even -pressed the Colonial Secretary to try and turn the stream of emigration -to other colonies. But independent of Government emigration, voluntary -associations for the same object have not been inactive. Liverpool -alone has been shipping at the rate of 2,000 a month for Sydney or -Melbourne. Ships are wanting in all the ports of Great Britain and -Ireland, for the transport of emigrants. Shipbuilding yards are all in -the greatest state of active employment. - -Nor has this want of an agricultural population in Australia been -overlooked. The islands to the north and west and the Highlands of -Scotland, contain a population far too numerous for their means of -adequate support, so that in spite of hard and constant work, there -is frequent mortality from famine in this poor and barren country. -Twenty or thirty thousand of these labourers, engaged for agricultural -occupations in Van Dieman’s Land, and for sheep tending in New South -Wales, would cease to be a burthen on English charity, and would avert -the ruin of Australia. Subscription lists are opened in England for -this object, and the colony itself is in a position to lend its aid, as -Sir John Packington informed Sir G. Fitzroy that the government would -place at the disposal of the local legislature the revenues which might -accrue from the workings of these gold regions. At this time the port -of London contains a fleet of vessels ready to sail for Australia, -capable of conveying 23,000 persons and 30,000 tons of merchandize. -It is clear, that by abandoning all the rights of the Crown to the -treasures of the “placers,” the British Government has saved Australia. -By this arrangement, the Colonial revenues have been almost doubled; -30s. a month levied on 60,000 miners, working eight months in the year, -would produce [120]18,000,000 francs. A tax of 60s. which was attempted -to be established, but which the miners resisted, might have produced -[121]36,000,000 francs. In default of English labourers, the expenses -of whose voyage must necessarily be great, and whose willingness to -work could not be depended on, there would be funds enough to import a -whole population of Indians or Chinese. - -The production of these gold regions in Australia does not appear to -have exceeded £1,500,000 sterling in 1851, from all the “placers” then -worked; but we know that the working in the province of Sydney did not -begin until the middle of May; and in Victoria, not until the end of -September. In January, 1852, they reckoned 10,000 miners in the Sydney -gold districts, the produce of which oscillated between 12,000 and -15,000 ounces per week. For eight month’s work this would give about -[122]31,000,000 francs at the Colonial price, and [123]35,000,000 at -the English price of gold; but the population will certainly have -increased in 1852, and it will be a moderate calculation to estimate -the produce of this province at [124]40,000,000 to 50,000,000 francs -during this year. - -In the province of Victoria, 30,000 miners were at work at the -“placers,” at the end of December; and the number was daily increasing. -They probably would have received, by the spring of this year, a -reinforcement of 10,000. Mineral working is a lottery, in which very -few gain the great prizes. A letter from Sydney, dated 4th February, -thus sums up the result of the work, and of its uncertainty and -irregularity. “They calculate, that out of every ten speculators who -hire workmen for the gold-washings, only one repays his expenses, -and of those who work on their own account, the proportion who are -successful is about one in five.” It is not to be expected, then, -that the quantity of gold collected by so many miners should equal -the brilliant, the extraordinary, profits made by many of the first -adventurers. It is a liberal calculation to suppose that the 40,000 -miners of the province of Victoria might obtain on an average 10s. or -12s. each for their daily work. At 200 days’ work this could give about -[125]3,000 francs each, or about 120,000,000 francs per annum. Thus, -these two provinces would yield a produce in 1852, of [126]40,000,000 -for Sydney, and [127]120,000,000 for Victoria, together about -[128]160,000,000 francs. - -In following the scale of progress of California, these results might -be doubled the third year: but it should be remarked, that up to March -last, notwithstanding the immense increase of the workings carried on -for nearly a year in Sydney, and for six months in Australia-Felix, -the colony had not shipped, of all the gold it had collected, above -£819,000 sterling (20,537,000 francs) to England. - -Uniting the products of the three great gold regions, we find that -Siberia, California, and Australia, are expected to supply in 1852, -about [129]600,000,000 francs: a mass of gold equal to about 175 tons -in weight. It should be borne in mind, that China and Japan have -also their mines of gold and silver in full work; the produce of -which does not appear, however, to leave those countries. The Chain -of the Himalaya possibly contains mineral wealth equal to that of -the Cordilleras, the dorsal division of South America, from Chili to -Oregon. It is also said, that the inhabitants of Thibet have begun -to work their golden alluvial deposits. All the mines in the world, -therefore, are not yet fully worked; and there will, probably, be -an ample supply for some generations to come. The gold supplied by -America, independently of California, can hardly be estimated at -above [130]8,000 kilogrammes per annum. Hungary is the only country -in Europe, excepting Russia, which is producing about [131]2,000 -kilogrammes of gold. The quantity from Africa is very small; and -[132]3,000 or 4,000 kilogrammes is the whole of the known produce of -the washings in the Straits of Sunda, and in the peninsula of Malacca. -From all which sources united, an approximative value may be fixed at -from [133]40,000,000 to 50,000,000 francs. To sum up the whole, then, -it would appear that the gold production of 1852 may be estimated at-- - - For California 300,000,000 francs = £12,000,000 - ” Australia 160,000,000 ” 6,400,000 - ” Oural and Altai 90,000,000 ” 3,600,000 - ” rest of the world 50,000,000 ” 2,000,000 - ----------- ----------- - Making a total of 600,000,000 francs = £24,000,000 - -It has been already stated, that California produced [134]750,000,000 -francs during the four years 1848 to 1851. Russia, during the same -period, at the rate of [135]100,000,000 fr., will have produced -[136]400,000,000, and the other gold districts [137]200,000,000. Thus, -in the five years ending with 1852, the total production including -Australia, will probably amount to nearly [138]two milliards of francs: -a result unexampled in history; gold has never previously flowed from -such numerous channels, and from such abundant sources. - - - - -VI. - - -What will be the effects produced by this expansion of gold on those -countries where the discoveries and working have occurred, and on the -great centres of wealth and industry, where competition is in active -operation, and where the gold may, when in the shape of coin, fix a new -value on commodities? First, as regards the gold-producing countries -themselves. It is clear that the attraction to the “diggings” must -retard, if not put a temporary stop, to really productive labour, that -of the cultivation of the land: but this demoralizing influence may -not be of long duration. The “placers” will become exhausted, the gold -of alluvial deposit, that which the rains and other causes have spread -over the surface of the soil, has hitherto been the chief feeder of -the supply. The thousands of miners working at the various sources, -and turning over and over again every part of the surface, will soon -have picked out every particle of the metal. The remainder of the gold -must then be sought for in the quartz; whence it can be obtained only -by the aid of scientific processes, and effectually extracted only -by the application of capital: which is hardly likely to be supplied -to an adequate extent, excepting by companies, in the same way as -has been the case in the working of silver mines. Then individual -enterprize will be again directed to the cultivation of the soil. Out -of the crowds of emigrants in Australia and California, now attracted -to the “diggings,” the number required for agricultural purposes will -no longer be deficient. Amongst the adventurers who are expatriating -themselves to seek fortunes in new countries, there will be numbers -of poor families who will consider themselves adequately repaid by -being able to obtain in a distant land, a fair remuneration for their -services, and the ownership of land, with the means of a comfortable -livelihood. - -The Spaniards, in the early days of conquest in South America, began -by abandoning all other pursuits than the search of gold and silver; -they ended however, by building cities, forming harbours, constructing -churches, planting the land, and rearing flocks. After the soldiers -came the miners, after the miners came the colonists: swords were -turned into plough-shares. That which occurred in the 17th century -will recur in the 19th. Australia, California, and the colder regions -of the Altai, will be covered with people. It may readily be believed -that Providence, in the accumulation of treasures like loadstones in -the hearts of the mountains and in the depths of the valleys, has -contemplated the attraction of a superabundant population, and of the -genius of colonization throughout the civilized world. - -Thus much for the producing country itself. Let us now consider the -effect of this superabundance of gold on the importing countries. The -first and most important question is, whether the relative proportions -in value between gold and silver is likely to be materially disturbed. -We have been considering the present production of gold, let us now see -how the case stands as regards silver. - -Mons. de Humboldt estimates the amount of silver annually produced -at the commencement of this century at 870,000 kilogrammes (about -[139]193,000,000 francs). In 1847, M. Michel Chevalier, considered the -annual production to be 775,000 kilogrammes, (about [140]172,000,000 -francs), but there is reason to suppose that this writer -under-estimated the returns of the Mexican mines, which he placed at -[141]18,500,000 piastres, and in a later work, the same authority -states the production at [142]900,000 kilogrammes. The English paper, -_The Economist_, estimated the return of 1850 at [143]191,772,000 -francs; the actual production, however, appears to have been much -larger. It cannot be placed at a lower figure than 1,000,000 of -kilogrammes for 1851, or at about [144]230,000,000 francs. The -following is the table of details: - - Mexico 133,000,000 francs = £5,320,000 - Chili 22,000,000 ” 880,000 - Peru 25,000,000 ” 1,000,000 - Bolivia and New Granada 12,000,000 ” 480,000 - Russia and Norway 5,000,000 ” 200,000 - Saxony, Bohemia, - Hungary, &c., 12,000,000 ” 480,000 - Spain 16,000,000 ” 640,000 - The rest of Europe 5,000,000 ” 200,000 - ----------- ---------- - Total 230,000,000 ” £9,200,000 - =========== ========== - -We do not think we shall be exaggerating in supposing that the -production will have reached [145]250,000,000 francs in 1852, and that -it will consequently have exceeded [146]1,100,000 kilogrammes. At this -rate the accumulated value of the precious metals produced in 1852 will -have reached the figure of [147]850,000,000 fr., of which silver will -represent the proportion of about 30 per cent; the weight of gold will -then be in the proportion of 1 to 6³⁄₁₀ to silver. - -In estimating a gradual increase in the production of silver, we -have some data for our supposition. In 1843, there was scarcely -[148]16,000,000 piastres from Mexico; in 1849, the silver coined -at the Mexican Mint amounted to [149]20,000,000 dollars, without -reckoning that portion which escaped duty, and which probably amounted -to [150]3,000,000 or 4,000,000 more; [151]we are certainly quite -within the mark, it is even more probable that the production this -year may again reach the sum of [152]27,000,000 dollars, to which -it had attained in 1805, under the Spanish Government. In Chili the -progress has been still more rapid, the mines which in 1841 produced -[153]821,000 piastres, and in 1845, [154]1,534,000, having in 1849 -given [155]3,343,000, and in 1850 [156]4,070,000 piastres. - -One cause of a purely local nature has contributed to this result. -It is known that the process of amalgamation is almost the only one -employed by the miners in extracting the ores of Chili, Peru, and -Mexico. To obtain 1 cwt. of silver it is necessary to employ 1½ -cwt. of quicksilver; it is evident, therefore, that the price of -quicksilver must have a great influence on the cost of extraction. -When it has become too dear, the working has been confined to the -richest mines; when it has fallen the increase in the working of the -poorer ores has soon followed. Before the war of independence, the -Crown of Spain, preserving the monopoly of the sale of quicksilver, -gave it out at all their depots in Mexico at [157]35 to 40 piastres the -cwt.; thence arose the immense increase in the workings of the silver -mines, notwithstanding the coarseness of the ores. Since the Spanish -Government, however, has, pressed by the miserable position of its -finances, farmed out the produce of the Almaden mines, the lessees who -had agreed to pay a very heavy rent, and who had no competition to fear -for a long period of time, raised the price of the quicksilver beyond -all bounds. A few years since the price at Guanaxuato rose to [158]150 -piastres the cwt. In 1850 the agent of Messrs. Rothschild fixed the -price at [159]103 piastres in Vera Cruz, and at [160]105 at the depot -in Mexico. At the same date the price was [161]120 at Mazatlan. The -cost price of the quicksilver at Almaden is [162]18 dollars the cwt., -and it is sold at the rate of [163]45 dollars for extraction of the -ores in Spain. - -The high price will cease with the monopoly. Spain has no longer the -exclusive privilege of furnishing quicksilver for the mines in the New -World. California possesses mines of cinnabar in abundance, and they -are now in full work. Those of New-Almaden, situated at some leagues -from San Francisco, are now producing [164]400 kilogrammes a day. At -300 day’s work this could give a provision of [165]120,000 kilogrammes, -sufficient to work at least [166]80,000 kilogrammes of silver. At -the mine itself this quicksilver is worth [167]25 piastres the cwt.; -brought to Fresnillo, near the rich veins of Sombrerete, and on the -backs of mules from the port of Mazatlan, it has been sold at [168]93 -piastres in 1850. The proprietors of New-Almaden undertake to reduce -the price whenever the price of Spanish quicksilver shall be lowered. -They have sent some of it to Chili, where silver-mine working has -taken a fresh start. They can sell it advantageously in Peru, for the -quicksilver of Huancavelica cost at Pasco in August, 1850, [169]104 -piastres the cwt. The mine of New Almaden is not the only one being -worked in California; cinnabar is met with in several directions, and -hereafter it is probable that California may be looked to as a country -producing quicksilver as well as gold. - -The news of the discovery of quicksilver mines in Mexico, in the -neighbourhood of San Luis de Potosi, was confirmed by accounts received -in London in March last. Are they old mines formerly abandoned on -account of their poverty, or have they really discovered an ore which, -as at New Almaden, yields a produce of 50 per cent. of quicksilver? -This is a point yet to be cleared up. In the meantime the price of -silver has fallen in the district of Guanaxuato to [170]40 piastres -the hundred weight, and it is now varying between a price of [171]55 -and 56 piastres. In short, one of the conditions connected with silver -mining has materially changed. An economy of [172]60 or 70 piastres per -hundred weight in the cost of amalgamation can hardly fail to kindle a -fresh spirit of enterprize. - -Another cause will necessarily act on the production of silver, and -that is the very abundance of gold. When silver is found to be more in -demand, fresh activity will ensue, both in reopening old galleries, -which have been closed as not sufficiently remunerative, and in pushing -on the work in those actually in operation. If the mines, feeding the -present supply, are becoming exhausted, and other sources are not -forthcoming, in a few years silver will reach the price of gold, or -the value of gold will descend to that of silver; but as the limits of -silver working are but the price of labour, the power of machinery, and -the application of science, so, every increase in the quantity of gold -which is not caused by accidental circumstances, or by an extraordinary -demand, must produce a corresponding increase in the production of -silver. Is not this a fact which we have been witnessing since 1850? -Who can venture to affirm that Californian gold has had no influence in -stimulating the workings of silver in Mexico and Chili? Besides this, -the extraction of gold is generally accompanied with a production of -silver. Silver mines are not always auriferous, and the richest in gold -contain but a small quantity of it, but gold mines are almost always -argentiferous. The proportion of silver in a “nugget” of gold is about -⅛th in California, ¹⁄₁₀th in Siberia, and ⅕th in New South Wales. So -that for every [173]four kilogrammes of gold in Australia, there is -about one of silver. This is an important fact resulting from chemical -analysis. - -The production of silver is in the course of increase. Will that of -gold be kept up? It is reasonable to entertain considerable doubt -on this point. In Siberia we have seen it retrograde since 1847. -The extraction appears stationary--perhaps rather on the decrease in -California. Australia alone, with gold fields yet unexplored, appears -likely to produce much more than heretofore. Auriferous strata may be -discovered elsewhere, and add to the general stock. Combining these -various circumstances, we incline to the opinion that the quantities -now forming the annual production of gold will not be diminished for -a certain number of years; but when the miners have exhausted the -gatherings from the alluvial deposits, and it becomes necessary to seek -the golden ore in the rocks and mountains, in which nature appears -during the various revolutions and convulsions of the world, to have -deposited it; then the working of the mines will depend upon the amount -of capital and the degree of science, which may hereafter be brought to -bear on that description of enterprize. - -In a paper read in 1848, before the Royal Institution of London, Sir -Roderick Murchison remarks that the principal deposits of gold are -found in auriferous “detritus,” and that the same degree of success -must not be expected to ensue from exploring the veins, which are -ramified through the quartz rock. The result hitherto shown in -California fully confirms this theory, as is shown in the following -letter from an engineer at St. Francisco, dated 4th April last, after -an expedition amongst the localities occupied by the gold diggers:-- - -“I send you the result of experiments made upon fragments of rock. In -each we have operated upon three tons of quartz, reduced to powder, and -carefully worked by amalgamation. We have made five experiments upon -as many veins in the county of Bath, which is situated between l’Yuba -and the River de la Plume. No. 1 has produced [174]3 dollars 53 cents -per ton; No. 2, [175]9 dollars 50 cents; Nos. 3 and 4, [176]11 dollars -each; and No. 5, [177]17 dollars. - -“In the county of Nevada, experiments have been made on four different -points. The first has given [178]15 dollars per ton; the second, -scarcely any gold; the third, [179]14 dollars per ton--this mine, upon -which a company had established works, has been abandoned;--and the -fourth has given [180]59 dollars, the vein being of an extraordinary -richness, and having yielded large returns to the proprietors. - -“In the county of Eldorado, three different veins did not give a larger -return than [181]17 dollars per ton; a fourth equalled the richness of -No. 4, in the adjoining county. - -“In the county of Mariposa, out of eight experiments, three veins -gave hardly [182]3 to 7 dollars per ton; three more gave [183]7 to 20 -dollars; one gave [184]24 dollars; and one more, [185]38. The two last -veins have attracted miners, who are going to work them. No enterprize -requires a more careful and a more expensive examination than an -auriferous quartz mine. A good vein, yielding [186]36 dollars per ton, -may be considered, by moderate people, as worth working; sometimes they -are found much richer; but out of all the quartz-crushing mills which -have been set up in California, I do not think that one-third are used -for mines which are yielding, for any continued period, [187]30 dollars -the ton; so that one-half of the works of this nature are suspended.” - -From the above account, it would appear that a vein of quartz, to be -considered productive, should give 36 dollars, or [188]192 francs -per ton. This return represents a weight of 55 grammes upon 1000 -kilogrammes, or 5½ parts of gold out of 100,000 parts of quartz. -Mineral of iron stone will give 10 to 15 of metal per 100; and the -production by melting is infinitely less troublesome or expensive than -the extraction of gold. In Australia, it was at first supposed, after -an analysis of some ounces of quartz, taken from Mount Ophir, that -the ton would yield more than £1100 sterling; but these experiments, -made on so small a scale, are of little value. It is not likely that -Australia, when the miners find themselves reduced to the necessity of -working the quartz rocks, will show any considerable increase of yield -over California. - -The extraordinary abundance of gold, then, does not appear to be of -permanent duration. It is a sudden outbreak which we, accordingly, -have to meet. It does not appear to be, as far as we can now form -any opinion, a reign of one metal, which is likely to take the place -of some other; nevertheless, there will most infallibly be a very -marked fall of gold in comparison with silver, unless met by a most -extraordinary activity in working the silver mines; other causes, -however, although secondary in themselves, appear, concurrently, likely -to neutralize part of the effect of this superabundance. - -It is of little importance to ascertain the amount of the annual -production of the precious metals, unless we investigate the -proportions in which they are distributed between the two hemispheres. -Silver gives rise to a regular trade, and, coming from sources -long open, it is sent almost exclusively to Europe, as an article -of exchange, against the produce of her soil, or of her industry. -Gold in California, on the contrary, a source of unexpected wealth, -starting up in a new country, is first absorbed by the wants of a local -circulation. A new society, formed in the midst of a desert country, -necessarily requires some medium of exchange: some money. Next to -the immediate necessities of California come the wants of the United -States. These States have, for some years past, been endeavouring to -introduce a greater amount of the precious metals into their monetary -circulation. The gold of California has powerfully contributed to -effect this object. Silver coin now circulates, but in small amounts, -throughout the Union. They have coined gold pieces of 20, 10, 5, and -even of one dollar. Out of [189]400,000,000 to 500,000,000 francs, -brought in during the three first years, not more than [190]70,000,000 -or 75,000,000 have found their way to Europe. The import of 1851 has -been more sensibly felt. According to the returns of the American -newspapers, the quantity of gold shipped to Europe from New York and -New Orleans, was, during last year, [191]200,000,000 francs. - -The like result is obtained from other channels of information. The -Mint of London, which ordinarily coins gold at the rate of about -£2,000,000 sterling per annum; and which, in 1850, had not coined -more than £1,492,000 sterling; in 1851, increased their operations -to the extent of a coinage of £4,200,000 sterling (above 105,000,000 -of francs). The moiety of this gold must have come from California. -In the same year, the mint of Paris coined in gold [192]269,709,570 -francs, of which about half was supplied by the conversion of -100,000,000 of Dutch Guillaumes into French money. In the accounts of -the German Mints, we find about [193]200,000,000 of Californian gold. -If we are to judge from the operations of our own mint, the import -of 1852 will be smaller than that of 1851; for we have coined but -14,000,000 pieces in gold during the first three months of this year. - -Australia sends regularly large amounts of her gold to England; but -a part of the export of gold dust, or “nuggets,” is returned in gold -coin. Many vessels have lately cleared from London with £200,000 -sterling; and this at a time when England had barely received £800,000 -sterling, from Sydney and Melbourne. Considerable amounts will likewise -be imported in plate and jewellery. The more wealth increases in -the colony, the more gold will be employed both for circulation and -for luxuries. The producing country will be most certainly, _par -excellence_, the country of consumption. Europe contains 200,000,000 -inhabitants, of whom not one-half are adequately supplied with metallic -money. It would require, certainly, an addition of many milliards of -francs to the quantity of the present metallic circulation, to put many -of these countries in an equally favourable position in this respect -with France, Belgium, Switzerland, Holland, and Great Britain. We -know, that only nations of industrious habits are in want of a larger -supply of gold and silver because they alone carry on trade to any -extent. Abundance of production precedes and gives rise to a demand -for money. Wealth must exist in a country before the sign of that -wealth is required; but, at the same time, it cannot be denied that -the circulation of the precious metals stimulates, to a great degree, -the creation of richness; it acts like roads, canals, or other modes -of transport, which, by opening the means of reaching markets, extend -the radius of operations, and give additional value to commodities. One -half of Europe has a trade of inconsiderable importance, and derives -but a small part of the benefit of the produce of its own soil. It has -neither industry nor credit. In many countries now, gold and silver are -replaced by the use of paper-money, often discredited in its own, and -in all cases valueless out of its own country. - -Austria has just made, partly in London, and partly in Frankfort, a -loan of £3,500,000, intended principally to restore the credit of her -paper money. This will be the first step towards the restoration -of metallic money, which had disappeared to such an extent, that -the smaller notes were often divided into four, to use for change. -Prussia, Poland, Russia, and Turkey, have experienced, in different -degrees, the like embarrassment. Before these various markets are -all superabundantly supplied with gold and silver, the treasures of -Siberia, Australia, and the two Americas, may be diffused for many -years over the continent of Europe. - -The scarcity of gold had restricted its use; in France, for example, -the smallest gold coin was [194]20 francs. Since it has become more -common, the Mint have coined pieces of [195]10 francs, which are much -liked, and are convenient for use. These smaller coins appear likely -to take the place of a portion of our silver, which is needlessly -cumbersome. It is supposed that the use of Bank-notes of [196]200 and -100 francs has economised the use of several hundreds of millions of -the precious metals. The 10-franc pieces, when more generally used in -circulation, will take the place of, and drive out a portion of silver -coin. The demand for silver then will diminish, whilst that for gold -is increasing. Silver will be used as change for gold--as gold is for -bank-notes. This is the case to such an extent in England, where the -silver circulation is small, that the Mint in London, which coined -£1,492,000 sterling in gold, in 1850, only coined £130,000 sterling -in silver in the same year, whilst, in the same year, [197]86,000,000 -francs in silver were coined at the Mint in Paris. It must not be -forgotten that the use of the precious metals is not confined to the -limits of Christian civilization. The Chinese import Peruvian and -Mexican dollars in exchange for their silks and teas; they attract -by their trade the gold produced in the neighbouring Islands, and in -the Straits of Sunda. This industrious nation has sent its contingent -of labourers and traders both to California and Australia. A portion -of Californian gold has already gone to China, but Australia appears -better situated for the purpose of supplying the eastern regions and -the southern portions of Asia with the precious metals. The Australian -gold, however, sent there will be as so much lost treasure; for whilst -the precious metals which are thrown into circulation in Europe -continue in use as coin for a long time, that which is sent to China, -or India, or Africa, altogether disappears; it is not required for -circulation, but seems to be consumed. - -Nothing appears more likely to restore the confidence of those who -have taken alarm at the abundance of gold than the consideration of -the almost unlimited extent of its market. What people, civilized -or uncivilized, agricultural or manufacturing, do not enter into -competition for a supply! What are the millions of francs extracted -from the Cordilleras when compared with the capital created by the -labour of the inhabitants of the whole globe? - -The combined washings of the Altai, California, and Australia, during -a quarter of a century, would be required to produce a sum equal -to the annual revenue of England alone. This unexpected harvest of -the precious metals is but an addition to a common fund of wealth; -it cannot produce a deep or a durable impression on the almost -incalculable mass of wealth already existing in the world. - -After all, Europe herself does not preserve gold and silver as -relics. Money is used by wear and tear to such an extent that it must -from time to time be recoined, and the consequent loss falls on the -community at large. The use of silver and gold plate, of gold work and -jewellery, is increasing every day, as a distinguishing mark of the -rise of the middle classes; the manufacturers of France, England, and -Switzerland are at work for all the world. English statisticians have -estimated the loss, from use, disasters at sea, and export without -return of the precious metals, in the United States and Europe, at -more than [198]125,000,000 francs a-year. A more moderate estimate -reduces this sum to [199]75,000,000 francs. As to articles of luxury, -the sums of gold and silver employed therein annually, have been -estimated by Mr. Jacob, at [200]148,000,000 francs, without including -the consumption of the United States of America. Mr. M’Culloch, who -embraces the United States in his calculations, puts the amount at -[201]150,000,000. France, herself employing upwards of [202]30,000,000 -francs, it may be admitted, without fear of exaggeration, that the -sum of [203]125,000,000 of gold is used for domestic purposes. Here, -then, we have an annual consumption of [204]200,000,000 francs; the -proportion borne by gold in this absorption of the precious metals -is every day becoming more important. What remains, at the present -time, of the enormous masses of the precious metals which Mexico and -Peru have poured forth during the last three centuries? The amount -of gold and silver now in the form of circulation would scarcely -equal the produce of the mines during the last fifty years. The 30 -milliards which America sent to Europe, from the Spanish Conquest to -the beginning of the 19th century, has almost entirely disappeared. It -would appear as if industry, in its contact with gold and silver, must -have volatilized it. France converted into coin a large amount of the -precious metals; but when coined, it did not remain there. Exportation -appears constantly to produce the effect of banishing it from the -country. Thus, in twelve years, from 1840 to 1852, we have imported -[205]123,012 kilogrammes of gold, and we have exported [206]71,217 -kilogrammes; the difference in favour of the import being [207]51,795 -kilogrammes, equal to [208]181,138,000 francs, showing an average of -[209]15,000,000 francs per annum. Jewellery, goldsmith’s work and -gilding, employ, annually, in France, quantities of gold exceeding -that sum in amount. The excess, then, is taken from the coinage, which -accounts for the ordinary premium on gold in our market. The average -would be considerably reduced if we except the year 1851, during -which the import has exceeded the export by [210]34,503 kilogrammes; -but the results of 1851 may be considered as exceptional. Already, -the greater part has disappeared; gold finds its way from France to -London. The Bank of France, whose metallic reserve in 1851 included -an amount of [211]100,000,000 francs of gold, now does not hold above -[212]15,000,000 to 20,000,000. French gold coin, common enough in -Paris, is scarcely seen in the provinces. - -From 1840 to 1852, French commerce imported [213]10,175,312 kilogrammes -of silver, and exported [214]3,688,279 kilogrammes. The excess of -import, [215]6,487,033 kilogrammes, represents a sum of 1,303,893,633 -francs, or 108,657,802 francs a year. Admitting that [216]15,000,000 -are annually absorbed in the demands for articles of luxury, and -[217]10,000,000 or 12,000,000 for wear, our monetary reserve of silver -would have increased at least [218]1,100,000,000 since 1840. This -leaves a large margin in the circulation of France for the displacement -of silver by gold coin. When the import of gold shall have exceeded -the export by an amount equal annually to [219]200,000,000 francs, -with this accumulated reserve of [220]1,100,000,000 and with an annual -excess of [221]80,000,000 to 90,000,000 francs over the import and -consumption of silver, it will require at least ten years to restore -the equilibrium between the two metals, to the state in which it was in -1840. - -No subject has given rise to more rash and speculative opinions -than that connected with the trade in gold and silver. Amidst the -great variety of conflicting phenomena, statistics appear almost -valueless; but so long as gold continues to bear a premium, in spite -of the apparent superabundance, and notwithstanding its partial -demonetization, it may well be considered doubtful whether the relative -proportions, established by law between gold and silver in so many -countries, will be materially affected for at least some years to come. - -Various remedies have been proposed by alarmists, to prevent the evils -of the influx of Californian and other gold. Some have desired that -government should limit the quantity of gold to be annually coined. -This expedient, in the event of a depreciation in value, would be of -little avail, for the quantity imported and kept in the shape of bars, -would equally augment the general stock, and weigh down the price. -Others have thought of altering the legal value, but this plan would -be useless as long as gold remained at a premium. If gold became -depreciated it would be injurious only until the fall was ascertained, -and considered durable; this once determined, things would go on as -before. - -Then comes the question as to the demonetization of gold; doubtless no -point is of greater importance for a standard of circulation than a -fixed value. It is a fact that in all those countries where a double -standard of gold and silver is established, one or other has always -obtained the ascendancy, and maintained a premium, and has ceased to -appear in the shape of money; logically, it would appear quite enough -to regulate all prices by the value of one metal, without exposing -trade to the uncertainty of an alteration in value of two. In the -adoption of one only, however, it is desirable to examine which of -the two has, over any given period of time, been subject to the least -variation. Before the discovery of California, silver would certainly -have had little chance of being selected. Even now it appears to me -that the question has not so materially changed as might at first sight -be supposed. - -It should be remembered also, that it is not so easy for all countries -who may have adopted the double standard to exclude one from their -monetary code. The example of Holland has proved that gold, having -lost its character as legal money, will no longer be used as a token. -To demonetize gold is to exclude it from the market. For a great -commercial country like Holland, living in the greatest freedom, and -carrying on its trade by exchanging and carrying the products of all -the countries in the world, to exclude one of its habitual means -of exchange, may not be attended with great risks. England, though -little disposed to imitate Holland at present, might perhaps do so -with less danger, from having the commerce of the whole world in its -hands. France, unless under pressing necessity, could not demonetize -her gold without exposing herself to a complete disturbance in all -her relations, both at home and abroad. Our trade is tied up by -a completely protective system, without alluding to those direct -prohibitions which disgrace our customs’ tariffs; almost all the duties -which affect articles of primary consumption are, in short, disguised -prohibitions. In exchange for the products of our own country, which -we have to sell to the foreigner, we can hardly purchase in return -anything but raw materials. Thus, bar and pig-iron, those articles of -primary importance, have been subjected to duties at the rate of 100 -per cent. on their value. In those countries enjoying a legislation -attentive to the wants of trade, and where the custom-houses are only -for the objects of revenue, the imports and the exports will show an -even balance. In our country, where we have been desirous of opposing -a barrier to the free course of exchange, goods exported have always a -preponderance in value over those imported. In 1850, for example, the -imports represented a value of [222]790,000,000 francs, and the exports -[223]1,068,000,000 francs, showing a difference of [224]278,000,000. -England and the United States, together, receive of our products an -excess of [225]236,000,000 above the exports we receive from them; -and as those countries with which we trade cannot pay us in goods, -they must make their return in gold and silver. This was the reason -of the import of [226]220,000,000 francs in coin in 1850, as shown -in our official returns. So long as the system of protection is the -ruling policy of France, so long will it be impossible to deprive gold -of its value as money; to attempt it would be to withdraw from trade -one of its most useful means of exchange. It would check, if not stop, -all intercourse with those countries who can only pay in gold, or who -can only sell us those commodities which we endeavour to exclude by -our tariffs. Gold flows naturally only to those countries where it is -marketable; and it is only so where it is in use as coin as well as in -commerce. A profit of half per thousand is sufficient in the present -day to turn the current of the precious metals. This circumstance ought -not to be lost sight of in the consideration of monetary legislation. - -In fact, the change in the relative value of gold and silver, which -was so strongly anticipated, appears anything but imminent; if any -great change is now taking place, it appears rather to be that of a -simultaneous depreciation in the value of both metals. Deep thinking -persons are not content with expressing their fears; they are already -providing themselves with the means of averting the evils which they -anticipate. This is one of the causes which have raised the value -of railroad stocks, and of landed property; and this explains the -comparative abandonment, not of speculation, but of capital ordinarily -seeking investment in government stocks. Alarm is felt at placing money -on security, of which both the capital and the interest may remain -at a fixed value; these may be the more sensibly affected, if the -value of the precious metals is altered; whereas the shareholder of a -railroad would have a chance of having his income increased; and the -landed proprietors that of having their capital augmented in the same -proportion in which the value of money would be depreciated. - -In dwelling on these facts, I have no idea of setting myself up as a -prophet. I would confine myself to the wish to indicate some of the -symptoms of the present position of these matters; the danger, if any -exists, is certainly not very near at hand. We have already seen the -use of bank notes in France increased to an extent which, owing to the -stability of their value, has largely taken the place of specie. It -is but reasonable to suppose, that the present abundance of gold and -silver will make no greater disturbance within a short time, than has -the great increase of paper money. - -The influx of the precious metals has been, in a certain sense, a -providential occurrence during the revolutionary state of Europe. -Credit had either disappeared, or had at least become stagnant. -Everywhere, amidst the tempest of the times, both past and -prospective, business had been suspended, or carried on only for -ready money. Affairs had assumed an aspect of a primitive state of -exchange. An increase of metallic circulation might again restore -confidence, and calm agitation. The average excess of money imported -over that exported, which, before 1848, was not above [227]80,000,000 -to 100,000,000 francs, amounted in 1848 and 1849 to nearly -[228]300,000,000 francs for each year. Specie in these times supplied -the wants of trade, and maintained prices; but, in more easy times, -when used not alone, but concurrently with paper money and bills of -exchange, for the purposes of circulation, gold and silver would -naturally be in use in proportion to the movements of trade. The reason -why [229]600,000,000 of francs in coin now encumbers the vaults of -the Bank of France, is, because capital is only employed in the stock -markets, and that the restoration of trade on a large scale is still -confined to a sort of anticipation; but let the industry of the country -experience a complete restoration of confidence in the future, and we -shall soon see the metallic reserve of the bank diminish; and, as a -natural consequence, our market will attract an import of the precious -metals from abroad. In short, gold and silver will then be wanted; the -state of trade will improve, and we shall have to seek for an increased -supply. - -Let us not then either despair or be too confident; the world is not -entering on an Eldorado, nor is it on the eve of a state of ruin. -Those who consider gold and silver as positive wealth, who confound an -abundant supply of the precious metals with an abundance of capital, -and who affirm that the gold imported from California must lower -the rate of interest, should remember that the rate of interest is -determined by the state of confidence, as well as by the general rule -of the supply and demand for loanable capital, and that confidence -depends upon the good order existing throughout the civilized world. -California itself shows the delusion of such an idea--for there, where -gold is strewing the land, interest has risen as high as from eight to -ten per cent. per month. Those on the contrary, who, at the idea of the -galleons seeking freights in the western continent, dream only of ruin -and catastrophes--who anticipate that the day will arrive that the Bank -of France will pay persons to take away her gold--should not forget -that she sells it now without difficulty even at a small premium, and -that this increased trade in gold has not hitherto ruined anybody. - -PARIS, _August, 1852_. - - - - -FOOTNOTES - - -[1] £20,000,000 - -[2] £24,000,000 - -[3] lbs. 797,629=£37,209,423 - -[4] £4,000,000 - -[5] A kilogramme is equal to about 2 lbs. 8 oz. 3 dwts. 2 grs., and is -worth about £125; 30 kilogrammes would therefore weigh about 80 lbs. -3oz. 20 dwts. 12 grs., and would be worth about £3750. - -[6] £5,960,000 - -[7] lbs. 6,381,530=£297,700,000 - -[8] lbs. 295,717,106=£887,151,318 - -[9] £1,280,000,000 - -[10] £320,000,000 - -[11] £240,000,000 - -[12] £80,000,000 - -[13] lbs. 42,336=£1,975,000 - -[14] lbs. 2,331,070=£6,923,210 - -[15] lbs. 63,504=£2,962,500 - -[16] lbs. 2,411,562=£7,234,686 - -[17] lbs. 169,479=£7,906,250 - -[18] lbs. 2,344,574=£7,033,792 - -[19] lbs. 66,989=£200,967 - -[20] lbs. 80,386=£3,750,000 - -[21] £5,896,000 - -[22] £2,400,000 - -[23] £2,800,000 - -[24] £540,000 - -[25] £4,160,000 - -[26] £800,000 - -[27] £1,800,000 - -[28] £8,000,000 - -[29] £6,400,000 - -[30] £1,080,000 - -[31] £800,000 - -[32] £320,000 - -[33] £400,000 - -[34] £450,000 - -[35] £600,000 - -[36] £3,000,000 - -[37] £2,500,000 - -[38] £8,041,666 - -[39] £14,333,333 - -[40] £2,500,000 - -[41] £4,166,666 - -[42] £514,583 - -[43] £1,819,666 - -[44] £20,370 - -[45] £2,520,000 - -[46] £2,333,333 - -[47] £2,416,666 - -[48] £1,637,362 - -[49] £2,836,064 - -[50] £4,473,426 - -[51] £14,480,000 - -[52] £9,440,000 - -[53] £1,080,000 - -[54] £3,400,000 - -[55] £10,760,000 - -[56] lbs. 13,397=£625,000 - -[57] lbs. 4,614=£215,250 - -[58] lbs. 10,718=£500,000 - -[59] lbs. 26,795=£1,250,000 - -[60] lbs. 53,590=£2,500,000 - -[61] A poud is equal to about 36 lbs. English; and is worth about £1679. - -[62] lbs. 76,422=£3,565,125 - -[63] £4,400,000 - -[64] lbs. 75,705=£3,531,500 - -[65] lbs. 69,873=£3,259,625 - -[66] lbs. 65,176=£3,040,500 - -[67] £3,120,000 - -[68] lbs. 653=£30,500 - -[69] A Russian rouble is worth about 3s. 2d. - -[70] lbs. 10,718=£500,000 - -[71] A metre is equal to 39.371 English inches, a sagene is equal to -about 7 English feet, and a werst contains 1,166⅔ yards, or 3,500 feet, -equal to about ¾ of an English mile. - -[72] £3,600,000 - -[73] £4,000,000 - -[74] £5 to £10 - -[75] £6,000 to £8,000 - -[76] £2 2s. 6d. - -[77] £5 to £8 - -[78] 4s. - -[79] £16 - -[80] £10 - -[81] £1000 - -[82] £3 to 4. - -[83] £1 to 2. - -[84] 28s. to 32s. - -[85] 24s. to 32s. - -[86] 8s. to 12s. - -[87] £80 to £100. - -[88] £8,000,000 - -[89] £214 - -[90] £14,680,000 - -[91] £13,160,000 - -[92] £10,061,305 - -[93] £18,800,000 - -[94] £5,320,000 - -[95] £13,160,000 - -[96] £2,400,000 - -[97] £4,900,000 - -[98] £16,000,000 - -[99] £20,000,000 - -[100] £30,000,000 - -[101] £32,000,000 - -[102] £11,200,000 - -[103] £2,931,228 - -[104] £12,400,000 - -[105] £684,400 - -[106] £720,000 - -[107] £12,000,000 - -[108] The kilomêtre is about ⅝ of an English statute mile. - -[109] £2,600,000 - -[110] £10 - -[111] £30 - -[112] £1,800 - -[113] £10,400 - -[114] £40,000 - -[115] £1,520 - -[116] £150 - -[117] 6d. - -[118] £2 8s. - -[119] 22 Imperial Gallons. - -[120] £720,000 - -[121] £1,440,000 - -[122] £1,240,000 - -[123] £1,400,000 - -[124] £1,600,000 to £2,000,000 - -[125] £120 each, or about £4,800,000 per Annum. - -[126] £1,600,000 - -[127] £4,800,000 - -[128] £6,400,000 - -[129] £24,000,000 - -[130] lbs. 21,436=£1,000,000 - -[131] lbs. 5,359=£250,000 - -[132] lbs. 8,038 to lbs. 10,718=£375,000 to £500,000 - -[133] £1,600,000 to £2,000,000 - -[134] £30,000,000 - -[135] £4,000,000 - -[136] £16,000,000 - -[137] £8,000,000 - -[138] £80,000,000 - -[139] £7,720,000 - -[140] £6,880,000 - -[141] £3,700,000 - -[142] lbs. 2,411,562=£7,234,686 - -[143] £7,670,880 - -[144] £9,200,000 - -[145] £10,000,000 - -[146] lbs. 2,947,465=£8,842,395 - -[147] £34,000,000 - -[148] £3,200,000 - -[149] £4,000,000 - -[150] £600,000 to £8,000,000 - -[151] According to the information of M. Rosales, the production of -Chili in 1850 should have been 4,070,000 piastres. - -[152] £5,400,000 - -[153] £164,200 - -[154] £306,800 - -[155] £668,600 - -[156] £814,000 - -[157] £7 to £8. - -[158] About £30 - -[159] About £20 12s. - -[160] About £21 - -[161] About £24 - -[162] £3 12s. - -[163] £9 - -[164] lbs. 882=£103 - -[165] lbs. 264,660=£30,875 - -[166] lbs. 214,361=£643,083 - -[167] About £5 - -[168] About £18 12s. - -[169] About £20 16s. - -[170] About £8 - -[171] About £11 and £11 4s. - -[172] About £12 or £14 - -[173] 4 kilogrammes of gold are equal to lbs. 10·7212=£500. 1 -kilogramme is equal to lbs. 2·6803=£8·0409. - -[174] About 14s. - -[175] About £1 18s. - -[176] About £2 4s. - -[177] About £3 8s. - -[178] £3 - -[179] £2 16s. - -[180] £11 16s. - -[181] £3 8s. - -[182] 12s. to 28s. - -[183] £1 8s. to £4 - -[184] £4 16s. - -[185] £7 12s. - -[186] £7 4s. - -[187] £6 - -[188] £7 5s. - -[189] £16,000,000 to £20,000,000 - -[190] £2,800,000 to £3,000,000 - -[191] £8,000,000 - -[192] £10,788,383 - -[193] £8,000,000 - -[194] Say 16s. - -[195] 8s. - -[196] £8 to £4 - -[197] £3,440,000 - -[198] £5,000,000 - -[199] £3,000,000 - -[200] £5,920,000 - -[201] £6,000,000 - -[202] £1,200,000 - -[203] £5,000,000 - -[204] £8,000,000 - -[205] lbs. 329,612=£15,376,500 - -[206] lbs. 190,827=£8,902,125 - -[207] lbs. 138,785=£6,474,375 - -[208] £7,245,520 - -[209] £600,000 - -[210] lbs. 92,451=£4,312,875 - -[211] £4,000,000 - -[212] £600,000 to £800,000 - -[213] lbs. 27,264,889=£81,794,667 - -[214] lbs. 9,882,794=£29,648,382 - -[215] lbs. 17,382,095=£52,146,285 or £4,346,312 per annum. - -[216] £600,000 - -[217] £400,000 to £480,000 - -[218] £44,000,000 - -[219] £8,000,000 - -[220] £44,000,000 - -[221] £3,200,000 to 3,600,000 - -[222] £31,600,000 - -[223] £42,720,000 - -[224] £11,120,000 - -[225] £9,440,000 - -[226] £8,800,000 - -[227] £3,200,000 to £4,000,000 - -[228] £12,000,000 - -[229] £24,000,000 - - - - - -End of the Project Gutenberg EBook of Remarks on the production of the -precious metals, by Leon Faucher - -*** END OF THIS PROJECT GUTENBERG EBOOK REMARKS--PRODUCTION--PRECIOUS METALS *** - -***** This file should be named 50581-0.txt or 50581-0.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/5/0/5/8/50581/ - -Produced by deaurider and the Online Distributed -Proofreading Team at http://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: Remarks on the production of the precious metals - and on the demonetization of gold in several countries in Europe - -Author: Leon Faucher - -Translator: Thomas Hankey - -Release Date: November 30, 2015 [EBook #50581] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK REMARKS--PRODUCTION--PRECIOUS METALS *** - - - - -Produced by deaurider and the Online Distributed -Proofreading Team at http://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - -</pre> - - - -<p><span class="pagenum"><a name="Page_i" id="Page_i">[i]</a></span></p> - -<p class="titlepage">REMARKS<br /> -<span class="smaller">ON THE PRODUCTION OF THE</span><br /> -<span class="larger">PRECIOUS METALS,</span><br /> -<span class="smaller">AND ON THE</span><br /> -DEMONETIZATION OF GOLD<br /> -IN SEVERAL COUNTRIES IN EUROPE.</p> - -<p class="titlepage"><span class="smaller">BY</span><br /> -MONS<sup>R.</sup> LEON FAUCHER.</p> - -<p class="titlepage"><span class="smaller">TRANSLATED BY</span><br /> -THOMSON HANKEY, <span class="smcap">Jun.</span></p> - -<p class="titlepage">SECOND EDITION, REVISED.</p> - -<p class="titlepage">LONDON:<br /> -SMITH, ELDER, & CO., 65, CORNHILL.<br /> -1853.</p> - -<hr class="chap" /> - -<p><span class="pagenum"><a name="Page_ii" id="Page_ii">[ii]</a><br /> -<a name="Page_iii" id="Page_iii">[iii]</a></span></p> - -<h2>TO MONS<sup>R.</sup> LEON FAUCHER.</h2> - -<p class="noindent"><span class="smcap">My Dear Sir</span>,</p> - -<p>I have fulfilled the promise I made you a few -weeks since, by translating, I hope intelligibly, -your remarks on the subject of the Production, &c., -of the Precious Metals, which I read first in the -August number of the “<i>Revue des Deux Mondes</i>,” -and which have been subsequently published, somewhat -amplified, in the reports of the “<i>Académie des -Sciences Morales et Politiques</i>.” Since the date of -your remarks, the production of gold in Australia -has been greater than you anticipated; recent -reports estimate the amount shipped, or ready for -shipment, from thence, at not less than £8,000,000 -sterling; at which figure, I think, we may safely -place the produce of 1852.</p> - -<p><span class="pagenum"><a name="Page_iv" id="Page_iv">[iv]</a></span></p> - -<p>A gentleman who was with me a few days since, -just arrived from Victoria, told me that the gold -diggings at Bathurst were nearly at an end, and that -he did not believe that any more gold would be -shipped from Sydney. Although Sydney is only -one of the ports of Australia from which gold has -been shipped, this would appear to confirm your -views, that the first gatherings cannot fairly be -assumed as data on which to found estimates of -future production: at the same time when we hear -of so great an increase of production in other parts -of Australia, I can hardly agree with you, that there -is so little ground for alarm as to a depreciation in -the value of gold, in consequence of these late discoveries. -The effects of the production in Australia -can hardly be felt at present, considering that the -export of English gold coin has been, up to this -date, I think, equal to the amount of gold we have -received thence; but when the sovereigns lately -shipped are found to be in excess of the wants -of the community in Australia, and are re-shipped -to this country, together with the produce of the -gold workings between this and next summer, I -cannot but believe that the supply in the market<span class="pagenum"><a name="Page_v" id="Page_v">[v]</a></span> -of the world will be found in excess of the demand, -and that ultimately a considerable and general -alteration in prices will ensue.</p> - -<p>I shall be very glad if I find that by this translation -I have in any way contributed to increase -the circulation of your remarks in this country. -The subject is one of considerable interest, and -I hope that you will, at no very distant period, -give us some further observations, and let us know -how far your first impressions have been then -influenced by events which may have occurred -subsequently to the present time.</p> - -<p class="sig1">I am, my dear Sir,</p> - -<p class="sig2">Yours very faithfully,</p> - -<p class="sig3">THOMSON HANKEY, <span class="smcap">Junr.</span></p> - -<p class="smaller noindent"><i>London, 30th November, 1852.</i></p> - -<hr class="chap" /> - -<p><span class="pagenum"><a name="Page_vi" id="Page_vi">[vi]</a><br /> -<a name="Page_vii" id="Page_vii">[vii]</a></span></p> - -<p class="center larger"><i>The Foreign Weights and Monies have been converted into English, -at the following rates.</i></p> - -<table summary="Conversion rates"> - <tr> - <td>Dollars and Piastres,</td><td>at</td><td class="tdr">4s.</td> - </tr> - <tr> - <td>Thalers</td><td class="tdc">”</td><td class="tdr">3s.</td> - </tr> - <tr> - <td>Florins</td><td class="tdc">”</td><td class="tdr">1s. 8d.</td> - </tr> - <tr> - <td>Francs</td><td class="tdc">”</td><td class="tdr">25 to £1 sterling.</td> - </tr> -</table> - -<p>A kilogramme weighs nearly 2 lbs. 8 oz. 3 dwt. 2 grs. or nearly 15,434 grs. Troy.</p> - -<p class="sig2">Do. of gold at the standard value, viz. 77s. 9d. per oz. is worth about £125.</p> - -<p class="sig2">Do. of silver at 5s. per oz. is worth about £8 0s. 9¼d.</p> - -<p class="sig2">Do. of quicksilver weighs 2·2055 lbs. avoirdupois.</p> - -<p class="sig2">Do. <span class="ditto">Do.</span> is worth about 5s. 1¾d. or 2s. 4d. per lb.</p> - -<p>A Spanish marc weighs 7 oz. 7 dwts. 22½ grs.</p> - -<p class="sig2">Do. of gold at 77s. 9d. per oz. is worth £28 15s.</p> - -<p>1 lb. of gold is equivalent to 46²⁹⁄₄₀ sovereigns.</p> - -<p>A poud is equivalent to 36 lbs. English, and worth about £1679.</p> - -<p>The weights and measures not enumerated here are explained -at the foot of the page in which they occur.</p> - -<p><span class="pagenum"><a name="Page_viii" id="Page_viii">[viii]</a></span></p> - -<hr class="chap" /> - -<p><span class="pagenum"><a name="Page_1" id="Page_1">[1]</a></span></p> - -<h1>REMARKS -ON THE PRODUCTION OF -THE PRECIOUS METALS, -&c.</h1> - -<p>From the commencement of the 19th century, gold -appears to have been always esteemed in Europe -above the price at which it has been legally fixed -in relation to silver; the commercial value of the -metal has remained on an average about 1 per -cent. above its legal value. In England alone gold -circulates as money: in those countries which have -maintained a double standard, gold, rarely coined, -became immediately an article of merchandize, and -disappeared from circulation. Gold regions were -discovered without restoring the equilibrium of -value between the two metals. Civilization, in its -development from historical times, has but realized -the legends of ancient fables. Gold, from its importance -and constancy of value, appeared likely to -remain for ever the symbol and the essential agent -of wealth.</p> - -<p><span class="pagenum"><a name="Page_2" id="Page_2">[2]</a></span></p> - -<p>In this regular course of the progress of the precious -metals, a pause, or rather a deviation, appears -to have occurred. Gold seems to be tottering in its -monetary supremacy; the fortress appears to have -succumbed in a paroxysm of alarm. Ten years -ago, every one was frightened at the prospect of the -depreciation of silver; during the last eighteen -months, it is the diminution in the price of gold -that has been alarming the public. Some countries, -which, but a short time since, were but too anxious -to attract and retain gold in circulation, even at -great sacrifices, have already shown a feverish -anxiety to banish it altogether.</p> - -<p>Holland took the lead in this movement, and -in July, 1850, demonetized the gold 10-florin piece -and the Guillaume. Portugal has partially followed -this example, by prohibiting any gold to have a -current value, except English sovereigns. Belgium, -which in order to increase its gold circulation, had -given a legal value to our 20 and 40-franc pieces, -and had struck, in 1847, a mixed coinage of gold -and base alloy, has demonetized its gold circulation, -both home and foreign. Russia, by a ukase of 29th -December, 1850, wishing to maintain the former -equilibrium, has prohibited the export of silver. The -French Government itself, struck with the novelty, -and the sudden change, issued a commission for the -purpose, as the Minister of Finance stated in his -minute of the 14th December, 1850, of examining<span class="pagenum"><a name="Page_3" id="Page_3">[3]</a></span> -the questions connected with the simultaneous use -of the precious metals, gold and silver, as a circulating -medium of value.</p> - -<p>From public authorities, alarm has spread to -private interests, and the price of the precious -metals has experienced in European markets a -very sensible disturbance in value. In the space -of only a few months, the premium of gold has -given way to a reaction, only checked by the tariff. -From 1st July to the 25th December, 1850, the -price of English sovereigns in Paris has fallen about -2 per cent. On the Amsterdam Exchange, the fall -in the price of gold, in the same year, amounted to -4 per cent.; at the same time silver rose in London -almost as much (from 4s. 11½d. the ounce, to -5s. 1⅝d.); the relative value of gold to silver, which -our laws had fixed at 15½ ounces of fine silver to -one of pure gold, and which the constant premium -on gold in Europe had raised in the Spanish tariff -to 15¾, fell to 15¼ in Holland, Belgium, and Hamburg; -in all places where gold, from having been -demonetized, had become a mere article of merchandize; -almost realizing, in fact, the tariff of -Russia, a country where the abundance of gold -and the scarcity of silver had induced a legal relative -value of 15 to 1.</p> - -<p>However great the present depreciation of gold, -the depression appeared likely to increase still further, -and the gloomy forebodings of the press have<span class="pagenum"><a name="Page_4" id="Page_4">[4]</a></span> -added to public alarm. Newspapers of all parties, and -of all countries, prophesied that, under the combined -influence of California and Siberia, the value of gold -would soon fall to nine times that of silver. Whilst -crowds of emigrants were forcing their perilous way -across the Rocky Mountains, or doubling, for economy, -Cape Horn, or, in their impatience, taking -the shorter but dearer passage by Panama, hurrying -on to the capture of the golden fleece, this very -treasure which they were unduly <i>appreciating</i>, was -becoming as unduly <i>depreciated</i> in Europe; the -article, which but six months before bore the greatest -fixity of value, seemed rapidly undergoing an important -change, and to the <i>Auromania</i> of ages, an <i>Aurophobia</i> -appeared to be succeeding. England alone has -shown no sign of fear. During the period of continental -alarm, the Bank of England was not afraid -even to check the export of its gold; as in the beginning -of 1851, the directors raised the rate of discount -from 2½ to 3 per cent., and almost immediately -the exchange turned. The pound sterling, which fell -for a short time to 24 fr. 70 cents., equal to a fall of -2 per cent., rose in a few days to 24 fr. 95 cents.; it -oscillates now between 25 fr. 35 cents., and 25 fr. 45 -cents., which is equal to a premium of ½ to ¾ per cent. -upon gold. Again, the mint of Paris, which received -gold by millions in December, 1850, and January, -1851, has seen this influx slacken until its weekly -receipt now scarcely equals its former daily supply.<span class="pagenum"><a name="Page_5" id="Page_5">[5]</a></span> -At the present moment, the oscillations of the -market seem to have terminated; a calm has succeeded -the storm, and the value of the precious -metals seems to be in almost a normal state. The -present moment, then, appears to be a fitting one -to examine if the late disturbing causes were of an -ephemeral nature, or whether they are likely to be -permanent in their effect.</p> - -<p>On this important subject, the French Government, -which at first appeared ready to attempt an -immediate solution of the question, did not hesitate -to recognize the necessity of more profound -examination. In the <i>Moniteur</i> of the 15th January, -1851, it is stated, “that the commission of 14th -December, presided over by Mr. Fould, Minister of -Finance, for the examination of the subject of money, -is of opinion, that the late depreciation in the value -of gold has been produced by causes of an accidental -nature, which are beginning to be less sensibly -felt; that influences of a permanent character -bearing upon this depreciation cannot at present -be sufficiently ascertained; and in such a state of -affairs it is necessary to have precise information as -to the production of the precious metals in California -and in Russia; and that with its present knowledge -of facts, the Commission is of opinion, that there is no -ground for a modification in our monetary system.”</p> - -<p>This determination was a wise one, and subsequent -events have justified it; while on the one hand<span class="pagenum"><a name="Page_6" id="Page_6">[6]</a></span> -gold has again risen to nearly its former value, and -on the other, the discovery made in 1851 of rich -deposits of gold in Australia, renders the subject -worthy of further investigation; the present seems a -suitable opportunity for the renewal of a controversy -by no means exhausted.</p> - -<p>In default of official documents, we have the -stories of the adventurer, and the statistics of commerce. -Sufficient light appears to come from the -north, the south, and the west, to enable us to form -some opinion of the results of the general movement -regarding the precious metals. I would add, -that we can approach the subject now, freed from -some of the questions which appeared to encumber -it; the trade in the precious metals appears to be -again in its natural channels. The phantom of rise -or fall does not appear to be materially affecting -trade: quite lately, to prevent the export of gold, the -Bank of France raised the premium for purchase. -In London and in Paris, the metallic reserves are full. -The Bank of England has above <a name="FNanchor_1" id="FNanchor_1"></a><a href="#Footnote_1" class="fnanchor">[1]</a>500,000,000 francs, -and the Bank of France above <a name="FNanchor_2" id="FNanchor_2"></a><a href="#Footnote_2" class="fnanchor">[2]</a>600,000,000 in their -vaults. The import of the precious metals goes on -but slowly. Nothing opposes, then, such a patient -and careful examination of the subject as can alone -satisfy the inductions of science.</p> - -<hr class="chap" /> - -<p><span class="pagenum"><a name="Page_7" id="Page_7">[7]</a></span></p> - -<h2>I.</h2> - -<p>The value attached to the precious metals in -their character of money, is not of an arbitrary -nature. Neither governments nor councils can -change it at their will and pleasure. The power -publicly possessed in this respect is but the organ -of facts, which it submits to and proclaims as law. -The head of the Government stamped on the coin -creates a value only by the declaration of its -intrinsic weight and fineness; but the price of -the gold and the silver is exactly that of their -commercial value in exchange. In this consists the -stability and the regularity of the circulation of -money.</p> - -<p>The cause which determines the value of the -precious metals is the same as that which affects -the price of every other article of merchandize; the -supply and the demand—the comparative abundance -or scarcity of gold or silver in the market. The -larger the metallic supply, the smaller value will it -bear; its commercial value will vary in exact proportion -to the increase in quantity. On the other -hand, the smaller the quantity of money in circulation, -the larger will be the value attaching to -each separate piece; a smaller quantity of such -money will then suffice to buy a larger amount of -goods, and goods are said to be cheap—or what if<span class="pagenum"><a name="Page_8" id="Page_8">[8]</a></span> -in effect the same, money,—may be called dear. -This money, in the time of Charlemagne, possessed -a power eleven times greater than at present—that -is to say, it was eleven times more scarce. It is -well-known that the discovery of America, in overpowering -with a fresh supply of the precious metals -the metallic circulation of Europe, brought about a -sudden and large depreciation of their value, which, -notwithstanding a variety of oscillations, has been -generally maintained to the present time. Not only -does the state of the market mark the value of <i>gold</i> -and <i>silver</i> with reference to other articles; but -there is positively no other base on which the -comparative value between the two metals can -be determined, but the <i>abundance</i> or <i>scarcity</i> of -either.</p> - -<p>The relation between gold and silver is variable -in its nature. In vain has Garnier, the commentator -on Adam Smith, attempted to establish -his position, that the value of gold in ancient times -differed little from its value in our days; and that -it then represented, according to Herodotus, and -under Darius in Persia; and again, during the -time of Plato, in Greece, weight for weight and -purity for purity, about fifteen times the value -of silver. Criticism has not failed to demolish -entirely this ingenious but frail hypothesis. It has -been clearly demonstrated that silver did not hold -in ancient days, the important place it has obtained<span class="pagenum"><a name="Page_9" id="Page_9">[9]</a></span> -in ours, and which has subsequently rendered it -the all-powerful agent of circulation.</p> - -<p>When we seek to examine minutely the various -monetary changes which have occurred, and to -lay hold upon some principle to guide our inquiry, -we quickly recognize the fact, that the difference -in value between gold and silver increases in proportion -to the development of civilization and -industry. It is not without some show of reason, -that mythology, transporting the analogy of the -physical into the moral world, made the age of -silver succeed that of gold. Historically, in fact, -the discovery of and the working of gold preceded -that of silver. Gold is almost always found -either pure or mixed with silver. In searching -the beds of rivers and streams, it has been obtained -by the mere process of washing. This -work is within the reach of the rudest state of -society. It appears like a treasure spread over the -surface of the earth, under the very feet of the -first occupier of the soil. Silver, on the contrary, is -embedded in rocks of primitive formation, and is -seldom found near the surface of the earth; its -extraction requires a combination of science, machinery, -and capital. It is the work of a state of -civilization already far advanced and firmly established.</p> - -<p>In almost every age, whatever its social position, -the use and the value of gold has been known. From<span class="pagenum"><a name="Page_10" id="Page_10">[10]</a></span> -India to Iberia, and from Ethiopia to the Poles, -there is not a race which has not attempted to -discover this source of wealth on its surface. What -country has not had its Pactolus! What Prince or -Satrap has not been a gold collector, like Midas or -Crœsus! The luxuries of ancient monarchs appear -to prove an abundance of metallic treasure, which -has been subsequently unequalled, but the sources of -the supply have faded away in their turn. Dureau de -la Malle observes, that from the death of Alexander, -the golden sands of Asia and Greece appear to have -been exhausted; those of Gaul and Spain seem -to have been abandoned after the fall of the Roman -Empire. Gold has long since disappeared from the -surface of the older inhabited countries; there is -only now to come, in quantities of appreciable -amount, or capable of affecting the circulation, the -produce of those countries which have been unknown -to European commerce, or which have been discovered -in modern times.</p> - -<p>Referring to history, we find that the employment -of silver as money is of no very ancient date, and -that it was introduced as a medium of exchange, -not by conquerors, but by people of industry and -of commerce. It would be sufficient to cite -the Phœnicians, those planters of colonies,—the -Athenians, and the Carthagenians. On the first -discovery of America, silver money was found in -use amongst only two nations holding any political<span class="pagenum"><a name="Page_11" id="Page_11">[11]</a></span> -position—Peru and Mexico. And again, if silver at -a later period has taken the place of gold in circulation, -it has been maintained with more regularity -and permanence. The mines—from wherever it has -been extracted, penetrating into and ramifying -throughout the bowels of the earth,—are almost -inexhaustible. It is thus shewn that the production -of silver is found to continue where that of gold is -at an end, and hence the variations which past experience -has shown to exist in the relative position -of the precious metals.</p> - -<p>The learned researches of Boeckh, Letronne, -Humboldt, Jacob, and Dureau de la Malle have -thrown much light on the causes, and on the importance -of these monetary oscillations. They -agree in the admission, that originally the value of -silver in some countries has equalled, if not exceeded, -that of gold. The laws of <i>Manon</i> state -a value of gold as 2½ times that of silver. M. -Dureau de la Malle considers that between the fifth -and sixth century before our era, everywhere, -excepting in India, the relative value of gold to -silver, had been 6 or 8 to 1, as it was in China and -in Japan at the end of the last century. It has -been found to have been as 10 to 1 in Greece, in -the time of Xenophon, 350 years before the -Christian era; and even 100 years later, the treaty -between Rome and Etolia proves a similar ratio.</p> - -<p>In the present day, the discovery and the working<span class="pagenum"><a name="Page_12" id="Page_12">[12]</a></span> -these new metallic stratifications are the only causes -which can materially change the relative value of -the precious metals. Formerly, conquest, by which -one nation became rich at the expense of another, -or the pillage of those great reservoirs of money -called public treasures, throwing suddenly vast sums -of money into circulation, could not fail to depreciate -either one or other, if not both, of the precious -metals. It was thus that the conquests of Alexander, -opening the gates of the East, inundated the Greek -world with the precious metals, which were lowered -in value by their abundance, and dissipated from -their very excess. After the capture of Syracuse -by the Romans, silver, the foundation of the -treasure they had seized, fell suddenly in price, so -that seventeen pounds of silver were valued at one -of gold. A little later the relative price was as -12 to 1, when Cæsar, having plundered the two -milliards contained in the public chest, so reduced -the value of gold, which then predominated, that -the proportion fell to 9 to 1. Under the Roman -Emperors, the production of gold began to slacken,—the -progress of mechanical science, on the other -hand, gave a constant impetus to the working of -the silver mines of Asia, Thrace, and Spain. The -comparative value of the two metals again changed; -it was as 18 to 1 in the time of Theodosius the -Younger, 412 years after the birth of Christ.</p> - -<p>At the commencement of the fall of the Roman -Empire, in the 4th century, the value of the precious<span class="pagenum"><a name="Page_13" id="Page_13">[13]</a></span> -metals approached that of our own days. The -invasion of the barbarians, in dispersing and dissipating -the accumulated treasures of the West, -destroyed for a time the industry required for their -renewal. Money, on account of its scarceness, -acquired an extraordinary power; the price of -every article fell, or, in other words, the value of -silver rose to a most extraordinary degree. Not -only did the value of money and of the precious -metals increase in that long dark night of the -middle ages, but the relative value between silver -and gold, which had been established by the -progress of industry, again changed. The value -of gold, in relation to other commodities, was preserved -longer than that of silver, owing to its -greater general value, and to its being the less destructible -metal; and also because its supply was fed -by the washings of the golden sands; a fit occupation -for the knowledge and tastes of an ignorant -people. The working of the silver mines, on the -other hand, being a work befitting a civilized and -scientific people, was naturally interrupted, and -languished during a period of spoliation and endless -warfare. Hence, as we may suppose, arose the -scarcity, both relative and absolute, of silver; the -comparison with gold remained at 11 and 12 to 1 -from the 9th to the middle of the 16th century. It -required the excessive and sudden abundance, -springing from the working of the mines of Potosi,<span class="pagenum"><a name="Page_14" id="Page_14">[14]</a></span> -and in Peru, and of Zacatecas in Mexico, to reduce -the proportion to 14 and 15, the average rate at -which it remained in Europe until the end of the -last century.</p> - -<hr class="chap" /> - -<h2>II.</h2> - -<p>A change in the relative production of the precious -metals does not necessarily alter their monetary -value. In order to create an alteration in the relative -values of gold and silver with the quantities -annually produced, the disturbing cause must be of -a somewhat permanent nature. Moreover, it is -necessary to examine, in connection, either with a -greater or less production, the causes which might -add to or diminish these results; such as expenses -in working, the varied wants of consumption, and -the greater or less destruction of coin by wear and -tear, &c.</p> - -<p>Monsieur de Humboldt remarks, that during the -ten years, from 1817 to 1827, there was coined in -Great Britain, above <a name="FNanchor_3" id="FNanchor_3"></a><a href="#Footnote_3" class="fnanchor">[3]</a>1,294,000 marcs of gold; that -is nearly one milliard of francs, and more than -<a name="FNanchor_4" id="FNanchor_4"></a><a href="#Footnote_4" class="fnanchor">[4]</a>100,000,000 francs per annum, without any influence -having been produced by such extensive purchases -on the relation of gold to silver: the proportion,<span class="pagenum"><a name="Page_15" id="Page_15">[15]</a></span> -which was as 1 to 14·97, never exceeded -1 to 15·60; or shewing a rise of not more than 4²⁄₁₀ -per cent. Such was the case when England, which -for above twenty years had had only a paper -circulation, re-established a metallic currency, and -attracted the coin and the bars of gold dispersed -throughout Europe. During these ten years she -absorbed, or nearly absorbed, an amount of gold -which perhaps equalled the production of the whole -world, and certainly exceeded the import of gold, -during that period, into all the great commercial -depots in the civilized world. It would not enter -into our subject to examine at what sacrifices -England made this monetary revival; but the -equilibrium once restored, and the empire of Britain -having placed herself in harmony with the rest -of Europe, it does appear wonderful that it did -not cost more than a premium of 4 per cent. -to have attracted a quantity of gold, probably -equal to the half or one-third of that possessed -by the whole of Europe. And the wonder increases -when we remember, that the Mint of London, which -in 1814, 1815, and 1816, had not coined a single -sovereign, issued at once, in 1825, £9,520,758 sterling -(about 240,000,000 of francs), which must have -been consequently abstracted from trade in the -course of a few months. Political commotions -brought about other variations in the price of the -precious metals. It is well known, that on the news<span class="pagenum"><a name="Page_16" id="Page_16">[16]</a></span> -of the landing of Napoleon in 1815, gold rose 10 -per cent. in London.</p> - -<p>To explain how this sudden collection of gold, -effected by Great Britain with as much perseverance -as vigour, did not bring about a general crisis; -it has been said, and not without reason, that the -quantity of the precious metals now existing in -the shape of money, rendered the oscillations in its -production and supply as money, less sensibly felt. -It should be recollected, that if the metallic values -were so greatly depreciated by the discoveries of -America, this state referred to the existing condition -of Europe, exhausted both of silver and gold. The -difference thus exhibited between the two periods is -very evident; but it does not appear to be sufficient -to account for the facility with which the circulation -may increase in the present day, without affecting the -price of silver or gold. It may be as well to add, that -this movement, which appears to convey life throughout -every artery of commerce, is not fed now solely, -as in olden times, and during the middle ages, by the -precious metals. Metallic money now forms but a -small portion of the total circulation, if we take into -account the mass of bank notes, bills of exchange, -drafts and bankers’ cheques, which complete the -amount of a circulating medium of exchange; this, -at the present day, taken as a whole, is something -almost indefinite: it appears to defy all calculation; -and we might almost say that the excess in the production<span class="pagenum"><a name="Page_17" id="Page_17">[17]</a></span> -of gold and silver now need not necessarily -produce more influence than the waves of the sea -on the permanent level of the ocean.</p> - -<p>At the same time that the depreciation of gold -and silver under any general form becomes less -probable, the increasing facility of communication, -and the greater mutual dependence of nations in -matters of credit, renders any great local difference -in the value of money more improbable. Whenever -the precious metals become in excess in one -country, the surplus quickly reaches its neighbour. -Let a sudden scarcity of food, or any other cause, -create a drain of specie, the consequently increased -value of money will soon draw back that which -has been exported. The cost of transport, and -the premium of insurance of gold, are the limits -of the variations in the rates of exchange; and -the charges are being diminished every day, thanks -to railroads and steam communications. Before -the wonderful progress in the development of -industry from the commencement of the nineteenth -century, we have seen the changes occurring -at different periods, in the relative production of -the precious metals, without any corresponding -alteration in their relative values. At the close -of the fifteenth century, it is true, that America, -furnishing nothing but gold, and this metal having -accumulated in Spain, Queen Isabella of Castile -was forced to alter the relative standard of gold<span class="pagenum"><a name="Page_18" id="Page_18">[18]</a></span> -and silver. After the first half of the 16th -century, the production of gold having ceased to -preponderate, and silver being imported in great -abundance, the value of the inferior metal underwent -such a depreciation, that the governments of -Europe, yielding to the force of circumstances, -changed its relative legal value; but with these two -exceptions in the monetary laws, one purely local, -and the other European, we observe the production -of each metal extend and diminish alternately, -without any relative alteration in value of sufficient -importance to attract public attention.</p> - -<p>“From the year 1645 to the commencement -of the 18th century,” says M. Michel Chevalier,<span class="pagenum"><a name="Page_19" id="Page_19">[19]</a></span> -“silver took the lead in a most remarkable manner. -Then occurred the bright days of the mines in -Potosi, and the production of silver exceeded that -of gold, weight for weight, in the proportion of 60 -to 1; after that, and without any diminution in the -produce of silver, came the glorious time for the -Brazilian gold mines. Simultaneously appeared -the auriferous regions of Chico, Antioguia, and -Pepayou. The commercial world received from -America 1 kilogramme <a name="FNanchor_5" id="FNanchor_5"></a><a href="#Footnote_5" class="fnanchor">[5]</a>of gold for every 30 kilogrammes -of silver. Thus passed the middle of the -17th century. Then the silver mines of Mexico -put forth all their splendour, and the proportion -increased to 40 to 1. The Brazilian mines began -to diminish, whilst those of Mexico continued to -increase in production; and, at the beginning of -the next century, silver exceeded gold in the proportion -of 57 to 1. In 1846 the production of silver -still continued to predominate, and we are now at -the proportion again of about 40 to 1.”</p> - -<p>Humboldt’s calculations differ but little from -those of M. Michel Chevalier. This great authority -considers that the import of gold until the first years -in the 18th century, bore the proportion to silver -of 1 to 65. Let either of these suppositions be -true, there can be little doubt, that the relative -weight of supply of the two metals varied by one -half, without any serious alteration in their relative -price; which surely proves that gold was essentially -required, and that the increase of production -did but fill up the gap, which, as far as the 18th -century, the progress of civilization and of luxury -had created, without an adequate means of supply.</p> - -<p>In ancient times, the relative value of the two -metals appears to have been almost entirely -governed by the quantities produced and brought -to market. A pound of gold was worth eight or -ten pounds of silver, according as the quantity -brought to market varied in the like proportion.<span class="pagenum"><a name="Page_20" id="Page_20">[20]</a></span> -The simplicity of commercial interests, in a state -of society when neither luxurious arts or industry -were thought of, offered no inducements for the collection -of gold or silver for their use as money, -excepting on account of their relative scarcity; -but when fighting ceased to be the principal occupation -of mankind, and labour began to be held in -some estimation, an end was put to this patriarchal -state: if the people lost their primitive simplicity, -the relation of supply and demand no longer depended -exclusively on the proportionate production -of the two metals; other causes affecting a rise and -fall began to operate on prices.</p> - -<p>When the precious metals were nearly absorbed -in the supply of money, their commercial value had -no other element to influence an alteration than -the requirements of circulation; the monetary value -governed the commercial price. But, at the present -time the contrary is the case: the greater the degree -of civilization, and the greater the increase of a -taste for luxuries, the more does the demand for -the precious metals for other objects exceed the -want of them for coin. Mr. Jacob, whose work -on the precious metals appeared in 1831, places -a value of <a name="FNanchor_6" id="FNanchor_6"></a><a href="#Footnote_6" class="fnanchor">[6]</a>149,000,000 francs on the gold and silver -annually used for articles of jewellery and plate in -Europe and America.</p> - -<p><span class="pagenum"><a name="Page_21" id="Page_21">[21]</a></span></p> - -<p>During the last twenty years the progress of -luxury amongst the industrious and commercial -nations of the world has been enormous. The -moveable wealth of France and England has made -prodigious accumulations. What family is there so -poor as not to have some article of plate? Gilding -is no longer confined to the decorations of temples -and palaces; it is found in the most humble cottage. -To what a length may it not reach if the taste -should increase for gilding the dresses of ladies, and -for covering the uniforms of our men with gold or -silver lace?</p> - -<p>On the whole, then, it appears that the demand -for gold and silver, as articles of commerce, is likely -to exceed the demand for the precious metals solely -for use as money. This is a new point; and -we must not lose sight of it in endeavouring to -appreciate the effect which an increase or diminution -in the production of the precious metals may -have, both on their price and on their relative -value.</p> - -<p>Without noting the variations which have occurred -from one century to another, in the production -and in the importation of gold and silver, in -order to recapitulate the quantities of the precious -metals which America has poured into the European -markets in 318 years, from the discovery of -Hispaniola to the revolution in Mexico, M. de -Humboldt considers the production of gold to have<span class="pagenum"><a name="Page_22" id="Page_22">[22]</a></span> -been <a name="FNanchor_7" id="FNanchor_7"></a><a href="#Footnote_7" class="fnanchor">[7]</a>2,381,600 kilogrammes, and that of silver -<a name="FNanchor_8" id="FNanchor_8"></a><a href="#Footnote_8" class="fnanchor">[8]</a>110,362,222 kilogrammes: making a total value of -about <a name="FNanchor_9" id="FNanchor_9"></a><a href="#Footnote_9" class="fnanchor">[9]</a>32 “milliards” of francs: the weight of gold -imported represents about ¹⁄₄₇th of that of silver. -It does not appear probable, that the produce of -gold in other parts during these three centuries has -materially altered these proportions. Admitting that -when first the Mexican revolution retarded the -working of their silver mines, the amount of coined -money throughout Europe represented a value of <a name="FNanchor_10" id="FNanchor_10"></a><a href="#Footnote_10" class="fnanchor">[10]</a>8 -“milliards” of francs, of which <a name="FNanchor_11" id="FNanchor_11"></a><a href="#Footnote_11" class="fnanchor">[11]</a>6 “milliards” were -in silver, and <a name="FNanchor_12" id="FNanchor_12"></a><a href="#Footnote_12" class="fnanchor">[12]</a>2 “milliards” in gold, the relative -quantity in weight would still have been as 47 to 1; -and yet the relative monied value, thirty years since, -varied in Europe between 1 to 14½, and 1 to 15¾. -Thus, in the value of the precious metals, the difference -was three times less than in their weight.</p> - -<p>Nothing is more difficult in matters relating to -money than to present statistics which may be -considered as an approximation to truth. It would -appear that as gold and silver are used as the denominators -of value, generally, throughout the world, -all the phenomena connected with their production -and circulation ought to be noted with the greatest -precision: they ought to be the points to which the<span class="pagenum"><a name="Page_23" id="Page_23">[23]</a></span> -attention of statisticians should be “<i>par excellence</i>” -directed. What can be more important, in an economical -point of view, than to establish a regular -scale, indicating the rapidity of every movement -connected with the subject, and acting as a gauge -of its extent?</p> - -<p>Divers causes appear, however, hitherto to have -prevented such a desideratum. In the first place, -gold and silver producing countries have generally -been in a rude state of civilization; and as unable -to apply rules for the public weal, as to employ -machinery to aid their industry. Thus, even in the -registry in Mexico under the Spanish rule, of all -the money coined at their mint, and for ascertaining -the amount produced in the mines by the proportion -of the tax due to government, which ought -to be levied thereon by the hundred-weight,—it is -absolutely necessary to take into account all that -quantity which escapes the vigilance of the tax-collector, -and which is either sent into the interior, -or exported clandestinely.</p> - -<p>What is the sum of the precious metals really -produced at any given time? What is the proportion -of such production which, when exported, -acts as a regulator of the prices in Europe? How -are the channels formed which sometimes direct -the stream of commerce towards the east, and -sometimes towards the west, in the distribution -of the metallic wealth of the world? All such<span class="pagenum"><a name="Page_24" id="Page_24">[24]</a></span> -problems, as regards the past, must probably remain -unsolved. The enquiry becomes more easy when -referring to our own times; but even then large -allowances for incorrectness of data must necessarily -be made.</p> - -<p>At the beginning of this century, according to -M. de Humboldt, gold and silver were imported -annually into Europe in the relative proportions of -about 1 to 55; that is, <a name="FNanchor_13" id="FNanchor_13"></a><a href="#Footnote_13" class="fnanchor">[13]</a>15,800 kilogrammes of gold -to <a name="FNanchor_14" id="FNanchor_14"></a><a href="#Footnote_14" class="fnanchor">[14]</a>869,960 kilogrammes of silver. M. Michel Chevalier, -stating, not the import but the production, -calculates it at <a name="FNanchor_15" id="FNanchor_15"></a><a href="#Footnote_15" class="fnanchor">[15]</a>23,700 kilogrammes of gold against -<a name="FNanchor_16" id="FNanchor_16"></a><a href="#Footnote_16" class="fnanchor">[16]</a>900,000 kilogrammes of silver, or in the proportion -of 1 to 38; but the gold of Africa and Asia, comprised -in this statement, never really found its way -into European markets except in the smallest quantities, -and in such amounts as could have no appreciable -influence on the commercial prices of the -metals. From 1810 to 1830, according to Mr. -Jacob, the produce of America diminished by one -half. As the reduction refers principally to silver, -that is to say, to those mines which required both -capital and labor, it is fair to assume that, at least -during the first part of this period, the relative -proportion of gold to silver would have increased; -but we have no means of verifying figures which<span class="pagenum"><a name="Page_25" id="Page_25">[25]</a></span> -appear to justify what would otherwise rest solely -on the analogy of the case.</p> - -<p>In 1847, when the general working of the -auriferous region of the Oural Mountains was at -its meridian, M. Chevalier considers the annual -production of gold throughout the world to have -been <a name="FNanchor_17" id="FNanchor_17"></a><a href="#Footnote_17" class="fnanchor">[17]</a>63,250 kilogrammes, and that of silver -<a name="FNanchor_18" id="FNanchor_18"></a><a href="#Footnote_18" class="fnanchor">[18]</a>875,000 kilogrammes. This would be <a name="FNanchor_19" id="FNanchor_19"></a><a href="#Footnote_19" class="fnanchor">[19]</a>25,000 -kilogrammes <i>less</i> of silver, and <a name="FNanchor_20" id="FNanchor_20"></a><a href="#Footnote_20" class="fnanchor">[20]</a>30,000 kilogrammes -<i>more</i> of gold, than at the beginning of the century. -At these figures gold stands in reference to silver -as 1 to 14. The return from these gold regions -appears to have been greatly over-estimated. I find -in a table, published in the “<i>Times</i>” of May, 1852, -statements which appear to be founded on correct -data, and which bring the production of gold up to -42,800 kilogrammes—that is, to <a name="FNanchor_21" id="FNanchor_21"></a><a href="#Footnote_21" class="fnanchor">[21]</a>147,400,000 francs.</p> - -<p>This result, then, is remarkable. The 17th century -produced 1 lb. of gold to 60 lb. of silver. In the -18th century the production was as 1 lb. to 30 lbs. -At the beginning of the 19th century silver was -again abundant, and appeared in quantity as 1 to 50. -Towards the year 1847 the production of gold again -increased, and the relative proportions were as 1 to -20. The development of the Siberian mines, which<span class="pagenum"><a name="Page_26" id="Page_26">[26]</a></span> -has so materially changed the relative production of -the two metals, has produced no sensible alteration -in price. Will it be the same with the wonderful -discoveries in California and Australia? To solve -this question, it will be desirable to examine accurately -the actual state of the production of gold and -silver throughout the world.</p> - -<hr class="chap" /> - -<h2>III.</h2> - -<p>Before entering into this inquiry, it may be -worth while to examine a circumstance of late -occurrence, relating to monetary statistics, which -has given rise to some discussion, but which has -not yet been explained; I allude to the fall in the -price of gold, and the corresponding rise in that of -silver, throughout Europe, towards the end of 1850 -and the beginning of 1851.</p> - -<p>At that period Russia had rather less gold than -usual to exchange against the produce of the West; -and since 1847 the working of the Altai mines had -been on the decline: at all events, the government did -not appear inclined to allow gold to be exchanged; -for in 1848 and 1849 its export had been forbidden. -In 1850 the state of the exchanges did not admit -of an export of gold, and a part of the 4½ per cent. -loan, contracted at that period by the Cabinet of St. -Petersburg, was remitted to Russia, both in gold<span class="pagenum"><a name="Page_27" id="Page_27">[27]</a></span> -and silver, from England. Doubtless, in spite of -the prohibition, Russian gold found its way into -other parts of Europe; it was calculated that -between 1849 and the first few months of 1850, -the great commercial towns in Western Europe -must have received from <a name="FNanchor_22" id="FNanchor_22"></a><a href="#Footnote_22" class="fnanchor">[22]</a>60,000,000 to <a name="FNanchor_23" id="FNanchor_23"></a><a href="#Footnote_23" class="fnanchor">[23]</a>70,000,000 -francs from Russia; but this was not equivalent to -the large sums paid for grain imported from Odessa -and Riga during the famine of 1846-1847. There -could have been no real increase in the metallic -reserves of Western Europe during that period.</p> - -<p>The same remark will hold good towards America. -The import of gold thence in 1849 and 1850 could -not have done more than replace the gold coin -exported to the United States two years earlier, in -payment of bread stuffs and salt provisions. A -proof of this will be found by examining the official -reports of the mints of the United States. These -mints, which from the year 1834—that is, since the -working of the gold fields of Carolina, had coined -gold at the average rate of 2,500,000 dollars -(<a name="FNanchor_24" id="FNanchor_24"></a><a href="#Footnote_24" class="fnanchor">[24]</a>13,500,000 francs) per annum, in 1847 put into -circulation about 20,000,000 dollars (<a name="FNanchor_25" id="FNanchor_25"></a><a href="#Footnote_25" class="fnanchor">[25]</a>104,000,000 -francs). At that time Californian gold was unknown: -the rich “<i>placers</i>” of that country did not begin -to kindle the gold fever, first in America, and<span class="pagenum"><a name="Page_28" id="Page_28">[28]</a></span> -subsequently in Europe, until 1848. Californian -gold, before it found its way to the Old World, -had to supply the wants of the New. It is -exported thence in the shape of eagles and double -eagles, bearing the stamp of the Republic. In -1848 the coined gold in the United States did -not amount to <a name="FNanchor_26" id="FNanchor_26"></a><a href="#Footnote_26" class="fnanchor">[26]</a>4,000,000 dollars, and it did not -exceed <a name="FNanchor_27" id="FNanchor_27"></a><a href="#Footnote_27" class="fnanchor">[27]</a>9,000,000 in 1849. With this small supply -an export could not be expected. In 1850 the -Californian stream began to flow, and the mint -of the United States, having received gold dust -and bars to the extent of <a name="FNanchor_28" id="FNanchor_28"></a><a href="#Footnote_28" class="fnanchor">[28]</a>40,000,000 dollars, coined -<a name="FNanchor_29" id="FNanchor_29"></a><a href="#Footnote_29" class="fnanchor">[29]</a>32,000,000 (about 171,000,000 francs.) Supposing -that the bulk of this coin had been exported to -Europe, such a supply would but have restored -the loss in the circulating medium which had occurred -in 1846. We had exchanged our gold -against grain; it was returned to us against the -silks, wines, and other articles from France. The -monetary disturbance of 1850 must not therefore -be set down to the score of an excess of imports: -the rich supplies from Siberia and California -could then only have acted prospectively. -The real cause is to be found in the measures -hastily and somewhat rashly adopted by various -European governments. To prevent future evil<span class="pagenum"><a name="Page_29" id="Page_29">[29]</a></span> -they created immediate mischief; and, in order to -shelter themselves from the risk of a future depreciation -of gold, they directly produced it.</p> - -<p>The crisis of 1850, thus examined, explains -itself. On the one hand, silver, being annually -taken out of the market by circulation, was not -to be met with for other demands; on the other -hand, gold, excluded by some governments from -their circulation, flowed to those countries where it -was still used as legal coin, and produced there, at -least, a temporary superabundance. Then occurred -the fall in the price of gold, and the rise in the price -of silver; which together shewed a divergence of -8 per cent. between their former relative prices.</p> - -<p>The explanation we have endeavoured to give -appears to become clearer as we investigate -further into the subject. Let us first examine the -facts relating to the scarcity of silver. England, -the principal market of Europe for the precious -metals, witnessed, in 1850, a reduction of about -<a name="FNanchor_30" id="FNanchor_30"></a><a href="#Footnote_30" class="fnanchor">[30]</a>27,000,000 francs in the ordinary import. This -applied principally to silver. Remittances from -India, generally about <a name="FNanchor_31" id="FNanchor_31"></a><a href="#Footnote_31" class="fnanchor">[31]</a>20,000,000 fr., were almost -completely stopped; those from Turkey and Spain -were materially diminished. At the same time about -£1,000,000 sterling was required to be shipped to -India, and remittances were made by Messrs. Baring<span class="pagenum"><a name="Page_30" id="Page_30">[30]</a></span> -to St. Petersburg of <a name="FNanchor_32" id="FNanchor_32"></a><a href="#Footnote_32" class="fnanchor">[32]</a>8,000,000 to <a name="FNanchor_33" id="FNanchor_33"></a><a href="#Footnote_33" class="fnanchor">[33]</a>10,000,000 -francs more, in silver. Germany and Holland required -more than their usual supply. The -Société Maritime of Berlin had imported silver to -the extent of <a name="FNanchor_34" id="FNanchor_34"></a><a href="#Footnote_34" class="fnanchor">[34]</a>3,000,000 or <a name="FNanchor_35" id="FNanchor_35"></a><a href="#Footnote_35" class="fnanchor">[35]</a>4,000,000 thalers; so -that, altogether, the import into England, having -diminished in 1850 to the extent of about £1,000,000 -sterling, the export had been in excess by about -double that amount; reducing the metallic reserve -by about <a name="FNanchor_36" id="FNanchor_36"></a><a href="#Footnote_36" class="fnanchor">[36]</a>75,000,000 francs. In addition to which, -Spain and Russia, having prohibited the export -of silver, the exchanges with those countries could -hardly be operated upon effectively by the transmission -of this kind of specie. It is easy, then, -to conceive, that where no modification of the -monetary laws had taken place, the premium on -gold passed to a premium on silver.</p> - -<p>This will explain the reason for at least a -temporary abundance and depression in the price -of gold, especially on the gold market of Paris. -There is no ground for imputing the change to -California, from whence the supplies were of little -moment, until the end of December, 1850. England -so far had only received silver from the United -States, and the Californian gold, which had found<span class="pagenum"><a name="Page_31" id="Page_31">[31]</a></span> -its way by Panama, during the year, did not -exceed, according to official returns, £682,000, -or 17,050,000 francs. The Mint in London did -not coin gold to a greater extent in 1850 than -£1,492,000, or 37,300,000 francs, which is conclusive -against any very large importation.</p> - -<p>The market of Paris might have experienced -a superabundance of gold, in consequence of the -demonetization of gold coin in Spain and Portugal, -and by the influx of Belgian and other foreign gold -coin which had been circulating in Belgium; and -it should be added, that England imported into -France, for the payment of railway shares, probably -to the extent of £1,000,000 sterling; but -the predominating cause of the depreciation was -undoubtedly the demonetization of gold in Holland, -for that step had the immediate effect of cancelling -at once the value of the gold coin there in circulation, -and of throwing simultaneously an amount -of gold on the commercial market, almost equal -to the whole of the annual quantity of gold produced -in California.</p> - -<p>From 1816 to 1847 Holland had followed the -example of France in admitting a double monetary -standard. Gold and silver were both received in -legal payment. The law of November 26th, 1847, -altered this state of things; one standard only was -allowed, and the silver florin of 3 grammes 450 -milligrammes fineness, became the monetary unit:<span class="pagenum"><a name="Page_32" id="Page_32">[32]</a></span> -this simplification of the national coin, however, -was adopted in theory only; the application of -the system was postponed.</p> - -<p>The article 23 of the law decreed, that before -December 31st, 1850, other legislative arrangements -should be enacted concerning the gold coins of five -and ten florins, but that till these new arrangements -were carried out, the gold coin should continue in -legal circulation. The Dutch government might, -therefore, retain the legal circulation of the gold -coin, by applying to the States-General to prolong -the period of the law of November 26th, 1847; but -it preferred to carry out the system to its fullest -extent. On August 6th, 1849, the government -laid before the Assembly, the scheme of a law -to “demonetize” the pieces of five and ten florins, -and leaving to the administration the moment for -its execution. At the same time the government -demanded authority for the issue of notes to the -amount of <a name="FNanchor_37" id="FNanchor_37"></a><a href="#Footnote_37" class="fnanchor">[37]</a>30,000,000 florins, to buy in the gold -coin, which although not in legal circulation, might -yet continue to serve as payment at its conventional -value.</p> - -<p>In the “<i>Exposé des Motifs</i>,” the Minister of Finance, -M. Van Hall, acknowledged that the depreciation -of gold would not be immediate. “We must examine -the question,” he said, “in order to know<span class="pagenum"><a name="Page_33" id="Page_33">[33]</a></span> -whether the proportionate value of gold and silver -has undergone much variation in consequence of -the discovery of the Californian mines. The government -is of opinion that as yet this is not the case. -In fact, a document communicated to the Assembly -proves that the proportion between gold and silver -of 1 to 15·60 has been found to exist but once. -Sixty-eight quotations of the Exchange of Paris -mark the price of gold higher, and only four lower -than this proportion; at the Exchange at Amsterdam, -we find fifty-five quotations above, and fifteen only -below. For the present there is no fear of too much -gold being imported for the purpose of exporting -silver. It should also be observed, that the high -price of gold in France has latterly been occasioned -by political events.</p> - -<p>“It is well known that the price of gold in -Holland is regulated by the exchange on London. -If England sends more gold to the Continent than -she receives from it, then the rate of exchange -on London rises, and gold is obtainable only at an -agio. On the contrary, if England receives from -the Continent more gold than she exports, the exchange -on London is low in Holland, and gold is -plentiful. Peculiar circumstances may of course -modify these general rules; for instance, it is possible -that England may have payments to make in Holland -greater than Holland has in England, while -the case is the reverse between England and the<span class="pagenum"><a name="Page_34" id="Page_34">[34]</a></span> -other countries of Europe; then the state of exchange -in those countries would naturally react upon -ours.</p> - -<p>“It often happens that other circumstances occur -seeming to contradict these principles. Thus in -August last (1849), pieces of ten florins were in -demand in Holland for foreign remittances, although -the price of bar gold was only at 1¾ per cent. agio. -Again, the influence of the state of exchange on -the importation of gold may recently have been -observed; not long ago, gold was exported from -England to the United States at the very moment -that gold was supposed to be arriving from America -in great quantities.” I have repeated at full length -these remarkable admissions, to prove that the Dutch -government was not arming itself against a pressing -or even nearly approaching danger, and that -their precautions were not even taken with foresight. -To theoretical errors were added practical -faults; the Minister of Finance had not measured -the importance of the operation with sufficient -accuracy; he estimated the amount of gold coin -in Holland at <a name="FNanchor_38" id="FNanchor_38"></a><a href="#Footnote_38" class="fnanchor">[38]</a>96,500,000 florins; it proved to be -<a name="FNanchor_39" id="FNanchor_39"></a><a href="#Footnote_39" class="fnanchor">[39]</a>172,000,000 florins.</p> - -<p>The law was voted on September 17th, 1849, and -the government received the full power they had -demanded. A royal command appeared on June<span class="pagenum"><a name="Page_35" id="Page_35">[35]</a></span> -9th, for the execution of the measure. The following -are the principal articles: “1st. The pieces of -ten and five florins shall cease to be in circulation -as legal payment from Sunday, June 23rd, 1850, -but they may continue to be employed in commerce: -that is to say, that these coins may be accepted -in payment at a conventional value. 2nd. These -coins shall be received in payment by government, -and by the collectors of the revenues of -the kingdom, at their nominal value, till July 31st, -1850, inclusive.”</p> - -<p>At the time this notice was published, it appeared -that the exchange of gold for bank-notes -would take place under the most favourable auspices. -Gold was at a tolerably high premium in the market -of Amsterdam, bills of exchange on foreign countries -were scarce, and consequently the payments of -international commerce could very advantageously -be made in the precious metals. Moreover, the -government treasury was full, and the Netherlands -bank declared itself ready to assist efficiently in the -operation. But all these chances of success were -destroyed by the precipitancy of the government. -A complete panic was occasioned by the short -period granted to the holders of gold coin: the -people hastened to pour their gold into the state -treasury, (which could not receive it all) or else to -send it abroad. The government had imagined -that the sum likely to be exchanged, would no<span class="pagenum"><a name="Page_36" id="Page_36">[36]</a></span> -exceed <a name="FNanchor_40" id="FNanchor_40"></a><a href="#Footnote_40" class="fnanchor">[40]</a>30,000,000 florins: they had miscalculated -by two-fifths; for the sum amounted to <a name="FNanchor_41" id="FNanchor_41"></a><a href="#Footnote_41" class="fnanchor">[41]</a>50,000,000 -florins. The 30,000,000 of paper money that they -had been authorized to issue, together with the -money in the treasury at their disposal, not being -sufficient to pay for the amount of gold presented, -they were obliged to have recourse to the bank of -the Netherlands, and to borrow a sum of <a name="FNanchor_42" id="FNanchor_42"></a><a href="#Footnote_42" class="fnanchor">[42]</a>6,500,000 -florins, at an interest, moderate it must be admitted, -of 2½ per cent. per annum.</p> - -<p>The exchange being effected, it was necessary for -the government to find a means of disposing of the -gold withdrawn from circulation. It could be sold -only in foreign markets; and there, private industry -had forestalled the government, and the price of -gold had fallen in consequence of the number of -Guillaumes brought for sale. At first the Dutch -government suffered only a small loss, owing to -a momentary reaction in favour of gold coin; but -the first sales having increased the depreciation, they -were obliged, for fear of greatly adding to their loss, -to stop after having disposed of <a name="FNanchor_43" id="FNanchor_43"></a><a href="#Footnote_43" class="fnanchor">[43]</a>21,836,000 florins: -the loss then amounted to <a name="FNanchor_44" id="FNanchor_44"></a><a href="#Footnote_44" class="fnanchor">[44]</a>244,446 florins, being -about 1¹²⁄₁₀₀ per cent. By the middle of October, -gold had fallen in value 2½ per cent. below the legal<span class="pagenum"><a name="Page_37" id="Page_37">[37]</a></span> -price, and by the middle of December, 4 per cent. -At this period, the pieces of five and ten florins, -banished from Holland, were scattered about in -the different markets of Europe: London had received -them to the amount of £600,000; Paris to -the amount of <a name="FNanchor_45" id="FNanchor_45"></a><a href="#Footnote_45" class="fnanchor">[45]</a>63,000,000 francs; Germany had -absorbed the rest: excepting from <a name="FNanchor_46" id="FNanchor_46"></a><a href="#Footnote_46" class="fnanchor">[46]</a>28,000,000 to -<a name="FNanchor_47" id="FNanchor_47"></a><a href="#Footnote_47" class="fnanchor">[47]</a>29,000,000 florins, still lying unsold in the treasury -of the Netherlands.</p> - -<p>The Guillaumes have continued to be melted -and coined, in Paris, into 20 and 40 franc pieces; -for I find in an official record furnished me by the -President of the Mint, that Dutch coin was exchanged -at Paris in the last six months of 1850, to -the amount of <a name="FNanchor_48" id="FNanchor_48"></a><a href="#Footnote_48" class="fnanchor">[48]</a>40,934,053 francs; and in the first -six months of 1851, to the amount of <a name="FNanchor_49" id="FNanchor_49"></a><a href="#Footnote_49" class="fnanchor">[49]</a>70,901,597 -francs,—altogether <a name="FNanchor_50" id="FNanchor_50"></a><a href="#Footnote_50" class="fnanchor">[50]</a>111,835,650 francs.</p> - -<p>The gold coinage of Holland, from 1816 to 1847, -was 172,583,955 florins, equal to <a name="FNanchor_51" id="FNanchor_51"></a><a href="#Footnote_51" class="fnanchor">[51]</a>362,000,000 -francs. Supposing that of this only two-thirds -was in existence in this shape of coin in 1850, -there would be 115,000,000 florins, or <a name="FNanchor_52" id="FNanchor_52"></a><a href="#Footnote_52" class="fnanchor">[52]</a>236,000,000 -francs, all at once withdrawn from circulation, -and thrown upon the gold market: is it possible<span class="pagenum"><a name="Page_38" id="Page_38">[38]</a></span> -that the price of gold could be otherwise than -affected? The gold thus suddenly demonetized -equalled at least twice the annual produce of the -world, previous to the discovery of California. -The Mint of Paris alone, which had not struck -above <a name="FNanchor_53" id="FNanchor_53"></a><a href="#Footnote_53" class="fnanchor">[53]</a>27,000,000 francs in gold during the year -1849, coined <a name="FNanchor_54" id="FNanchor_54"></a><a href="#Footnote_54" class="fnanchor">[54]</a>85,000,000 in 1850, and <a name="FNanchor_55" id="FNanchor_55"></a><a href="#Footnote_55" class="fnanchor">[55]</a>269,000,000 -in 1851.</p> - -<p>Fortunately, the crisis was of short duration; the -gold coined in Paris rapidly flowed either towards -Piedmont, to pay the first instalment of their loan, or -to Milan to pay for silks bought by Lyons and St. -Etienne. Credit is at a low ebb in Italy, there is -little paper circulation, tending to simplify accounts, -and taking the place of specie in the adjustment of -debts; gold is therefore always in demand, and the -supply was speedily absorbed. Certainly, the apprehensions -of the Dutch Government have proved -hitherto groundless, and the desired object has been -but partially attained: silver, having become the -sole standard, has found its way (somewhat in excess) -throughout the country, but the loss of gold -coin has given rise to a small note paper-circulation: -there is now a paper money of 10 and 5 florins -(21 francs and 10½), which, although at first but -provisionally issued, will probably become permanent<span class="pagenum"><a name="Page_39" id="Page_39">[39]</a></span> -circulation. Holland is following the steps -of Prussia and Austria. The Dutch Government -supposed that, notwithstanding the demonetization -of gold, the coinage might remain in circulation, and -be voluntarily accepted for its <i>intrinsic</i> value. This -was a misconception of the nature of money, which -is accepted as a circulating medium only on account -of its <i>positive</i> value. As might have been anticipated, -gold has ceased to circulate in Holland, and -paper has taken its place. It is doubtful whether -the nation has gained by the change.</p> - -<p>We think we have sufficiently considered the -subject of the fall in price of gold in 1850. During -the last eighteen months the production of this -metal has made immense progress. The crisis, -which was then imaginary, may have taken a more -serious turn, and may become hereafter a reality. -This we will now examine.</p> - -<hr class="chap" /> - -<h2>IV.</h2> - -<p>The three great gold districts, which have lately -grown into importance, are, the chain of the Oural -and Altai Mountains, California, and its extensions -to Sonora and Oregon, and the eastern and -southern districts of Australia; let us consider each -in its order.</p> - -<p><span class="pagenum"><a name="Page_40" id="Page_40">[40]</a></span></p> - -<p>The washings of the Russian streams first aroused -public attention from the languor into which the -question of gold-working had fallen. The deposits -of the Oural, where the first discoveries were made, -never gave any extraordinary results; the workings -appeared almost impracticable above the 60th degree -of latitude, and although begun on a great -scale above half a century ago, they have remained -almost stationary for the last fifteen years; the -annual returns, divided about equally between the -government and private individuals, scarcely exceeded -<a name="FNanchor_56" id="FNanchor_56"></a><a href="#Footnote_56" class="fnanchor">[56]</a>5,000 kilogrammes.</p> - -<p>The Altai gold district was in a very different -position; in spite of the rigour of an inhospitable -climate, and the difficulties experienced from any -work of labour with a scanty population, the development -of produce was extremely rapid. Begun -in 1828, the result, after the first eight years, was -<a name="FNanchor_57" id="FNanchor_57"></a><a href="#Footnote_57" class="fnanchor">[57]</a>1,722 kilogrammes, but from that time it increased -in a geometrical proportion; it rose to <a name="FNanchor_58" id="FNanchor_58"></a><a href="#Footnote_58" class="fnanchor">[58]</a>4,000 kilogrammes -in 1840, to <a name="FNanchor_59" id="FNanchor_59"></a><a href="#Footnote_59" class="fnanchor">[59]</a>10,000 in 1842, and exceeded -<a name="FNanchor_60" id="FNanchor_60"></a><a href="#Footnote_60" class="fnanchor">[60]</a>20,000 in 1847.</p> - -<p>The year 1847 appears to have been the culminating -point of the position of gold in Russia. The -“<i>Administration des Mines</i>” report a produce of<span class="pagenum"><a name="Page_41" id="Page_41">[41]</a></span> -<a name="FNanchor_61" id="FNanchor_61"></a><a href="#Footnote_61" class="fnanchor">[61]</a>1744 pouds, or <a name="FNanchor_62" id="FNanchor_62"></a><a href="#Footnote_62" class="fnanchor">[62]</a>28,521 kilogrammes, as the combined -working of the Oural and Altai; admitting that -one-fifth of the produce escaped the government tax, -the result of the gold produce of 1847, would be at -least <a name="FNanchor_63" id="FNanchor_63"></a><a href="#Footnote_63" class="fnanchor">[63]</a>110,000,000 francs. From that time the decrease -has been continuous. The official reports of -1848, give the figures at 1,726 pouds, or <a name="FNanchor_64" id="FNanchor_64"></a><a href="#Footnote_64" class="fnanchor">[64]</a>28,252 -kilogrammes; 1592 pouds, or <a name="FNanchor_65" id="FNanchor_65"></a><a href="#Footnote_65" class="fnanchor">[65]</a>26,077 kilogrammes in -1849; 1485 pouds, or <a name="FNanchor_66" id="FNanchor_66"></a><a href="#Footnote_66" class="fnanchor">[66]</a>124,324 kilogrammes in 1850; -and 1,432 pouds, or <a name="FNanchor_67" id="FNanchor_67"></a><a href="#Footnote_67" class="fnanchor">[67]</a>78,000,000 francs in 1851. It -is to be observed that the reduction refers exclusively -to Siberia, east and west; not only has the activity of -the workings in the Oural been undiminished, but it -has slightly increased: the produce of 1849 was 342 -pouds, being <a name="FNanchor_68" id="FNanchor_68"></a><a href="#Footnote_68" class="fnanchor">[68]</a>244 kilogrammes more than in 1845.</p> - -<p>The decrease of production appears to have been -principally caused by excessive taxation. The -working of the Siberian gold districts is divided -between the Government and private owners, and in -the division, the eastern side of the mountains has -been retained by the former, whilst the latter have -worked the western. The result has been an immense -loss to the public treasury, for whilst two-fifths of<span class="pagenum"><a name="Page_42" id="Page_42">[42]</a></span> -the washings of the Oural are from the government -reserves, the Altai districts do not yield above 5 -to 6 per cent. of this produce. The Russian government -has endeavoured to collect by taxation what -is lost either by abstraction or the washings. The -tax was at first one-tenth of the net produce; it -was then raised to 15 per cent., and has since been -further increased. The new tax, however, only -applies to Siberia, east and west. It is a progressive -rate, divided amongst ten classes, the rate -varying from 5 per cent. on the raw produce, when -the working was from one to two pouds, up to 32 -per cent. when the working amounted to 50 pouds -per annum. The whole tax, however, was, in -addition to another tax called “minier,” also progressive, -and varying, according to class, from four -to <a name="FNanchor_69" id="FNanchor_69"></a><a href="#Footnote_69" class="fnanchor">[69]</a>ten roubles per pound of gold.</p> - -<p>These exorbitant taxes may have acted in two -ways, either as an encouragement to fraud, or as a -discouragement to production. At the distance at -which we live from Siberia, a country where the -light of public opinion has penetrated even less than -the rays of the sun, it is difficult to decide between -these two consequences, both perhaps equally probable. -But the fact of the decrease remains undoubted, -and this decrease has been to the extent of one-seventh -in three years, or about <a name="FNanchor_70" id="FNanchor_70"></a><a href="#Footnote_70" class="fnanchor">[70]</a>4,000 kilogrammes.</p> - -<p><span class="pagenum"><a name="Page_43" id="Page_43">[43]</a></span></p> - -<p>The working of the gold regions of Siberia has -not been of the democratic character which it has -assumed in California and Australia. There the -first comer, provided he were furnished with a -pickaxe, a bowl, a cradle, and a small store of provisions, -might, without further capital, pitch his tent -over some square yards of land, and dig until he -has made his fortune. With a license costing 60s. -in Australia, and with a tax of 20 dollars a year in -California, he may go where he pleases. It is not -the government which fixes his boundary, but the -regulations of the republic of miners, forming a community -along the banks of a river, or at the foot of -a hill, forbidding one man to usurp a greater space -than he can work with his own hands; the miner -himself possessing nothing, and therefore, risking -nothing, may dispense with all calculations of -profit and loss. If the spot he has selected does not -answer his expectations, he shifts his ground, or his -occupation. Under any circumstances, the tax, not -bearing upon capital, and being moderate in amount, -is easily paid; a few days work is sufficient for it; -the remainder of his time during the year with his -bad or good luck, is at his own free disposal. Such -is not the case, in the Altai, where the aristocratic -forms attaching to all industry, either at the will of -the state, or from the force of circumstances, have -exerted their influence over the first commencement -of working the mineral districts. By the terms of<span class="pagenum"><a name="Page_44" id="Page_44">[44]</a></span> -the imperial decrees, concessions are only obtained -on special application, and for a term of twelve years, -and the portion assigned to each person never exceeds -100 sagenes (about <a name="FNanchor_71" id="FNanchor_71"></a><a href="#Footnote_71" class="fnanchor">[71]</a>250 metres) by five wersts, -(about 5335 metres); the same person may, however, -take several lots, provided they are separated -by a distance of five wersts. These contractors engage -a certain number of workmen, whom they provide -with utensils and machinery, besides feeding -them and paying them high wages. Everything -connected with the arrangements entails considerable -advance of capital, and when the chance of a -small return, or sometimes of no return at all, is -added to the heavy deduction to be paid to the state, -out of the raw material, is it surprizing that members -of this community are frequently unwilling to -extend their operations, and almost always anxious -to conceal the magnitude of their working?</p> - -<p>It is said, that in keeping up the amount of the -tax, the Russian Government has had less in view -the advantage of a larger participation of interests -than a desire to check a kind of industry very -demoralizing in its nature. If such is really the -motive, it might be less critically censured. Whatever -the reason, so long as the Russian Government<span class="pagenum"><a name="Page_45" id="Page_45">[45]</a></span> -considers it advisable to keep up the present taxation, -it is not likely that the increase of production -of gold will be considerable; it appears to be limited -for the present to an amount probably not exceeding -<a name="FNanchor_72" id="FNanchor_72"></a><a href="#Footnote_72" class="fnanchor">[72]</a>90,000,000 to <a name="FNanchor_73" id="FNanchor_73"></a><a href="#Footnote_73" class="fnanchor">[73]</a>100,000,000 francs per annum.</p> - -<p>The Spaniards—those indefatigable treasure-seekers—who -discovered the hidden riches of the -Cordilleras, had been in possession of California -for above two centuries. From the year 1602, -Sebastian Viscaino, the founder of Monterey, had -learnt from the Indians, dispersed throughout that -country, that it abounded in gold and silver. -Nevertheless, instead of planting a colony of miners -to examine the soil, the Spaniards sent thither a -body of missionaries, who proclaimed the gospel, -and at the same time instructed the natives in the -rudiments of civilization and of agriculture.</p> - -<p>In 1846 there was scarcely 10,000 of the original -Spanish creoles, when a body of some hundreds of -adventurers from the United States, under General -Taylor, invaded and took possession of the country. -The Government of the Union, in demanding its -cession from Mexico, thought chiefly of an aggrandisement -of territory; they wanted ports on the -Pacific and a rival colony to Oregon. Little was it -expected that in the valleys which descended from -the Sierra Nevada would be found mines of gold<span class="pagenum"><a name="Page_46" id="Page_46">[46]</a></span> -likely to become the principal attractions to colonization, -and a district whose exuberant products would -be shortly disseminated throughout the markets of -Europe, as well as of America.</p> - -<p>The extension of the population of California -which so speedily occurred, is greatly due to the -truly fabulous success of the first washings; the -miners naturally first planted themselves on the -richest “placers,” they rather culled the produce, -than exhausted it; they frequently discovered -“pépites” weighing several ounces, if not pounds -of gold; a clever workman made his fortune in a -few days.</p> - -<p>In June, 1848, Mr. Larkin, Consul of the United -States at Monterey, valued the day’s work of a -gold seeker at an average of 15 to 25 dollars -(<a name="FNanchor_74" id="FNanchor_74"></a><a href="#Footnote_74" class="fnanchor">[74]</a>133 to 267 francs). Colonel Mason, in his report -of August, considered the produce of a day’s work -of 4,000 European or Indian miners at <a name="FNanchor_75" id="FNanchor_75"></a><a href="#Footnote_75" class="fnanchor">[75]</a>30,000 -to 40,000 dollars, giving an average of about 10 -dollars <a name="FNanchor_76" id="FNanchor_76"></a><a href="#Footnote_76" class="fnanchor">[76]</a>(53 francs) to each workman. Captain -Folson writes about a month later, “I do not think -that there can exist richer deposits in the world. -I have myself ascertained that an active workman -can collect from <a name="FNanchor_77" id="FNanchor_77"></a><a href="#Footnote_77" class="fnanchor">[77]</a>25 to 40 dollars per day, valuing -the gold at 16 dollars the ounce.” Mr. Butler<span class="pagenum"><a name="Page_47" id="Page_47">[47]</a></span> -King, whose report is of still later date, places the -average day’s work per man at about 16 dollars, or -one ounce of gold.</p> - -<p>During the second period of working, when -the miners flocked to the “placers,” and disputed -every inch of the golden soil, the yield began to -diminish in a very marked degree. A local mining -journal, the “<i>Placer Times</i>,” of 26th October, 1850, -giving a <i>resumé</i> of the proceedings of the season, -including the encampment from the River de la -Plume to the River Consumnes, covering an extent -of about 100 miles, and occupied by 60,000 gold-seekers, -estimated the mean result of a day’s work -at from six dollars on the River de la Plume, to four -dollars on the l’Yuba and Ours, and five dollars on -the American Fork. The information collected by -our consuls at the beginning of 1850, gives a result -of one to two ounces per day in the Valley of the -Sacramento, and from one to four in the newer -regions of St. Joaquim. The diminishing produce, -comparing one year with the other, was not without -some compensation. If the miner gained less, he did -not spend as much. The extravagant rise on all sorts -of provisions, clothes, and tools, had been brought -down to a more reasonable limit:—they no longer -paid <a name="FNanchor_78" id="FNanchor_78"></a><a href="#Footnote_78" class="fnanchor">[78]</a>one dollar for a pound of bread; <a name="FNanchor_79" id="FNanchor_79"></a><a href="#Footnote_79" class="fnanchor">[79]</a>eighty -dollars for an outer covering; <a name="FNanchor_80" id="FNanchor_80"></a><a href="#Footnote_80" class="fnanchor">[80]</a>fifty dollars a-day<span class="pagenum"><a name="Page_48" id="Page_48">[48]</a></span> -for the use of a cart with two oxen, or <a name="FNanchor_81" id="FNanchor_81"></a><a href="#Footnote_81" class="fnanchor">[81]</a>5000 dollars -for a cask of brandy. An artizan could no longer -command sixteen dollars for a day’s work. Europe, -the United States, and other nations, shipped to California -cargoes of provisions and of manufactured -goods; competition soon lowered the prices. Roads -were made from the “placers” to San Francisco; -bridges were thrown over the rivers; they established -stores of provisions and merchandize at every -canteen. Towns sprung up like mushrooms, and -in 1850 San Francisco numbered 50,000 inhabitants. -The production of gold in California appears -to have now arrived at its third period. The -miners have acquired a certain experience, their -modes of working are less primitive, and they are -more settled. The want of order is diminishing, and -the average produce is increasing. The accounts -from San Francisco in April, 1852, mentioned -“placers” in the valley of the Sacramento, where -a day’s working yielded from <a name="FNanchor_82" id="FNanchor_82"></a><a href="#Footnote_82" class="fnanchor">[82]</a>fifteen to twenty -dollars, and others on the frontier of Oregon, where -the average was from <a name="FNanchor_83" id="FNanchor_83"></a><a href="#Footnote_83" class="fnanchor">[83]</a>five to ten. On the frontier of -Sonora the washings of the auriferous clay yielded -<a name="FNanchor_84" id="FNanchor_84"></a><a href="#Footnote_84" class="fnanchor">[84]</a>seven to eight dollars a day with the roughest -description of work; all agreed that eight hours -hard work should produce everywhere from six<span class="pagenum"><a name="Page_49" id="Page_49">[49]</a></span> -to <a name="FNanchor_85" id="FNanchor_85"></a><a href="#Footnote_85" class="fnanchor">[85]</a>eight dollars, if the plain be rich; and as the -miner could live on from <a name="FNanchor_86" id="FNanchor_86"></a><a href="#Footnote_86" class="fnanchor">[86]</a>two to three dollars a -day, he might reckon on a gain of from <a name="FNanchor_87" id="FNanchor_87"></a><a href="#Footnote_87" class="fnanchor">[87]</a>400 to -500 dollars during the season. However, by the -latest accounts, it would appear that the “placers” -are beginning to be exhausted. 100,000 miners -turning over continuously for three years the alluvial -sands, (already successfully explored by the -first comers in 1848 and 1849,) could hardly fail -to extract everything of value. It remains now to -explore the auriferous quartz veins which may extend -to the centre of the Sierra Nevada. This new -work, however, requires large capital, and extensive -combinations. The success of such operations -has hitherto been but moderate.</p> - -<p>The auriferous richness of the quartz rocks in -California appears sufficient to remunerate the -speculator; and foreign capital is not deficient at -St. Francisco. Whence is it, then, that the quartz -mines have hitherto been but slightly attractive? -It has arisen from the want of the requisite and -essential conditions for the progress of such -undertakings.</p> - -<p>Property in “placers” or in mines is not yet sufficiently -secure; it is neither yet placed fully -under the safeguard of law, nor is it protected by<span class="pagenum"><a name="Page_50" id="Page_50">[50]</a></span> -police regulations. Anarchy still reigns in this new -country;—not only have the miners to defend their -persons and their acquisitions against the incursions -from Indian tribes; not only are crimes and offences -common (lynch law maintaining a permitted existence -instead of laws and police); but every one -appears to hold his property by right of first comer: -a miner chooses the spot he likes best; a strong arm -and a carbine, with a steady eye, are his title -deeds. To seize upon a rich “placer” from a miner -too weak to resist, is called in the slang of the -district, to “jump a claim.” The President of the -United States himself, stated in his last message, -that “The mineral lands should remain free to -every citizen;” and the Secretary of State has -added, “that the right of occupancy should be submitted -only to such laws as the miners themselves -thought fit to make.”</p> - -<p>The continuous flow of emigration, and the continuous -working of the gold districts, appear to -indicate, that in spite of many reverses and sufferings, -the mass of emigrants consider the result as -likely to be profitable. Without approaching to -the fabulous accounts of the early adventurers, these -results have certainly largely exceeded in magnificence -those of any former period in history; let -us endeavour to particularize some of them.</p> - -<p>Mr. Butler King, in his report to the Secretary -of State, in 1850, after a careful examination of<span class="pagenum"><a name="Page_51" id="Page_51">[51]</a></span> -California, values the washings and gold working -of the two years, 1848 and 1849, at <a name="FNanchor_88" id="FNanchor_88"></a><a href="#Footnote_88" class="fnanchor">[88]</a>40,000,000 -dollars. The basis of this calculation, the first -officially presented, was a produce of 1000 dollars -(<a name="FNanchor_89" id="FNanchor_89"></a><a href="#Footnote_89" class="fnanchor">[89]</a>5350 francs) per miner, per annum.</p> - -<p>According to Mr. Butler King, American emigration -hardly began to flow towards California until -September, 1849; up to that period, foreigners, -principally from Mexico and Oregon, had reaped -all the profit of the washings. The <i>San Francisco -Herald</i> estimated, that at the end of 1850, the gold -produce of California, for the twenty-one months -between 1 April, 1849, and 31 December, 1850, at -the sum of 68,587,591 dollars (nearly <a name="FNanchor_90" id="FNanchor_90"></a><a href="#Footnote_90" class="fnanchor">[90]</a>367,000,000 -francs). According to the documents published in -France by the Minister of Commerce, which appear -to have been derived from local statistics, the -produce was rather less than the above. From -1 April, 1849, to 31 March, 1851, in two years, it -was raised to <a name="FNanchor_91" id="FNanchor_91"></a><a href="#Footnote_91" class="fnanchor">[91]</a>329,000,000 francs.</p> - -<p>Monsieur Emilie Chevalier, who has just returned -from a government mission to Panama, in a report -to the Minister for Foreign Affairs, considers the -result as having been much larger. The gold -brought as freight by steamers in 1850, he estimates<span class="pagenum"><a name="Page_52" id="Page_52">[52]</a></span> -at <a name="FNanchor_92" id="FNanchor_92"></a><a href="#Footnote_92" class="fnanchor">[92]</a>50,306,525 dollars. The author of the report -adds, on the testimony of a person whom he -considers as competent to give a sound opinion, -that the sums carried by passengers are not less -than three fourths of the amounts brought as -merchandize; and thus he arrives at the extraordinary -figures of 88,000,000 dollars (more than -<a name="FNanchor_93" id="FNanchor_93"></a><a href="#Footnote_93" class="fnanchor">[93]</a>470,000,000 francs) for a single year. At St. Francisco, -where they are able to form probably a -more correct estimate on a subject so difficult to -trace accurately, they do not value the amount of -gold carried by passengers at above one-fourth the -amount taken in freight. Even on this supposition -there will be a sum of 25,000,000 dollars, or -above <a name="FNanchor_94" id="FNanchor_94"></a><a href="#Footnote_94" class="fnanchor">[94]</a>133,000,000 francs to be deducted; but it -appears to me very doubtful, if the produce of -1850 exceeded this figure of <a name="FNanchor_95" id="FNanchor_95"></a><a href="#Footnote_95" class="fnanchor">[95]</a>329,000,000 francs, -according to the French documents already referred -to. We have more valuable documents of another -kind to rely upon, in the quantities of gold coined -at the United States’ Mint; the following are the -official figures:—</p> - -<table summary="Gold coined at the Mint"> - <tr> - <th></th><th colspan="3"><span class="smcap">Sent to the Mint.</span></th><th></th><th colspan="3"><span class="smcap">Coined.</span></th> - </tr> - <tr> - <td>1849</td><td class="tdr">12,243,175</td><td class="tdc">dollars</td><td class="tdr">£2,448,635</td><td></td><td class="tdr">9,007,761</td><td class="tdc">dollars</td><td class="tdr">£1,801,552</td> - </tr> - <tr> - <td>1850</td><td class="tdr">38,365,160</td><td class="tdc">”</td><td class="tdr">7,673,032</td><td></td><td class="tdr">31,981,737</td><td class="tdc">”</td><td class="tdr">6,396,347</td> - </tr> - <tr> - <td>1851</td><td class="tdr">56,867,220</td><td class="tdc">”</td><td class="tdr">11,373,444</td><td></td><td class="tdr">62,812,478</td><td class="tdc">”</td><td class="tdr">12,562,496</td> - </tr> - <tr> - <td>Total,</td><td class="tdr total-single">107,475,555</td><td class="tdc">”</td><td class="tdr total-single">£21,495,111</td><td></td><td class="tdr total-single">103,801,976</td><td class="tdc">”</td><td class="tdr total-single">£20,760,395</td> - </tr> -</table> - -<p><span class="pagenum"><a name="Page_53" id="Page_53">[53]</a></span></p> - -<p>All the gold sent to the Mint did not, however, -come from California. A part consisted of specie -sent from Europe, in exchange for American stocks -or merchandize. The treasure found in 1848 in -the Valley of the Sacramento, belonged, as it has -been stated, principally to foreigners. Up to the -month of March, 1850, the United States’ Mints had -not received above 11,000,000 or <a name="FNanchor_96" id="FNanchor_96"></a><a href="#Footnote_96" class="fnanchor">[96]</a>12,000,000 dollars -of Californian gold. At the end of August in that -year the amounts paid in did not exceed <a name="FNanchor_97" id="FNanchor_97"></a><a href="#Footnote_97" class="fnanchor">[97]</a>24,500,000 -dollars. A year later, the mints had received in -gold from that source <a name="FNanchor_98" id="FNanchor_98"></a><a href="#Footnote_98" class="fnanchor">[98]</a>80,000,000 dollars.</p> - -<p>The United States have naturally sent the larger -number of the emigrants to California. It is with the -United States principally that the trade is carried -on. It would appear, then, to be natural that the -principal flow of gold from the Sierra Nevada should -take that direction. Doubtless a portion of the gold -found annually in California will remain there, -and form the circulating medium. Considerable -amounts also will have been spread throughout -South America, and amongst the various commercial -countries of Europe, either in payment of goods -shipped, or as the free capital arising from the -accumulations of labor. I shall not be exaggerating, -however, in supposing, that seven-tenths of the<span class="pagenum"><a name="Page_54" id="Page_54">[54]</a></span> -gold annually produced is coined in the United -States, and that one-tenth of the produce only is -shipped directly to Europe. Thus, then, the -United States having received from California -<a name="FNanchor_99" id="FNanchor_99"></a><a href="#Footnote_99" class="fnanchor">[99]</a>100,000,000 dollars up to the end of 1850, the -total produce of the four years, including 1848, -(during which year there did not appear to have -been any coinage from Californian gold), ought to -have been from <a name="FNanchor_100" id="FNanchor_100"></a><a href="#Footnote_100" class="fnanchor">[100]</a>750,000,000 to <a name="FNanchor_101" id="FNanchor_101"></a><a href="#Footnote_101" class="fnanchor">[101]</a>800,000,000 francs.</p> - -<p>The gold exported from California in 1851 is -estimated by the Custom House returns at -<a name="FNanchor_102" id="FNanchor_102"></a><a href="#Footnote_102" class="fnanchor">[102]</a>56,000,000 dollars. According to the calculations of -the <i>St. Francisco Herald</i>, for the first three months -of 1852, the total produce amounted to <a name="FNanchor_103" id="FNanchor_103"></a><a href="#Footnote_103" class="fnanchor">[103]</a>14,656,142 -dollars; at this rate the produce of the year 1852 -would not be less than <a name="FNanchor_104" id="FNanchor_104"></a><a href="#Footnote_104" class="fnanchor">[104]</a>62,000,000 dollars. The -export of April is estimated at St. Francisco, at -<a name="FNanchor_105" id="FNanchor_105"></a><a href="#Footnote_105" class="fnanchor">[105]</a>3,422,000 dollars, rather more than <a name="FNanchor_106" id="FNanchor_106"></a><a href="#Footnote_106" class="fnanchor">[106]</a>18,000,000 -francs. The produce of the “placers,” according to -the latest reports, although still abundant, is decreasing; -nevertheless, if Australia does not attract -the most experienced and the most greedy of the -work-people, the mines of California appear likely<span class="pagenum"><a name="Page_55" id="Page_55">[55]</a></span> -to yield this year not less than about <a name="FNanchor_107" id="FNanchor_107"></a><a href="#Footnote_107" class="fnanchor">[107]</a>300,000,000 -of our money; that is six times the amount of the -production of gold at the beginning of the century, -throughout the civilized world. It is twice the -amount of the production of gold in 1847. It is -hardly needful to exaggerate these figures, as many -writers on both sides of the Atlantic have already -done, in order to prove that a change is occurring in -our monetary values, and that the <i>status quo</i> which -has lasted for above half a century, is not necessarily -to continue for ever.</p> - -<hr class="chap" /> - -<h2>V.</h2> - -<p>Of the three great gold-producing countries of -modern times, New South Wales is the one now -most attracting public attention. This country enjoys -several advantages over the others.</p> - -<p>The climate is mild and healthy, the land is -neither occupied by savage tribes nor infested with -wild beasts. In a country where drought is the principal -obstacle to successful cultivation, the gold regions, -situated on the slopes of the highest mountains -and near the sources of the principal streams, are -naturally the best watered. They appear to extend<span class="pagenum"><a name="Page_56" id="Page_56">[56]</a></span> -from north-east to south-west, following the direction -of the Murray, the largest river in Australia, -and over an extent of 1,400 miles, <a name="FNanchor_108" id="FNanchor_108"></a><a href="#Footnote_108" class="fnanchor">[108]</a>(2,452 kilomêtres) -by 400 miles (643 kilomêtres). This surface is -larger, by four times, the extent of California, and -five times larger than Great Britain.</p> - -<p>The effects of the Californian gold have been principally -felt at a distance from the producing country. -The valleys of San Joaquim and the Sacramento -were, before the extraordinary discoveries of 1847, -but a desert, with but an occasional “oasis” of cultivation; -California had neither population, agriculture, -commerce, or industry. The “rancheros,” -half farmers, half hunters, raised cattle for no other -purpose than for the value of their hides; the discovery -of gold could hardly disturb any existing -trade. The production itself was then the cause or -the motive power, creating a new state of society, -a new order of things.</p> - -<p>In Australia, on the contrary, and long before the -consequences of the discoveries could be appreciated -in Europe, the working of the mines was of itself a -revolution. The first washings occurred in May, -1851; at that time the English colonists in that -part of the world were in a flourishing position. -The population of European origin did not exceed -400,000 in the whole Australian group of islands.<span class="pagenum"><a name="Page_57" id="Page_57">[57]</a></span> -New South Wales, in which division Victoria was -included, recently elevated into a separate colony, -numbered more than two-thirds of this total, and -formed the chief seat of its industry and wealth. -The inhabitants, principally the descendants of -convicts of the last century, obtained, in 1850, a -representative form of government, and now make -their own laws. They have upwards of fifty-one -newspapers, and they have also public schools and -banks. Their principal harbours are on a large -scale, and the inter-communication by steam-boats -and roads excellent. Their principal cities are -Sydney, with its 50,000; and Melbourne, with its -35,000 inhabitants, which are lighted with gas, and -have an organized police, as in London.</p> - -<p>The luxury of living and of dress defies comparison, -and affords large profits to tradesmen; they -have already begun to make two railroads. Australia -has its commercial fleet, which entered into -competition for the supply of flour to California -in 1850. The trade with England is of twice the -magnitude to that which existed between England -and her American colonies at the time of their -separation. The colonial revenue, exclusive of the -sale of the Crown lands, which forms the foundation -of the emigration fund, nearly amounts to -£1,000,000 sterling, per annum.</p> - -<p>Australia produces wheat, Indian corn, and barley, -in abundance; they have planted vines, from which<span class="pagenum"><a name="Page_58" id="Page_58">[58]</a></span> -they are making good wine; tobacco is successfully -and extensively cultivated; but the principal source -of wealth is derived from the growth of wool, for -the production of which the lands watered by the -tributaries of the Murray are as well adapted -as the valley of the Mississippi is for the production -of cotton. Australia takes a prominent position -with respect to civilization, in the midst of the pastoral -employment of her population. It is a vast -arcadia, the poetical side being cast into shade by -the industrial occupation of its inhabitants, and perhaps -somewhat damaged by a very natural corruption -of morals. It has been called a mine of wool -and tallow; 20,000,000 of sheep are said to be -pastured on its plains. In England the use of -Australian wool has almost entirely superseded that -of Germany and Spain, and the Yorkshire manufacturers -cannot now dispense with it. In 1850 -Australia exported 137,000 bales, and in 1851, -130,000; 130,000 bales are worth about <a name="FNanchor_109" id="FNanchor_109"></a><a href="#Footnote_109" class="fnanchor">[109]</a>65,000,000 -francs. The mother country receives, then, from -Australia about £3,000,000 sterling of raw material -in exchange for £3,000,000 of English manufactures; -the result is most profitable for capital and -labor; it is to this beneficial and flourishing trade -that the sudden appearance of gold has threatened -a most unexpected and alarming interruption.</p> - -<p><span class="pagenum"><a name="Page_59" id="Page_59">[59]</a></span></p> - -<p>Sir Roderick Murchison, whose opinions are considered -as of high authority, commenting on the -writings of Count Strelecki on the geology of New -South Wales, announced, in the year 1845, that gold -would be found in the sides of those great chains -of hills, which may be called their Alps or their -Pyrennees. At different times, fragments of the precious -metal had been brought either to Sydney, or to -Melbourne, without having excited the belief in the -minds of the public that they were really the product -of their own soil. In the month of March, 1851, a -person, less incredulous than his neighbours, a Mr. -Hargraves, struck with the similarity of the geological -features of the country to California, whence -he had lately arrived, made up his mind that gold -must be to be found in New South Wales, and set -himself resolutely to work to hunt for it at the foot -of the mountains, and in the beds of the adjacent -rivers. Having found some small portions, he -followed the pursuit until he had satisfied himself -of the existence of gold in a great number of places. -He then went to Bathurst, an advanced post in the -country, called a public meeting, openly announced -his discovery; and in order to give practical proof, -took many of his hearers to the seat of his own -exploits, in a little valley at the foot of Mount -Sumner, where he employed nine miners to dig -actively, and to wash the earth. Four ounces -of the purest gold were brought to light, as the<span class="pagenum"><a name="Page_60" id="Page_60">[60]</a></span> -produce of three days’ labor; each man had gained -£2 4s. 4d. (61 francs) per diem; but this was -not considered by Mr. Hargraves as above the -half of the probable gain to be obtained by an -experienced workman, and with proper implements.</p> - -<p>This happened on the 8th May, 1851. The result -of the experiment was immediately blazoned forth: -three persons started for the washings, and returned -in a few days with several pounds of gold. At the -same time a geologist, ordered by the local government -to attest the statements of Mr. Hargraves, at -once stamped an official authority on the actual -existence of gold mines. This news created an immense -sensation, not only in Bathurst, but beyond, -and in the capital of the colony. On the 19th May, -there were 600 miners at the “<i>placers</i>;” an enormous -immigration to a district where the population -was but thinly scattered over an almost indefinite -extent of land. On the 24th, some of the people -wrote to their friends, that they were collecting -from £3 to £4 per day. One party of four miners -had in one day, obtained thirty ounces of gold, -and had found a “nugget” weighing one pound. -In three weeks time, one workman alone amassed -£1,600 sterling.</p> - -<p>We would remark, in running hastily over the -account of these early experiments, that from the -first, the inhabitants of Australia foresaw the serious -consequences of the revolution about to occur. The<span class="pagenum"><a name="Page_61" id="Page_61">[61]</a></span> -colonial journals were filled with lamentations and -direful forebodings, and cursed, both in prose and -in verse, the mania for gold. The solitude of the -towns, at the expense of which the deserts were -peopled, the abandonment of labour, the disruption -of all social ties, flocks left without shepherds, -and crops destroyed for lack of harvestmen: -in short, every kind of misfortune from which the -colonies are now suffering, were seen in perspective. -The greediest seekers for gold might well take -alarm; the epidemic, however, stopped not, and soon -spread in all directions. The Government took the -lead, by largely rewarding Mr. Hargraves, and appointing -him the “explorer of the mineral districts.” -A proclamation immediately appeared, claiming -the precious discoveries as Crown property, and -announcing a rate of license for working gold -mines at 30s. per miner per month. A wild spirit of -speculation soon sprang up in every direction. -The municipal authorities everywhere followed the -example of the Government. From the Bay of -Newton to the Gulph of St. Vincent, over an extent -of 2,000 miles of shore, there was no town or village -without its sought-for neighbouring “placers.” -In many districts, associations were immediately -formed, offering premiums for the earliest discovery -of gold.</p> - -<p>The locality of the first operations was situated -at the junction of two little valleys, whose water-courses<span class="pagenum"><a name="Page_62" id="Page_62">[62]</a></span> -fell into the River Macquarie, a tributary of -the Murray, and which soon received the scriptural -name of Ophir. The early successful workings in -these “placers” were soon cast into shade by the -more brilliant result of the works on the Turon, -and its tributaries; here gold was found not only in -scales, but in pépites or nuggets. Whilst the Ophir -digger was making his 15s. or 20s. on an average -day’s work, the people at Turon were counting their -gains by ounces. The more primitive process of -washing had given way to the more philosophical -system by amalgamation. The operation was sufficiently -remunerative to repay a simple mechanic at -the rate of 20s. a day in addition to his keep; but -the miners no sooner obtained money enough to -buy a license, and some implements, but they set to -work in a more business-like manner. They formed -themselves into parties of three or six, the day’s -work of each party sometimes producing several -ounces of gold. The weight of the pépites varied -from one-fifth of an ounce to many ounces.</p> - -<p>Towards the middle of July, Doctor Ker found -in the valley of Meroo, a few miles from Wellington, -a lump of quartz weighing 3 cwt., containing -more than 100 pounds of gold. Later, again, they -found three “nuggets,” each weighing from 26 to -28 pounds. In the month of August, the export to -England commenced; the first remittances of gold -dust amounted to £50,000 sterling. The washings<span class="pagenum"><a name="Page_63" id="Page_63">[63]</a></span> -at the Turon and Mount Ophir were then producing -£10,000 to £12,000 sterling per week.</p> - -<p>The treasure of Doctor Ker, exhibited first at -Bathurst and then at Sydney, soon drove everybody -wild. The very newspapers which had first maligned -the discovery, now sounded the trumpet in -praise of this wonderful piece of good fortune. -“The news,” says the <i>Morning Herald</i> of Sydney,<span class="pagenum"><a name="Page_64" id="Page_64">[64]</a></span> -“will astonish Australia, will astonish England, -Ireland, and Scotland, will astonish California, and -will astonish the whole world. On the arrival of -the packet in England, when every newspaper -throughout the United Kingdom shall have repeated -the news of the discovery as the wonder of our age, -the sensation will be profound, and will exceed -anything hitherto talked of, or thought of; from -the queen on the throne to the peasant in the -fields, there will be but one united exclamation of -surprise and astonishment; from the palace to the -cottage, from the drawing-room to the stable, from -the schoolboy to the philosopher and the statesman, -there will be one universal talk of this mass -of gold, and of the country whence it came; from -all the ports in Great Britain and Ireland, ships -will be freighted with passengers and goods—population -and wealth will rush to Australia like a torrent. -Port Jackson will be the best filled and the -most flourishing harbour in the world, and Sydney -will take its rank amongst the most opulent cities. -New South Wales will be looked upon in England -as the queen of her colonies.”</p> - -<p>Waiting the impression to be produced in the -mother country by the news of the “golden land,” -to use again the expression of the <i>Morning Herald</i>, -the population of Sydney flocked to the diggings; -the numbers who left were about 400 a day. Sailors -deserted their ships in the harbours. Government, -on account of the dearness of provisions, doubled -the salaries of their officials. In every direction -there was a general hunt in quest of new “placers;” -and the districts South and West of Sydney were -explored by miners to the extent of 200 miles. -Auriferous deposits were discovered in the counties -of St. Vincent, Argyle, Dampier, Wallace, and -Wellesley, as well as in the basins of Murrumbedgee -Shoalhaven, the River Hume, the River Peel, and -the Snow River. At the extreme north of New -South Wales, in the district of Moreton Bay, the -diggings are in full work at the several branches of -the River Condamine. Nearer to the capital, in -New England, gold has been found in abundance in -the basin of the River Macdonald. 200 miles south -of Sydney, at Braidwood, one miner realized £30 -sterling in five weeks; another £42 sterling in fifteen -days; and a party of three £200 sterling in one -week. Nothing was more common than a produce -of two ounces per man per day; and not unfrequently -it reached as much as one pound. Women<span class="pagenum"><a name="Page_65" id="Page_65">[65]</a></span> -also set to work. One widow and her two daughters -are said to have collected an average of two ounces -a-day.</p> - -<p>The district of Turon did not lose its repute. -Such was the attraction for gold hunting, that a -labourer at Meroo would not undertake to work for -hire at a lower rate than £3 a-week, in addition to -his food. Up to October, 1851, the Government -had given out 8,637 licenses; 10,000 miners were -at work in the province of Sydney, and £215,866 -sterling, (about 5,500,000 francs) had already been -shipped to England.</p> - -<p>In December, the yield of the “placers” averaged -£40,000 sterling per week, a sum equivalent, after -deducting the stoppages during extreme drought -and rain, to £2,000,000 sterling per annum.</p> - -<p>These results, however brilliant they appeared, -were soon eclipsed by the accounts from the -province of Victoria. Gold was first discovered at -Ballarat, where it was found at some considerable -depth from the surface; then at Mount Alexander, -where it was dug up merely by the pickaxe, almost -on the ground; at Caliban, fifteen miles further, -at Albany, on the Murray, and on the east coast at -Gipp’s Land.</p> - -<p>It is asserted that the chain of hills which -separates the province of Victoria from Sydney, -and which are known by the name of the Snowy -Mountains, is one vast mine of gold. Every<span class="pagenum"><a name="Page_66" id="Page_66">[66]</a></span> -day announces some new discovery, and that of -yesterday is almost always surpassed by that of -to-day. The mines of Mount Alexander are in -extent about ten miles, and the earth is said to be -full of gold; they find the precious metal in a -gravelly clay, and in the interstices of a slatey -formation. It is sufficient to dig six inches of -soil; and already, in the month of December, 1851, -there were 15,000 miners at work, and the deposits -appeared inexhaustible.</p> - -<p>Here occurred the most extraordinary events. -Amongst ordinary cases, seven workmen were -cited, who amassed 500 ounces of gold in three -weeks, which at £3 sterling per ounce, the then -current value of gold in the colony, was about <a name="FNanchor_110" id="FNanchor_110"></a><a href="#Footnote_110" class="fnanchor">[110]</a>260 -francs per day each; at another time, two miners, -in the same space of time, collected 400 ounces, or -<a name="FNanchor_111" id="FNanchor_111"></a><a href="#Footnote_111" class="fnanchor">[111]</a>735 francs per day each. One carman, who had -never even removed the earth, made up a bag of -£1,500 sterling in five weeks. A convict, but just -freed, made £150 sterling in sixteen days. A workman, -who had never exercised any trade but that -of shoeing horses, was somewhat less fortunate, but -brought home £100 sterling, clear, after paying -all expenses, and working five weeks. A boy of -fourteen, in less time, collected £400 sterling; and<span class="pagenum"><a name="Page_67" id="Page_67">[67]</a></span> -another of the same age, £120 sterling; but the -ambition of the workmen knew no bounds; there -was scarcely a man who set to work digging a hole -who did not expect to come home at night with -£40 or £50. These expectations were kept up -by some most wonderful instances of fortune, the -recital of which, repeated from group to group, -amongst the diggers, soon became matters of history. -One spot of a few feet square produced <a name="FNanchor_112" id="FNanchor_112"></a><a href="#Footnote_112" class="fnanchor">[112]</a>45,000 fr.; -four sailors, after six weeks’ work, loaded their cart -with a case containing two hundred pounds of gold, -about <a name="FNanchor_113" id="FNanchor_113"></a><a href="#Footnote_113" class="fnanchor">[113]</a>260,000 francs; four other workmen, after -two months’ labour, divided <a name="FNanchor_114" id="FNanchor_114"></a><a href="#Footnote_114" class="fnanchor">[114]</a>1,000,000 francs. One -workman was spoken of who gathered twenty-five -pounds in two or three weeks, and another was -known to have amassed eleven pounds in forty-eight -hours; another, in less than one hour, made -up a package weighing thirty pounds, worth at -least <a name="FNanchor_115" id="FNanchor_115"></a><a href="#Footnote_115" class="fnanchor">[115]</a>38,000 francs. It was said that the miners -would no longer pick up gold-dust, it was not -worth while; anything smaller than a pin’s head -was thrown aside as too insignificant for notice. -There must have been fine gleanings from these -fastidious reapers.</p> - -<p>In the “placers” of Mount Ophir, and of the -Turon, where the profits and the workings were on<span class="pagenum"><a name="Page_68" id="Page_68">[68]</a></span> -a more moderate scale, there was less difficulty in -preserving order and good behaviour. Captain -Erskine, of the Royal Navy, who was there about -the end of July, 1851, reports most favourably in -this respect. The miners received him with the -most perfect civility; order and good feeling was -the general rule. Captain Erskine only saw one -man drunk on the placers. The sale of spirituous -liquors was forbidden, and the Sundays religiously -observed. There even appeared some traces of -regular industry. The neighbouring “placers” of -Port Philip presented a perfectly different scene. -There, mining appeared to be considered as a complete -lottery. The coolest heads soon grew as wild -as the steadiest—passions and extravagance broke -loose in all directions. The consumption of wine, -beer, and spirituous liquors was enormous; gambling -tables, quarrels, and prize fighting, desecrated the -Sundays. One man was quoted who placed a £5 -note between two pieces of bread and butter, and -ate it as a sandwich. Another rolled up two £5 -Bank notes, and swallowed them as a pill. A -third went into a pastry cook’s shop to eat a cake, -threw down a Bank note, and refused to take up -the change. The miners appeared to have no idea -of the value of money; they bore their losses with -the most perfect philosophy. One man, who had -had a draft of <a name="FNanchor_116" id="FNanchor_116"></a><a href="#Footnote_116" class="fnanchor">[116]</a>3760 francs stolen from him, and on<span class="pagenum"><a name="Page_69" id="Page_69">[69]</a></span> -enquiring at the bank, finding it had been already -cashed, exclaimed, “Bah! there is no want of -money now.”</p> - -<p>A “<i>placer</i>” in the colony of Victoria presented -the appearance of an immense encampment, with -thousands of tents of all sizes, colours, and shapes; -the bivouac during the night was illuminated with -fires in all directions, and noisy with the discharge -of guns and pistols; every miner was armed to -the teeth, and could only trust to himself for the -protection of his booty and his life; every one kept -himself on the <i>qui vive</i>, and took even the precaution -of daily discharging and reloading his firearms -every evening at sunset. Government offered a -weekly transport to Melbourne at a charge of 1 per -cent.; but as, notwithstanding so exorbitant a charge, -this transport was without any guarantee against -robbery, the miners formed themselves into parties, -when tired with making their fortunes, and escorted -their own treasures. The bandits from Van Dieman’s -Land came down like birds of prey, and fell upon -the miners, and in such numbers and with such -fury, that when a murder was committed the local -police were not unfrequently afraid to go amongst -them to seize the murderer. The authorities of -Melbourne were unable to give effectual aid under -such circumstances; for their own city police, -with the exception of six, had all gone off to -the diggings. A cry of despair and indignation was<span class="pagenum"><a name="Page_70" id="Page_70">[70]</a></span> -universally raised. “The imbecility of our Government,” -says the <i>Argus</i>, “has compelled us to take -the police into our own hands, and to make lynch -law the rule of action.” The <i>Morning Herald</i> says, -“The Government must act with energy, and without -loss of time, or we shall become a second -California, with mutiny and lynch law established, -and crime in its naked deformity.” The Governor, -Sir G. Fitzroy, responded to this appeal by sending -home for more troops, and by recruiting his police -by discharged soldiers. Will it be sufficient for the -preservation of this community, scarcely yet formed, -from the threatened danger of disorganization, to -send a vessel of war to the station of Port Jackson, -and to Port Philip, and to reinforce the garrisons of -Australia, as Sir John Packington proposes, with -some 400 or 500 soldiers?</p> - -<p>Fortunately, such a state of disorder is not likely -to become chronic; when public authority, which -ought to suppress it, is declared incompetent, society, -alarmed for its own existence, steps in and at all -hazard gets rid of turbulent characters. What is -to be as much feared, especially in a community of -such recent formation, is the attraction to a spirit -of gambling, from fortunes thus suddenly acquired. -Men, fascinated by such a magnet, abandon all productive -and useful employment. Neither their -ordinary vocations or their known duties will retain -them in their ordinary habits; no rates of pay can<span class="pagenum"><a name="Page_71" id="Page_71">[71]</a></span> -follow the progressive chances of the miner with his -pickaxe; the trade of gold-seeking supplants every -other occupation; a whole people are bowed -down to the earth, and absorbed in a work which -brutalizes them, and they abandon to others all the -cares of and attention to the cultivation of the soil.</p> - -<p>From the beginning of November last, the towns -of Melbourne and Geelong were forsaken. Out -of this numerous population the women alone remained -stationary. The proximity of the “placers” -at two or three days’ journey rendered the access -easy. It was not necessary, as at Sydney, to -equip for a long journey, or to lay in a stock of provisions -and money. Men deserted, in crowds, flocks, -farms, ships, workshops, counting-houses, and shops; -no wages would induce them to remain. They -flocked in from Sydney, Van Dieman’s Land, -South Australia, and even from California. Vessels -arriving could not discharge their cargoes for want -of hands; goods perished on the quays, where they -had been piled up. In many districts of the -colony business and cultivation were suspended; -hands were wanted everywhere. When shearers -were to be met with, they asked the enormous price -of 3s. 6d. for twenty fleeces. A month later, and -Adelaide, the capital of Australia, realized the -picture of the “Deserted Village.” Traders, artizans, -proprietors, and capitalists, all were either ruined -or had emigrated to Port Philip, to escape from<span class="pagenum"><a name="Page_72" id="Page_72">[72]</a></span> -inevitable ruin. The shares in the celebrated -Burra Burra Copper Mine, which had been sold for -above £200, found no buyers at £60, and their 700 -workmen had disappeared; prices of all goods and -wages rose in a frightful degree.</p> - -<p>We read, in a letter from Melbourne, of the -17th January, 1852:—“In the Banks and at the -Post Offices, the clerks work double tides; other -public services are at a stand for want of hands. -There are no male servants to be found, even at -exorbitant wages, and women will not remain, unless -at considerable increase of pay. I requested -first the waiter, and then the maid, at the hotel -where I was stopping, to send a small parcel of -linen to be washed. They told me that they could -find no one who would wash. I was obliged to -go to a shop and buy some new things. If you -want a pair of boots, you must pay £2 10s. (63 -francs). A pair of shoes cost 20s. (25 francs).”</p> - -<p>Another letter, of the 1st January, adds again to -the picture:—“In my opinion, this town is threatened -with complete ruin. Last night, two men -arrived, announcing a discovery of gold deposits -in the district of Gipp’s Land; they had brought -£10,000 sterling in gold, and said there was enough -there for all the world. What shall we do for want -of labor? Suppose that 100,000 immigrants were -to arrive here next year, would one of them remain -in the towns or at the farms, earning a few shillings<span class="pagenum"><a name="Page_73" id="Page_73">[73]</a></span> -per week, when they can go to the diggings and -gather £50 in one day? At this very moment I -cannot find one man in Melbourne who can mend a -pair of boots at any price. I get bread from Collingwood, -as a great favor, and the baker will not -engage to supply me regularly. I pay 5s. for two -buckets of water, and 30s. for as much wood as -a horse can carry. One can hardly find a man -with a handbarrow to carry a portmanteau, even at -any price he chooses to ask. The servants of the -Judge have all left him, and he cannot use his carriage; -his sons clean the knives and shoes, and -drag their invalid father to the court in a wheel -chair.”</p> - -<p>An inhabitant of Melbourne, himself reduced to -the necessity of looking after his horse, whilst his -wife attended to cooking the dinner, writes:—“One -of the members of our club, a large sheep-owner, -and who cannot obtain shearers, is gone to the -diggings to try and hire some men. He asked them -what wages he should pay them, they replied that -they must have all the wool; and, as he was leaving -them, they called him back to say. ‘We are in want -of a cook; we will give you £1 a day if you like -to take the place yourself.’”</p> - -<p>At the “placers,” a mechanic is worth at least £1 -a day. The people who return to the towns with -their little fortunes will no longer work, and consider -that they have a right to live on in idleness.<span class="pagenum"><a name="Page_74" id="Page_74">[74]</a></span> -All provisions are dear. At Mount Alexander, -flour was sold at 5d. a pound (which is equal to -<a name="FNanchor_117" id="FNanchor_117"></a><a href="#Footnote_117" class="fnanchor">[117]</a>60 centimes the demi-kilo.); oats at 18s. the -bushel, or <a name="FNanchor_118" id="FNanchor_118"></a><a href="#Footnote_118" class="fnanchor">[118]</a>64 francs the <a name="FNanchor_119" id="FNanchor_119"></a><a href="#Footnote_119" class="fnanchor">[119]</a>hectolitre. In August -last, wheat was not higher than 3d. a pound, and -oats 4s. the bushel, in the Sydney market, a higher -price than in any famine year in the European -markets.</p> - -<p>Two causes have been acting simultaneously in -creating this great rise in the price of all the -necessaries of life, in those countries where the -gold finders have become suddenly enriched by the -discoveries of these “placers.” In the first place, -population increasing more rapidly than the supply -of food, has necessarily caused a rise in price, and -this consequent increase in price, is out of all proportion -to the deficiency of supply. Who does not -know that a deficiency of one-sixth, or even of -one-tenth of the crop of grain, frequently doubles, -or even trebles, the price during the famine. Such -was the case in France and England in 1846; and -without facilities of communication, and the cheapness -of carriage, the result, even at that period, -would have been much more calamitous. Can we -be astonished, then, that in a country where civilization -is but just established, where roads, canals,<span class="pagenum"><a name="Page_75" id="Page_75">[75]</a></span> -and railroads are wanting, the evils must be felt in -a greatly increased degree?</p> - -<p>Another cause is the very abundance of the precious -metals. Gold, when amassed by handfuls, -instead of being collected in very small quantities, -and with great labour, must necessarily lose a -large part of its value. The diminution of the -price of gold and silver is, generally, only shewn by -the increase in the price of every other article. -The nominal value of the monetary sign remains -the same, but its power diminishes in proportion to -its increase in quantity, unless some counteracting -cause, such as an excessive supply of provisions, -&c., should step in and re-establish the equilibrium.</p> - -<p>Up to the present time, every progress in mining in -Australia is retarding the proper care and attention -to the breeding of cattle. Van Dieman’s Land, -which produced food for other districts of Australia, -is likely, it is said, to require an import of food for -her own people. It was true that the crops at -the end of 1851, presented every appearance of a -magnificent harvest, but how could a harvest be got -<i>in</i> on an island inadequately supplied with labour, -and where the people are deserting daily for other -places?</p> - -<p>The position is certainly critical; with any other -people than those of Anglo-Saxon race, it might -be desperate: a few months more delay, and the<span class="pagenum"><a name="Page_76" id="Page_76">[76]</a></span> -wool shearing will be lost; for the flocks, no longer -watched, will have strayed away, and possibly will -have perished. It was the work of a quarter of a -century to have accumulated the capital employed -in Agriculture in Australia; without an immense -immigration, not of gold seekers, but of shepherds, -and persons accustomed to a pastoral life, before the -end of 1852 all this capital will be inevitably destroyed. -England has awakened rather late to the -danger, but she has now to work in good earnest to -apply the remedy. The Governor of Australia witnessed -the daily arrivals of emigrants with alarm, so -long as they added only to the crowds of miners, and -who by their competition still further increased the -price of provisions; he even pressed the Colonial -Secretary to try and turn the stream of emigration -to other colonies. But independent of Government -emigration, voluntary associations for the same object -have not been inactive. Liverpool alone has been -shipping at the rate of 2,000 a month for Sydney -or Melbourne. Ships are wanting in all the ports of -Great Britain and Ireland, for the transport of emigrants. -Shipbuilding yards are all in the greatest -state of active employment.</p> - -<p>Nor has this want of an agricultural population -in Australia been overlooked. The islands to the -north and west and the Highlands of Scotland, contain -a population far too numerous for their means of -adequate support, so that in spite of hard and constant<span class="pagenum"><a name="Page_77" id="Page_77">[77]</a></span> -work, there is frequent mortality from famine -in this poor and barren country. Twenty or thirty -thousand of these labourers, engaged for agricultural -occupations in Van Dieman’s Land, and for sheep -tending in New South Wales, would cease to be a -burthen on English charity, and would avert the -ruin of Australia. Subscription lists are opened -in England for this object, and the colony itself is -in a position to lend its aid, as Sir John Packington -informed Sir G. Fitzroy that the government would -place at the disposal of the local legislature the -revenues which might accrue from the workings -of these gold regions. At this time the port of -London contains a fleet of vessels ready to sail for -Australia, capable of conveying 23,000 persons and -30,000 tons of merchandize. It is clear, that by -abandoning all the rights of the Crown to the -treasures of the “placers,” the British Government -has saved Australia. By this arrangement, the -Colonial revenues have been almost doubled; 30s. -a month levied on 60,000 miners, working eight -months in the year, would produce <a name="FNanchor_120" id="FNanchor_120"></a><a href="#Footnote_120" class="fnanchor">[120]</a>18,000,000 -francs. A tax of 60s. which was attempted to be -established, but which the miners resisted, might -have produced <a name="FNanchor_121" id="FNanchor_121"></a><a href="#Footnote_121" class="fnanchor">[121]</a>36,000,000 francs. In default of -English labourers, the expenses of whose voyage -must necessarily be great, and whose willingness to<span class="pagenum"><a name="Page_78" id="Page_78">[78]</a></span> -work could not be depended on, there would be -funds enough to import a whole population of -Indians or Chinese.</p> - -<p>The production of these gold regions in Australia -does not appear to have exceeded £1,500,000 sterling -in 1851, from all the “placers” then worked; -but we know that the working in the province -of Sydney did not begin until the middle of -May; and in Victoria, not until the end of September. -In January, 1852, they reckoned 10,000 -miners in the Sydney gold districts, the produce -of which oscillated between 12,000 and 15,000 -ounces per week. For eight month’s work this -would give about <a name="FNanchor_122" id="FNanchor_122"></a><a href="#Footnote_122" class="fnanchor">[122]</a>31,000,000 francs at the Colonial -price, and <a name="FNanchor_123" id="FNanchor_123"></a><a href="#Footnote_123" class="fnanchor">[123]</a>35,000,000 at the English price -of gold; but the population will certainly have -increased in 1852, and it will be a moderate -calculation to estimate the produce of this province -at <a name="FNanchor_124" id="FNanchor_124"></a><a href="#Footnote_124" class="fnanchor">[124]</a>40,000,000 to 50,000,000 francs during -this year.</p> - -<p>In the province of Victoria, 30,000 miners were at -work at the “placers,” at the end of December; and -the number was daily increasing. They probably -would have received, by the spring of this year, a -reinforcement of 10,000. Mineral working is a lottery, -in which very few gain the great prizes. A<span class="pagenum"><a name="Page_79" id="Page_79">[79]</a></span> -letter from Sydney, dated 4th February, thus sums -up the result of the work, and of its uncertainty and -irregularity. “They calculate, that out of every -ten speculators who hire workmen for the gold-washings, -only one repays his expenses, and of those -who work on their own account, the proportion who -are successful is about one in five.” It is not to be -expected, then, that the quantity of gold collected -by so many miners should equal the brilliant, the -extraordinary, profits made by many of the first -adventurers. It is a liberal calculation to suppose -that the 40,000 miners of the province of Victoria -might obtain on an average 10s. or 12s. each for -their daily work. At 200 days’ work this could -give about <a name="FNanchor_125" id="FNanchor_125"></a><a href="#Footnote_125" class="fnanchor">[125]</a>3,000 francs each, or about 120,000,000 -francs per annum. Thus, these two provinces -would yield a produce in 1852, of <a name="FNanchor_126" id="FNanchor_126"></a><a href="#Footnote_126" class="fnanchor">[126]</a>40,000,000 for -Sydney, and <a name="FNanchor_127" id="FNanchor_127"></a><a href="#Footnote_127" class="fnanchor">[127]</a>120,000,000 for Victoria, together -about <a name="FNanchor_128" id="FNanchor_128"></a><a href="#Footnote_128" class="fnanchor">[128]</a>160,000,000 francs.</p> - -<p>In following the scale of progress of California, -these results might be doubled the third year: but -it should be remarked, that up to March last, notwithstanding -the immense increase of the workings -carried on for nearly a year in Sydney, and for -six months in Australia-Felix, the colony had not<span class="pagenum"><a name="Page_80" id="Page_80">[80]</a></span> -shipped, of all the gold it had collected, above -£819,000 sterling (20,537,000 francs) to England.</p> - -<p>Uniting the products of the three great gold -regions, we find that Siberia, California, and Australia, -are expected to supply in 1852, about -<a name="FNanchor_129" id="FNanchor_129"></a><a href="#Footnote_129" class="fnanchor">[129]</a>600,000,000 francs: a mass of gold equal to about -175 tons in weight. It should be borne in mind, -that China and Japan have also their mines of gold -and silver in full work; the produce of which does -not appear, however, to leave those countries. The -Chain of the Himalaya possibly contains mineral -wealth equal to that of the Cordilleras, the dorsal -division of South America, from Chili to Oregon. -It is also said, that the inhabitants of Thibet have -begun to work their golden alluvial deposits. All -the mines in the world, therefore, are not yet fully -worked; and there will, probably, be an ample -supply for some generations to come. The gold supplied -by America, independently of California, can -hardly be estimated at above <a name="FNanchor_130" id="FNanchor_130"></a><a href="#Footnote_130" class="fnanchor">[130]</a>8,000 kilogrammes -per annum. Hungary is the only country in Europe, -excepting Russia, which is producing about <a name="FNanchor_131" id="FNanchor_131"></a><a href="#Footnote_131" class="fnanchor">[131]</a>2,000 -kilogrammes of gold. The quantity from Africa is -very small; and <a name="FNanchor_132" id="FNanchor_132"></a><a href="#Footnote_132" class="fnanchor">[132]</a>3,000 or 4,000 kilogrammes is the -whole of the known produce of the washings in the -Straits of Sunda, and in the peninsula of Malacca.<span class="pagenum"><a name="Page_81" id="Page_81">[81]</a></span> -From all which sources united, an approximative -value may be fixed at from <a name="FNanchor_133" id="FNanchor_133"></a><a href="#Footnote_133" class="fnanchor">[133]</a>40,000,000 to 50,000,000 -francs. To sum up the whole, then, it would appear -that the gold production of 1852 may be estimated -at—</p> - -<table summary="Gold production of 1852"> - <tr> - <td>For California</td><td class="tdr">300,000,000</td><td>francs =</td><td class="tdr">£12,000,000</td> - </tr> - <tr> - <td><span class="ditto">”</span> Australia</td><td class="tdr">160,000,000</td><td class="tdc">”</td><td class="tdr">6,400,000</td> - </tr> - <tr> - <td><span class="ditto">”</span> Oural and Altai</td><td class="tdr">90,000,000</td><td class="tdc">”</td><td class="tdr">3,600,000</td> - </tr> - <tr> - <td><span class="ditto">”</span> rest of the world</td><td class="tdr">50,000,000</td><td class="tdc">”</td><td class="tdr">2,000,000</td> - </tr> - <tr> - <td>Making a total of</td><td class="tdr total-single">600,000,000</td><td>francs =</td><td class="tdr total-single">£24,000,000</td> - </tr> -</table> - -<p>It has been already stated, that California produced -<a name="FNanchor_134" id="FNanchor_134"></a><a href="#Footnote_134" class="fnanchor">[134]</a>750,000,000 francs during the four years 1848 to -1851. Russia, during the same period, at the rate of -<a name="FNanchor_135" id="FNanchor_135"></a><a href="#Footnote_135" class="fnanchor">[135]</a>100,000,000 fr., will have produced <a name="FNanchor_136" id="FNanchor_136"></a><a href="#Footnote_136" class="fnanchor">[136]</a>400,000,000, -and the other gold districts <a name="FNanchor_137" id="FNanchor_137"></a><a href="#Footnote_137" class="fnanchor">[137]</a>200,000,000. Thus, in -the five years ending with 1852, the total production -including Australia, will probably amount to nearly -<a name="FNanchor_138" id="FNanchor_138"></a><a href="#Footnote_138" class="fnanchor">[138]</a>two milliards of francs: a result unexampled in -history; gold has never previously flowed from -such numerous channels, and from such abundant -sources.</p> - -<hr class="chap" /> - -<p><span class="pagenum"><a name="Page_82" id="Page_82">[82]</a></span></p> - -<h2>VI.</h2> - -<p>What will be the effects produced by this -expansion of gold on those countries where the -discoveries and working have occurred, and on -the great centres of wealth and industry, where -competition is in active operation, and where -the gold may, when in the shape of coin, fix a -new value on commodities? First, as regards -the gold-producing countries themselves. It is -clear that the attraction to the “diggings” must -retard, if not put a temporary stop, to really productive -labour, that of the cultivation of the land: -but this demoralizing influence may not be of long -duration. The “placers” will become exhausted, -the gold of alluvial deposit, that which the rains -and other causes have spread over the surface of -the soil, has hitherto been the chief feeder of the -supply. The thousands of miners working at the -various sources, and turning over and over again -every part of the surface, will soon have picked out -every particle of the metal. The remainder of -the gold must then be sought for in the quartz; -whence it can be obtained only by the aid of scientific -processes, and effectually extracted only by the -application of capital: which is hardly likely to be -supplied to an adequate extent, excepting by companies,<span class="pagenum"><a name="Page_83" id="Page_83">[83]</a></span> -in the same way as has been the case in -the working of silver mines. Then individual -enterprize will be again directed to the cultivation -of the soil. Out of the crowds of emigrants -in Australia and California, now attracted to the -“diggings,” the number required for agricultural -purposes will no longer be deficient. Amongst the -adventurers who are expatriating themselves to seek -fortunes in new countries, there will be numbers of -poor families who will consider themselves adequately -repaid by being able to obtain in a distant -land, a fair remuneration for their services, and the -ownership of land, with the means of a comfortable -livelihood.</p> - -<p>The Spaniards, in the early days of conquest in -South America, began by abandoning all other -pursuits than the search of gold and silver; they -ended however, by building cities, forming harbours, -constructing churches, planting the land, and rearing -flocks. After the soldiers came the miners, after the -miners came the colonists: swords were turned into -plough-shares. That which occurred in the 17th -century will recur in the 19th. Australia, California, -and the colder regions of the Altai, will -be covered with people. It may readily be believed -that Providence, in the accumulation of treasures -like loadstones in the hearts of the mountains and -in the depths of the valleys, has contemplated the -attraction of a superabundant population, and of<span class="pagenum"><a name="Page_84" id="Page_84">[84]</a></span> -the genius of colonization throughout the civilized -world.</p> - -<p>Thus much for the producing country itself. -Let us now consider the effect of this superabundance -of gold on the importing countries. The first -and most important question is, whether the relative -proportions in value between gold and silver is -likely to be materially disturbed. We have been -considering the present production of gold, let us -now see how the case stands as regards silver.</p> - -<p>Mons. de Humboldt estimates the amount of silver -annually produced at the commencement of this -century at 870,000 kilogrammes (about <a name="FNanchor_139" id="FNanchor_139"></a><a href="#Footnote_139" class="fnanchor">[139]</a>193,000,000 -francs). In 1847, M. Michel Chevalier, considered -the annual production to be 775,000 kilogrammes, -(about <a name="FNanchor_140" id="FNanchor_140"></a><a href="#Footnote_140" class="fnanchor">[140]</a>172,000,000 francs), but there is reason -to suppose that this writer under-estimated the -returns of the Mexican mines, which he placed at -<a name="FNanchor_141" id="FNanchor_141"></a><a href="#Footnote_141" class="fnanchor">[141]</a>18,500,000 piastres, and in a later work, the same -authority states the production at <a name="FNanchor_142" id="FNanchor_142"></a><a href="#Footnote_142" class="fnanchor">[142]</a>900,000 kilogrammes. -The English paper, <i>The Economist</i>, estimated -the return of 1850 at <a name="FNanchor_143" id="FNanchor_143"></a><a href="#Footnote_143" class="fnanchor">[143]</a>191,772,000 francs; -the actual production, however, appears to have -been much larger. It cannot be placed at a lower -figure than 1,000,000 of kilogrammes for 1851, or at<span class="pagenum"><a name="Page_85" id="Page_85">[85]</a></span> -about <a name="FNanchor_144" id="FNanchor_144"></a><a href="#Footnote_144" class="fnanchor">[144]</a>230,000,000 francs. The following is the -table of details:</p> - -<table summary="Silver production"> - <tr> - <td>Mexico</td><td class="tdr">133,000,000</td><td>francs =</td><td class="tdr">£5,320,000</td> - </tr> - <tr> - <td>Chili</td><td class="tdr">22,000,000</td><td class="tdc">”</td><td class="tdr">880,000</td> - </tr> - <tr> - <td>Peru</td><td class="tdr">25,000,000</td><td class="tdc">”</td><td class="tdr">1,000,000</td> - </tr> - <tr> - <td>Bolivia and New Granada</td><td class="tdr">12,000,000</td><td class="tdc">”</td><td class="tdr">480,000</td> - </tr> - <tr> - <td>Russia and Norway</td><td class="tdr">5,000,000</td><td class="tdc">”</td><td class="tdr">200,000</td> - </tr> - <tr> - <td>Saxony, Bohemia, Hungary, &c.,</td><td class="tdr">12,000,000</td><td class="tdc">”</td><td class="tdr">480,000</td> - </tr> - <tr> - <td>Spain</td><td class="tdr">16,000,000</td><td class="tdc">”</td><td class="tdr">640,000</td> - </tr> - <tr> - <td>The rest of Europe</td><td class="tdr">5,000,000</td><td class="tdc">”</td><td class="tdr">200,000</td> - </tr> - <tr> - <td class="tdr">Total</td><td class="tdr total-double">230,000,000</td><td class="tdc">”</td><td class="tdr total-double">£9,200,000</td> - </tr> -</table> - -<p>We do not think we shall be exaggerating in -supposing that the production will have reached -<a name="FNanchor_145" id="FNanchor_145"></a><a href="#Footnote_145" class="fnanchor">[145]</a>250,000,000 francs in 1852, and that it will consequently -have exceeded <a name="FNanchor_146" id="FNanchor_146"></a><a href="#Footnote_146" class="fnanchor">[146]</a>1,100,000 kilogrammes. At -this rate the accumulated value of the precious metals -produced in 1852 will have reached the figure of -<a name="FNanchor_147" id="FNanchor_147"></a><a href="#Footnote_147" class="fnanchor">[147]</a>850,000,000 fr., of which silver will represent the -proportion of about 30 per cent; the weight of gold -will then be in the proportion of 1 to 6³⁄₁₀ to silver.</p> - -<p>In estimating a gradual increase in the production -of silver, we have some data for our supposition. -In 1843, there was scarcely <a name="FNanchor_148" id="FNanchor_148"></a><a href="#Footnote_148" class="fnanchor">[148]</a>16,000,000 piastres<span class="pagenum"><a name="Page_86" id="Page_86">[86]</a></span> -from Mexico; in 1849, the silver coined at the Mexican -Mint amounted to <a name="FNanchor_149" id="FNanchor_149"></a><a href="#Footnote_149" class="fnanchor">[149]</a>20,000,000 dollars, without -reckoning that portion which escaped duty, and -which probably amounted to <a name="FNanchor_150" id="FNanchor_150"></a><a href="#Footnote_150" class="fnanchor">[150]</a>3,000,000 or 4,000,000 -more; <a name="FNanchor_151" id="FNanchor_151"></a><a href="#Footnote_151" class="fnanchor">[151]</a>we are certainly quite within the mark, -it is even more probable that the production this -year may again reach the sum of <a name="FNanchor_152" id="FNanchor_152"></a><a href="#Footnote_152" class="fnanchor">[152]</a>27,000,000 dollars, -to which it had attained in 1805, under the -Spanish Government. In Chili the progress has -been still more rapid, the mines which in 1841 produced -<a name="FNanchor_153" id="FNanchor_153"></a><a href="#Footnote_153" class="fnanchor">[153]</a>821,000 piastres, and in 1845, <a name="FNanchor_154" id="FNanchor_154"></a><a href="#Footnote_154" class="fnanchor">[154]</a>1,534,000, -having in 1849 given <a name="FNanchor_155" id="FNanchor_155"></a><a href="#Footnote_155" class="fnanchor">[155]</a>3,343,000, and in 1850 -<a name="FNanchor_156" id="FNanchor_156"></a><a href="#Footnote_156" class="fnanchor">[156]</a>4,070,000 piastres.</p> - -<p>One cause of a purely local nature has contributed -to this result. It is known that the process of amalgamation -is almost the only one employed by the -miners in extracting the ores of Chili, Peru, and -Mexico. To obtain 1 cwt. of silver it is necessary -to employ 1½ cwt. of quicksilver; it is evident, -therefore, that the price of quicksilver must have -a great influence on the cost of extraction. When -it has become too dear, the working has been<span class="pagenum"><a name="Page_87" id="Page_87">[87]</a></span> -confined to the richest mines; when it has fallen -the increase in the working of the poorer ores has -soon followed. Before the war of independence, -the Crown of Spain, preserving the monopoly of -the sale of quicksilver, gave it out at all their -depots in Mexico at <a name="FNanchor_157" id="FNanchor_157"></a><a href="#Footnote_157" class="fnanchor">[157]</a>35 to 40 piastres the cwt.; -thence arose the immense increase in the workings -of the silver mines, notwithstanding the coarseness -of the ores. Since the Spanish Government, -however, has, pressed by the miserable position -of its finances, farmed out the produce of the -Almaden mines, the lessees who had agreed to pay -a very heavy rent, and who had no competition to -fear for a long period of time, raised the price of -the quicksilver beyond all bounds. A few years -since the price at Guanaxuato rose to <a name="FNanchor_158" id="FNanchor_158"></a><a href="#Footnote_158" class="fnanchor">[158]</a>150 piastres -the cwt. In 1850 the agent of Messrs. Rothschild -fixed the price at <a name="FNanchor_159" id="FNanchor_159"></a><a href="#Footnote_159" class="fnanchor">[159]</a>103 piastres in Vera Cruz, and -at <a name="FNanchor_160" id="FNanchor_160"></a><a href="#Footnote_160" class="fnanchor">[160]</a>105 at the depot in Mexico. At the same date -the price was <a name="FNanchor_161" id="FNanchor_161"></a><a href="#Footnote_161" class="fnanchor">[161]</a>120 at Mazatlan. The cost price -of the quicksilver at Almaden is <a name="FNanchor_162" id="FNanchor_162"></a><a href="#Footnote_162" class="fnanchor">[162]</a>18 dollars the -cwt., and it is sold at the rate of <a name="FNanchor_163" id="FNanchor_163"></a><a href="#Footnote_163" class="fnanchor">[163]</a>45 dollars for -extraction of the ores in Spain.</p> - -<p>The high price will cease with the monopoly.<span class="pagenum"><a name="Page_88" id="Page_88">[88]</a></span> -Spain has no longer the exclusive privilege of -furnishing quicksilver for the mines in the New -World. California possesses mines of cinnabar in -abundance, and they are now in full work. Those -of New-Almaden, situated at some leagues from San -Francisco, are now producing <a name="FNanchor_164" id="FNanchor_164"></a><a href="#Footnote_164" class="fnanchor">[164]</a>400 kilogrammes a -day. At 300 day’s work this could give a provision -of <a name="FNanchor_165" id="FNanchor_165"></a><a href="#Footnote_165" class="fnanchor">[165]</a>120,000 kilogrammes, sufficient to work -at least <a name="FNanchor_166" id="FNanchor_166"></a><a href="#Footnote_166" class="fnanchor">[166]</a>80,000 kilogrammes of silver. At the -mine itself this quicksilver is worth <a name="FNanchor_167" id="FNanchor_167"></a><a href="#Footnote_167" class="fnanchor">[167]</a>25 piastres -the cwt.; brought to Fresnillo, near the rich veins -of Sombrerete, and on the backs of mules from the -port of Mazatlan, it has been sold at <a name="FNanchor_168" id="FNanchor_168"></a><a href="#Footnote_168" class="fnanchor">[168]</a>93 piastres -in 1850. The proprietors of New-Almaden undertake -to reduce the price whenever the price of -Spanish quicksilver shall be lowered. They have -sent some of it to Chili, where silver-mine working -has taken a fresh start. They can sell it advantageously -in Peru, for the quicksilver of Huancavelica -cost at Pasco in August, 1850, <a name="FNanchor_169" id="FNanchor_169"></a><a href="#Footnote_169" class="fnanchor">[169]</a>104 piastres -the cwt. The mine of New Almaden is not the -only one being worked in California; cinnabar is -met with in several directions, and hereafter it is -probable that California may be looked to as a -country producing quicksilver as well as gold.</p> - -<p><span class="pagenum"><a name="Page_89" id="Page_89">[89]</a></span></p> - -<p>The news of the discovery of quicksilver mines in -Mexico, in the neighbourhood of San Luis de Potosi, -was confirmed by accounts received in London in -March last. Are they old mines formerly abandoned -on account of their poverty, or have they really -discovered an ore which, as at New Almaden, yields -a produce of 50 per cent. of quicksilver? This is a -point yet to be cleared up. In the meantime the -price of silver has fallen in the district of Guanaxuato -to <a name="FNanchor_170" id="FNanchor_170"></a><a href="#Footnote_170" class="fnanchor">[170]</a>40 piastres the hundred weight, and it is -now varying between a price of <a name="FNanchor_171" id="FNanchor_171"></a><a href="#Footnote_171" class="fnanchor">[171]</a>55 and 56 piastres. -In short, one of the conditions connected with silver -mining has materially changed. An economy of -<a name="FNanchor_172" id="FNanchor_172"></a><a href="#Footnote_172" class="fnanchor">[172]</a>60 or 70 piastres per hundred weight in the cost -of amalgamation can hardly fail to kindle a fresh -spirit of enterprize.</p> - -<p>Another cause will necessarily act on the production -of silver, and that is the very abundance of gold. -When silver is found to be more in demand, fresh -activity will ensue, both in reopening old galleries, -which have been closed as not sufficiently remunerative, -and in pushing on the work in those actually -in operation. If the mines, feeding the present -supply, are becoming exhausted, and other sources -are not forthcoming, in a few years silver will reach<span class="pagenum"><a name="Page_90" id="Page_90">[90]</a></span> -the price of gold, or the value of gold will descend to -that of silver; but as the limits of silver working are -but the price of labour, the power of machinery, -and the application of science, so, every increase in -the quantity of gold which is not caused by accidental -circumstances, or by an extraordinary demand, -must produce a corresponding increase in the production -of silver. Is not this a fact which we have -been witnessing since 1850? Who can venture to -affirm that Californian gold has had no influence in -stimulating the workings of silver in Mexico and -Chili? Besides this, the extraction of gold is generally -accompanied with a production of silver. Silver -mines are not always auriferous, and the richest in -gold contain but a small quantity of it, but gold mines -are almost always argentiferous. The proportion of -silver in a “nugget” of gold is about ⅛th in California, -¹⁄₁₀th in Siberia, and ⅕th in New South -Wales. So that for every <a name="FNanchor_173" id="FNanchor_173"></a><a href="#Footnote_173" class="fnanchor">[173]</a>four kilogrammes of gold -in Australia, there is about one of silver. This is -an important fact resulting from chemical analysis.</p> - -<p>The production of silver is in the course of increase. -Will that of gold be kept up? It is -reasonable to entertain considerable doubt on this -point. In Siberia we have seen it retrograde since<span class="pagenum"><a name="Page_91" id="Page_91">[91]</a></span> -1847. The extraction appears stationary—perhaps -rather on the decrease in California. Australia -alone, with gold fields yet unexplored, appears -likely to produce much more than heretofore. Auriferous -strata may be discovered elsewhere, and add -to the general stock. Combining these various -circumstances, we incline to the opinion that the -quantities now forming the annual production of -gold will not be diminished for a certain number -of years; but when the miners have exhausted the -gatherings from the alluvial deposits, and it becomes -necessary to seek the golden ore in the rocks and -mountains, in which nature appears during the -various revolutions and convulsions of the world, -to have deposited it; then the working of the mines -will depend upon the amount of capital and the -degree of science, which may hereafter be brought -to bear on that description of enterprize.</p> - -<p>In a paper read in 1848, before the Royal Institution -of London, Sir Roderick Murchison remarks -that the principal deposits of gold are found in -auriferous “detritus,” and that the same degree of -success must not be expected to ensue from exploring -the veins, which are ramified through the quartz -rock. The result hitherto shown in California fully -confirms this theory, as is shown in the following -letter from an engineer at St. Francisco, dated 4th -April last, after an expedition amongst the localities -occupied by the gold diggers:—</p> - -<p><span class="pagenum"><a name="Page_92" id="Page_92">[92]</a></span></p> - -<p>“I send you the result of experiments made upon -fragments of rock. In each we have operated upon -three tons of quartz, reduced to powder, and carefully -worked by amalgamation. We have made -five experiments upon as many veins in the county -of Bath, which is situated between l’Yuba and the -River de la Plume. No. 1 has produced <a name="FNanchor_174" id="FNanchor_174"></a><a href="#Footnote_174" class="fnanchor">[174]</a>3 dollars -53 cents per ton; No. 2, <a name="FNanchor_175" id="FNanchor_175"></a><a href="#Footnote_175" class="fnanchor">[175]</a>9 dollars 50 cents; Nos. -3 and 4, <a name="FNanchor_176" id="FNanchor_176"></a><a href="#Footnote_176" class="fnanchor">[176]</a>11 dollars each; and No. 5, <a name="FNanchor_177" id="FNanchor_177"></a><a href="#Footnote_177" class="fnanchor">[177]</a>17 dollars.</p> - -<p>“In the county of Nevada, experiments have -been made on four different points. The first has -given <a name="FNanchor_178" id="FNanchor_178"></a><a href="#Footnote_178" class="fnanchor">[178]</a>15 dollars per ton; the second, scarcely any -gold; the third, <a name="FNanchor_179" id="FNanchor_179"></a><a href="#Footnote_179" class="fnanchor">[179]</a>14 dollars per ton—this mine, upon -which a company had established works, has been -abandoned;—and the fourth has given <a name="FNanchor_180" id="FNanchor_180"></a><a href="#Footnote_180" class="fnanchor">[180]</a>59 dollars, -the vein being of an extraordinary richness, and -having yielded large returns to the proprietors.</p> - -<p>“In the county of Eldorado, three different veins -did not give a larger return than <a name="FNanchor_181" id="FNanchor_181"></a><a href="#Footnote_181" class="fnanchor">[181]</a>17 dollars per ton; -a fourth equalled the richness of No. 4, in the -adjoining county.</p> -<p><span class="pagenum"><a name="Page_93" id="Page_93">[93]</a></span></p> -<p>“In the county of Mariposa, out of eight experiments, -three veins gave hardly <a name="FNanchor_182" id="FNanchor_182"></a><a href="#Footnote_182" class="fnanchor">[182]</a>3 to 7 dollars per -ton; three more gave <a name="FNanchor_183" id="FNanchor_183"></a><a href="#Footnote_183" class="fnanchor">[183]</a>7 to 20 dollars; one gave <a name="FNanchor_184" id="FNanchor_184"></a><a href="#Footnote_184" class="fnanchor">[184]</a>24 -dollars; and one more, <a name="FNanchor_185" id="FNanchor_185"></a><a href="#Footnote_185" class="fnanchor">[185]</a>38. The two last veins -have attracted miners, who are going to work -them. No enterprize requires a more careful and -a more expensive examination than an auriferous -quartz mine. A good vein, yielding <a name="FNanchor_186" id="FNanchor_186"></a><a href="#Footnote_186" class="fnanchor">[186]</a>36 dollars per -ton, may be considered, by moderate people, as -worth working; sometimes they are found much -richer; but out of all the quartz-crushing mills -which have been set up in California, I do not -think that one-third are used for mines which are -yielding, for any continued period, <a name="FNanchor_187" id="FNanchor_187"></a><a href="#Footnote_187" class="fnanchor">[187]</a>30 dollars the -ton; so that one-half of the works of this nature are -suspended.”</p> - -<p>From the above account, it would appear that -a vein of quartz, to be considered productive, should -give 36 dollars, or <a name="FNanchor_188" id="FNanchor_188"></a><a href="#Footnote_188" class="fnanchor">[188]</a>192 francs per ton. This return -represents a weight of 55 grammes upon 1000 -kilogrammes, or 5½ parts of gold out of 100,000 -parts of quartz. Mineral of iron stone will give 10 -to 15 of metal per 100; and the production by -melting is infinitely less troublesome or expensive -than the extraction of gold. In Australia, it was -at first supposed, after an analysis of some ounces -of quartz, taken from Mount Ophir, that the ton<span class="pagenum"><a name="Page_94" id="Page_94">[94]</a></span> -would yield more than £1100 sterling; but these -experiments, made on so small a scale, are of little -value. It is not likely that Australia, when the -miners find themselves reduced to the necessity of -working the quartz rocks, will show any considerable -increase of yield over California.</p> - -<p>The extraordinary abundance of gold, then, does -not appear to be of permanent duration. It is a -sudden outbreak which we, accordingly, have to -meet. It does not appear to be, as far as we can -now form any opinion, a reign of one metal, which -is likely to take the place of some other; nevertheless, -there will most infallibly be a very marked fall -of gold in comparison with silver, unless met by a -most extraordinary activity in working the silver -mines; other causes, however, although secondary -in themselves, appear, concurrently, likely to neutralize -part of the effect of this superabundance.</p> - -<p>It is of little importance to ascertain the amount -of the annual production of the precious metals, -unless we investigate the proportions in which they -are distributed between the two hemispheres. Silver -gives rise to a regular trade, and, coming from -sources long open, it is sent almost exclusively to -Europe, as an article of exchange, against the -produce of her soil, or of her industry. Gold in -California, on the contrary, a source of unexpected -wealth, starting up in a new country, is first absorbed -by the wants of a local circulation. A new<span class="pagenum"><a name="Page_95" id="Page_95">[95]</a></span> -society, formed in the midst of a desert country, -necessarily requires some medium of exchange: some -money. Next to the immediate necessities of California -come the wants of the United States. These -States have, for some years past, been endeavouring -to introduce a greater amount of the precious metals -into their monetary circulation. The gold of California -has powerfully contributed to effect this -object. Silver coin now circulates, but in small -amounts, throughout the Union. They have coined -gold pieces of 20, 10, 5, and even of one dollar. -Out of <a name="FNanchor_189" id="FNanchor_189"></a><a href="#Footnote_189" class="fnanchor">[189]</a>400,000,000 to 500,000,000 francs, brought -in during the three first years, not more than -<a name="FNanchor_190" id="FNanchor_190"></a><a href="#Footnote_190" class="fnanchor">[190]</a>70,000,000 or 75,000,000 have found their way to -Europe. The import of 1851 has been more sensibly -felt. According to the returns of the American -newspapers, the quantity of gold shipped to Europe -from New York and New Orleans, was, during last -year, <a name="FNanchor_191" id="FNanchor_191"></a><a href="#Footnote_191" class="fnanchor">[191]</a>200,000,000 francs.</p> - -<p>The like result is obtained from other channels of -information. The Mint of London, which ordinarily -coins gold at the rate of about £2,000,000 sterling -per annum; and which, in 1850, had not coined -more than £1,492,000 sterling; in 1851, increased -their operations to the extent of a coinage of -£4,200,000 sterling (above 105,000,000 of francs).<span class="pagenum"><a name="Page_96" id="Page_96">[96]</a></span> -The moiety of this gold must have come from California. -In the same year, the mint of Paris coined -in gold <a name="FNanchor_192" id="FNanchor_192"></a><a href="#Footnote_192" class="fnanchor">[192]</a>269,709,570 francs, of which about half -was supplied by the conversion of 100,000,000 of -Dutch Guillaumes into French money. In the -accounts of the German Mints, we find about -<a name="FNanchor_193" id="FNanchor_193"></a><a href="#Footnote_193" class="fnanchor">[193]</a>200,000,000 of Californian gold. If we are to judge -from the operations of our own mint, the import of -1852 will be smaller than that of 1851; for we have -coined but 14,000,000 pieces in gold during the first -three months of this year.</p> - -<p>Australia sends regularly large amounts of her -gold to England; but a part of the export of -gold dust, or “nuggets,” is returned in gold coin. -Many vessels have lately cleared from London -with £200,000 sterling; and this at a time when -England had barely received £800,000 sterling, -from Sydney and Melbourne. Considerable amounts -will likewise be imported in plate and jewellery. -The more wealth increases in the colony, -the more gold will be employed both for circulation -and for luxuries. The producing country -will be most certainly, <i>par excellence</i>, the country -of consumption. Europe contains 200,000,000 inhabitants, -of whom not one-half are adequately -supplied with metallic money. It would require,<span class="pagenum"><a name="Page_97" id="Page_97">[97]</a></span> -certainly, an addition of many milliards of francs -to the quantity of the present metallic circulation, -to put many of these countries in an equally -favourable position in this respect with France, -Belgium, Switzerland, Holland, and Great Britain. -We know, that only nations of industrious habits -are in want of a larger supply of gold and silver -because they alone carry on trade to any extent. -Abundance of production precedes and gives rise to -a demand for money. Wealth must exist in a -country before the sign of that wealth is required; -but, at the same time, it cannot be denied that the -circulation of the precious metals stimulates, to a -great degree, the creation of richness; it acts like -roads, canals, or other modes of transport, which, -by opening the means of reaching markets, extend -the radius of operations, and give additional -value to commodities. One half of Europe has -a trade of inconsiderable importance, and derives -but a small part of the benefit of the produce of -its own soil. It has neither industry nor credit. -In many countries now, gold and silver are replaced -by the use of paper-money, often discredited -in its own, and in all cases valueless out of its own -country.</p> - -<p>Austria has just made, partly in London, and -partly in Frankfort, a loan of £3,500,000, intended -principally to restore the credit of her paper -money. This will be the first step towards the<span class="pagenum"><a name="Page_98" id="Page_98">[98]</a></span> -restoration of metallic money, which had disappeared -to such an extent, that the smaller notes were -often divided into four, to use for change. Prussia, -Poland, Russia, and Turkey, have experienced, in -different degrees, the like embarrassment. Before -these various markets are all superabundantly supplied -with gold and silver, the treasures of Siberia, -Australia, and the two Americas, may be diffused -for many years over the continent of Europe.</p> - -<p>The scarcity of gold had restricted its use; in -France, for example, the smallest gold coin was -<a name="FNanchor_194" id="FNanchor_194"></a><a href="#Footnote_194" class="fnanchor">[194]</a>20 francs. Since it has become more common, the -Mint have coined pieces of <a name="FNanchor_195" id="FNanchor_195"></a><a href="#Footnote_195" class="fnanchor">[195]</a>10 francs, which are -much liked, and are convenient for use. These -smaller coins appear likely to take the place of a -portion of our silver, which is needlessly cumbersome. -It is supposed that the use of Bank-notes of -<a name="FNanchor_196" id="FNanchor_196"></a><a href="#Footnote_196" class="fnanchor">[196]</a>200 and 100 francs has economised the use of -several hundreds of millions of the precious metals. -The 10-franc pieces, when more generally used in -circulation, will take the place of, and drive out a -portion of silver coin. The demand for silver then -will diminish, whilst that for gold is increasing. -Silver will be used as change for gold—as gold is -for bank-notes. This is the case to such an extent -in England, where the silver circulation is small, -that the Mint in London, which coined £1,492,000<span class="pagenum"><a name="Page_99" id="Page_99">[99]</a></span> -sterling in gold, in 1850, only coined £130,000 sterling -in silver in the same year, whilst, in the same -year, <a name="FNanchor_197" id="FNanchor_197"></a><a href="#Footnote_197" class="fnanchor">[197]</a>86,000,000 francs in silver were coined at the -Mint in Paris. It must not be forgotten that the -use of the precious metals is not confined to the -limits of Christian civilization. The Chinese import -Peruvian and Mexican dollars in exchange -for their silks and teas; they attract by their -trade the gold produced in the neighbouring -Islands, and in the Straits of Sunda. This industrious -nation has sent its contingent of labourers -and traders both to California and Australia. -A portion of Californian gold has already -gone to China, but Australia appears better situated -for the purpose of supplying the eastern regions -and the southern portions of Asia with the precious -metals. The Australian gold, however, sent there -will be as so much lost treasure; for whilst the -precious metals which are thrown into circulation -in Europe continue in use as coin for a long time, -that which is sent to China, or India, or Africa, -altogether disappears; it is not required for circulation, -but seems to be consumed.</p> - -<p>Nothing appears more likely to restore the confidence -of those who have taken alarm at the -abundance of gold than the consideration of the -almost unlimited extent of its market. What people,<span class="pagenum"><a name="Page_100" id="Page_100">[100]</a></span> -civilized or uncivilized, agricultural or manufacturing, -do not enter into competition for a supply! -What are the millions of francs extracted from the -Cordilleras when compared with the capital created -by the labour of the inhabitants of the whole -globe?</p> - -<p>The combined washings of the Altai, California, -and Australia, during a quarter of a century, would -be required to produce a sum equal to the annual -revenue of England alone. This unexpected harvest -of the precious metals is but an addition to a -common fund of wealth; it cannot produce a deep -or a durable impression on the almost incalculable -mass of wealth already existing in the world.</p> - -<p>After all, Europe herself does not preserve gold -and silver as relics. Money is used by wear and tear -to such an extent that it must from time to time be -recoined, and the consequent loss falls on the community -at large. The use of silver and gold plate, of -gold work and jewellery, is increasing every day, as a -distinguishing mark of the rise of the middle classes; -the manufacturers of France, England, and Switzerland -are at work for all the world. English statisticians -have estimated the loss, from use, disasters -at sea, and export without return of the precious -metals, in the United States and Europe, at more -than <a name="FNanchor_198" id="FNanchor_198"></a><a href="#Footnote_198" class="fnanchor">[198]</a>125,000,000 francs a-year. A more moderate<span class="pagenum"><a name="Page_101" id="Page_101">[101]</a></span> -estimate reduces this sum to <a name="FNanchor_199" id="FNanchor_199"></a><a href="#Footnote_199" class="fnanchor">[199]</a>75,000,000 francs. As -to articles of luxury, the sums of gold and silver employed -therein annually, have been estimated by Mr. -Jacob, at <a name="FNanchor_200" id="FNanchor_200"></a><a href="#Footnote_200" class="fnanchor">[200]</a>148,000,000 francs, without including the -consumption of the United States of America. Mr. -M’Culloch, who embraces the United States in his calculations, -puts the amount at <a name="FNanchor_201" id="FNanchor_201"></a><a href="#Footnote_201" class="fnanchor">[201]</a>150,000,000. France, -herself employing upwards of <a name="FNanchor_202" id="FNanchor_202"></a><a href="#Footnote_202" class="fnanchor">[202]</a>30,000,000 francs, it -may be admitted, without fear of exaggeration, that -the sum of <a name="FNanchor_203" id="FNanchor_203"></a><a href="#Footnote_203" class="fnanchor">[203]</a>125,000,000 of gold is used for domestic -purposes. Here, then, we have an annual consumption -of <a name="FNanchor_204" id="FNanchor_204"></a><a href="#Footnote_204" class="fnanchor">[204]</a>200,000,000 francs; the proportion borne -by gold in this absorption of the precious metals -is every day becoming more important. What -remains, at the present time, of the enormous masses -of the precious metals which Mexico and Peru -have poured forth during the last three centuries? -The amount of gold and silver now in the form -of circulation would scarcely equal the produce -of the mines during the last fifty years. The -30 milliards which America sent to Europe, from -the Spanish Conquest to the beginning of the -19th century, has almost entirely disappeared. It -would appear as if industry, in its contact with -gold and silver, must have volatilized it. France<span class="pagenum"><a name="Page_102" id="Page_102">[102]</a></span> -converted into coin a large amount of the precious -metals; but when coined, it did not remain -there. Exportation appears constantly to produce -the effect of banishing it from the country. -Thus, in twelve years, from 1840 to 1852, we have -imported <a name="FNanchor_205" id="FNanchor_205"></a><a href="#Footnote_205" class="fnanchor">[205]</a>123,012 kilogrammes of gold, and we -have exported <a name="FNanchor_206" id="FNanchor_206"></a><a href="#Footnote_206" class="fnanchor">[206]</a>71,217 kilogrammes; the difference -in favour of the import being <a name="FNanchor_207" id="FNanchor_207"></a><a href="#Footnote_207" class="fnanchor">[207]</a>51,795 kilogrammes, -equal to <a name="FNanchor_208" id="FNanchor_208"></a><a href="#Footnote_208" class="fnanchor">[208]</a>181,138,000 francs, showing an average -of <a name="FNanchor_209" id="FNanchor_209"></a><a href="#Footnote_209" class="fnanchor">[209]</a>15,000,000 francs per annum. Jewellery, goldsmith’s -work and gilding, employ, annually, in -France, quantities of gold exceeding that sum in -amount. The excess, then, is taken from the coinage, -which accounts for the ordinary premium on -gold in our market. The average would be considerably -reduced if we except the year 1851, -during which the import has exceeded the export -by <a name="FNanchor_210" id="FNanchor_210"></a><a href="#Footnote_210" class="fnanchor">[210]</a>34,503 kilogrammes; but the results of 1851 -may be considered as exceptional. Already, the -greater part has disappeared; gold finds its way -from France to London. The Bank of France, whose -metallic reserve in 1851 included an amount of -<a name="FNanchor_211" id="FNanchor_211"></a><a href="#Footnote_211" class="fnanchor">[211]</a>100,000,000 francs of gold, now does not hold above -<a name="FNanchor_212" id="FNanchor_212"></a><a href="#Footnote_212" class="fnanchor">[212]</a>15,000,000 to 20,000,000. French gold coin, common -enough in Paris, is scarcely seen in the provinces.</p> - -<p><span class="pagenum"><a name="Page_103" id="Page_103">[103]</a></span></p> - -<p>From 1840 to 1852, French commerce imported -<a name="FNanchor_213" id="FNanchor_213"></a><a href="#Footnote_213" class="fnanchor">[213]</a>10,175,312 kilogrammes of silver, and exported -<a name="FNanchor_214" id="FNanchor_214"></a><a href="#Footnote_214" class="fnanchor">[214]</a>3,688,279 kilogrammes. The excess of import, -<a name="FNanchor_215" id="FNanchor_215"></a><a href="#Footnote_215" class="fnanchor">[215]</a>6,487,033 kilogrammes, represents a sum of -1,303,893,633 francs, or 108,657,802 francs a year. -Admitting that <a name="FNanchor_216" id="FNanchor_216"></a><a href="#Footnote_216" class="fnanchor">[216]</a>15,000,000 are annually absorbed -in the demands for articles of luxury, and -<a name="FNanchor_217" id="FNanchor_217"></a><a href="#Footnote_217" class="fnanchor">[217]</a>10,000,000 or 12,000,000 for wear, our monetary -reserve of silver would have increased at -least <a name="FNanchor_218" id="FNanchor_218"></a><a href="#Footnote_218" class="fnanchor">[218]</a>1,100,000,000 since 1840. This leaves a -large margin in the circulation of France for the -displacement of silver by gold coin. When the -import of gold shall have exceeded the export by -an amount equal annually to <a name="FNanchor_219" id="FNanchor_219"></a><a href="#Footnote_219" class="fnanchor">[219]</a>200,000,000 francs, -with this accumulated reserve of <a name="FNanchor_220" id="FNanchor_220"></a><a href="#Footnote_220" class="fnanchor">[220]</a>1,100,000,000 and -with an annual excess of <a name="FNanchor_221" id="FNanchor_221"></a><a href="#Footnote_221" class="fnanchor">[221]</a>80,000,000 to 90,000,000 -francs over the import and consumption of silver, it -will require at least ten years to restore the equilibrium -between the two metals, to the state in -which it was in 1840.</p> - -<p>No subject has given rise to more rash and speculative -opinions than that connected with the trade -in gold and silver. Amidst the great variety of conflicting -phenomena, statistics appear almost valueless;<span class="pagenum"><a name="Page_104" id="Page_104">[104]</a></span> -but so long as gold continues to bear a premium, -in spite of the apparent superabundance, and -notwithstanding its partial demonetization, it may -well be considered doubtful whether the relative -proportions, established by law between gold and -silver in so many countries, will be materially -affected for at least some years to come.</p> - -<p>Various remedies have been proposed by alarmists, -to prevent the evils of the influx of Californian -and other gold. Some have desired that government -should limit the quantity of gold to be annually -coined. This expedient, in the event of a -depreciation in value, would be of little avail, for -the quantity imported and kept in the shape of bars, -would equally augment the general stock, and weigh -down the price. Others have thought of altering -the legal value, but this plan would be useless as -long as gold remained at a premium. If gold became -depreciated it would be injurious only until the fall -was ascertained, and considered durable; this once -determined, things would go on as before.</p> - -<p>Then comes the question as to the demonetization -of gold; doubtless no point is of greater importance -for a standard of circulation than a fixed value. It is -a fact that in all those countries where a double standard -of gold and silver is established, one or other -has always obtained the ascendancy, and maintained -a premium, and has ceased to appear in the shape -of money; logically, it would appear quite enough<span class="pagenum"><a name="Page_105" id="Page_105">[105]</a></span> -to regulate all prices by the value of one metal, -without exposing trade to the uncertainty of an -alteration in value of two. In the adoption of one -only, however, it is desirable to examine which of -the two has, over any given period of time, been -subject to the least variation. Before the discovery -of California, silver would certainly have had -little chance of being selected. Even now it appears -to me that the question has not so materially -changed as might at first sight be supposed.</p> - -<p>It should be remembered also, that it is not so -easy for all countries who may have adopted the -double standard to exclude one from their monetary -code. The example of Holland has proved that -gold, having lost its character as legal money, will -no longer be used as a token. To demonetize gold -is to exclude it from the market. For a great -commercial country like Holland, living in the -greatest freedom, and carrying on its trade by -exchanging and carrying the products of all the -countries in the world, to exclude one of its -habitual means of exchange, may not be attended -with great risks. England, though little disposed -to imitate Holland at present, might perhaps do -so with less danger, from having the commerce -of the whole world in its hands. France, -unless under pressing necessity, could not demonetize -her gold without exposing herself to a -complete disturbance in all her relations, both at<span class="pagenum"><a name="Page_106" id="Page_106">[106]</a></span> -home and abroad. Our trade is tied up by a completely -protective system, without alluding to those -direct prohibitions which disgrace our customs’ -tariffs; almost all the duties which affect articles of -primary consumption are, in short, disguised prohibitions. -In exchange for the products of our own -country, which we have to sell to the foreigner, we -can hardly purchase in return anything but raw -materials. Thus, bar and pig-iron, those articles -of primary importance, have been subjected to duties -at the rate of 100 per cent. on their value. In -those countries enjoying a legislation attentive to -the wants of trade, and where the custom-houses -are only for the objects of revenue, the imports and -the exports will show an even balance. In our -country, where we have been desirous of opposing -a barrier to the free course of exchange, goods -exported have always a preponderance in value -over those imported. In 1850, for example, the -imports represented a value of <a name="FNanchor_222" id="FNanchor_222"></a><a href="#Footnote_222" class="fnanchor">[222]</a>790,000,000 francs, -and the exports <a name="FNanchor_223" id="FNanchor_223"></a><a href="#Footnote_223" class="fnanchor">[223]</a>1,068,000,000 francs, showing a -difference of <a name="FNanchor_224" id="FNanchor_224"></a><a href="#Footnote_224" class="fnanchor">[224]</a>278,000,000. England and the United -States, together, receive of our products an excess -of <a name="FNanchor_225" id="FNanchor_225"></a><a href="#Footnote_225" class="fnanchor">[225]</a>236,000,000 above the exports we receive -from them; and as those countries with which we -trade cannot pay us in goods, they must make<span class="pagenum"><a name="Page_107" id="Page_107">[107]</a></span> -their return in gold and silver. This was the -reason of the import of <a name="FNanchor_226" id="FNanchor_226"></a><a href="#Footnote_226" class="fnanchor">[226]</a>220,000,000 francs in coin -in 1850, as shown in our official returns. So long -as the system of protection is the ruling policy of -France, so long will it be impossible to deprive gold -of its value as money; to attempt it would be to -withdraw from trade one of its most useful means -of exchange. It would check, if not stop, all intercourse -with those countries who can only pay -in gold, or who can only sell us those commodities -which we endeavour to exclude by our tariffs. -Gold flows naturally only to those countries where -it is marketable; and it is only so where it is in use -as coin as well as in commerce. A profit of half per -thousand is sufficient in the present day to turn the -current of the precious metals. This circumstance -ought not to be lost sight of in the consideration of -monetary legislation.</p> - -<p>In fact, the change in the relative value of gold and -silver, which was so strongly anticipated, appears -anything but imminent; if any great change is now -taking place, it appears rather to be that of a simultaneous -depreciation in the value of both metals. -Deep thinking persons are not content with expressing -their fears; they are already providing themselves -with the means of averting the evils which -they anticipate. This is one of the causes which<span class="pagenum"><a name="Page_108" id="Page_108">[108]</a></span> -have raised the value of railroad stocks, and of -landed property; and this explains the comparative -abandonment, not of speculation, but of capital ordinarily -seeking investment in government stocks. -Alarm is felt at placing money on security, of which -both the capital and the interest may remain at a -fixed value; these may be the more sensibly affected, -if the value of the precious metals is altered; -whereas the shareholder of a railroad would have -a chance of having his income increased; and the -landed proprietors that of having their capital augmented -in the same proportion in which the value -of money would be depreciated.</p> - -<p>In dwelling on these facts, I have no idea of setting -myself up as a prophet. I would confine myself -to the wish to indicate some of the symptoms of the -present position of these matters; the danger, if any -exists, is certainly not very near at hand. We have -already seen the use of bank notes in France increased -to an extent which, owing to the stability -of their value, has largely taken the place of specie. It -is but reasonable to suppose, that the present abundance -of gold and silver will make no greater disturbance -within a short time, than has the great -increase of paper money.</p> - -<p>The influx of the precious metals has been, in a -certain sense, a providential occurrence during the -revolutionary state of Europe. Credit had either -disappeared, or had at least become stagnant. Everywhere,<span class="pagenum"><a name="Page_109" id="Page_109">[109]</a></span> -amidst the tempest of the times, both past -and prospective, business had been suspended, or -carried on only for ready money. Affairs had assumed -an aspect of a primitive state of exchange. -An increase of metallic circulation might again -restore confidence, and calm agitation. The average -excess of money imported over that exported, -which, before 1848, was not above <a name="FNanchor_227" id="FNanchor_227"></a><a href="#Footnote_227" class="fnanchor">[227]</a>80,000,000 to -100,000,000 francs, amounted in 1848 and 1849 to -nearly <a name="FNanchor_228" id="FNanchor_228"></a><a href="#Footnote_228" class="fnanchor">[228]</a>300,000,000 francs for each year. Specie in -these times supplied the wants of trade, and maintained -prices; but, in more easy times, when used -not alone, but concurrently with paper money and -bills of exchange, for the purposes of circulation, -gold and silver would naturally be in use in proportion -to the movements of trade. The reason -why <a name="FNanchor_229" id="FNanchor_229"></a><a href="#Footnote_229" class="fnanchor">[229]</a>600,000,000 of francs in coin now encumbers -the vaults of the Bank of France, is, because capital -is only employed in the stock markets, and that -the restoration of trade on a large scale is still confined -to a sort of anticipation; but let the industry -of the country experience a complete restoration of -confidence in the future, and we shall soon see the -metallic reserve of the bank diminish; and, as a -natural consequence, our market will attract an -import of the precious metals from abroad. In<span class="pagenum"><a name="Page_110" id="Page_110">[110]</a></span> -short, gold and silver will then be wanted; the -state of trade will improve, and we shall have to -seek for an increased supply.</p> - -<p>Let us not then either despair or be too confident; -the world is not entering on an Eldorado, nor is it -on the eve of a state of ruin. Those who consider -gold and silver as positive wealth, who confound -an abundant supply of the precious metals with an -abundance of capital, and who affirm that the gold -imported from California must lower the rate of -interest, should remember that the rate of interest -is determined by the state of confidence, as well -as by the general rule of the supply and demand -for loanable capital, and that confidence depends -upon the good order existing throughout the civilized -world. California itself shows the delusion -of such an idea—for there, where gold is strewing -the land, interest has risen as high as from -eight to ten per cent. per month. Those on the -contrary, who, at the idea of the galleons seeking -freights in the western continent, dream only of ruin -and catastrophes—who anticipate that the day will -arrive that the Bank of France will pay persons to -take away her gold—should not forget that she sells -it now without difficulty even at a small premium, -and that this increased trade in gold has not -hitherto ruined anybody.</p> - -<p class="smaller noindent"><span class="smcap">Paris</span>, <i>August, 1852</i>.</p> - -<hr class="chap" /> - -<h2>FOOTNOTES</h2> - -<div class="footnotes"> - -<div class="footnote"> - -<p><a name="Footnote_1" id="Footnote_1"></a><a href="#FNanchor_1"><span class="label">[1]</span></a> £20,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_2" id="Footnote_2"></a><a href="#FNanchor_2"><span class="label">[2]</span></a> £24,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_3" id="Footnote_3"></a><a href="#FNanchor_3"><span class="label">[3]</span></a> lbs. 797,629=£37,209,423</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_4" id="Footnote_4"></a><a href="#FNanchor_4"><span class="label">[4]</span></a> £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_5" id="Footnote_5"></a><a href="#FNanchor_5"><span class="label">[5]</span></a> A kilogramme is equal to about 2 lbs. 8 oz. 3 dwts. 2 grs., -and is worth about £125; 30 kilogrammes would therefore -weigh about 80 lbs. 3oz. 20 dwts. 12 grs., and would be worth -about £3750.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_6" id="Footnote_6"></a><a href="#FNanchor_6"><span class="label">[6]</span></a> £5,960,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_7" id="Footnote_7"></a><a href="#FNanchor_7"><span class="label">[7]</span></a> lbs. 6,381,530=£297,700,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_8" id="Footnote_8"></a><a href="#FNanchor_8"><span class="label">[8]</span></a> lbs. 295,717,106=£887,151,318</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_9" id="Footnote_9"></a><a href="#FNanchor_9"><span class="label">[9]</span></a> £1,280,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_10" id="Footnote_10"></a><a href="#FNanchor_10"><span class="label">[10]</span></a> £320,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_11" id="Footnote_11"></a><a href="#FNanchor_11"><span class="label">[11]</span></a> £240,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_12" id="Footnote_12"></a><a href="#FNanchor_12"><span class="label">[12]</span></a> £80,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_13" id="Footnote_13"></a><a href="#FNanchor_13"><span class="label">[13]</span></a> lbs. 42,336=£1,975,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_14" id="Footnote_14"></a><a href="#FNanchor_14"><span class="label">[14]</span></a> lbs. 2,331,070=£6,923,210</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_15" id="Footnote_15"></a><a href="#FNanchor_15"><span class="label">[15]</span></a> lbs. 63,504=£2,962,500</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_16" id="Footnote_16"></a><a href="#FNanchor_16"><span class="label">[16]</span></a> lbs. 2,411,562=£7,234,686</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_17" id="Footnote_17"></a><a href="#FNanchor_17"><span class="label">[17]</span></a> lbs. 169,479=£7,906,250</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_18" id="Footnote_18"></a><a href="#FNanchor_18"><span class="label">[18]</span></a> lbs. 2,344,574=£7,033,792</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_19" id="Footnote_19"></a><a href="#FNanchor_19"><span class="label">[19]</span></a> lbs. 66,989=£200,967</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_20" id="Footnote_20"></a><a href="#FNanchor_20"><span class="label">[20]</span></a> lbs. 80,386=£3,750,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_21" id="Footnote_21"></a><a href="#FNanchor_21"><span class="label">[21]</span></a> £5,896,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_22" id="Footnote_22"></a><a href="#FNanchor_22"><span class="label">[22]</span></a> £2,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_23" id="Footnote_23"></a><a href="#FNanchor_23"><span class="label">[23]</span></a> £2,800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_24" id="Footnote_24"></a><a href="#FNanchor_24"><span class="label">[24]</span></a> £540,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_25" id="Footnote_25"></a><a href="#FNanchor_25"><span class="label">[25]</span></a> £4,160,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_26" id="Footnote_26"></a><a href="#FNanchor_26"><span class="label">[26]</span></a> £800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_27" id="Footnote_27"></a><a href="#FNanchor_27"><span class="label">[27]</span></a> £1,800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_28" id="Footnote_28"></a><a href="#FNanchor_28"><span class="label">[28]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_29" id="Footnote_29"></a><a href="#FNanchor_29"><span class="label">[29]</span></a> £6,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_30" id="Footnote_30"></a><a href="#FNanchor_30"><span class="label">[30]</span></a> £1,080,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_31" id="Footnote_31"></a><a href="#FNanchor_31"><span class="label">[31]</span></a> £800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_32" id="Footnote_32"></a><a href="#FNanchor_32"><span class="label">[32]</span></a> £320,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_33" id="Footnote_33"></a><a href="#FNanchor_33"><span class="label">[33]</span></a> £400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_34" id="Footnote_34"></a><a href="#FNanchor_34"><span class="label">[34]</span></a> £450,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_35" id="Footnote_35"></a><a href="#FNanchor_35"><span class="label">[35]</span></a> £600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_36" id="Footnote_36"></a><a href="#FNanchor_36"><span class="label">[36]</span></a> £3,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_37" id="Footnote_37"></a><a href="#FNanchor_37"><span class="label">[37]</span></a> £2,500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_38" id="Footnote_38"></a><a href="#FNanchor_38"><span class="label">[38]</span></a> £8,041,666</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_39" id="Footnote_39"></a><a href="#FNanchor_39"><span class="label">[39]</span></a> £14,333,333</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_40" id="Footnote_40"></a><a href="#FNanchor_40"><span class="label">[40]</span></a> £2,500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_41" id="Footnote_41"></a><a href="#FNanchor_41"><span class="label">[41]</span></a> £4,166,666</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_42" id="Footnote_42"></a><a href="#FNanchor_42"><span class="label">[42]</span></a> £514,583</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_43" id="Footnote_43"></a><a href="#FNanchor_43"><span class="label">[43]</span></a> £1,819,666</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_44" id="Footnote_44"></a><a href="#FNanchor_44"><span class="label">[44]</span></a> £20,370</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_45" id="Footnote_45"></a><a href="#FNanchor_45"><span class="label">[45]</span></a> £2,520,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_46" id="Footnote_46"></a><a href="#FNanchor_46"><span class="label">[46]</span></a> £2,333,333</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_47" id="Footnote_47"></a><a href="#FNanchor_47"><span class="label">[47]</span></a> £2,416,666</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_48" id="Footnote_48"></a><a href="#FNanchor_48"><span class="label">[48]</span></a> £1,637,362</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_49" id="Footnote_49"></a><a href="#FNanchor_49"><span class="label">[49]</span></a> £2,836,064</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_50" id="Footnote_50"></a><a href="#FNanchor_50"><span class="label">[50]</span></a> £4,473,426</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_51" id="Footnote_51"></a><a href="#FNanchor_51"><span class="label">[51]</span></a> £14,480,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_52" id="Footnote_52"></a><a href="#FNanchor_52"><span class="label">[52]</span></a> £9,440,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_53" id="Footnote_53"></a><a href="#FNanchor_53"><span class="label">[53]</span></a> £1,080,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_54" id="Footnote_54"></a><a href="#FNanchor_54"><span class="label">[54]</span></a> £3,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_55" id="Footnote_55"></a><a href="#FNanchor_55"><span class="label">[55]</span></a> £10,760,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_56" id="Footnote_56"></a><a href="#FNanchor_56"><span class="label">[56]</span></a> lbs. 13,397=£625,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_57" id="Footnote_57"></a><a href="#FNanchor_57"><span class="label">[57]</span></a> lbs. 4,614=£215,250</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_58" id="Footnote_58"></a><a href="#FNanchor_58"><span class="label">[58]</span></a> lbs. 10,718=£500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_59" id="Footnote_59"></a><a href="#FNanchor_59"><span class="label">[59]</span></a> lbs. 26,795=£1,250,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_60" id="Footnote_60"></a><a href="#FNanchor_60"><span class="label">[60]</span></a> lbs. 53,590=£2,500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_61" id="Footnote_61"></a><a href="#FNanchor_61"><span class="label">[61]</span></a> A poud is equal to about 36 lbs. English; and is worth about -£1679.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_62" id="Footnote_62"></a><a href="#FNanchor_62"><span class="label">[62]</span></a> lbs. 76,422=£3,565,125</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_63" id="Footnote_63"></a><a href="#FNanchor_63"><span class="label">[63]</span></a> £4,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_64" id="Footnote_64"></a><a href="#FNanchor_64"><span class="label">[64]</span></a> lbs. 75,705=£3,531,500</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_65" id="Footnote_65"></a><a href="#FNanchor_65"><span class="label">[65]</span></a> lbs. 69,873=£3,259,625</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_66" id="Footnote_66"></a><a href="#FNanchor_66"><span class="label">[66]</span></a> lbs. 65,176=£3,040,500</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_67" id="Footnote_67"></a><a href="#FNanchor_67"><span class="label">[67]</span></a> £3,120,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_68" id="Footnote_68"></a><a href="#FNanchor_68"><span class="label">[68]</span></a> lbs. 653=£30,500</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_69" id="Footnote_69"></a><a href="#FNanchor_69"><span class="label">[69]</span></a> A Russian rouble is worth about 3s. 2d.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_70" id="Footnote_70"></a><a href="#FNanchor_70"><span class="label">[70]</span></a> lbs. 10,718=£500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_71" id="Footnote_71"></a><a href="#FNanchor_71"><span class="label">[71]</span></a> A metre is equal to 39.371 English inches, a sagene is equal -to about 7 English feet, and a werst contains 1,166⅔ yards, or -3,500 feet, equal to about ¾ of an English mile.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_72" id="Footnote_72"></a><a href="#FNanchor_72"><span class="label">[72]</span></a> £3,600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_73" id="Footnote_73"></a><a href="#FNanchor_73"><span class="label">[73]</span></a> £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_74" id="Footnote_74"></a><a href="#FNanchor_74"><span class="label">[74]</span></a> £5 to £10</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_75" id="Footnote_75"></a><a href="#FNanchor_75"><span class="label">[75]</span></a> £6,000 to £8,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_76" id="Footnote_76"></a><a href="#FNanchor_76"><span class="label">[76]</span></a> £2 2s. 6d.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_77" id="Footnote_77"></a><a href="#FNanchor_77"><span class="label">[77]</span></a> £5 to £8</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_78" id="Footnote_78"></a><a href="#FNanchor_78"><span class="label">[78]</span></a> 4s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_79" id="Footnote_79"></a><a href="#FNanchor_79"><span class="label">[79]</span></a> £16</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_80" id="Footnote_80"></a><a href="#FNanchor_80"><span class="label">[80]</span></a> £10</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_81" id="Footnote_81"></a><a href="#FNanchor_81"><span class="label">[81]</span></a> £1000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_82" id="Footnote_82"></a><a href="#FNanchor_82"><span class="label">[82]</span></a> £3 to 4.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_83" id="Footnote_83"></a><a href="#FNanchor_83"><span class="label">[83]</span></a> £1 to 2.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_84" id="Footnote_84"></a><a href="#FNanchor_84"><span class="label">[84]</span></a> 28s. to 32s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_85" id="Footnote_85"></a><a href="#FNanchor_85"><span class="label">[85]</span></a> 24s. to 32s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_86" id="Footnote_86"></a><a href="#FNanchor_86"><span class="label">[86]</span></a> 8s. to 12s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_87" id="Footnote_87"></a><a href="#FNanchor_87"><span class="label">[87]</span></a> £80 to £100.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_88" id="Footnote_88"></a><a href="#FNanchor_88"><span class="label">[88]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_89" id="Footnote_89"></a><a href="#FNanchor_89"><span class="label">[89]</span></a> £214</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_90" id="Footnote_90"></a><a href="#FNanchor_90"><span class="label">[90]</span></a> £14,680,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_91" id="Footnote_91"></a><a href="#FNanchor_91"><span class="label">[91]</span></a> £13,160,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_92" id="Footnote_92"></a><a href="#FNanchor_92"><span class="label">[92]</span></a> £10,061,305</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_93" id="Footnote_93"></a><a href="#FNanchor_93"><span class="label">[93]</span></a> £18,800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_94" id="Footnote_94"></a><a href="#FNanchor_94"><span class="label">[94]</span></a> £5,320,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_95" id="Footnote_95"></a><a href="#FNanchor_95"><span class="label">[95]</span></a> £13,160,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_96" id="Footnote_96"></a><a href="#FNanchor_96"><span class="label">[96]</span></a> £2,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_97" id="Footnote_97"></a><a href="#FNanchor_97"><span class="label">[97]</span></a> £4,900,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_98" id="Footnote_98"></a><a href="#FNanchor_98"><span class="label">[98]</span></a> £16,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_99" id="Footnote_99"></a><a href="#FNanchor_99"><span class="label">[99]</span></a> £20,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_100" id="Footnote_100"></a><a href="#FNanchor_100"><span class="label">[100]</span></a> £30,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_101" id="Footnote_101"></a><a href="#FNanchor_101"><span class="label">[101]</span></a> £32,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_102" id="Footnote_102"></a><a href="#FNanchor_102"><span class="label">[102]</span></a> £11,200,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_103" id="Footnote_103"></a><a href="#FNanchor_103"><span class="label">[103]</span></a> £2,931,228</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_104" id="Footnote_104"></a><a href="#FNanchor_104"><span class="label">[104]</span></a> £12,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_105" id="Footnote_105"></a><a href="#FNanchor_105"><span class="label">[105]</span></a> £684,400</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_106" id="Footnote_106"></a><a href="#FNanchor_106"><span class="label">[106]</span></a> £720,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_107" id="Footnote_107"></a><a href="#FNanchor_107"><span class="label">[107]</span></a> £12,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_108" id="Footnote_108"></a><a href="#FNanchor_108"><span class="label">[108]</span></a> The kilomêtre is about ⅝ of an English statute mile.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_109" id="Footnote_109"></a><a href="#FNanchor_109"><span class="label">[109]</span></a> £2,600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_110" id="Footnote_110"></a><a href="#FNanchor_110"><span class="label">[110]</span></a> £10</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_111" id="Footnote_111"></a><a href="#FNanchor_111"><span class="label">[111]</span></a> £30</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_112" id="Footnote_112"></a><a href="#FNanchor_112"><span class="label">[112]</span></a> £1,800</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_113" id="Footnote_113"></a><a href="#FNanchor_113"><span class="label">[113]</span></a> £10,400</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_114" id="Footnote_114"></a><a href="#FNanchor_114"><span class="label">[114]</span></a> £40,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_115" id="Footnote_115"></a><a href="#FNanchor_115"><span class="label">[115]</span></a> £1,520</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_116" id="Footnote_116"></a><a href="#FNanchor_116"><span class="label">[116]</span></a> £150</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_117" id="Footnote_117"></a><a href="#FNanchor_117"><span class="label">[117]</span></a> 6d.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_118" id="Footnote_118"></a><a href="#FNanchor_118"><span class="label">[118]</span></a> £2 8s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_119" id="Footnote_119"></a><a href="#FNanchor_119"><span class="label">[119]</span></a> 22 Imperial Gallons.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_120" id="Footnote_120"></a><a href="#FNanchor_120"><span class="label">[120]</span></a> £720,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_121" id="Footnote_121"></a><a href="#FNanchor_121"><span class="label">[121]</span></a> £1,440,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_122" id="Footnote_122"></a><a href="#FNanchor_122"><span class="label">[122]</span></a> £1,240,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_123" id="Footnote_123"></a><a href="#FNanchor_123"><span class="label">[123]</span></a> £1,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_124" id="Footnote_124"></a><a href="#FNanchor_124"><span class="label">[124]</span></a> £1,600,000 to £2,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_125" id="Footnote_125"></a><a href="#FNanchor_125"><span class="label">[125]</span></a> £120 each, or about £4,800,000 per Annum.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_126" id="Footnote_126"></a><a href="#FNanchor_126"><span class="label">[126]</span></a> £1,600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_127" id="Footnote_127"></a><a href="#FNanchor_127"><span class="label">[127]</span></a> £4,800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_128" id="Footnote_128"></a><a href="#FNanchor_128"><span class="label">[128]</span></a> £6,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_129" id="Footnote_129"></a><a href="#FNanchor_129"><span class="label">[129]</span></a> £24,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_130" id="Footnote_130"></a><a href="#FNanchor_130"><span class="label">[130]</span></a> lbs. 21,436=£1,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_131" id="Footnote_131"></a><a href="#FNanchor_131"><span class="label">[131]</span></a> lbs. 5,359=£250,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_132" id="Footnote_132"></a><a href="#FNanchor_132"><span class="label">[132]</span></a> lbs. 8,038 to lbs. 10,718=£375,000 to £500,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_133" id="Footnote_133"></a><a href="#FNanchor_133"><span class="label">[133]</span></a> £1,600,000 to £2,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_134" id="Footnote_134"></a><a href="#FNanchor_134"><span class="label">[134]</span></a> £30,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_135" id="Footnote_135"></a><a href="#FNanchor_135"><span class="label">[135]</span></a> £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_136" id="Footnote_136"></a><a href="#FNanchor_136"><span class="label">[136]</span></a> £16,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_137" id="Footnote_137"></a><a href="#FNanchor_137"><span class="label">[137]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_138" id="Footnote_138"></a><a href="#FNanchor_138"><span class="label">[138]</span></a> £80,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_139" id="Footnote_139"></a><a href="#FNanchor_139"><span class="label">[139]</span></a> £7,720,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_140" id="Footnote_140"></a><a href="#FNanchor_140"><span class="label">[140]</span></a> £6,880,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_141" id="Footnote_141"></a><a href="#FNanchor_141"><span class="label">[141]</span></a> £3,700,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_142" id="Footnote_142"></a><a href="#FNanchor_142"><span class="label">[142]</span></a> lbs. 2,411,562=£7,234,686</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_143" id="Footnote_143"></a><a href="#FNanchor_143"><span class="label">[143]</span></a> £7,670,880</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_144" id="Footnote_144"></a><a href="#FNanchor_144"><span class="label">[144]</span></a> £9,200,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_145" id="Footnote_145"></a><a href="#FNanchor_145"><span class="label">[145]</span></a> £10,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_146" id="Footnote_146"></a><a href="#FNanchor_146"><span class="label">[146]</span></a> lbs. 2,947,465=£8,842,395</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_147" id="Footnote_147"></a><a href="#FNanchor_147"><span class="label">[147]</span></a> £34,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_148" id="Footnote_148"></a><a href="#FNanchor_148"><span class="label">[148]</span></a> £3,200,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_149" id="Footnote_149"></a><a href="#FNanchor_149"><span class="label">[149]</span></a> £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_150" id="Footnote_150"></a><a href="#FNanchor_150"><span class="label">[150]</span></a> £600,000 to £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_151" id="Footnote_151"></a><a href="#FNanchor_151"><span class="label">[151]</span></a> According to the information of M. Rosales, the production of -Chili in 1850 should have been 4,070,000 piastres.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_152" id="Footnote_152"></a><a href="#FNanchor_152"><span class="label">[152]</span></a> £5,400,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_153" id="Footnote_153"></a><a href="#FNanchor_153"><span class="label">[153]</span></a> £164,200</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_154" id="Footnote_154"></a><a href="#FNanchor_154"><span class="label">[154]</span></a> £306,800</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_155" id="Footnote_155"></a><a href="#FNanchor_155"><span class="label">[155]</span></a> £668,600</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_156" id="Footnote_156"></a><a href="#FNanchor_156"><span class="label">[156]</span></a> £814,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_157" id="Footnote_157"></a><a href="#FNanchor_157"><span class="label">[157]</span></a> £7 to £8.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_158" id="Footnote_158"></a><a href="#FNanchor_158"><span class="label">[158]</span></a> About £30</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_159" id="Footnote_159"></a><a href="#FNanchor_159"><span class="label">[159]</span></a> About £20 12s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_160" id="Footnote_160"></a><a href="#FNanchor_160"><span class="label">[160]</span></a> About £21</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_161" id="Footnote_161"></a><a href="#FNanchor_161"><span class="label">[161]</span></a> About £24</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_162" id="Footnote_162"></a><a href="#FNanchor_162"><span class="label">[162]</span></a> £3 12s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_163" id="Footnote_163"></a><a href="#FNanchor_163"><span class="label">[163]</span></a> £9</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_164" id="Footnote_164"></a><a href="#FNanchor_164"><span class="label">[164]</span></a> lbs. 882=£103</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_165" id="Footnote_165"></a><a href="#FNanchor_165"><span class="label">[165]</span></a> lbs. 264,660=£30,875</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_166" id="Footnote_166"></a><a href="#FNanchor_166"><span class="label">[166]</span></a> lbs. 214,361=£643,083</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_167" id="Footnote_167"></a><a href="#FNanchor_167"><span class="label">[167]</span></a> About £5</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_168" id="Footnote_168"></a><a href="#FNanchor_168"><span class="label">[168]</span></a> About £18 12s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_169" id="Footnote_169"></a><a href="#FNanchor_169"><span class="label">[169]</span></a> About £20 16s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_170" id="Footnote_170"></a><a href="#FNanchor_170"><span class="label">[170]</span></a> About £8</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_171" id="Footnote_171"></a><a href="#FNanchor_171"><span class="label">[171]</span></a> About £11 and £11 4s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_172" id="Footnote_172"></a><a href="#FNanchor_172"><span class="label">[172]</span></a> About £12 or £14</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_173" id="Footnote_173"></a><a href="#FNanchor_173"><span class="label">[173]</span></a> 4 kilogrammes of gold are equal to lbs. 10·7212=£500. -1 kilogramme is equal to lbs. 2·6803=£8·0409.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_174" id="Footnote_174"></a><a href="#FNanchor_174"><span class="label">[174]</span></a> About 14s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_175" id="Footnote_175"></a><a href="#FNanchor_175"><span class="label">[175]</span></a> About £1 18s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_176" id="Footnote_176"></a><a href="#FNanchor_176"><span class="label">[176]</span></a> About £2 4s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_177" id="Footnote_177"></a><a href="#FNanchor_177"><span class="label">[177]</span></a> About £3 8s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_178" id="Footnote_178"></a><a href="#FNanchor_178"><span class="label">[178]</span></a> £3</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_179" id="Footnote_179"></a><a href="#FNanchor_179"><span class="label">[179]</span></a> £2 16s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_180" id="Footnote_180"></a><a href="#FNanchor_180"><span class="label">[180]</span></a> £11 16s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_181" id="Footnote_181"></a><a href="#FNanchor_181"><span class="label">[181]</span></a> £3 8s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_182" id="Footnote_182"></a><a href="#FNanchor_182"><span class="label">[182]</span></a> 12s. to 28s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_183" id="Footnote_183"></a><a href="#FNanchor_183"><span class="label">[183]</span></a> £1 8s. to £4</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_184" id="Footnote_184"></a><a href="#FNanchor_184"><span class="label">[184]</span></a> £4 16s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_185" id="Footnote_185"></a><a href="#FNanchor_185"><span class="label">[185]</span></a> £7 12s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_186" id="Footnote_186"></a><a href="#FNanchor_186"><span class="label">[186]</span></a> £7 4s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_187" id="Footnote_187"></a><a href="#FNanchor_187"><span class="label">[187]</span></a> £6</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_188" id="Footnote_188"></a><a href="#FNanchor_188"><span class="label">[188]</span></a> £7 5s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_189" id="Footnote_189"></a><a href="#FNanchor_189"><span class="label">[189]</span></a> £16,000,000 to £20,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_190" id="Footnote_190"></a><a href="#FNanchor_190"><span class="label">[190]</span></a> £2,800,000 to £3,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_191" id="Footnote_191"></a><a href="#FNanchor_191"><span class="label">[191]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_192" id="Footnote_192"></a><a href="#FNanchor_192"><span class="label">[192]</span></a> £10,788,383</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_193" id="Footnote_193"></a><a href="#FNanchor_193"><span class="label">[193]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_194" id="Footnote_194"></a><a href="#FNanchor_194"><span class="label">[194]</span></a> Say 16s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_195" id="Footnote_195"></a><a href="#FNanchor_195"><span class="label">[195]</span></a> 8s.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_196" id="Footnote_196"></a><a href="#FNanchor_196"><span class="label">[196]</span></a> £8 to £4</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_197" id="Footnote_197"></a><a href="#FNanchor_197"><span class="label">[197]</span></a> £3,440,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_198" id="Footnote_198"></a><a href="#FNanchor_198"><span class="label">[198]</span></a> £5,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_199" id="Footnote_199"></a><a href="#FNanchor_199"><span class="label">[199]</span></a> £3,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_200" id="Footnote_200"></a><a href="#FNanchor_200"><span class="label">[200]</span></a> £5,920,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_201" id="Footnote_201"></a><a href="#FNanchor_201"><span class="label">[201]</span></a> £6,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_202" id="Footnote_202"></a><a href="#FNanchor_202"><span class="label">[202]</span></a> £1,200,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_203" id="Footnote_203"></a><a href="#FNanchor_203"><span class="label">[203]</span></a> £5,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_204" id="Footnote_204"></a><a href="#FNanchor_204"><span class="label">[204]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_205" id="Footnote_205"></a><a href="#FNanchor_205"><span class="label">[205]</span></a> lbs. 329,612=£15,376,500</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_206" id="Footnote_206"></a><a href="#FNanchor_206"><span class="label">[206]</span></a> lbs. 190,827=£8,902,125</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_207" id="Footnote_207"></a><a href="#FNanchor_207"><span class="label">[207]</span></a> lbs. 138,785=£6,474,375</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_208" id="Footnote_208"></a><a href="#FNanchor_208"><span class="label">[208]</span></a> £7,245,520</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_209" id="Footnote_209"></a><a href="#FNanchor_209"><span class="label">[209]</span></a> £600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_210" id="Footnote_210"></a><a href="#FNanchor_210"><span class="label">[210]</span></a> lbs. 92,451=£4,312,875</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_211" id="Footnote_211"></a><a href="#FNanchor_211"><span class="label">[211]</span></a> £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_212" id="Footnote_212"></a><a href="#FNanchor_212"><span class="label">[212]</span></a> £600,000 to £800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_213" id="Footnote_213"></a><a href="#FNanchor_213"><span class="label">[213]</span></a> lbs. 27,264,889=£81,794,667</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_214" id="Footnote_214"></a><a href="#FNanchor_214"><span class="label">[214]</span></a> lbs. 9,882,794=£29,648,382</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_215" id="Footnote_215"></a><a href="#FNanchor_215"><span class="label">[215]</span></a> lbs. 17,382,095=£52,146,285 -or £4,346,312 per annum.</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_216" id="Footnote_216"></a><a href="#FNanchor_216"><span class="label">[216]</span></a> £600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_217" id="Footnote_217"></a><a href="#FNanchor_217"><span class="label">[217]</span></a> £400,000 to £480,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_218" id="Footnote_218"></a><a href="#FNanchor_218"><span class="label">[218]</span></a> £44,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_219" id="Footnote_219"></a><a href="#FNanchor_219"><span class="label">[219]</span></a> £8,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_220" id="Footnote_220"></a><a href="#FNanchor_220"><span class="label">[220]</span></a> £44,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_221" id="Footnote_221"></a><a href="#FNanchor_221"><span class="label">[221]</span></a> £3,200,000 to 3,600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_222" id="Footnote_222"></a><a href="#FNanchor_222"><span class="label">[222]</span></a> £31,600,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_223" id="Footnote_223"></a><a href="#FNanchor_223"><span class="label">[223]</span></a> £42,720,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_224" id="Footnote_224"></a><a href="#FNanchor_224"><span class="label">[224]</span></a> £11,120,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_225" id="Footnote_225"></a><a href="#FNanchor_225"><span class="label">[225]</span></a> £9,440,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_226" id="Footnote_226"></a><a href="#FNanchor_226"><span class="label">[226]</span></a> £8,800,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_227" id="Footnote_227"></a><a href="#FNanchor_227"><span class="label">[227]</span></a> £3,200,000 to £4,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_228" id="Footnote_228"></a><a href="#FNanchor_228"><span class="label">[228]</span></a> £12,000,000</p> - -</div> - -<div class="footnote"> - -<p><a name="Footnote_229" id="Footnote_229"></a><a href="#FNanchor_229"><span class="label">[229]</span></a> £24,000,000</p> - -</div> - -</div> - - - - - - - - -<pre> - - - - - -End of the Project Gutenberg EBook of Remarks on the production of the -precious metals, by Leon Faucher - -*** END OF THIS PROJECT GUTENBERG EBOOK REMARKS--PRODUCTION--PRECIOUS METALS *** - 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