summaryrefslogtreecommitdiff
diff options
context:
space:
mode:
-rw-r--r--.gitattributes4
-rw-r--r--LICENSE.txt11
-rw-r--r--README.md2
-rw-r--r--old/50581-0.txt3352
-rw-r--r--old/50581-0.zipbin65470 -> 0 bytes
-rw-r--r--old/50581-h.zipbin100928 -> 0 bytes
-rw-r--r--old/50581-h/50581-h.htm5307
-rw-r--r--old/50581-h/images/cover.jpgbin24942 -> 0 bytes
8 files changed, 17 insertions, 8659 deletions
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. Special rules, set forth in the General Terms of Use part
-of this license, apply to copying and distributing Project
-Gutenberg-tm electronic works to protect the PROJECT GUTENBERG-tm
-concept and trademark. Project Gutenberg is a registered trademark,
-and may not be used if you charge for the eBooks, unless you receive
-specific permission. If you do not charge anything for copies of this
-eBook, complying with the rules is very easy. You may use this eBook
-for nearly any purpose such as creation of derivative works, reports,
-performances and research. They may be modified and printed and given
-away--you may do practically ANYTHING in the United States with eBooks
-not protected by U.S. copyright law. Redistribution is subject to the
-trademark license, especially commercial redistribution.
-
-START: FULL LICENSE
-
-THE FULL PROJECT GUTENBERG LICENSE
-PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
-
-To protect the Project Gutenberg-tm mission of promoting the free
-distribution of electronic works, by using or distributing this work
-(or any other work associated in any way with the phrase "Project
-Gutenberg"), you agree to comply with all the terms of the Full
-Project Gutenberg-tm License available with this file or online at
-www.gutenberg.org/license.
-
-Section 1. General Terms of Use and Redistributing Project
-Gutenberg-tm electronic works
-
-1.A. By reading or using any part of this Project Gutenberg-tm
-electronic work, you indicate that you have read, understand, agree to
-and accept all the terms of this license and intellectual property
-(trademark/copyright) agreement. If you do not agree to abide by all
-the terms of this agreement, you must cease using and return or
-destroy all copies of Project Gutenberg-tm electronic works in your
-possession. If you paid a fee for obtaining a copy of or access to a
-Project Gutenberg-tm electronic work and you do not agree to be bound
-by the terms of this agreement, you may obtain a refund from the
-person or entity to whom you paid the fee as set forth in paragraph
-1.E.8.
-
-1.B. "Project Gutenberg" is a registered trademark. It may only be
-used on or associated in any way with an electronic work by people who
-agree to be bound by the terms of this agreement. There are a few
-things that you can do with most Project Gutenberg-tm electronic works
-even without complying with the full terms of this agreement. See
-paragraph 1.C below. There are a lot of things you can do with Project
-Gutenberg-tm electronic works if you follow the terms of this
-agreement and help preserve free future access to Project Gutenberg-tm
-electronic works. See paragraph 1.E below.
-
-1.C. The Project Gutenberg Literary Archive Foundation ("the
-Foundation" or PGLAF), owns a compilation copyright in the collection
-of Project Gutenberg-tm electronic works. Nearly all the individual
-works in the collection are in the public domain in the United
-States. If an individual work is unprotected by copyright law in the
-United States and you are located in the United States, we do not
-claim a right to prevent you from copying, distributing, performing,
-displaying or creating derivative works based on the work as long as
-all references to Project Gutenberg are removed. Of course, we hope
-that you will support the Project Gutenberg-tm mission of promoting
-free access to electronic works by freely sharing Project Gutenberg-tm
-works in compliance with the terms of this agreement for keeping the
-Project Gutenberg-tm name associated with the work. You can easily
-comply with the terms of this agreement by keeping this work in the
-same format with its attached full Project Gutenberg-tm License when
-you share it without charge with others.
-
-1.D. The copyright laws of the place where you are located also govern
-what you can do with this work. Copyright laws in most countries are
-in a constant state of change. If you are outside the United States,
-check the laws of your country in addition to the terms of this
-agreement before downloading, copying, displaying, performing,
-distributing or creating derivative works based on this work or any
-other Project Gutenberg-tm work. The Foundation makes no
-representations concerning the copyright status of any work in any
-country outside the United States.
-
-1.E. Unless you have removed all references to Project Gutenberg:
-
-1.E.1. The following sentence, with active links to, or other
-immediate access to, the full Project Gutenberg-tm License must appear
-prominently whenever any copy of a Project Gutenberg-tm work (any work
-on which the phrase "Project Gutenberg" appears, or with which the
-phrase "Project Gutenberg" is associated) is accessed, displayed,
-performed, viewed, copied or distributed:
-
- 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.
-
-1.E.2. If an individual Project Gutenberg-tm electronic work is
-derived from texts not protected by U.S. copyright law (does not
-contain a notice indicating that it is posted with permission of the
-copyright holder), the work can be copied and distributed to anyone in
-the United States without paying any fees or charges. If you are
-redistributing or providing access to a work with the phrase "Project
-Gutenberg" associated with or appearing on the work, you must comply
-either with the requirements of paragraphs 1.E.1 through 1.E.7 or
-obtain permission for the use of the work and the Project Gutenberg-tm
-trademark as set forth in paragraphs 1.E.8 or 1.E.9.
-
-1.E.3. If an individual Project Gutenberg-tm electronic work is posted
-with the permission of the copyright holder, your use and distribution
-must comply with both paragraphs 1.E.1 through 1.E.7 and any
-additional terms imposed by the copyright holder. Additional terms
-will be linked to the Project Gutenberg-tm License for all works
-posted with the permission of the copyright holder found at the
-beginning of this work.
-
-1.E.4. Do not unlink or detach or remove the full Project Gutenberg-tm
-License terms from this work, or any files containing a part of this
-work or any other work associated with Project Gutenberg-tm.
-
-1.E.5. Do not copy, display, perform, distribute or redistribute this
-electronic work, or any part of this electronic work, without
-prominently displaying the sentence set forth in paragraph 1.E.1 with
-active links or immediate access to the full terms of the Project
-Gutenberg-tm License.
-
-1.E.6. You may convert to and distribute this work in any binary,
-compressed, marked up, nonproprietary or proprietary form, including
-any word processing or hypertext form. However, if you provide access
-to or distribute copies of a Project Gutenberg-tm work in a format
-other than "Plain Vanilla ASCII" or other format used in the official
-version posted on the official Project Gutenberg-tm web site
-(www.gutenberg.org), you must, at no additional cost, fee or expense
-to the user, provide a copy, a means of exporting a copy, or a means
-of obtaining a copy upon request, of the work in its original "Plain
-Vanilla ASCII" or other form. Any alternate format must include the
-full Project Gutenberg-tm License as specified in paragraph 1.E.1.
-
-1.E.7. Do not charge a fee for access to, viewing, displaying,
-performing, copying or distributing any Project Gutenberg-tm works
-unless you comply with paragraph 1.E.8 or 1.E.9.
-
-1.E.8. You may charge a reasonable fee for copies of or providing
-access to or distributing Project Gutenberg-tm electronic works
-provided that
-
-* You pay a royalty fee of 20% of the gross profits you derive from
- the use of Project Gutenberg-tm works calculated using the method
- you already use to calculate your applicable taxes. The fee is owed
- to the owner of the Project Gutenberg-tm trademark, but he has
- agreed to donate royalties under this paragraph to the Project
- Gutenberg Literary Archive Foundation. Royalty payments must be paid
- within 60 days following each date on which you prepare (or are
- legally required to prepare) your periodic tax returns. Royalty
- payments should be clearly marked as such and sent to the Project
- Gutenberg Literary Archive Foundation at the address specified in
- Section 4, "Information about donations to the Project Gutenberg
- Literary Archive Foundation."
-
-* You provide a full refund of any money paid by a user who notifies
- you in writing (or by e-mail) within 30 days of receipt that s/he
- does not agree to the terms of the full Project Gutenberg-tm
- License. You must require such a user to return or destroy all
- copies of the works possessed in a physical medium and discontinue
- all use of and all access to other copies of Project Gutenberg-tm
- works.
-
-* You provide, in accordance with paragraph 1.F.3, a full refund of
- any money paid for a work or a replacement copy, if a defect in the
- electronic work is discovered and reported to you within 90 days of
- receipt of the work.
-
-* You comply with all other terms of this agreement for free
- distribution of Project Gutenberg-tm works.
-
-1.E.9. If you wish to charge a fee or distribute a Project
-Gutenberg-tm electronic work or group of works on different terms than
-are set forth in this agreement, you must obtain permission in writing
-from both the Project Gutenberg Literary Archive Foundation and The
-Project Gutenberg Trademark LLC, the owner of the Project Gutenberg-tm
-trademark. Contact the Foundation as set forth in Section 3 below.
-
-1.F.
-
-1.F.1. Project Gutenberg volunteers and employees expend considerable
-effort to identify, do copyright research on, transcribe and proofread
-works not protected by U.S. copyright law in creating the Project
-Gutenberg-tm collection. Despite these efforts, Project Gutenberg-tm
-electronic works, and the medium on which they may be stored, may
-contain "Defects," such as, but not limited to, incomplete, inaccurate
-or corrupt data, transcription errors, a copyright or other
-intellectual property infringement, a defective or damaged disk or
-other medium, a computer virus, or computer codes that damage or
-cannot be read by your equipment.
-
-1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
-of Replacement or Refund" described in paragraph 1.F.3, the Project
-Gutenberg Literary Archive Foundation, the owner of the Project
-Gutenberg-tm trademark, and any other party distributing a Project
-Gutenberg-tm electronic work under this agreement, disclaim all
-liability to you for damages, costs and expenses, including legal
-fees. YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
-LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
-PROVIDED IN PARAGRAPH 1.F.3. YOU AGREE THAT THE FOUNDATION, THE
-TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
-LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
-INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
-DAMAGE.
-
-1.F.3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
-defect in this electronic work within 90 days of receiving it, you can
-receive a refund of the money (if any) you paid for it by sending a
-written explanation to the person you received the work from. If you
-received the work on a physical medium, you must return the medium
-with your written explanation. The person or entity that provided you
-with the defective work may elect to provide a replacement copy in
-lieu of a refund. If you received the work electronically, the person
-or entity providing it to you may choose to give you a second
-opportunity to receive the work electronically in lieu of a refund. If
-the second copy is also defective, you may demand a refund in writing
-without further opportunities to fix the problem.
-
-1.F.4. Except for the limited right of replacement or refund set forth
-in paragraph 1.F.3, this work is provided to you 'AS-IS', WITH NO
-OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
-LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.
-
-1.F.5. Some states do not allow disclaimers of certain implied
-warranties or the exclusion or limitation of certain types of
-damages. If any disclaimer or limitation set forth in this agreement
-violates the law of the state applicable to this agreement, the
-agreement shall be interpreted to make the maximum disclaimer or
-limitation permitted by the applicable state law. The invalidity or
-unenforceability of any provision of this agreement shall not void the
-remaining provisions.
-
-1.F.6. INDEMNITY - You agree to indemnify and hold the Foundation, the
-trademark owner, any agent or employee of the Foundation, anyone
-providing copies of Project Gutenberg-tm electronic works in
-accordance with this agreement, and any volunteers associated with the
-production, promotion and distribution of Project Gutenberg-tm
-electronic works, harmless from all liability, costs and expenses,
-including legal fees, that arise directly or indirectly from any of
-the following which you do or cause to occur: (a) distribution of this
-or any Project Gutenberg-tm work, (b) alteration, modification, or
-additions or deletions to any Project Gutenberg-tm work, and (c) any
-Defect you cause.
-
-Section 2. Information about the Mission of Project Gutenberg-tm
-
-Project Gutenberg-tm is synonymous with the free distribution of
-electronic works in formats readable by the widest variety of
-computers including obsolete, old, middle-aged and new computers. It
-exists because of the efforts of hundreds of volunteers and donations
-from people in all walks of life.
-
-Volunteers and financial support to provide volunteers with the
-assistance they need are critical to reaching Project Gutenberg-tm's
-goals and ensuring that the Project Gutenberg-tm collection will
-remain freely available for generations to come. In 2001, the Project
-Gutenberg Literary Archive Foundation was created to provide a secure
-and permanent future for Project Gutenberg-tm and future
-generations. To learn more about the Project Gutenberg Literary
-Archive Foundation and how your efforts and donations can help, see
-Sections 3 and 4 and the Foundation information page at
-www.gutenberg.org
-
-
-
-Section 3. Information about the Project Gutenberg Literary Archive Foundation
-
-The Project Gutenberg Literary Archive Foundation is a non profit
-501(c)(3) educational corporation organized under the laws of the
-state of Mississippi and granted tax exempt status by the Internal
-Revenue Service. The Foundation's EIN or federal tax identification
-number is 64-6221541. Contributions to the Project Gutenberg Literary
-Archive Foundation are tax deductible to the full extent permitted by
-U.S. federal laws and your state's laws.
-
-The Foundation's principal office is in Fairbanks, Alaska, with the
-mailing address: PO Box 750175, Fairbanks, AK 99775, but its
-volunteers and employees are scattered throughout numerous
-locations. Its business office is located at 809 North 1500 West, Salt
-Lake City, UT 84116, (801) 596-1887. Email contact links and up to
-date contact information can be found at the Foundation's web site and
-official page at www.gutenberg.org/contact
-
-For additional contact information:
-
- Dr. Gregory B. Newby
- Chief Executive and Director
- gbnewby@pglaf.org
-
-Section 4. Information about Donations to the Project Gutenberg
-Literary Archive Foundation
-
-Project Gutenberg-tm depends upon and cannot survive without wide
-spread public support and donations to carry out its mission of
-increasing the number of public domain and licensed works that can be
-freely distributed in machine readable form accessible by the widest
-array of equipment including outdated equipment. Many small donations
-($1 to $5,000) are particularly important to maintaining tax exempt
-status with the IRS.
-
-The Foundation is committed to complying with the laws regulating
-charities and charitable donations in all 50 states of the United
-States. Compliance requirements are not uniform and it takes a
-considerable effort, much paperwork and many fees to meet and keep up
-with these requirements. We do not solicit donations in locations
-where we have not received written confirmation of compliance. To SEND
-DONATIONS or determine the status of compliance for any particular
-state visit www.gutenberg.org/donate
-
-While we cannot and do not solicit contributions from states where we
-have not met the solicitation requirements, we know of no prohibition
-against accepting unsolicited donations from donors in such states who
-approach us with offers to donate.
-
-International donations are gratefully accepted, but we cannot make
-any statements concerning tax treatment of donations received from
-outside the United States. U.S. laws alone swamp our small staff.
-
-Please check the Project Gutenberg Web pages for current donation
-methods and addresses. Donations are accepted in a number of other
-ways including checks, online payments and credit card donations. To
-donate, please visit: www.gutenberg.org/donate
-
-Section 5. General Information About Project Gutenberg-tm electronic works.
-
-Professor Michael S. Hart was the originator of the Project
-Gutenberg-tm concept of a library of electronic works that could be
-freely shared with anyone. For forty years, he produced and
-distributed Project Gutenberg-tm eBooks with only a loose network of
-volunteer support.
-
-Project Gutenberg-tm eBooks are often created from several printed
-editions, all of which are confirmed as not protected by copyright in
-the U.S. unless a copyright notice is included. Thus, we do not
-necessarily keep eBooks in compliance with any particular paper
-edition.
-
-Most people start at our Web site which has the main PG search
-facility: www.gutenberg.org
-
-This Web site includes information about Project Gutenberg-tm,
-including how to make donations to the Project Gutenberg Literary
-Archive Foundation, how to help produce our new eBooks, and how to
-subscribe to our email newsletter to hear about new eBooks.
-
diff --git a/old/50581-0.zip b/old/50581-0.zip
deleted file mode 100644
index f599a87..0000000
--- a/old/50581-0.zip
+++ /dev/null
Binary files differ
diff --git a/old/50581-h.zip b/old/50581-h.zip
deleted file mode 100644
index b857bdb..0000000
--- a/old/50581-h.zip
+++ /dev/null
Binary files differ
diff --git a/old/50581-h/50581-h.htm b/old/50581-h/50581-h.htm
deleted file mode 100644
index 62ca8f6..0000000
--- a/old/50581-h/50581-h.htm
+++ /dev/null
@@ -1,5307 +0,0 @@
-<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
- "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
-<html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en" lang="en">
- <head>
- <meta http-equiv="Content-Type" content="text/html;charset=utf-8" />
- <meta http-equiv="Content-Style-Type" content="text/css" />
- <title>
- The Project Gutenberg eBook of Remarks on the Production of the Precious Metals, and on the Demonetization of Gold in Several Countries in Europe, by Leon Faucher.
- </title>
-
- <link rel="coverpage" href="images/cover.jpg" />
-
-<style type="text/css">
-
-a {
- text-decoration: none;
-}
-
-body {
- margin-left: 10%;
- margin-right: 10%;
-}
-
-h1,h2 {
- text-align: center;
- clear: both;
-}
-
-hr.chap {
- width: 65%;
- margin-left: 17.5%;
- margin-right: 17.5%;
- margin-top: 2em;
- margin-bottom: 2em;
- clear: both;
-}
-
-p {
- margin-top: 0.5em;
- text-align: justify;
- margin-bottom: 0.5em;
- text-indent: 1em;
-}
-
-table {
- max-width: 40em;
- margin-left: auto;
- margin-right: auto;
- margin-top: 1em;
- margin-bottom: 1em;
- border-collapse: collapse;
-}
-
-td,th {
- padding-left: 0.25em;
- padding-right: 0.25em;
- vertical-align: top;
- font-weight: normal;
-}
-
-.center {
- text-align: center;
- text-indent: 0em;
-}
-
-.ditto {
- margin-left: 1em;
- margin-right: 1em;
-}
-
-.footnotes {
- border: dashed 1px;
-}
-
-.footnote {
- margin-left: 10%;
- margin-right: 10%;
- font-size: 0.9em;
-}
-
-.footnote .label {
- position: absolute;
- right: 84%;
- text-align: right;
-}
-
-.fnanchor {
- vertical-align: super;
- font-size: .8em;
- text-decoration: none;
-}
-
-.larger {
- font-size: 150%;
-}
-
-.noindent {
- text-indent: 0em;
-}
-
-.pagenum {
- position: absolute;
- left: 92%;
- font-size: smaller;
- text-align: right;
-}
-
-.sig1 {
- text-indent: 1.5em;
-}
-
-.sig2 {
- text-indent: 2.5em;
-}
-
-.sig3 {
- text-indent: 3.5em;
-}
-
-.smaller {
- font-size: 80%;
-}
-
-.smcap {
- font-variant: small-caps;
-}
-
-.tdr {
- text-align: right;
-}
-
-.tdc {
- text-align: center;
-}
-
-.titlepage {
- text-align: center;
- margin-top: 3em;
- text-indent: 0em;
-}
-
-.total-single {
- border-top: thin solid black;
-}
-
-.total-double {
- border-top: thin solid black;
- border-bottom: double black;
-}
-
- </style>
- </head>
-<body>
-
-
-<pre>
-
-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)
-
-
-
-
-
-
-</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, &amp; 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, &amp;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,
-&amp;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&mdash;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&mdash;or what if<span class="pagenum"><a name="Page_8" id="Page_8">[8]</a></span>
-in effect the same, money,&mdash;may be called dear.
-This money, in the time of Charlemagne, possessed
-a power eleven times greater than at present&mdash;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,&mdash;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&mdash;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&mdash;from wherever it has
-been extracted, penetrating into and ramifying
-throughout the bowels of the earth,&mdash;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,&mdash;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, &amp;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,&mdash;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&mdash;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&mdash;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,&mdash;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&mdash;those indefatigable treasure-seekers&mdash;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:&mdash;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;&mdash;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:&mdash;</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&mdash;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&mdash;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:&mdash;“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:&mdash;“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:&mdash;“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,
-&amp;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&mdash;</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, &amp;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&mdash;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:&mdash;</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&mdash;this mine, upon
-which a company had established works, has been
-abandoned;&mdash;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&mdash;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&mdash;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&mdash;who anticipate that the day will
-arrive that the Bank of France will pay persons to
-take away her gold&mdash;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 ***
-
-***** This file should be named 50581-h.htm or 50581-h.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. Special rules, set forth in the General Terms of Use part
-of this license, apply to copying and distributing Project
-Gutenberg-tm electronic works to protect the PROJECT GUTENBERG-tm
-concept and trademark. Project Gutenberg is a registered trademark,
-and may not be used if you charge for the eBooks, unless you receive
-specific permission. If you do not charge anything for copies of this
-eBook, complying with the rules is very easy. You may use this eBook
-for nearly any purpose such as creation of derivative works, reports,
-performances and research. They may be modified and printed and given
-away--you may do practically ANYTHING in the United States with eBooks
-not protected by U.S. copyright law. Redistribution is subject to the
-trademark license, especially commercial redistribution.
-
-START: FULL LICENSE
-
-THE FULL PROJECT GUTENBERG LICENSE
-PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
-
-To protect the Project Gutenberg-tm mission of promoting the free
-distribution of electronic works, by using or distributing this work
-(or any other work associated in any way with the phrase "Project
-Gutenberg"), you agree to comply with all the terms of the Full
-Project Gutenberg-tm License available with this file or online at
-www.gutenberg.org/license.
-
-Section 1. General Terms of Use and Redistributing Project
-Gutenberg-tm electronic works
-
-1.A. By reading or using any part of this Project Gutenberg-tm
-electronic work, you indicate that you have read, understand, agree to
-and accept all the terms of this license and intellectual property
-(trademark/copyright) agreement. If you do not agree to abide by all
-the terms of this agreement, you must cease using and return or
-destroy all copies of Project Gutenberg-tm electronic works in your
-possession. If you paid a fee for obtaining a copy of or access to a
-Project Gutenberg-tm electronic work and you do not agree to be bound
-by the terms of this agreement, you may obtain a refund from the
-person or entity to whom you paid the fee as set forth in paragraph
-1.E.8.
-
-1.B. "Project Gutenberg" is a registered trademark. It may only be
-used on or associated in any way with an electronic work by people who
-agree to be bound by the terms of this agreement. There are a few
-things that you can do with most Project Gutenberg-tm electronic works
-even without complying with the full terms of this agreement. See
-paragraph 1.C below. There are a lot of things you can do with Project
-Gutenberg-tm electronic works if you follow the terms of this
-agreement and help preserve free future access to Project Gutenberg-tm
-electronic works. See paragraph 1.E below.
-
-1.C. The Project Gutenberg Literary Archive Foundation ("the
-Foundation" or PGLAF), owns a compilation copyright in the collection
-of Project Gutenberg-tm electronic works. Nearly all the individual
-works in the collection are in the public domain in the United
-States. If an individual work is unprotected by copyright law in the
-United States and you are located in the United States, we do not
-claim a right to prevent you from copying, distributing, performing,
-displaying or creating derivative works based on the work as long as
-all references to Project Gutenberg are removed. Of course, we hope
-that you will support the Project Gutenberg-tm mission of promoting
-free access to electronic works by freely sharing Project Gutenberg-tm
-works in compliance with the terms of this agreement for keeping the
-Project Gutenberg-tm name associated with the work. You can easily
-comply with the terms of this agreement by keeping this work in the
-same format with its attached full Project Gutenberg-tm License when
-you share it without charge with others.
-
-1.D. The copyright laws of the place where you are located also govern
-what you can do with this work. Copyright laws in most countries are
-in a constant state of change. If you are outside the United States,
-check the laws of your country in addition to the terms of this
-agreement before downloading, copying, displaying, performing,
-distributing or creating derivative works based on this work or any
-other Project Gutenberg-tm work. The Foundation makes no
-representations concerning the copyright status of any work in any
-country outside the United States.
-
-1.E. Unless you have removed all references to Project Gutenberg:
-
-1.E.1. The following sentence, with active links to, or other
-immediate access to, the full Project Gutenberg-tm License must appear
-prominently whenever any copy of a Project Gutenberg-tm work (any work
-on which the phrase "Project Gutenberg" appears, or with which the
-phrase "Project Gutenberg" is associated) is accessed, displayed,
-performed, viewed, copied or distributed:
-
- 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.
-
-1.E.2. If an individual Project Gutenberg-tm electronic work is
-derived from texts not protected by U.S. copyright law (does not
-contain a notice indicating that it is posted with permission of the
-copyright holder), the work can be copied and distributed to anyone in
-the United States without paying any fees or charges. If you are
-redistributing or providing access to a work with the phrase "Project
-Gutenberg" associated with or appearing on the work, you must comply
-either with the requirements of paragraphs 1.E.1 through 1.E.7 or
-obtain permission for the use of the work and the Project Gutenberg-tm
-trademark as set forth in paragraphs 1.E.8 or 1.E.9.
-
-1.E.3. If an individual Project Gutenberg-tm electronic work is posted
-with the permission of the copyright holder, your use and distribution
-must comply with both paragraphs 1.E.1 through 1.E.7 and any
-additional terms imposed by the copyright holder. Additional terms
-will be linked to the Project Gutenberg-tm License for all works
-posted with the permission of the copyright holder found at the
-beginning of this work.
-
-1.E.4. Do not unlink or detach or remove the full Project Gutenberg-tm
-License terms from this work, or any files containing a part of this
-work or any other work associated with Project Gutenberg-tm.
-
-1.E.5. Do not copy, display, perform, distribute or redistribute this
-electronic work, or any part of this electronic work, without
-prominently displaying the sentence set forth in paragraph 1.E.1 with
-active links or immediate access to the full terms of the Project
-Gutenberg-tm License.
-
-1.E.6. You may convert to and distribute this work in any binary,
-compressed, marked up, nonproprietary or proprietary form, including
-any word processing or hypertext form. However, if you provide access
-to or distribute copies of a Project Gutenberg-tm work in a format
-other than "Plain Vanilla ASCII" or other format used in the official
-version posted on the official Project Gutenberg-tm web site
-(www.gutenberg.org), you must, at no additional cost, fee or expense
-to the user, provide a copy, a means of exporting a copy, or a means
-of obtaining a copy upon request, of the work in its original "Plain
-Vanilla ASCII" or other form. Any alternate format must include the
-full Project Gutenberg-tm License as specified in paragraph 1.E.1.
-
-1.E.7. Do not charge a fee for access to, viewing, displaying,
-performing, copying or distributing any Project Gutenberg-tm works
-unless you comply with paragraph 1.E.8 or 1.E.9.
-
-1.E.8. You may charge a reasonable fee for copies of or providing
-access to or distributing Project Gutenberg-tm electronic works
-provided that
-
-* You pay a royalty fee of 20% of the gross profits you derive from
- the use of Project Gutenberg-tm works calculated using the method
- you already use to calculate your applicable taxes. The fee is owed
- to the owner of the Project Gutenberg-tm trademark, but he has
- agreed to donate royalties under this paragraph to the Project
- Gutenberg Literary Archive Foundation. Royalty payments must be paid
- within 60 days following each date on which you prepare (or are
- legally required to prepare) your periodic tax returns. Royalty
- payments should be clearly marked as such and sent to the Project
- Gutenberg Literary Archive Foundation at the address specified in
- Section 4, "Information about donations to the Project Gutenberg
- Literary Archive Foundation."
-
-* You provide a full refund of any money paid by a user who notifies
- you in writing (or by e-mail) within 30 days of receipt that s/he
- does not agree to the terms of the full Project Gutenberg-tm
- License. You must require such a user to return or destroy all
- copies of the works possessed in a physical medium and discontinue
- all use of and all access to other copies of Project Gutenberg-tm
- works.
-
-* You provide, in accordance with paragraph 1.F.3, a full refund of
- any money paid for a work or a replacement copy, if a defect in the
- electronic work is discovered and reported to you within 90 days of
- receipt of the work.
-
-* You comply with all other terms of this agreement for free
- distribution of Project Gutenberg-tm works.
-
-1.E.9. If you wish to charge a fee or distribute a Project
-Gutenberg-tm electronic work or group of works on different terms than
-are set forth in this agreement, you must obtain permission in writing
-from both the Project Gutenberg Literary Archive Foundation and The
-Project Gutenberg Trademark LLC, the owner of the Project Gutenberg-tm
-trademark. Contact the Foundation as set forth in Section 3 below.
-
-1.F.
-
-1.F.1. Project Gutenberg volunteers and employees expend considerable
-effort to identify, do copyright research on, transcribe and proofread
-works not protected by U.S. copyright law in creating the Project
-Gutenberg-tm collection. Despite these efforts, Project Gutenberg-tm
-electronic works, and the medium on which they may be stored, may
-contain "Defects," such as, but not limited to, incomplete, inaccurate
-or corrupt data, transcription errors, a copyright or other
-intellectual property infringement, a defective or damaged disk or
-other medium, a computer virus, or computer codes that damage or
-cannot be read by your equipment.
-
-1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
-of Replacement or Refund" described in paragraph 1.F.3, the Project
-Gutenberg Literary Archive Foundation, the owner of the Project
-Gutenberg-tm trademark, and any other party distributing a Project
-Gutenberg-tm electronic work under this agreement, disclaim all
-liability to you for damages, costs and expenses, including legal
-fees. YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
-LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
-PROVIDED IN PARAGRAPH 1.F.3. YOU AGREE THAT THE FOUNDATION, THE
-TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
-LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
-INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
-DAMAGE.
-
-1.F.3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
-defect in this electronic work within 90 days of receiving it, you can
-receive a refund of the money (if any) you paid for it by sending a
-written explanation to the person you received the work from. If you
-received the work on a physical medium, you must return the medium
-with your written explanation. The person or entity that provided you
-with the defective work may elect to provide a replacement copy in
-lieu of a refund. If you received the work electronically, the person
-or entity providing it to you may choose to give you a second
-opportunity to receive the work electronically in lieu of a refund. If
-the second copy is also defective, you may demand a refund in writing
-without further opportunities to fix the problem.
-
-1.F.4. Except for the limited right of replacement or refund set forth
-in paragraph 1.F.3, this work is provided to you 'AS-IS', WITH NO
-OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
-LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.
-
-1.F.5. Some states do not allow disclaimers of certain implied
-warranties or the exclusion or limitation of certain types of
-damages. If any disclaimer or limitation set forth in this agreement
-violates the law of the state applicable to this agreement, the
-agreement shall be interpreted to make the maximum disclaimer or
-limitation permitted by the applicable state law. The invalidity or
-unenforceability of any provision of this agreement shall not void the
-remaining provisions.
-
-1.F.6. INDEMNITY - You agree to indemnify and hold the Foundation, the
-trademark owner, any agent or employee of the Foundation, anyone
-providing copies of Project Gutenberg-tm electronic works in
-accordance with this agreement, and any volunteers associated with the
-production, promotion and distribution of Project Gutenberg-tm
-electronic works, harmless from all liability, costs and expenses,
-including legal fees, that arise directly or indirectly from any of
-the following which you do or cause to occur: (a) distribution of this
-or any Project Gutenberg-tm work, (b) alteration, modification, or
-additions or deletions to any Project Gutenberg-tm work, and (c) any
-Defect you cause.
-
-Section 2. Information about the Mission of Project Gutenberg-tm
-
-Project Gutenberg-tm is synonymous with the free distribution of
-electronic works in formats readable by the widest variety of
-computers including obsolete, old, middle-aged and new computers. It
-exists because of the efforts of hundreds of volunteers and donations
-from people in all walks of life.
-
-Volunteers and financial support to provide volunteers with the
-assistance they need are critical to reaching Project Gutenberg-tm's
-goals and ensuring that the Project Gutenberg-tm collection will
-remain freely available for generations to come. In 2001, the Project
-Gutenberg Literary Archive Foundation was created to provide a secure
-and permanent future for Project Gutenberg-tm and future
-generations. To learn more about the Project Gutenberg Literary
-Archive Foundation and how your efforts and donations can help, see
-Sections 3 and 4 and the Foundation information page at
-www.gutenberg.org
-
-
-
-Section 3. Information about the Project Gutenberg Literary Archive Foundation
-
-The Project Gutenberg Literary Archive Foundation is a non profit
-501(c)(3) educational corporation organized under the laws of the
-state of Mississippi and granted tax exempt status by the Internal
-Revenue Service. The Foundation's EIN or federal tax identification
-number is 64-6221541. Contributions to the Project Gutenberg Literary
-Archive Foundation are tax deductible to the full extent permitted by
-U.S. federal laws and your state's laws.
-
-The Foundation's principal office is in Fairbanks, Alaska, with the
-mailing address: PO Box 750175, Fairbanks, AK 99775, but its
-volunteers and employees are scattered throughout numerous
-locations. Its business office is located at 809 North 1500 West, Salt
-Lake City, UT 84116, (801) 596-1887. Email contact links and up to
-date contact information can be found at the Foundation's web site and
-official page at www.gutenberg.org/contact
-
-For additional contact information:
-
- Dr. Gregory B. Newby
- Chief Executive and Director
- gbnewby@pglaf.org
-
-Section 4. Information about Donations to the Project Gutenberg
-Literary Archive Foundation
-
-Project Gutenberg-tm depends upon and cannot survive without wide
-spread public support and donations to carry out its mission of
-increasing the number of public domain and licensed works that can be
-freely distributed in machine readable form accessible by the widest
-array of equipment including outdated equipment. Many small donations
-($1 to $5,000) are particularly important to maintaining tax exempt
-status with the IRS.
-
-The Foundation is committed to complying with the laws regulating
-charities and charitable donations in all 50 states of the United
-States. Compliance requirements are not uniform and it takes a
-considerable effort, much paperwork and many fees to meet and keep up
-with these requirements. We do not solicit donations in locations
-where we have not received written confirmation of compliance. To SEND
-DONATIONS or determine the status of compliance for any particular
-state visit www.gutenberg.org/donate
-
-While we cannot and do not solicit contributions from states where we
-have not met the solicitation requirements, we know of no prohibition
-against accepting unsolicited donations from donors in such states who
-approach us with offers to donate.
-
-International donations are gratefully accepted, but we cannot make
-any statements concerning tax treatment of donations received from
-outside the United States. U.S. laws alone swamp our small staff.
-
-Please check the Project Gutenberg Web pages for current donation
-methods and addresses. Donations are accepted in a number of other
-ways including checks, online payments and credit card donations. To
-donate, please visit: www.gutenberg.org/donate
-
-Section 5. General Information About Project Gutenberg-tm electronic works.
-
-Professor Michael S. Hart was the originator of the Project
-Gutenberg-tm concept of a library of electronic works that could be
-freely shared with anyone. For forty years, he produced and
-distributed Project Gutenberg-tm eBooks with only a loose network of
-volunteer support.
-
-Project Gutenberg-tm eBooks are often created from several printed
-editions, all of which are confirmed as not protected by copyright in
-the U.S. unless a copyright notice is included. Thus, we do not
-necessarily keep eBooks in compliance with any particular paper
-edition.
-
-Most people start at our Web site which has the main PG search
-facility: www.gutenberg.org
-
-This Web site includes information about Project Gutenberg-tm,
-including how to make donations to the Project Gutenberg Literary
-Archive Foundation, how to help produce our new eBooks, and how to
-subscribe to our email newsletter to hear about new eBooks.
-
-
-
-</pre>
-
-</body>
-</html>
diff --git a/old/50581-h/images/cover.jpg b/old/50581-h/images/cover.jpg
deleted file mode 100644
index 2df14f0..0000000
--- a/old/50581-h/images/cover.jpg
+++ /dev/null
Binary files differ