THE EFFECTS OF CALIFORNIAN GOLD ON THE CURRENCY.

New Zealander, Volume 5, Issue 383, 15 December 1849, Page 6

THE EFFECTS OF CALIFORNIAN GOLD ON THE CURRENCY.

The city article of the New York Herald of the 18th June has the following remarks on the subject of the currency, u likely to be affected by the inundation of gold from California :— " Haying made sereral additions to our Hit of shipments of gold from San Francisco, we again publish it, knowiug it will be interesting to ratty in this country and in Europe. The exportation of gold-dust fiom California has been much larger than we Anticipated. " The gro?s total amount of gold shipped from California is 4,269,788d01., of which 1,36?,300d01-, has been received in the United State*. This it independent of the quantity taken away from San Francisco in the trunks mid bags of individual privately. The sum thus carried away must be Iqrge, and would, if known, and added to the abovr, toake a much larger amount. The lar^e number of miners who came down in the CaHfoi nia to Panama, and by the Crescent City to New Orleans, have no doubt brought a very large sum, which cannot: be put into our table of receipts. It would be sale to put the shipments from California in this manner dowu at 700,000 or 800.000d01., which would swell the aggregate to full 5,000,000d01. Independent of this, it is reasonable to suppose that there wa<, at the latest dates, a large amount of gold in dust and pieces varying from an ounce to several pounds weight in circulation in and about San Frsncisco, for the purposes of trade, and hoarded by diggers in different parts of the mining section. These sutni, added to the shipments, will give n pretty good idea of the amount of gold produced in that region during the season of 1848 --a period of about three mouth*' real diggiog*

" When we look at this immense amount of gold extracted from the soil of a new country, in such a ihort time, by such » small number of diggers, w«> are aatonished, and are induced to beliere all and every thing the most excited imagination conld conceive. During the whole courte of the California movement not a single well authenticated contradiction of the first ac< counts has been received ; but every report relative to the richness of the mines has been confirmed by the next which has come to hand. This fs a most extraordinary circumstance, and is alone lufficient to create the greatest confidence in the retults of the more menl* {roing on in connexion with the mineral weslth of thai portion of our country. The first report of Governor ftlaion relative to the probable product of each labourer in the mine* has been more than realized, and the prospect is that the operations for 1849 nil produce « greater proportionate result. The miners in 1848 had no facilities for extracting the gold dust, from the soil, hut ihose of the roaches! anil most imperfect character and they [therefore laboured under the greatest disad' vantages. Notwithstanding theae drawbacks, (he product averaged more than an ounce of pure gold per day for each man engaged. Thia year (1849) the miner* commence under the most favourable auspices. Many of them have experience, and auch great improvements have leen made in the machinery r.ecesiary to, work advantageously, thai it is our impression that the aggregate of last year will be equalled, if not exceeded. Taking the average of last year as a basis, the result of this year's operations will be enormous. 44 A large number of emigrants are now on their way to the mines of Califoi nia. Many of (hem will not arrive theie before July, but the bulk of them will be on land by the Ist August. We should judge from the numbe.s which have left our ports, and those who have taken the land route, that by the Ist of August fully 8J,C!)0 people will be in the gold sectiou of California. Suppose 50,00 ) of these engage in digging for gold, it will give an average of more than 30,000 diggers for tha wholu season, equal to about 200 working days. The produciiort of such a large number of labourers at the rate realized hit year, would amount to the enormous. sum of9S,ooD,oot)dol. This ii not an over-estiitate, and the calculation is formed upon data which no one can dispntf .According to our ideas of the mineral wealih of California, the production of gold will be limited only by the number of people f ugjged hi the mines. The supply n pronounced inexhaustible. If socii is the fact, we cannot form the slightest idea ef what the product will be a few y*ars hence, when the valley of the Sacramento will be teaming with popular tion. If ths ratio of increase from year to year is as great as it is likely to be this year compared with last, California will literally flood the world with this metal, tmd produce as great a revolution in ita value, and ii its uses, as hns ever been realized in any of the political and religious lyiieius of the world. We do not, however, look for those remits which are generally anticipated from this immense increase of this representative of propei ty. It appears as though an over- ruling - Power iaterpoEed its special providence in ahaping events to prevent that utter and complete derangement of all the landmarks of commerce, and a destruction of all the eld systems of finance. The acceiaioo of such an enormous amount of gold to the channels of trade would have a tremendous influence upon prices for every species of property, and upon public and private credits, but for the existence of a state of thingsin the political wot Id calculated to' annul the effect which would otherwise be experienced. Events which have recently transpired in the financial and political world have destroyed confidence in public and private credits to such an extent that an immense amount of the paper cadency of Europe must be displaced, and the vacuum filled with the precious metals. This will abjorb an enormous amount of gold, and tend to preserve tint equalization of values s > necessary to keep matter* in a healthy »late. The financial revolution which is about spreading overEuropa will require (he addition ofrniU lions upon millions of gold to afford the people a sound and safe currency, and to prevent a collapse, which would otherwise prostrate the industrious classes, at the same time it crushed the moneyed aristocracy of the Old World. We annex a statement exhibiting the aggregate currency of the world, According to the best authorities in our possession :—

11 The displacement of e y<m one-half of this circulation will require an increase of gold to the" amount of #600,000,01)0. Independent of this imme me sum, commercial paper and evidf nccs of public indebtedness, which are used as a kind of currency to a large amount, will be displaced, and their place supplied with gold. In ordinary times, when confidence wji undisturbed, a very great influx of gold would displace a Urge amount of paper before it would nctTery much upon the value of property ; but the political revolutions in Europe, and the prospect of a general war, have so shaken public and private credit that they are upo.j the eye of a revulsion or explosion tb»t will prove most disastrous to all concerned ai issuers or holders of such a currericv. In the United State* we shall not experience a change to such an extent ; but even here cold will di§place a large amount of bank paper. The effect of such a movement wilt be to prevent that enormous inflation in prices for property generally, and that immense increase of currency, which many anticipate from the .production of so much gold in California. The revolutions and revulsions in Europe, in their effect upon the currency, neutralize the rapid increase of gold, and preserve the equilibrium of commerce. I will, therefore, take several years, at the (rate of pro ductioa estimated above, before the influx of Californian gold will bring about any great derangement of com* mercisl syitemi, or have any vqry great influence upgu prices. Even with the existing aomunt of paper currency, we require a specie ba.is several tmu'dieds of millions larger thnn that we hate, in consequence" of the rapid incrense of national wealth aud the iirimento extent of the undeveloped resource! of the woild." Half-pay.— Army and Navy.'— A parliamentary return, called for by Mr. Hume, hai just been p'ubliibed, of an account of the total charge for half-pay, pensions, and superannuations, &c, in each year lines 1828, compared with the whole expenditure for the effective establishments, &c, for the same period. It appear* that, for the army, the balf-pay, &c, in 1828, was £2,903,477 ; in 1848, £2,295,170. Ordnance in | 1828, £372,380 ; in 1838, £1.362,162. Civil S«rvice, ' 1828, £420,983 } in 1848, £530,672. Total chare* i for half-pay pensions superannuations, &c, for tfif army, ordnance, navy, and citil service* in 1828,, £5,362,670 ; in 1848. jfc?4,350,510. Expenditures for effective establishments, and other national expenses', exclusive of the debt in 1828, £19,472,51! ; i a 1848, £26,07tf,709. Total expenditure, 18,28, £24,835,189 i 1848, £30,427,205.

Circulation. Specie in Banki. United State* ... #J70,0f>0,000 #30/00,000 Great Britain* Ireland 200,000,000 90,000,00 ft France 125,000,000 50,00>),000 Reit of Europe ... 50l),000,000 150,000,000 Reit of the World .. 250,000,000 150,000,000 Total .. ..#1,245,000,000 #52 .000,000

" Hanking Movement or thb Worid