The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. MONDAY, NOVEMBER 14, 1881.

Thames Star, Volume XII, Issue 4018, 14 November 1881, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. MONDAY, NOVEMBER 14, 1881.

A question which Goncerns New Zealand very closely is the growing scarcity, and appreciation in value of gold throughout the mercantile world. The subject is a Tery difficult one to deal with in a popular form, but when we remember that New Zealand is a gold yielding country, the interest awakened by the fact should make us endeavor to clearly understand what this growing scarcity means. When gold discoveries in Australia, New Zealand, and California first took place, it was thought that gold would depreciate in value, and leading political economists within the last tea years have thought it worth while to discuss whether any actual depreciation had taken place. The idea of a fall in the value of gold taking place is now quite discarded from the fact that the supply is diminishing almost yearly, while the demand is steadily increasing for the precious metal. This demand commenced when Germany adopted a gold standard after the Franco-Prussian war. America soon afterwards resumed specie payments and France following in her wake abolished her paper money. Various other states have followed their example, and now Italy talks also about a gold currency. Money it must be borne in mind is only a medium of exchange, although when in a metallic form of a certain quality and weight it has a specific changeable value. Since 1844 "a pound" in England has been the standard of value. The " pound " being a sovereign of a certain weight and fineness. As population and trade increases of course more " pounds " are needed, and although bank notes take the place of sovereigns, the banker has to keep sovereigns in his possession to pay bis customers when called upon to do so. The matter is very plain. A thousand people want more " pounds " to buy the necessaries of life than five hundred require. If the thousand people do three times the trade the five hundred transacted, of course the increase of the "pounds " for the necessities of existence will be doubled. This is what is hapenning all over Europe, and when Governments say that the medium of exchange shall be in the form of " the pound " in gold, and gold production yearly decreases, it is very plain that gold must enhance yearly in value until some other metal is associated with it to aid the necessities of commerce. Very few people know where this demand for gold is going to land us, nor how commerce vail bo affected by the

competition which has arisen for its pos session. The United States has been fighting for gold for some time past, and has not only drawn large supplies from England and France, but has kept all th« gold it has raised within its boundaries for the last four years. As gold increases in value other commodities decrease in price. This in a great measure accounts for the falling off of English exports, of which wo hear so much at the present time. The fall is in the value and not in the quantity. The economists of the world are arranged on two sides on N this matter—the oue side maintaining that gold should be the standard of value; the other that gold and silver should both be used as an exchangeable medium. Subtle as may be the considerations arising from "money" and its value, they of course underlie all the phases of our life and existence. Enough, however, has been said on this matter at the present time to show the importance of the Government of the day paying the most sedulous heed to the manner in which our goldfields can be extended, their resources developed, and the goldmining industry fostered instead of being by too many despised and sneered at.