Remarks on the production of the precious metals: and on the demonetization of gold in several countries in EuropeFaucher, Léon
History
Remarks on the production of the precious metals: and on the demonetization of gold in several countries in Europe
Faucher, Léon
Bimetallism; Precious metals; Precious metals -- Europe
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.
Public-domain text, read in full here on John Shaqi.
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