The discovery of gold in California and Anstralia had a considerable effect upon the monetary systems of the world, but to a far less extent than the dis coveries of the 16th century. AL Juglar compiled a series of tables which show what that effect was. From 1850 to 1864 the excess of gold imported into Franco over that exported amounted to the enormous sum of E136,000,000 sterling. On the other hand, the exports of silver exceeded the im ports by as much as X63,000,000. While, therefore, the amount of the precious metals in France was increased by £73,000,000, not only was the total augmentation in gold, but also a not much smaller value of silver was displaced by that metal. Tho first effects of the gold discoveries was thus to undo what had taken place between 1834 and 1854, and to replace gold in the French circula tion. But the exported silver was sent, not to the United States, but to the east. The Public Works policy initiated by Lord Dalhousie, the 3Iutiny, and the demand for Indian cotton caused by the American Civil War, the opening up of China, and subsequently of Japan, all created an extra ordinary demand for silver, which the abundance of gold enabled Europe to spare. In the period 1864-74 a change took place. The exces.s of the imports of gold over the exports in this period was less than £68,000,000, or about half the former excess. But in the case of silver, instead of an excess of exports, we now find an excess of im ports amounting to £49,000,000. Thus in the
latter period there was an excess of imports of both metals, but the imports of gold had greatly fallen off, whereas those of silver had taken the place of a much larger deficit. And this occurred in spite of the large sums of silver exported to Germany to pay the indemnity! Another fact to be borne in mind is that the change set in before the war, consequently before the demonetization of silver in Germany, before the depreciation of silver showed itself, and before the increased pro duction of the American silver mines. In the spring of 1865 the American Civil War came to a dose. The Southern ports were then opened, American cotton began to arrive in Liverpool, and the demand for the Indian article fell off.
In London, between the years 18:33 and 1872, the price of a standard ounce of bar silver ranged between 59hd. and 62/117d. In 1873, the price of I silver began to decline, and since then it has been I selling as tinder :— Iu 1871 peace was declared between France and Germany ; in 1873 the German Govermnent announced the demonetizing- of silver ; in 1874 there was au enormous increase of bullion, £22,000,000, mostly gold. In 1876 there were remarkable fluctuations in rates of Indian ex changes and bar silver, and the latter touched the lowest price on record.
Value of gold and silver imported from, and ex ported to, foreign countries at ports in British I ndia —11Iason; Ball ; Exh.; Oldham; Yule's Embassy.