We do not doubt
that the English Mint price of gold, L3 17s. 10-1/2d. an ounce, and the
price at which the Bank of England are compelled to purchase, L3 17s.
9d. an ounce, are causes which not only regulate, but, within certain
limits, determine, the price of gold throughout the world. Suppose, for
a moment, the circulation of England, exceeding thirty millions and the
Bank store of fifteen millions, to be thrown on the markets of Europe,
by an alteration of the standard of value--how material would be the
fall in price! It is equally obvious that England would be first and
most materially affected by any large and sudden production of her
standard of value; for though America would be enriched by the
discovery of the precious metals within her own territories, it is only
because she would possess a larger fund to exchange for more useful and
necessary products of labour. The value of silver would not fall,
assuming the supply and demand to be equalised, but gold would fall in
relation to silver, and the existing proportion (about 15 to 1) could
no longer be maintained. Then prices would rise of all articles now
estimated in our currency--i.
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