NOTE.

[The subject of the Currency occupies, at present, so prominent a place in the public attention, that I have added, in the form of a note, the article on the Precious Metals entire, from Mr. McCulloch's Dictionary of Commerce.]

To enter fully into this interesting and difficult subject would require a long essay, or rather a large volume. Mr. Jacob has recently published an "Historical Inquiry into the Introduction and Consumption of the Precious Metals," in which he takes up the subject at the earliest period, and continues it to the present day. This work, though neither so complete nor satisfactory as might have been expected, contains a good deal of valuable information, and deserves the attention of all who take an interest in such inquiries. We confess, however, that several of the learned author's statements and conclusions seem to us to be not a little wide of the mark. We shall notice one or two of them in the course of this article.

1. Supply of Precious Metals.-Since the discovery of America, the far greater part of the supplies of gold and silver have been derived from that continent. Previously to the publication of Humbolt's great work Essai Politique sur la Nouvelle Espagne, several estimates, some of them framed by individuals of great intelligence, were in circulation, of the quantities of gold and silver imported from America. They, however, differed widely from each other, and were all framed from comparative limited sources of information. But these have been wholly superseded by the more extensive and laborious investigation of M. Humboldt. This illustrious traveller, besides being acquainted with all that had been written on the subject, and having ready access to official sources of information unknown to the writers already alluded to, was well versed in the theory and practice of mining, and critically examined several of the most celebrated mines. He was therefore incomparably better qualified for forming correct conclusions as to the past and the present productiveness of the mines, than any of those who had hitherto speculated on the subject. His statements, have, indeed, been accused of exaggeration, and we incline to think that there are grounds for believing that this charge is, in some measure, well founded, particularly as respects the accounts of the profits made by mining, and the extent to which the supplies of the precious metals may be increased. But this criticism applies, if at all, in a very inferior degree, to the accounts M.

Humboldt has given of the total produce of the mines, and the exports to Europe. And, making every allowance for the imperfection inseparable from such investigations, it is still true, that the statements in question, and the inquiries on which they are founded, are among the most valuable contributions that have ever been made to statistical science.

According to M. Humboldt, the supplies of the precious metals derived from America have been as follows:

(Essai sur la Nouvelle Espange, tome iii. p. 428, 2d ed.) The following is M. Humboldt's estimate of the annual produce of the mines of the New World, at the beginning of the present

Taking the dollar at 4s. 3d., this would give £9,343,750 as the total annual produce of the American mines. M. Humboldt further estimated the annual produce of the European mines of Hungary, Saxony, &c., and those of Northern Asia, at the same period, at about £1,000,000 more.

The quantity of gold produced in America at the beginning of the century, was to the quantity of silver as 1 to 46; in Europe, the proportions were as 1 to 40. The value of equal quantities of gold and silver were then in proportion of 15 or 15 1-2 to 1. Latterly the quantity of gold produced has increased, as compared with the quantity of silver.

From 1800 to 1810, the produce of the American mines was considerably increased; but in the last mentioned year the contest began which terminated in the dissolution of the connection between Spain and the South American colonies. The convulsions and insecurity arising out of this struggle; the proscription of the old Spanish families, to whom the mines principally belonged, who repaired, with the wrecks of their fortunes, some to Cuba, some to Spain, and some to Bordeaux and the south of France; have caused the abandonment of several of the mines, and an extraordinary falling off in the amount of their produce. There are no means of accurately estimating the precise extent of this decline; but according to Mr. Jacob, who collected and compared all the existing information on the subject, the total average produce of the American mines, inclusive of Brazil, during twenty years, ending with

1829, may be estimated at £4,036, 838 a year; being less considerably than one half of their produce at the beginnning of the century!-(Jacob, vol. ii. p. 267.)

Since the publication of Mr. Jacob's work, some further light has been thrown on this subject, by the publication of returns obtained by the British consuls in South America, of the produce of the mines at different periods. They differ considerably from those given by Mr. Jacob. The following is an abstract of their results, comparing the twenty years ending with 1809 with the twenty years ending with 1829:

There are so many sources of error attached to all investigations of this sort, that these results, though deduced from what may be reckoned good authority, cannot be altogether depended on. The consular returns contain no account of the produce of the Peruvian mines, except in so far as they come under the head of Buenos Ayres; and in this respect they differ very widely from the statements given by Mr. Jacob, who estimates the produce of the mines of Peru and Buenos Ayres, during the twenty years ending 1829, at about £18,500,000! We also incline to think that the mines and washings in Columbia are not quite so neglected as they are said to be by the consul. It will be observed, too, that the account does not include the produce of the Brazilian mines. They are supposed to have yielded, since 1810, about 1,500,000 dollars a year; but this is not more than adequate for the wants of the country. The produce of the Russian mines was comparatively trifling till 1810; but it has since increased, and is continuing to increase with considerable rapidity.

Adding to the produce of the American, that of the Russian mines, and separating the gold from the silver, their total produce, according to the consular returns, during each of the four decennial periods, ending with 1829, has been about

This gives £3,146,000 for the average annual supply of the American and Russian mines during the ten years ending with 1829. But the returns show that the produce of the Mexican mines had begun materially to increase in the latter years of this period; and we have to add to the above the produce of the Hungarian and Saxon mines. Hence, allowing for the increase that has taken

place since 1829 in the productiveness of the Mexican and South American mines, exclusive of Brazil, and adding to their produce that of the Russian and other European mines, we may safely estimate (assuming the consuls not to have under-rated the American returns) the present annual supply of gold and silver from these sources at considerably more than £4,000,000.

Exclusive of the sources now mentioned, the United States have recently begun to afford considerable quantities of gold. It was first discovered in North Carolina, in 1804; and from that period till 1829, about 109,000 dollars had been found. It has since been discovered in other States. The following Table exhibits the value of the gold annually produced in the United States since 1829.(American Almanac for 1834.)

140,000

466,000 520,000

678,000

Total, This table shows a considerable increase; the produce in 1832 being above £135,000. It is principally obtained by washing the soil in the valleys. Taking this new supply into account, and including, as was done by M. Humboldt, the produce of the Brazilian mines; and further adding £500,000 to the sums given in the consular returns, to cover the deficiences which they certainly involve; we may safely estimate the entire annual produce of the American, European, and Russo-Asiatic mines, as amounting, at this moment, to about £6,000,000 a year; being 6-10ths of their annual produce when greatest.

*

2. Consumption of Precious Metals.-Gold and silver are supplied either to serve as coin, or made use of in the arts. There are no means whatever by which to discover the proportion in which they are applied, at any given period, to these purposes; and the proportion is perpetually varying with the varying circumstances of each country; as, for example, with the greater or less abundance of paper money, and the degree in which the use of coins is saved by the various devices resorted to by means of banking and otherwise for economizing currency, the greater or less wealth of the inhabitants, the fashion as to plate, the feeling of security at the moment, and a thousand other circumstances, all of which are liable to great and sometimes sudden changes.

According to Mr. Jacob, the value of the precious metals annually applied to ornamental and luxurious purposes in Europe, may be estimated as follows: viz. Great Britain, 2,457,2217.; France, 1,200,000l.; Switzerland, 350,0007.; remainder of Europe, 1,605,4997; making in all, 5,612,7117. And adding to this the sums di

Even with this addition, their produce is materially under the sum mentioned by Mr. Jacob.

rectly applied to the same purposes in America, the whole will be about 5,900,0007.

The data upon which this estimate has been founded, are in the last degree vague and unsatisfactory. It can hardly, indeed, be looked upon as any thing better than a mere guess; and as such, we do not think that it is a very happy one. M. Chabrol (whose researches are far more worthy of confidence than those of M. Chaptal, to which Mr. Jacob refers) estimates the consumption of gold and silver in the arts at Paris at 14,552,000 francs a year(Recherches Statistiques sur la Ville de Paris, 1823, Tab. No 85); which corresponds with the elaborate estimate of M. Benoiston de Chateauneuf-Recherches sur les Consommations de Paris en 1817, 2de partie p. 78.) Both these authorities agree that the consumption of the precious metals in the arts at Paris is double that of the rest of France; so that we have 21,828,000 francs, or 866,190l. for the consumption of the whole kingdom, which is 333,810l. a year under Mr. Jacob's estimate.

We have been assured, by those who have good means of forming a correct opinion upon such a point, that the quantity assigned by Mr. Jacob for the consumption of Great Britain is over-rated in about the same proportion as the consumption of France, or about 1-4 part. There has, no doubt, been a considerable increase of late years in the consumption of plate and gilt articles; but it would require far better evidence than any hitherto laid before the public, to warrant the conclusion that so large a sum as 2,457,000l. is appropriated to such purposes.

The consumption of Switzerland, as set down by Mr. Jacob, is probably not far from accurate. But the sum assigned for the aggregate consumption of the rest of Europe seems to be quite as much exaggerated as that allowed for France and England.

According to this view of the matter, the consumption will be,Great Britain, 1,842,916/.; France, 866,1901.; Switzerland, 350,000l.; rest of Europe, 1,204,1187. in all, 4,263,2241. To this must be added 309,000l. for the consumption of America making the entire consumption 4,563,2241.

Probably this valuation is still too high. According to M. Humboldt (Nouvelle Espagne, 2d edit. tome iii, p. 464), the total consumption of the precious metals in Europe, for other purposes than those of coin, amounts to only 87,182,800 franes equal, at the exchange of 2520, to 3,459,7147.: and adding to this 300,000l for the consumption of America, the grand total will be, in round numbers, 3,760,000; being 803,000 under our estimate, and no less than 2,140,000 under that of Mr. Jacob!

But a portion of the gold and silver annually made use of in the arts is derived from the fusion of old plate, the burning of lace, picture frames, &c. Here, however, we have to lament the impossibility of ascertaining the proportion the supply from this source bears to the total quantity wrought up. Mr. Jacob estimates it at only 1-40th part, or 2 1-2 per cent. ; but so small a sum seems to be quite out of the question. Most part of the precious metals employed in plating, gilding, &c., is certainly destroyed; but the quantity of metal so made use of is admitted by every one to be de