M. Humboldt however admits, in the second edition of his work, that his estimate of the produce of gold in Brazil was too high. It might have applied to the period from 1752 to 1762; but since the latter epoch, the produce of gold, estimated by the produce of the tax paid to the crown, has declined more than a half. Mr. Jacob calculates that in the period from 1752 to 1794, the mines and washings of Brazil yielded in all £40,000,000, being at the rate of nearly £800,000 a year.

The proportion of the value of gold to silver, in antiquity, seems to have been about 12 or 12 to 1. During the middle ages, the value of gold, as compared with silver, appears to have fallen; for in France and Holland, towards the middle of the 14th century, gold and silver were rated as 10 and 10 to 1. (Recherches sur le Commerce, tome ii. part ii. p. 142.) But since the discovery of the American mines, the value of gold has been gradually rising, as compared with silver, and at present they are to each other as 15 to 1. It must not, however, be supposed that these fluctuations in the relative value of the precious metals correspond with, or depend upon, the fluctuations in the quantities of each that are brought to market. They result entirely from changes in the comparative cost of their production. There is no reason to think that the quantity of gold produced has ever amounted to a 15th or 20th part of the quantity of silver. At the commencement of the present century, the quantity of gold produced in America was to that of silver as 1 to 46; while in Europe, the proportion was as 1 to 40. (Nouvelle Espagne, tome iii. p. 401.)

From 1800 to 1810, the produce of the American mines went on increasing. But in the last mentioned year, those convulsions began which have established the independence of Spanish America, and produced an extraordinary revolution in the supply of gold and silver. The abuses inherent in the government of the Spanish colonies, the appointment of Europeans to all public employments, the corruption that universally prevailed in the administration of justice and the collection of the revenue, and the oppressive restrictions on their intercourse with foreigners, and with each other, imposed by the mother country, became more intolerable as the colonies increased in population and wealth. The occupation of Spain by the French merely accelerated a crisis that could not have been long averted. The eagerness with which individuals of all ranks and orders, in every part of America, crowded to the patriotic standards the moment they were unfurled, proves how generally the old system of government had been detested. The struggle was long and bloody; but it was maintained by the independents with a spirit that was proof against every disaster. The contest was peculiarly destructive to all great establishments, and especially to the mines. These principally belonged to old Spaniards, who were every where the objects of popular vengeance; and who mostly emigrated, carrying with them all the capital they could amass. But besides the injury done to the mines by this withdrawal of the capital employed upon them, the works of those of Guanaxuato, Valenciana, &c. were destroyed; and many more which escaped any direct injury, being abandoned by the workmen, were inundated, and became nearly useless. There are no means of accurately estimating the de

cline in the produce of the mines that has actually taken place since 1810. But, according to Mr. Jacob, who has collected and compared all the existing information on the subject, the total produce of the American mines, inclusive of Brazil, during the twenty years ending with 1829, may be estimated at £80,736,768; being at the rate of £4,036,838 a year; less considerably than the half of their produce at the beginning, and during the first ten years of the century.

The European mines have also declined within the last twenty years; but there has been a material increase in the produce of those belonging to Russia. According to M. Humboldt, it amounts at present to about £1,250,000 a year. [1832.]

On the whole, therefore, the present annual average produce of the American and European mines, including those of Russia, may be estimated at between £5,500,000 and £6,000,000; being from £4,500,000 to £4,000,000 less than their annual produce at the beginning of the century.

This extraordinary falling off in the supply of the precious metals, has been supposed by many to be the principal cause of the fall of prices that has taken place since the peace; and though Mr. Jacob has not given any express opinion on the subject, we gather from his statements, that he is inclined to this view. But before proceeding to discuss this question, we shall take the opportunity of submitting some remarks with respect to the consumption of the precious metals. Mr. Jacob has collected many curious details in reference to this branch of the enquiry; but it is notwithstanding embarrassed with serious difficulties.

II. Gold and silver are applied either to the purposes of coin, or of the arts. Unluckily, however, there are no means 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 practiced 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, and a thousand other circumstances, all of them liable to great, and sometimes sudden, changes.

The discrepancies in the estimates that have been formed by those best versed in statistical enquiries of the quantity of coined money existing in Europe, demonstrate the impossibility of coming to any very accurate conclusion with respect to it. According to M. Humboldt, the gold and silver coin existing in Europe in 1812, amounted to 1637 millions of dollars, or about 325 millions sterling. But M. Storch, who has examined this question with much attention, contends that Humboldt's estimate is exaggerated, and that the money in Europe does not exceed 1627 millions of roubles, or (reckoning the rouble at 3s. 4d.) 271 millions sterling. (Cours d'Economie Politique, tome iv. note 12.) Mr. Jacob seems, however, to have entertained a very different opinion of Humboldt's estimate; and instead of considering it as exaggerated, has concluded it to be very much below the mark. His supposition is,

that in 1809, the stock of coined money in Europe amounted to 380 millions; being 55 millions above Humboldt's estimate, and 109 millions above that of M. Storch. Mr. Jacob has arrived at his conclusions in a manner different from, but not, as we think, more satisfactory than Humboldt and Storch. Were it necessary to select from among such discordant statements, we should prefer that of M. Storch to either of the others. It is founded principally on a comparison of the accounts given by the best statistical writers, in the different countries, of the quantity of coin in each; and this appears the only safe mode of arriving at any thing like a tolerable approximation to the total amount. Humboldt comes to his conclusions chiefly by determining the proportion between the coin and population of France;-supposing that the coin of other countries will be in a somewhat similar proportion to their population. Mr. Jacob, on the other hand, begins by estimating the quantity of gold and silver coin existing in Europe in 1600, and then striking a balance between the additions made to this quantity during the next 200 years, and its diminution from abrasion and otherwise, he arrives at the result above stated. Every one, however, must see that it is impossible to attach any confidence to investigations conducted in this way. They involve so many hypotheses and assumptions, that if they ever happen to be correct, it must be accidentally only.

Mr. Jacob has entered into some very elaborate details in his twentythird chapter, as to the abrasion of coins, or their loss by wear. This, of course, must differ at different periods, according to the goodness of the coin, and still more, perhaps, the rapidity of circulation, the absence or frequency of hoarding, &c. Mr. Jacob states that the average annual loss of the British gold coins by wear, may be estimated at one part in 950; and that of the silver coins at one part in 200. He, however, states, that "practical men, to whom the subject of the loss of the metals has been one of much consideration, from being of importance in their several branches of the gold, silver, and jewelry manufactures, commonly calculate a much greater degree of loss of silver than is here shown. One gentleman, of great accuracy and acuteness, and much conversant in the application of those metals in his manufactory, communicates his opinion thus:-"The loss on coined silver is full one hundredth part, or one per cent. per annum. If 100 pieces of 1815 and 1816, and upwards, to the last date on the silver coin, be examined, it will give this result. Though this loss is much greater than on gold, it is easily accounted for; for first, the same degree of friction will produce a greater diminution of weight; and secondly, the constant and never-ceasing circulation of the silver coinage, far exceeds that of gold, since it never will be hoarded or kept in a state of rest, it not being a measure of value in this country, but a token or representative of value.”—(Vol. ii. p. 185.)

Mr. Jacob, however, has omitted to observe, that the loss of coins by abrasion does not fairly represent their total wear and tear. To measure the latter, the quantities lost by fire, shipwreck, and other accidents, must be allowed for. The loss from these sources can only be guessed at, but it must not therefore be overlooked; and adding it to

the loss by abrasion, the total loss may perhaps amount, at an average of the gold and silver coins of Europe, to about three-fourths per cent.; so that estimating the total amount of coined money in Europe at £280,000,000, it would require an annual supply of £2,100,000 to keep it up to its level.

Difficult, however, as it certainly is, to arrive at any safe conclusion as to the consumption of gold and silver in coin, it is far more difficult to estimate their consumption in the arts. Even as respects the quantity wrought up into articles of plate, which are assayed and charged with duties, it is not possible to arrive at any very precise results; and when to these we add the quantities consumed in plating, in the manufacture of lace, china and earthenware, and in gilding of rooms, picture frames, and other articles of furniture, bookbinding, &c. it will be apparent that the most carefully drawn up estimate of the total consumption in 'such various channels, can only be regarded as a very rude approximation to the truth.

According to Mr. Jacob, the value of the precious metals annually applied to ornamental and luxurious purposes in Europe, may be esti

mated as follows:

And adding to this the sums directly applied to the same purposes in America, the whole will be about £5,900,000.

Mr. Jacob has been at great pains in collecting materials on which to found this estimate. Still, however, it appears to us to be not a little wide of the mark. Those practically engaged in the details of any business, are very apt unconsciously to exaggerate its value and importance; so that statements as to its aggregate amount and value, derived from such sources, must be taken with very considerable modification. We cannot help thinking that Mr. Jacob has made too little allowance for this tendency to magnify; and that his estimate of the consumption of gold and silver is decidedly too high. Mr. 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. 85,) and this estimate corresponds with that deduced by M. de Chateauneuf, from his elaborate enquiries. (Recherches sur les Consommations de Paris en 1817, 2de partie, p. 73.) 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 for the consumption of the entire kingdom. But supposing it to amount to 25,000,000 francs, it would, at the exchange of 25.20, be under £1,000,000 sterling; or more than £200,000 below Mr. Jacob's estimate.

But the principal exaggeration consists, as it appears to us, in the estimate of the consumption of Britain. According to Mr. Jacob, it

exceeds considerably that of all Europe besides. Although, however, the use of plate be more generally diffused amongst us than any where else, it is otherwise with trinkets, which are more abundant in several parts of the continent than in England. Many of the continental nobility, particularly those of Russia, have very large quantities of plate; and as the taste for gilt articles is more general among the wealthy classes in most parts of the continent than in England, we cannot bring ourselves to believe that the proportional consumption of gold and silver in the latter, is nearly so great as Mr. Jacob has stated.

M. Chabrol states, that the value of the workmanship on articles of gold, plate, and jewelry, is to the value of the gold as seven to five, and in those of silver as five to nine. Now, unless this statement be very wide of the mark, we shall be warranted, taking the duty into account, in supposing that the value of the bullion used in the arts in this country, is at least doubled in its price before it reaches the consumer. Hence, according to Mr. Jacob's estimate, the people of Britain annually spend upon articles of plate, jewelry, &c. £4,914,442. The annual expenditure of so vast a sum for such objects, seems quite incredible. It amounts to more than the whole sum, duty included, paid annually for wine; and to more than two-thirds of the whole sum, duty included, paid annually for tea! But those who compare the expenditure of a number of families, taken at random from the different ranks of society, will be satisfied that the payments made by them on account of articles of plate, jewelry, gilding, &c. bear a comparatively small proportion to their payments on account of the articles just mentioned.

On the whole, we should not be disposed to rate the annual consumption of the precious metals, in the arts, in Great Britain, at above £1,600,000, or £1,800,000. In our view of the matter, the consumption of Europe might be stated as follows:

Probably even this estimate is too high. In the last edition of his Essai sur la Nouvelle Espagne, Humboldt has entered into some elaborate investigations as to this point; the result of which is, that the entire consumption of the precious metals in Europe, in the arts, may be estimated at 87,184,800 francs, equal, at the exchange of 25.20, to £3,459,714; being £790,286 under the preceding estimate, and no less than £2,152,997 under that of Mr. Jacob.

It must not, however, be supposed, that the whole of the gold and silver annually made use of in the arts, is derived from the mines, or from the fusion of coin. A certain portion of it is, as every one knows, obtained from the melting of old plate, the burning of picture frames, lace, &c. But it is quite impossible to determine the proportion which the supply from this source bears to the total consumption. The estimates on this head differ exceedingly. Mr. Jacob supposes