that the supply derived from the fusion of old plate, and such like sources, amounts to only one-fortieth part, or 2 per cent. of the total quantity wrought up; but this is certainly very much under its real amount. Most part of the precious metals employed in plating, gilding, &c. is irrecoverably wasted; but the quantity used in this way is very much below the quantity used in the manufacture of plate, watchcases, and other articles of that description; and these, when they either become unfashionable, or are broken, or injured, are, in most instances, sent to the melting-pot. Necker and Gerboux, both very high authorities on questions of this sort, concur in supposing that a half of the gold and silver used in France by jewellers, goldsmiths, &c. is obtained from the fusion of old articles; and it is of importance to observe, that two very able statistical enquirers, M. Peuchet (Statistique Elementaire, p. 429,) and M. Humboldt, (Nouvelle Espagne, III. p. 467,) have quoted this estimate without insinuating any doubt as to its correctness.

But we are, notwithstanding, inclined to suspect that this estimate is nearly as much above the mark as Mr. Jacob's is obviously below it. Assuming, therefore, that at a medium, 20 per cent. or one-fifth part of the precious metals annually made use of in the arts, is obtained from the fusion of old plate, we shall have, by deducting this proportion from the £4,250,000 applied to the arts in Europe, £3,400,000 as the total quantity of gold and silver dug from the mines, or taken from coin, annually appropriated to them in this quarter of the world; and adding to this last sum £300,000 for the total quantity of the precious metals used in the arts in America, we have, in all, £3,700,000 of new metal annually devoted to ornamental and luxurious purposes.

We have already seen that the total annual produce of the mines may, during the last five years, be estimated at from £5,500,000 to £6,000,000; and deducting from this the above sum of £3,700,000, there remains an annual supply of about £2,000,000 to be converted into coin, or exported to the East. At present the produce of the mines is probably rather above £6,000,000; and if so, the free surplus will exceed £2,300,000.

But before adverting to the question agitated by Mr. Jacob, as to the increase or diminution of coin during the last twenty years, it will be necessary to offer a few remarks on the practice of burying treasure, and on the trade with India and China.

It is singular that Mr. Jacob should have made no allusion, in esti-mating the consumption of the precious metals, to the practice now alluded to. It has always prevailed in countries harassed by intestine commotions, and exposed to foreign invasion. Of the hoards so deposited in the earth, a very considerable proportion have been altogether lost; nor can there be any doubt that this has been one of the principal means by which the supply of the precious metals has been kept down to the present level. Every one knows that during the middle ages, treasure trove, or money dug from the ground by chance-finders, belonged to the crown, and formed no inconsiderable part of the royal revenue, both here and elsewhere. The practice has always prevailed to a very great extent in Turkey, and other eastern countries, where the appearance of wealth exposes to extortion, and nothing is deemed

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secure that is not buried in the earth. Bernier remarked the prevalence of this custom in India; (Voyage, Amst. 1710, tom. i. p. 209.) and Mr. Luke Scrafton, in his celebrated tract on the Government of Hindostan, has adverted to it as follows:-"The rajahs never let their subjects rise above mediocrity, and the Mahometan governors look upon the growing riches of a subject as a boy does on a bird's nest; he eyes their progress with impatience, and comes with a spoiler`s hand and ravishes the fruit of their labor. To counteract this, the Gentoos bury their money under ground, often with such secrecy as not to trust even their own children with the knowledge of it; and it is amazing what they will suffer rather than betray it. When their tyrants have used all manner of corporal punishments on them, they threaten to defile them; but even that often fails, for resentment prevailing over the love of life, they frequently rip up their bowels, or poison themselves, and carry their secret to the grave; and the sums lost in this manner in some measure account why the silver in India does not appear to increase, though there are such quantities continually coming into it, and none going out."-(2d edit. p. 16.) But the practice is not confined to India and Turkey, Persia and other eastern countries. Mr. Wakefield tells us that it is common in Ireland. (Statistical Account of Ireland, vol. i. p. 593.) It has always prevailed to a very considerable extent in Russia and France; and in the latter, during the revolutionary anarchy, immense sums were buried, of which it is abundantly certain a large portion will never be recovered. The wars and convulsions with which Europe was afflicted for more than twenty years, extended the practice to all parts of the continent; withdrawing in this way from circulation a very considerable part of the increased produce of the mines. (Storch, Economie Politique, tom. i. p. 221. Paris, 1823.) Next, however, to the consumption of bullion in the arts, the greatest portion of the produce of the European mines, and of the imports from America into Europe, was, until very lately, exported to the East. The ancient writers universally complain that the Arabians, Indians, and other eastern nations, from whom the Greeks and Romans imported frankincense and other drugs, pearls, silks, &c. took nothing in exchange but bullion. Pliny, speaking on this subject, says, "Minimaque computatione millies centena millia sestertium annis omnibus India et Seres, peninsulaque illa (Arabia,) imperio nostro adimunt." (Hist. Nat. lib. xii. cap. 18.) During the middle ages, and down to our own day, bullion continued to be the most advantageous article of export to the East. Humboldt, whose researches have shed so much light on all that regards the supply and consumption of the precious metals, estimated, that of the entire produce of the American mines at the begining of this century,-amounting, as already seen, to $43,500,000, no less than $25,500,000 were sent to Asia; $17,500,000 by the Cape of Good Hope, $4,000,000 by the Levant, and $4,000,000 by Kiachta and the Russian frontier. Latterly, however, this immense drain has almost entirely ceased. In 1818-19, the East India Company exported £982,000 of bullion to the East Indies and China, and in the following year they exported £530,000; but since then they have not exported a single shilling, nor has any been sent out by the private traders. (Parl.

Paper, No. 22, Sept. 1830.) The exports of bullion by the Americans to Calcutta and Canton, which were formerly considerable, have now also nearly ceased. This extraordinary revolution in Eastern commerce seems to be entirely owing to the vast increase in the exportation of cotton goods and twist to the East, since the opening of the trade in 1814; and to the increase in the exportation of opium from India to China. The real value of the cottons exported to countries eastward of the Cape of Good Hope in 1814, did not amount to £110,000, whereas they now amount to little less than two millions! The exports of opium from India to China have increased during the same period with hardly less rapidity, and their value amounts, at present, to about £3,000,000 a year. On the one hand, therefore, the exports of opium from India furnish a fund adequate to pay the tea and other articles imported from China; while, on the other hand, the exports of cottons and other articles to India, not only suffice to pay for the Indian goods imported, but furnish a balance to defray the greater part of the price of the Canton exports to Europe and America; the balance being extinguished by shipments direct to Canton, of woollens, furs, &c.

It would seem too, that the efflux of bullion from Russia to China, estimated by Humboldt at $4,000,000, has not only ceased, but, that the current has begun to set in the opposite direction. "Instead of Russia," says Mr. Jacob, "having any necessity to convey silver to the eastward, she now receives it from that part of the globe. Thus it is seen that in 1829, there were received at Petropaulonsk from China 2460 oz. of silver, and in 1830, 3578 oz. At Semipalatinsk there were received 83,700 oz. in 1829, and 89,640 oz. in 1830. There were also brought to Irbit, in 1830, 94,500 oz. of silver."-(Vol. ii. p. 320.)

If there be any sums still exported by way of the Levant, which is doubtful, they are quite inconsiderable. "The value of the silk, of the opium, and of the other drugs which are furnished by Asia, as far as the trade of Constantinople and Smyrna extends, is more than equalled by the value of the goods sent to those markets from Europe. This has especially been the case since the vast extension of the various kinds of English cotton goods has in some measure supplanted the use of Indian articles of that description in the Turkish dominions."(Vol. ii. p. 321.)

III. It has been customary in this country to ascribe almost the whole fall that has taken place in the price of most commodities since the peace, to the diminished supply of bullion from the mines. The statements in Mr. Jacob's work tend to confirm this opinion. It would appear from his researches, that the consumption of the precious metals during the last twenty years has uniformly exceeded their supply; so much so, that he supposes the stock of coined money in Europe has been diminished in that interval about a sixth part, or 163 per cent.; being reduced from £380,000,000 to £313,388,560. But if the statements we have laid before the reader be nearly correct, no such diminution can have taken place. It is obvious too, unless there be some very great error, which Mr. Jacob does not allege, in Humboldt's estimate of the quantity of the precious metals exported to Asia, that the stoppage of that drain has fully countervailed the diminished produc

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tiveness of the mines. Admitting, for example, that at an average the mines produced $45,000,000 previously to 1809, and that the exports to Asia amounted to only $20,000,000, ($5,500,000 below Humboldt's estimate,) there would remain $25,000,000, or (at 4s. 3d. per dollar) £4,687,500 for the supply of Europe and America. Now, this latter sum, it will be observed, is only £650,000 above Mr. Jacob's own estimate of the present produce of the American mines; and this defalcation has been more than made up by the increased productiveness of those of Russia. Hence it appears, even after 20 per cent. is deducted from Humboldt's estimate of the bullion sent to Asia, that the supplies of the precious metals furnished to Europe, and applicable to the purposes of coin and the arts, are as large at this moment as they have ever been at any former period. There are numerous circumstances, too, that will readily suggest themselves to the reader, which make it apparent that the same supply of coin will now go much farther than it did during the war. Were the decrease in the quantity of coin since 1820 even greater than Mr. Jacob has stated, we believe that the circumstances now alluded to would suffice to prevent that diminution from having any sensible effect on prices.

The greater security and tranquillity enjoyed on the continent since the peace, must not only have put a stop to that burying of treasure previously so prevalent, but must have caused the bringing to light of many of the subterranean hoards. The institution of Savings Banks, now so common every where, has also had a powerful influence in preventing hoarding; and has brought a very considerable quantity of coin into circulation, that would otherwise have been locked up in the chests or pockets of individuals. We have heard the influence of the Savings Banks established in this country, estimated as being equal, in the respect now mentioned, to an addition of £2,000,000 to the metallic currency of the empire.

The cessation of the demand that existed during the war for money for military chests, and the pay of the armies, must have rendered at its close a very considerable additional quantity available for ordinary purposes. Government paper money has certainly been diminished in most countries since 1815; but on the other hand, there has been a vast increase of the quantity of mercantile paper, which, though not money, performs most of its functions, and is employed in all commercial countries to an incomparably greater extent than coin, and its representative, paper immediately convertible into coin.

We are glad to be able to quote Mr. Jacob's authority in favor of what is now stated. "In 1810," he observes, "from the whole of Europe being engaged in war, both the treasuries of the several states, and the military chests of the various armies, must have caused a large quantity of the existing money to have been in a state of inactivity. The difficulty of conveying money from place to place was great, and the internal negotiation of bills of exchange in most parts of the continent was suspended. Each man who had money, kept it by him, instead of lodging it in the hands of banks or bankers, because none of them enjoyed security, or possessed credit. In 1830 the case was alted. The conveyance of money was easy, secure, and especially

rapid. If gold was more valuable in one place than in others, a few hours would convey it by steam-vessels to the place where it was wanted. Banks were established every where, which furnished inland bills to the parts of the same country, and foreign bills to other countries, which in many cases made the removal of specie unnecessary. The exchequers of states could rely on their credit to supply the place of money till it could be collected from the regular sources, and as no drain was kept on foot, there was no money kept in a state of inactivity in the military chests."-(ii. 373.)

On the whole, therefore, we think we may fairly conclude, first, that, the quantity of the precious metals annually introduced into Europe, and applicable to the purposes of coin and the arts, is as great at present as at any former period, or, perhaps, we should say greater; second, that the quantity of coin existing at this moment in Europe is fully equal to the quantity existing in it in 1810, or that if there be any diminution, it is but inconsiderable; and, third, that owing to the greater security and tranquillity that has prevailed since the peace, the cessation of hoarding, and the increase of all sorts of bank and mercantile paper, the quantity of currency in Europe at present is very materially greater than at any former period.

It is contended, however, that the fall which it is affirmed has taken place in the price of all commodities since 1814, proves beyond dispute that the value of money must have sustained a corresponding advance; and that, consequently, the above conclusions cannot be well founded. But though the fall of prices has been pretty general, it has not been universal; and it must be remembered, that the price of commodities will be reduced as well from a decline in the cost of their production, or by the opening of new markets whence they may be obtained on cheaper terms, as from a rise in the value of money. Now, we contend that this has been the case with all the commodities that have fallen in price since the peace; and we venture to affirm, that there is not one amongst them, without any exception whatever, the decline in the price of which may not be satisfactorily accounted for, without supposing any change in the value of gold and silver. To enter fully into this branch of the subject would require more space than we can now devote to it; but, as it is of great practical importance, we may probably resume the discussion at an after period. At present it is sufficient to observe, that the fall in the price of corn on the continent since the peace, is completely accounted for by the extension of cultivation in France, Prussia, and generally in other countries; by the splitting of large estates, the complete subversion of the feudal system, and the tranquillity, so indispensable to agricultural pursuits, that is now enjoyed. In this country, the reduction in the price of corn is owing partly to the modifications that have been introduced into our corn laws; partly to the expenses of the importation of corn from the continent being reduced to a fifth or a sixth part of what they amounted to during the latter years of the war; and partly, and perhaps principally, to the increased importations from Ireland. Previously to 1806, the imports from the latter had never in any one year exceeded 400,000 quarters; but such has been their increase since, and more