PRINCE IN 1857.

Lyttelton Times, Volume X, Issue 592, 10 July 1858, Page 3

PRINCE IN 1857.

j TAt <a reeenfc meeting of theiStatisfcical Society, , London, Mr* Newmarch lead a'paper " On the 'history of Prices in 1857." The author com-« jhenced by observing that' his object was to Jtrace the pauses of the commercial derangenrKnt, a derangement which was^greater' than 'any^on reeoi d,'beai ing a remarkable simi- ; larity to^tjia^of 1792.' The peculiarity pf the recent <cusV was, tha,t it jaad not been preceded , by any\ofthqse events/which, had producedt the, ''othjeytcommercial? panics* o£jthe present century. been mo bad harvest; tout* on the *■'dontrary, a very good one, there was mo great r deaith-of commodities c-used in manufacture} there was no drain on the bank; 'and no political (disturbance to derange public credit, yet all at ,(»n(Je the fabric of seeming pro speiity, which had beJn T built upon borrowed capital, fell to the ground, Ifpr the complete illustration of th,e subject Mr.' Newmarch inferred to the prices "of the different articles^used as food and in manufactures dunng the last seven years; and^ he exhibited a large diagram, on which the prices were maiked in tabulai foim, as compiled with the year 1855, which he placed at par. The author said that the years 1848-9 had bpen cheap years; and 1851, with jwhich the table commenced, was'aho remarkable for low puceb. In 1852 and 1853, the effects of the gold discovenes b^egan to operate'on piifes, which lose consideiably in 1853. For the closing months of 1853 the prospect of war with Russia tended to inciease prices ; and tlnough the following years theie wab a general tendency to advance. At the commpncement of 1857, there was generally a range of high pi ices, with stiong indications of their lising higher. This state of things strengthened commeicial ciedit, and those who had goods to sell wete moie readily enabled to increase then boi rowed capital, and weie tempted to embaik in speculations, but when autumn came theie was a suddeti blow given to the tiadmj? on borrowed capital—fiims fell, credit could no longer be obtained, and then the false system of tiade, which had been caniedon for five or six yeais without capital to support it, fell to the giound. The table showed that, in Hie middle of last yeai theie hu^been a gieat rise in the puces of most commodities; but that in the course of seven yeais, after many fluctuations, generally with an advancing tendency, prices have settled down at the piesent time to even a lowei bcale than in 1851. Duung the lapse of seven years, in which these fluctuations in puces had occuued, the quantity of gold and silvei that had been intioduced info the commercial woild amounted to £200,000,000, which was an inciease of 40 pei cent, on the total quantity of gold in the commeicial woild in 1848. The mti oduction of -,uoh a lai ge amount of gold, it might have,.been.supposed, would have produced a-permanent- effect in raising prices, and yet'the fact is- otherwise. That, the author said, was his first proposition. .^His second was, that'the cause of the tall in the range of' prices, in opposition to the ...natural effect of so large an; influx; of gold.is^o ,be accounted for bylthe operations of capital;and .'JpJit , He- then alluded totheiacihtie^ given, to adventurers for carrying on their.speculations,. ■bySe readiness with whichithepbtainedd^. Sts/as a: cause of the;.recent pumc. K ihe aUe"S .flurtuition* in the. circulation vof bank- * wlvirli lvid been assumed as one of the te S SSn-yeavs, vvhich exhibited ■remarkable; ■ th. c V^U? Sclus ye of Ireland, the note cir-; !sfcf^n^fiKSSnted to 29-8 millions ; |in . S5« 1356, to 32-i Many

Tlje 'TateS'bf idiscouttt/ho^var'i daring the seven'; yepr^-iekhib'itecl'%reati';ehatt;geß/'>': '■1n;4'8'51,--the' avera^e'rafcd'w'{tß;^2-i'ssSp'ei'(sfenti V ™ 1855 i '£5 ■' pej.l c'enfc';M in 5 Jan'iiary,----1857,:a56;1031:;per ■cSfib.^ %ih:"li)epe-mbjßf;i^Bv pdt'- > £ ■■fceufoiliTJie'.causeI'o'f!'the'■laW^corn'meraaLcmis;' "M. 1 :ftlWmar'ch':-said','^ waß<to'?b'e found rin ihe£e* va^iiti6nsriri>"th6Jrkfe/^f ridisco'tfnt;'3 So k)ng';as! Cadyenturors'>bbjiVd'4 get- tiheir bills"discbuntedVall > ,\y-ent wellf.bUfcjwHen Jpfiees^weTe- fallin^.'diffi''cu|tifes- arbse^in the-proceWsi; 6 ■ .and th'erf Ihe-gyst'emMifi falsfe trading' came -to '<«d' /,end.( > ? Way'iit •-Hadl'-'dQntih'ued -'sqflbrig,f heattn-^ , (bujfce'd^to 'the" gbld^di^coveri^^in'-AustrfiliaV W'ai'clfijiad given sd'gr'eat af stimulus to'speoulationyand - had 'erfabledi adventivrers '- to1 'carry-onI'the process v of j borroAying^in: spite '■of •the ;<var* aiid-bf-- others • discoura^itiganflu'eti^esi ■Mr'.'<Ne r\vmarchnoticed' ' the opitiio^ :expri!Ssedvby"'s<)!n(i -pqliticiU'ecqnb-/ mists' that! thevgo'M-disco'verie^of' Australia/Frave ' -not added-to t'he<'^ealtnbf theHvo;rl:di;tVomwhich': I Opinion he entirely dissented 'f'fdv 'the'1' influx bf-: go]d;had-igiven"-iabsfeiniulusiito'.,ent.erpnsej had' xprotnoted invb'ntioriv;and<ibs'tered^improvementsi; ;4\vhichj Had; been) the jmeahs .of.i igreatly to.-: the sto.ckoof;wealth:.\ -Mludinglto>A.merica,-':andi ■>% ;the;jo.piriion;!thati.-.the--cnsis';'there j had; been-: Op'cqasioiiod: by/;excessijof,. mote.-icirculationji the; .'i'uihoj.l (said? that jik-.-appeared'/rom :docunients' .' wKiohfeduldf.be" reliedi on; fhdtjthe.; circulation; ,6f fji;Jie barikslatiNew.. ypi'lifAad -n6.ti varied; more; thaniih'e banks.-of \thisjcountry, .and.-.'that the . notesMissaedrbore 'buti.iaasniali.propoVtio.n to' the: depositscandifjnvestiDentisi;;:; j-'Looking ;to the: ;!fiituve-»:J!.'Mrs Ne>v.marJ3hi;expressed</;the:'iopinion:. ;'that ;the arrivaL-..oi;,.goldE,ifrorai!Austi <alia..would '.cotitipue,'ito ;ibe leg ually ,adv/aritageo.us f. as itt had .;iiitiierta> .te^n,;and:.fchat j ifoimuld -promote^.the ijCultivatiQn-ofitherextensivie'iialdslJfoi1 .enterprise : :wbichiarfty.6w,dopandngi i'n'i India;..,-Bussia1,; andj'dtHeripartauOfitheiWifo.rldv! ,i,<!^i:y- 'j-.-rr;;.;a .■.>,-[.! ,>!;