Chapter 14

The whole turns upon the possibility of extending the market for gold. A child must see that, if the demand for gold cannot be materially increased, it is altogether nugatory that nature should indefinitely enlarge the supply. In articles that adapt themselves to a variable scale of uses, so as to be capable of substitution for others, according to the relations of price, it is often possible enough that, in the event of any change which may lower their price, the increased demand may go on without assignable limits. For instance, when iron rises immoderately in price, timber is substituted to an indefinite extent. But, on the other hand, where the application is severely circumscribed, no fall of price will avail to extend the demand. Certain herbs, for instance, or minerals, employed for medicinal purposes, and for those only, have their supply regulated by the demand of hospitals and of private medical practitioners. That demand being once exhausted, no cheapness whatever will extend the market. Suppose the European market for leeches to be saturated; every man, suppose, is supplied; in that case, even an _extra_ thousand cannot be sold. The purpose which leeches answer has been met. And after _that_ nobody will take them as a gift. But in the case of gold, it is imagined that, although the market is pretty stationary whilst the price is stationary, let that price materially lower itself, and immediately the substitutions of gold for other metals, or for other decorative materials (as ivory, etc.), would begin to extend; and commensurately with such extensions the regular gold market would widen. This is the prevailing conceit. Now let us consider it.

What are the known applications of gold in the old state of circumstances, which may be supposed capable of furnishing a basis for extension in the altered circumstances? I will rapidly review them. First, a very large amount of gold more than people would imagine is annually wasted in gilding. Much of what has been applied to other purposes is continually reverting to the market; but the gold used in gilding is absolutely lost. This already makes a drain upon the gold market; but will that drain be materially larger in the event of gold falling by 50 _per cent._? Apparently not. Amongst ourselves the chief subjects of gilding are books, picture-frames, and some varieties of porcelain. But none of these would be bought more extensively in consequence of gold being cheap: a man does not buy a book, for instance, simply with a view to its being gilt; the gilding follows as a contingency depending upon a previous act not modified in any degree by the price of gold. In the decoration of houses it is true that hitherto our English expenditure of gilding has been very trifling compared with that of France and Italy, and to a great extent therefore would allow of an increased use. Cornices, for instance, in rooms, and sections of panels, are rarely gilt with us; and apart from any reference to the depreciation of gold, I believe that this particular application of it is sensibly increasing at present. Of course an improvement, which has already begun, would extend itself further under a reduced price of gold; yet still, as the class of houses so decorated is somewhat aristocratic, the effect could not be very important. On the Continent it is probable that at any rate gilding will be more extensively applied to out-of-doors decoration, as for example, of domes, cupolas, balustrades, etc. But all architectural innovations are slow in travelling! And I am of opinion that five to seven thousand pounds' worth of gold would cover all the augmented expenditure of this class. It is doubtful, indeed, whether all the increase of gilding will do more than balance the total abolition of it on the panels of carriages. In the time of Louis XIV. an immense expenditure occurred in this way, and the disuse of it is owing to the superior chastity of taste amongst our English carriage-builders, who, in this particular art, have shot far ahead of continental Europe. But the main consumption of gold occurs, first, I should imagine, in watches and watch chains; secondly, in personal ornaments; and thirdly, in gold plate. Now we must remember, at starting, that what is called jewellers' gold, even when manufactured by honourable tradesmen, avowedly contains a very much smaller proportion of the pure metal than our gold coinage. Consequently an increase in the use of watches and personal ornaments, or of such trinkets as snuff-boxes, supposing it in the first year of cheapened gold to go the length of 20 per cent., would not even in that department of the gold demand enhance it by one-fifth, but perhaps by one-fourth the part of one-fifth--that is to say, by one-twentieth. The reader, I hope, understands me, for upon _that_ depends a pretty strong presumption of the small real change that would be worked in the effective demand for gold by a great apparent change in our chief demand for gold manufactures. There can be no doubt that in watches and personal ornaments is involved our main demand upon the gold market; through these it is that we chiefly act upon the market. Now three corrections are applicable to the _primâ facie_ view of this subject.

The first of these is--that gold chains, etc., and a pompous display of rings have long ago been degraded in public estimation by the practice and opinions prevailing in aristocratic quarters. This tendency of public feeling at once amounts to a large deduction from what would otherwise be our demand.

The second of these corrections is--that, since our main action upon the gold market lies through the jewellers, and, consequently, through jewellers' gold, therefore, on allowing for the way in which jewellers alloy their gold, our real means of operating upon the gold market may be estimated perhaps at not more than one-fourth part of our apparent means.

A third important correction is this--at first sight it might seem as though the purchaser of gold articles would benefit by the whole depreciation of gold, and that the depreciation might be taken to represent exactly the amount of stimulation applied to the sale, for instance, of gold plate. But this is not so. Taking the depreciation of gold at one-half, then upon any gold article, as suppose a salver, each ounce would have sunk from 77s. to 38s. 6d. Next, rate the workmanship at 40s. the ounce, and then the total cost upon each ounce will not be (77s. + 40)/2, or in other words 58s. 6d., as a hasty calculation might have fancied, but (77s./2) + 40, that is to say, 78s. 6d. Paying heretofore £5 17s., under the new price of gold you would pay £4 within a trifle. Consequently, when those who argue for the vast extension of the gold market, rely for its possibility upon a vast preliminary depreciation of gold, they are deceiving themselves as to the nature and compass of that depreciation. The main action of the public upon the gold market must always lie through _wrought_ and not through unwrought gold, and in this there must always be two elements of price, viz., X, the metal, and Y, the workmanship; so that the depreciation will never be = (_x_ + _y_)/2 but only _x_/2 + _y_; and _y_, which is a very costly element, will never be bound at all, not by the smallest fraction, through any possible change in the cost of _x_.

This is a most important consideration; for if the price of gold could fall to nothing at all, not the less the high price of the workmanship--this separately for itself--would for ever prevent the great bulk of society from purchasing gold plate. Yet, through what other channel than this of plate is it possible for any nation to reach the gold market by any effectual action upon the price? M. Chevalier, the most influential of French practical economists, supposes the case that California might reduce the price of gold by one-half. Let us say, by way of evading fractions, that gold may settle finally at the price of forty shillings the ounce. But to what purpose would the diggers raise enormous depôts of gold for which they can have no commensurate demand? As yet the true difficulty has not reached them. The tendency was frightful; but, within the short period through which the new power has yet worked, there was not range enough to bring this tendency into full play. Now, however, when new powers of the same quality, viz., in Australia, in Queen Charlotte's Island, in Owhyhee, and, lastly, on Lord Poltimore's estate in South Moulton, are in working, it seems sensibly nearer. It is a literal fact that we have yet to ascertain whether this vaunted gold will even pay for the costs of working it. Coals lying at the very mouth of a pit will be thankfully carried off by the poor man, but dig a little deeper, and it requires the capital of a rich man to raise them; and after _that_ it requires a good deal of experience, and the trial of much mechanic artifice, to ascertain whether after all it will be worth while to raise them. To leap from the conclusion--that, because a solitary prize of 25 lb. weight may largely remunerate an emigrant to California, therefore a whole generation of emigrants will find the average profits of gold-washing, golddigging, etc., beyond those of Russia or of Borneo, is an insanity quite on a level with all the other insanities of the case. But, says the writer in the _Times_, the fact has justified the speculation; the result is equal to the anticipation; in practice nobody has been disappointed; everybody has succeeded; nobody complains of any delusion. We beg his pardon. There have been very distinct complaints of that nature. These have proceeded not from individuals merely, but from associations of ten or twelve, who, after working for some time, have not reaped the ordinary profits on their expenses; whereas, they were also entitled to expect high wages for their labour, in addition to extravagant profits on their outlay. Yet, suppose this to have been otherwise, what shadow of an argument can be drawn from the case of those privileged few, who entered upon a virgin harvest, applicable to the multitudes who will succeed to an inheritance of ordinary labour, tried in all quarters of the globe, and seldom indeed found to _terminate_ in any extra advantages?

FOOTNOTES:

[43] '_Century of Men_,'--It may be necessary to remind some readers that this expression, to which I resort for want of any better or briefer, is strictly correct. The original Latin word _centuria_ is a collection of one hundred separate items, no matter what, whether men, horses, ideas, etc. 'A Century of Sonnets' was properly taken as the title of a book. 'A Century of Inventions' was adopted by Lord Worcester as the title of _his_ book. And when we use the word century (as generally we do) to indicate a certain duration of time, it is allowable only on the understanding that it is an elliptical expression; the full expression is _a century of years_.

[44] 'In that same proportion,' but in reality the profits would fall in a much greater proportion. To illustrate this, suppose the existing price of gold in Australia to be sixty shillings an oz. I assume the price at random, as being a matter of no importance; but, in fact, I understand that at Melbourne, and other places in the province of Victoria, this really _is_ the ruling price at present. For some little time the price was steady at fifty-seven shillings; that is, assuming the mint price in England to be seventy-seven shillings (neglecting the fraction of 10-1/2d.), and the Australian price sank by twenty shillings; which sinking, however, we are not to understand as any depreciation that had the character of permanence; it arose out of local circumstances. Subsequently the price fell as low even as forty-five shillings, where it halted, and soon ascended again to sixty shillings. Sixty shillings therefore let us postulate as the present price. Upon this sum descended the expenses of the miner. Let these, including tools, machinery, etc., be assumed at three half-crowns for each ounce of gold. Then, at a price of sixty shillings, this discount descends upon each sovereign to the amount of one half-crown, or one-eighth. But at a reduced price of thirty shillings, this discount of three half-crowns amounts to one-fourth. And, at a price of twelve shillings, it amounts to five-eighths. So that, as the gross profits descend, the _nett_ profits descend in a still heavier proportion.

_VII. DEFENCE OF THE ENGLISH PEERAGE._

It is by a continued _secretion_ (so to speak) of all which forces itself to the surface of national importance in the way of patriotic services that the English peerage keeps itself alive. Stop the laurelled trophies of the noble sailor or soldier pouring out his heart's blood for his country, stop the intellectual movement of the lawyer or the senatorial counsellor, and immediately the sources are suffocated through which _our_ peerage is self-restorative. The simple truth is, how humiliating soever it may prove I care not, that whether positively by cutting off the honourable sources of addition, or negatively by cutting off the ordinary source of subtraction, the other peerages of Europe are peerages of _Fainéans_. Pretend not to crucify for ignominy the sensual and torpid princes of the Franks; in the same boat row all the peerages that _can_ have preserved their regular hereditary descent amongst civil feuds which _ought_ to have wrecked them. The Spanish, the Scotch, the Walloon nobility are all of them nobilities from which their several countries would do well to cut themselves loose, so far as _that_ is possible. How came _you_, my lord, we justly say to this and that man, proud of his ancient descent, to have brought down your wretched carcase to this generation, except by having shrunk from all your bloody duties, and from all the chances that beset a gallant participation in the dreadful enmities of your country? Would you make it a reproach to the Roman Fabii that 299 of that house perished in fighting for their dear motherland? And that, if a solitary Fabius survived for the rekindling of the house, it was because the restorer of his house had been an infant at the æra of his household catastrophe. And if, through such burning examples of patriotism, far remote collateral descendants entered upon the succession, was this a reproach? Was this held to vitiate or to impair the heraldic honours? A disturbance, a convulsion, that shook the house back into its primitive simplicities of standing, was that a shock to its hereditary grandeur? If it _had_ been, there perished the efficient fountain of nobility as any _national_ or _patriotic_ honour; that being extinguished, it became a vile, _personal_ distinction. For instance, like the Roman Fabii, the major part of the English nobility was destroyed in the contest (though so short a contest) of the two Roses. To restore it at all, recourse was had to every mode of healing family wounds through distant marriage connections, etc. But in the meantime, to a Spanish or a Scottish nobleman, who should have insisted upon the _directness_ of his descent, the proper answer would have been: 'Dog! in what kennel were you lurking when such and such civil feuds were being agitated? As an honest man, as a gallant man, ten times over you ought to have died, had you felt, which the English nobility of the fifteenth century _did_ feel, that your peerage was your summons to the field of battle and the scaffold.' For, again in later years than the fifteenth century, the English nobility--those even who, like the Scotch, had gained their family wealth by plundering the Church--in some measure washed out this original taint by standing forward as champions of what they considered (falsely or truly) national interests. The Russells, the Cavendishes, the Sidneys, even in times of universal profligacy, have held aloft the standard of their order; and no one can forget the many peers in Charles I.'s time, such as Falkland, or the Spencers (Sunderland), or the Comptons (Northampton), who felt and owned their paramount duty to lie in public self-dedication, and died therefore, and oftentimes left their inheritances a desolation. 'Thus far'--oh heavens! with what bitterness I said this, knowing it a thing undeniable by W. W. or by Sir George--you, the peerages that pretend to try conclusions with the English, you--French, German, Walloon, Spanish, Scottish--are able to do so simply because you are _fainéans_, because in time of public danger you hid yourselves under your mammas' petticoats, whilst the glorious work of reaping a bloody harvest was being done by others.

But the English peerage also celebrates services in the Senate as well as in the field. Look for a moment at the house of Cecil. The interest in this house was national, and at the same time romantic. Two families started off--one might say _simultaneously_--from the same radix, for the difference in point of years was but that which naturally divided the father and the son. Both were Prime Ministers of England, rehearsing by anticipation the relations between the two William Pitts--the statesmen who guided, first, the _Seven Years' War_, from 1757 to 1763; and, secondly, the French Revolutionary War, from the murder of Louis XVI. in 1793 to the battle of Trafalgar in October, 1805. Sir William Cecil, the father, had founded the barony of Burleigh, which subsequently was raised into the earldom of Exeter. Sir Robert Cecil, the son, whose personal merits towards James I. were more conspicuous than those of his father towards Queen Elizabeth, had leaped at once into the earldom of Salisbury. Through two centuries these distinguished houses--Exeter the elder and Salisbury the junior--had run against each other. At length the junior house ran ahead of its elder, being raised to a marquisate. But in this century the elder righted itself, rising also to a marquisate. In an ordinary case this would not have won any notice, but the historic cradle of the two houses, amongst burning feuds of Reformation and anti-Reformation policy, fiery beyond all that has ever raged amongst men, fixed the historic eye upon them. Neck and neck they ran together. Hatfield House for the family of Salisbury, Burleigh House (founded by the original Lord Burleigh) for the family of Exeter, expressed in the nineteenth century that fraternal conflict which had commenced in the sixteenth. Personal merits, if any such had varied and coloured the pretensions of this or that generation, had, in the midst of wealth and ease and dignity, withdrawn themselves from notice, except that about the splendid decennium of the Regency and the second decennium of George IV.'s reign, no lady of the Court had been so generally acceptable to the world of fashion and elegance, domestic or foreign, as the Marchioness of Salisbury, whose tragical death by fire at Hatfield House, in spite of her son's heroic exertions, was as memorable for the last generation as the similar tragedy at the Austrian Ambassador's continued to be for the Court and generation of Napoleon.[45] It is not often that two kindred houses, belonging in the Roman sense to the same _gens_ or clan, run against each other with parity of honour and public consideration through nearly three centuries. The present representative of the Exeter house of the Cecils[46] was not individually considered a very interesting person. Or, at least, any interest that might distinguish him did not adapt itself to conversational display. His personal story was more remarkable than he was himself.

FOOTNOTES:

[45] Napoleon attached a superstitious importance to this event. In 1813, upon the sudden death of Moreau, whilst as yet the circumstances were entirely unknown, he fancied strangely enough that the ambassador (Prince Schwartzenberg) whose fête had given birth to the tragedy, must himself have been prefigured.

[46] 'The present representative of the Exeter Cecils' was the father of the present peer, Brownlow, 2nd Marquis; born 2nd July, 1785; succeeded 1st May, 1804, and died 16th Jan., 1867.--ED.

_VIII. THE ANTI-PAPAL MOVEMENT._

The sincerity of an author sometimes borrows an advantageous illustration from the repulsiveness of his theme. That a subject is dull, however unfortunately it may operate for the impression which he seeks to produce, must at least acquit him of seeking any aid to that impression from alien and meretricious attractions. Is a subject hatefully associated with recollections of bigotry, of ignorance, of ferocious stupidity, of rancour, and of all uncharitableness? In that case, the reader ought to be persuaded that nothing less than absolute consciousness--in that case he ought to know that nothing short of TRUTH (not necessarily as it _is_, but at least as it _appears_ to the writer) can have availed to draw within an arena of violence and tiger-like _acharnement_ one who, by temperament and by pressure of bodily disease, seeks only for repose. Most unwillingly I enter the ring. Mere disgust at the wicked injustice, which I have witnessed silently through the last three months, forces me into the ranks of the combatants. Mere sympathy with the ill-used gives me any motive for stirring. People have turned Christian from witnessing the torments suffered with divine heroism by Christian martyrs. And I think it not impossible that many hearts may be turned favourably towards Popery by the mere recoil of disgust from the savage insolence with which for three weeks back it has in this country been tied to a stake, and baited. The actors, or at least the leaders, in such scenes seem to forget that Popery has peculiar fascinations of her own; her errors, supposing even all to be errors which Protestantism denounces for such, lie in doctrinal points; but her merit, and her prodigious advantage over Protestantism, lies in the devotional spirit which she is able to kindle and to sustain amongst simple, docile, and confiding hearts. In mere prudence it ought to be remembered, that to love, to trust, to adore, is a far more contagious tendency amongst the poor, the wretched, and the despised, than to question, investigate, and reflect.