134 Transactions. — Miscellaneous. 



mental tide-producing causes as those which affect the tides 

 at Tenerift'e." 



The rise in prices cannot, of course, go on indefinitely. 

 Actual gold-mining must pay if it is to be continued ; but if 

 prices continue to rise, then, except for the influence of dis- 

 coveries and improvements in working, the exploiting of ore of 

 a given grade must become more and more costly, while the 

 yield for work done remains the same. Thus the mines con- 

 taining ore of very low grade must be abandoned, then others 

 with ore of a still better grade, and so on. Thus the poorer 

 fields are likely shortly to suffer. In the case of the Auckland 

 goldfields expenses have been kept down by the failure of the 

 recent appeal of the miners to the Arbitration Court, but 

 with prices rising and wages rising in every other trade the 

 wages of the miner must sooner or later partake of the 

 general advance. This must mean a severe check to the 

 gold industry of the province. 



Effects of Depeeciation of Gold. 



The economic effects upon trade, industry, and society of 

 a rapid depreciation in the value of gold are of the highest 

 importance, but so numerous that we cannot attempt to con- 

 sider them all ; nor can we spend much time in the considera- 

 tion of any one. Many of my remarks must be somewhat of 

 mere suggestions. 



Many classes of individuals must suffer. Those that suffer 

 most are those with incomes derived from investments in 

 funds, annuities, mortgages, &c. These include men retired 

 from business and those who by age, sex, or infirmity are 

 dependent on provision which has been made by others. The 

 value of such provision is diminished, and in the case of 

 insurance the money assured is, when received, of much less 

 value than the same sum would have been at the time when 

 most of the premiums were paid. Such as earn incomes 

 made of fixed charges established by law or custom, as in the 

 case of lawyers and physicians, likewise suffer; but they obtain 

 some compensation, for, the fees remaining nominally the 

 same, there is virtually a reduction of charge and a consequent 

 increase of business. Companies and individuals contracting 

 to perform fixed services at fixed prices also belong to this 

 class, perhaps the greatest instance being that of tramway 

 companies, which exist all over the world, and are bound by 

 the municipalities to charge no more than certain maximum 

 fares. These companies must find their expenses continually 

 increasing. Increased traffic, due to increase of population 

 and the virtual reduction of fare, may compensate for this 

 more or less, but the success of such ventures must in general 

 be smaller than if gold did not depreciate. The earners of 



