INFLUENCE OP BECENT GOLD DISCOTEEIES ON PEICES. 435 



Let us turn now to California and Australia, and briefly examine 

 the leading economic phenomena which have developed themselves 

 cries since the commencement of the gold discoveries; 

 a review of these facts will I think enable us to understand the 

 manner in which the depreciation of the metals has taken place 

 there, the measure and extent of that depreciation, and the steps 

 by which similar effects are now being extended in ever widening 

 circles over the whole of the commercial world. The events 

 which followed the first announcement of gold on the banks of 

 the Sacramento are too striking and too recent to be forgotten. 

 From every quarter of the globe, including the Celestial Empire, 

 flocked thither crowds of adventurers. Thousands of excited 

 gold seekers perished miserably before reaching the looked for 

 El Dorado, but their places were soon filled by others, and wave 

 after wave of this living tide of motley pilgrims broke in suc- 

 cession upon the shores of California. In a few months the 

 population ruse from a few hundreds to many thousands. In less 

 than two years and a half it had reached 200,000 ; and now it is 

 supposed to number nearly half a million. Meanwhile the prices of 

 all the necessaries of life and the money wages of labour had reached 

 an almost fabulous height, and notwithstanding the efforts made by 

 the States and other countries to meet the sudden and extraordinary 

 demand for goods in this new market, prices maintained an unex- 

 ampled level. "What occurred in 181S in California, was repeated 

 in 1851 in Australia — the phenomena in both places being essen- 

 tially the same. I have selected Australia for more particular ex- 

 amination in reference to the present enquiry, inasmuch as all the 

 details regarding Australia are fully given in official documents — 

 which is not the case as respects California. 



The Sydney papers of the summer of 1851 brought to England 

 the first intelligence of a new gold region in the Eastern world, and 

 of the delirious excitement with which the discovery was received in 

 the Colony. 



The then Lieut. Governor of Victoria, Mr. Latrobe, in a despatch 

 of December of that year, represents the whole structure of society 

 as being disorganized by the effect of the discoveries, and concludes 

 by remarking : " It really becomes a question how the more sober 

 operations of society, and even the functions of Government, may be 

 carried on." 



The immediate effects of the discovery on the money wages of 

 labour and on the prices of provisions, points which more immedi- 

 ately concern us in the present enquiry, arc also given by the Lieut. 



