fifteen times less than that of gold, would, if equally distributed among the gold diggers, pay them a higher rate of wages for labour expended than they could on the average procure probably in this or any other country. This is an astounding fact, but it is nevertheless true, and clearly demonstrates that if the value of gold is to be regulated in a great measure by the labour expended in procuring it, and its abundance, as has doubtless hitherto been the case with regard to productions of all kinds, it must, notwithstanding its increased use and circulation, exchange in all countries where its value is not fixed for less and less, until it falls to its proper level, or until by an obverse movement silver approaches nearer to it in value.

In 1813 the fixed price of gold in this country was £5 10s. an ounce; in 1814, £4 6s. 6d.; in 1820, £4 1s.; in 1821, £3 19s. 6d. ; from that period it has been issued at £3 17s. 10d. Why was it so much higher at the periods above stated than it is now? Because it was scarce and more in demand, and Bank of England notes were depreciated in consequence of the circulation being redundant, at one time as high as 29 millions sterling. The scarcity of gold and the redundancy of the Bank's circulation led to the passing of the suspension act, which was renewed from time to time, until a gradual resumption of cash payments was deemed advisable.

With regard to India and the financial arrangements of that country, we have no such periods to look back upon, as the comparative value of gold and bank notes, or the necessity for a suspension of specie payments on the part of the great repository of the metallic resources of the country. The Company's treasuries may occasionally have been drained for the purpose of levying war, and acquiring fresh territory, but such outlay has generally found its way back in ten-fold proportion in some other shape; and what we would now wish to see is that vast and important country, under its able rulers, turning to account, among other measures of utility, the daily increasing supplies of gold, which it is now open to them to avail themselves of.

We would not have, as stated before, the existing engagements of the East India Company with the public disturbed, nor would we have the silver standard abolished; but we would have gold coins declared a legal tender for all purposes except the payment of the Company's debt and the interest accruing thereon.

The complaints recently made that in Australia British silver was made use of as a legal tender for sums of any amount, which in all probability had some effect on the shipment of it from here, and tended

to produce the scarcity we are now experiencing, has led to the same restriction being imposed upon it, as exists in this country, which we are glad to see has been extended to the Colonies of New Zealand, Ceylon, Mauritius, and Hong Kong. Our other coins, which of course include sovereigns, are to pass current in those Colonies, "in the manner directed in the several Acts of Parliament which regulate the currency of the same," which implies, according to our construction of the sentence, that they are to be a legal tender to the same extent as in the United Kingdom. The following is a copy of the proclamation referred to :

"Whereas, it has been represented to us that in our Colonies in Australia, New Zealand, Ceylon, Mauritius, and Hong Kong, the silver coins of our United Kingdom pass current as an unlimited tender for payments; and it is expedient that the regulations which govern the circulation of the coins of our United Kingdom, as by law established, should be enforced in our said Colonies, now, therefore, we by the advice of our Privy Council, have thought fit to declare and ordain, that within and throughout our Colonies in Australia, New Zealand, Ceylon, Mauritius, and Hong-Kong, the coins of our United Kingdom shall pass current in the manner directed in the several Acts of Parliament which regulate the currency of the same, and that the silver coins of our United Kingdom shall not be a legal tender in payment of sums exceeding forty shillings."

It may be remarked that, as regards Ceylon, sovereigns were some time ago declared a legal tender by the governor of that island, and that as regards British silver coin there is very little of it in circulation there, the silver currency being composed almost entirely of rupees, which we believe is also the case in the Mauritius. Now, by distributing our surplus supplies of gold over our colonies and possessions as extensively as we can, we will for a time prevent its depreciation. It is impossible to calculate what India itself would not absorb, if that metal, in the shape of money, was declared by the government a legal tender for all but the purposes previously named, or any others of similar nature. Contracts of any kind in which silver rupees are stipulated for as the species of money in which payment is to be made must of course be so fulfilled.

We are now sending off regularly, by every monthly steamer, large shipments of silver to India, by which means the market for that metal is kept very barely supplied, as well as the quantity appropriated for

circulation, and the price has consequently risen to little short of 5s. 2d. an ounce for bar silver. If gold was thrown more into circulation in India by making it a legal tender, the pressure upon u for silver from that quarter at all events would be relieved, and doubtless a large portion of what has been sent out would find its way back. Australia in such case would supply India direct with gold, the proceeds of which would come on here, either in the shape of bills or produce, or be invested in something that India can supply suitable for the Australian market.

(To be continued.)

FINANCIAL AND COMMERCIAL STATEMENT

FOR THE MONTH.

INDIAN INTELLIGENCE.-Our last advices are from Calcutta to October 8th; Madras, 13th; Bombay, 16th; Ceylon, 16th; Hong Kong, 29th of September.

At Calcutta, the import market was in a healthy state, but scarcely so active as during the previous month.

The Indigo crop was still expected to be deficient in quantity, although the prospects were a little more favourable than before. The total out turn was estimated at "a lac and five thousand maunds" at the outside.

From Bombay we have information that the Cotton Market was quiet, and that a large crop was looked for.

Exchange on London at Calcutta, 2s. 03d. to 2s. 1d., six months' sight; ditto at Bombay, 2s. 04d. to 2s. 0ğd.

Our Home Markets for East India produce have exhibited a fair extent of business transacted.

In Indigo no alteration had taken place, the market firm, and holders refusing to sell, except at 2d. to 3d. per lb. advance on October

rates.

With regard to Coffee, the following is from the Circular of Messrs. Jarvie and Taman :

"Although the Treasury order not allowing Chicory to be mixed with Coffee came into force early this month, it has not caused any further advance on prices, the trade having bought largely during the previus two months. Native Ceylons have been steady but very quiet. The price quoted in our last of 47s. 6d. for good ordinary was maintained up to the last two or three days, when some parcels were disposed of at 46s. 6d. to 47s., and which are now the quotations. Plantation has

continued in fair demand, and fully previous rates have been well supported. Mocha has also sold steadily at firm prices. In other descriptions little variation has taken place in the value. The quantity sold amounts to 12,500 bags native Ceylon, 3,500 casks, 2,000 bags Plantation, 150 packages Mocha, 10,000 bags Costa Rica, 3,000 bags Brazil, and two cargoes Rio afloat."

The English Funds during the month have exhibited considerable buoyancy, as well as many other descriptions of stocks and shares.— 3 per cent. Consols, 101 to; Reduced, 100 to; 31 per Cents., 103 to; Long Annuities, 6 to 67; India Stock, 275 to 276; India Bonds, 81 to 84 premium; Exchequer Bills, 71 to 73 premium; Bank Stock, 223 to 224.

Bank of England's Stock of Bullion on 20th of November, £21,321,994; circulation, £22,670,825.

SHARES OF COLONIAL BANKS.-Bank of Australasia, £40 paid, £71 to £72; Bank of North America, £50 paid, £60 to £61; Union Bank of Australia, £25 paid, £61 to £62; Oriental Bank, £25 paid, £38 to £39.

INDIAN RAILWAYS.-East India, £20 paid, £28 to £29; Great India, £5 paid, £7 5s. to £7 10s.; Madras, £4 10s. paid, £7 5s. to £7 10s.; Upper India, 2s. paid, 12s.

The East India Company's rates of exchange continue at 2s. 1d. on Bengal and Madras, 2s. 1d. on Bombay.

The arrivals and exports of gold and silver in the course of the month have been to a considerable extent. Of gold, per Competitor, from Port Phillip, 40,000 ounces; per Commodore, ditto, 38,000 ditto; per Maitland, from Sydney, 14,325 ditto; per Eagle, from Port Phillip, 150,000 ditto; per Sapphire, from Sydney, 14,668 ditto; per Pelham, ditto, 27,762 ditto. On the 28th the shipments of silver to India, &c., amounted to £326,300; gold to India, &c., £12,200; ditto to Alexandria, £92,000.

The accounts from Australia, which by the Eagle are down to 3rd September, this vessel having made the passage from Port Phillip in seventy-six days, represent the yield of gold as still amounting almost to the fabulous." In fact, the most exaggerated reports have, for the last few days, been in circulation, as to the supplies that might be expected, until contradicted by a letter which appeared in the Times of the 27th, from the captain of the Eagle. No such vessels as the Dido and Enchantress, he states, were in the colony when he left. The former, it was erroneously reported, had sailed with 280,000 oz. of gold, and the latter with 240,000 oz. The next large shipment will, in all probability, arrive by the Australian screw-steamer. At the time the Eagle left Melbourne there was very little specie to purchase gold with, and the banks had discontinued to advance on shipments.

One or two of the Australian gold companies,-viz., the Port Phillip, Colonial, and English and Australian-it appears, have received favourable accounts as to the progress of their agents in effecting purchases of gold; and their shares have, in consequence, been in

demand at advanced prices. The Australian Agricultural Company's shares have also sprung up from £15 to £100 per share. In fact, at present, all undertakings connected with the Australian colonies appear to be sought after; and unless a re-action, produced by circumstances we cannot at present foresee, takes place, they will continue to be in favour with the public. Gold, however, without a sufficient supply of the necessaries of life, at moderate prices, and an extensive cultivation of land for the production of such, will not enrich the colony substantially and permanently. The making of railways and other roads towards the interior, and along the coast, is one of the first measures that should receive the encouragement of the Government; and we are happy to see that such improvements have been projected. And where water is scarce the construction of aqueducts and reservoirs will also become of the greatest importance. We have the example of almost all civilised countries, in ancient as well as modern times, to bear us out in the utility of such public works as the latter: and seeing that the Australian colonies are all filling their public exchequers to overflowing, the surplus should be expended in the way most likely to prove of lasting benefit. If the colonists possess facilities of communication from one part of the country to another, and for the transport of produce and supplies, they will soon begin to disperse themselves for more useful and necessary purposes than gold digging.

REPORT ON COLONIAL MARKETS.-MINCING LANE.-The amount of business transacted in the Colonial markets during the month has been in many respects very satisfactory, both as regards the amount of produce disposed of and the rates current; and although the large speculative demand that existed at the date of our last has, during the past fortnight, gradually subsided, and a dulness occasionally has appeared in some articles, still importers have been very firm, and the future prospects of the markets are not unfavourable. In this opinion we are confirmed by the gradual decrease that is each week more noticeable in the stocks of some of our chief staples, while accounts of short supplies from some largely producing countries have been confirmed; also by the gradual increase of consumption at home, which is made more evident weekly, and which, in the present prosperous position of the kingdom, is expected at least to be fully maintained.

In the beginning of the month there was a brisk inquiry for all qualities of Sugar, and rates, particularly for the good and fine grocery sorts, advanced fully 1s. to 1s. 6d. per cwt. The large

parcels, however, that were offered, and the evident desire of holders to realise, caused a hesitation on the part of buyers, and excepting for the good brown and strong refining qualities, which have not been easily procurable, and are in good demand at very extreme rates, other qualities have been unsaleable lately in large quantities, unless at a decline on the advance of the month. This reduction importers have not submitted to, and of late the market has been very barely supplied. The grainy sorts of Bengal sugars, particularly Cossipore kinds, have been offered in such abundance that the trade would not bid at near