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_.