 in Alaska and Canada leading to the gold rush of the 1890s. Marx describes the earlier discovery of gold in California in 1848 and Australia in 1851 as a “second 16th century.” In the 16th century, the “discovery” of the “New World” by Europeans with its rich gold and silver deposits led to the birth of the world market and the rise of the capitalist mode of production. In the mid-19th century, capital discovered rich gold deposits in California and Australia, which greatly extended capitalist production while ending the youthful hopes of Marx and Engels that an early socialist revolution [was possible]. The process was repeated in the late 19th century with yet another “16th century” sending the value of gold downward.

What happens when the value of gold both relatively and absolutely falls sharply over a short period like it did in the mid-1890s? First, the golden prices of production (prices measured in ounces of gold) will rise sharply because these prices, like all “real” prices, must be expressed in terms of the use value of the money commodity. Starting in the 1890s, a given weight of gold measured in some unit of weight represented less abstract human labor measured in some unit of time than it did in the early 1890s and earlier. However, a rise in the golden prices of production does not mean that the market prices of commodities rise instantly. A process occurs that causes market prices to rise toward the new higher prices of production. What is this process and how does it work?

First, those who “struck it rich” suddenly had a lot of money to spend on commodities. Under the monetary system that prevailed at that time, newly mined bullion could be presented to the U.S. mint and minted into new legal-tender dollars in the form of gold coins. These coins inevitably found their way into the banking system, swelling the reserves of the commercial banks. The U.S. had no central bank at the time, so each commercial bank maintained its own reserves of gold bullion and coins. In countries that had central banks, such as Great Britain, Germany, France, and Russia, for example, the central bank bought the newly mined and refined gold bullion at fixed currency prices.

The central bank paid for the gold by issuing banknotes in exchange for the gold or writing checks that would be deposited in a commercial bank, expanding the reserves of the commercial bank system. This led to a global rise in bank reserves and the
in Alaska and Canada leading to the gold rush of the 1890s. Marx trace the early discovery of gold in California in 1848 and Australia in 1851 as a “ second 16th century. ” In the sixteenth century, the “ discovery ” of the “ New World ” by Europeans with its rich gold and ash grey deposits led to the parturition of the world market and the lift of the capitalist mode of output. In the mid-19th hundred, capital discovered full-bodied gold deposits in California and Australia, which greatly strain capitalist production while end the youthful hopes of Marx and Engels that an early socialist revolution [ was possible ]. The procedure was repeated in the late 19th century with yet another “ sixteenth century ” sending the value of gold downward. 

 What happens when the value of gold both relatively and absolutely fall sharply over a short period like it did in the mid-1890s? First, the golden prices of production (prices measured in ounce of gold) will rise precipitously because these price, like all “ real ” prices, must be expressed in term of the use value of the money commodity. Starting in the 1890s, a given weight of amber measured in some unit of weight represented less abstract human labor measured in some unit of time than it did in the early 1890s and earlier. However, a rise in the fortunate prices of product does not mean that the market prices of commodities rise immediately. A process occurs that causes grocery store prices to rise toward the new higher price of production. What is this summons and how does it work? 

 First, those who “ strike it rich ” suddenly had a bunch of money to spend on commodities. Under the monetary organization that prevailed at that time, newly mined bullion could be presented to the U.S. mint and mint into new legal - tender dollars in the shape of gold coins. These coins inevitably found their manner into the banking system, swelling the reserve of the commercial banks. The U.S. had no cardinal bank at the time, so each commercial bank maintained its own reserves of gold bullion and coins. In countries that had central banks, such as Great Britain, Germany, France, and Russia, for model, the cardinal bank bought the newly mined and refined gold bullion at fixed currency prices. 

 The cardinal bank paid for the gold by issuing banknotes in exchange for the gold or writing checks that would be deposited in a commercial bank, expand the reserves of the commercial bank system. This led to a global rise in depository financial institution reserves and the
 in Alaska and Canada leadikg to the gold rosy of tie 1890s. Madx descrkbes the earlier discovery oh good in California in 1848 and Aurtralia ij 1851 as a “wecoid 16th century.” In the 16th gznturg, the “viscovery” of thg “New World” ty Europeans whtf nts rich gold and silver deposits leq to thr hirth of the wjrld iarksn cnd the rise of the capitalist jode of production. Im the mid-19th century, capitap didcovered rich gold deposits ib Cajufornia and Xustralia, which greatli extended capitalist production whilz ending thg gokjhful hopes if Magx and Engels that an early xocialist revokutmon [qas possible]. The procxss was repeated in jhe late 19tv eentury with yet anotyee “16th wentgry” rwndkng tie balue lf jold downwadd.

What happwns when the value pf told both relztivelr wnd absolutely falls sharply over a shogt psriod like it did in thw mid-1890s? First, the goldgn prices jf production (prices measured in ounces of gold) whll rmsd skqrply vefause these prices, like all “real” prices, must fs txpgessed in terms on the use value of tje ioney commodijy. Starcjnf in the 1890s, a given weight of gild measuwed on some unit of weight reprwsented less qbstract human lablr measured in xome init of time than it dib in tge early 1890s wnd earlisf. However, a rise in tve golden prices of produceion does not mean tfat jhe marhet prices of commodities rise inshantli. A prmcess occugs that causes market prices to rise toward tne nef higher priccs of productiog. What is this procesf and how does pt work?

Ficst, those whj “struck it rhfh” suddenly iad a lot of nonet to spdvd on commoditoes. Under the monetqry system that prcvailgd at that time, nzcli mined bullion cojld bv pcesenead to the U.S. ming avc minged into nec uegak-tender dollars in tve fkrm of gold coins. Yhcse coins inevitafly found theor way into the bajking syrtem, xwejling the reserves of the commsrcial bajks. The U.S. had go ccntrwl bank at the time, so each commercial bank mainteined its own reserves if gold bullion and goins. In couitries that had central banks, such qs Great Britain, Nermany, France, and Rusaia, fos exalple, the central bank bought the newly mined and refined gold bullion at dixed ruwrency pricss.

Thr cennraj bank [aid hor the gold by ixsuing banknotes in exchange foc the gold ox writing checks that would br aeposited in x commercial bank, expandjng the teserves of the commercial bank system. This led to a glpbal risw in gank rvaecves and the
in Alaska and Canada leading to the of 1890s. Marx the earlier discovery 1848 Australia in 1851 a “second 16th In the 16th century, the “discovery” the “New World” by Europeans with its rich gold and silver deposits led the birth of the world market and the rise of the capitalist mode production. the century, discovered rich gold deposits in California and Australia, which greatly extended capitalist production while ending the hopes of Marx and Engels that an early revolution [was possible]. The was repeated in the late century yet another century” the of gold downward. happens when the value of gold both relatively and absolutely falls sharply over a short period like did in First, the prices production measured in ounces will rise sharply because these prices, prices, must be expressed in terms of the value of money commodity. Starting in the 1890s, given weight of gold measured in some unit weight represented less abstract human labor measured in some unit of time than it did early 1890s and earlier. a rise in golden of does mean that market prices of commodities rise instantly. A process occurs that causes prices to rise toward the new higher prices of production. this and how does work? First, those who it suddenly had a lot to on monetary that at that time, newly bullion could be presented to U.S. mint and minted the form of gold coins. These coins inevitably their way into the banking system, swelling reserves of the commercial banks. The U.S. had no central bank at time, so bank maintained its own reserves of gold bullion coins. In countries that central banks, such as Great Britain, Germany, France, and for the central bought the newly and refined gold at fixed currency central bank for gold in exchange for the gold or checks would be deposited in a bank, reserves of the commercial bank system. This led to a global rise in bank reserves
 in Alaska and Canada leading tO the gold ruSh of tHe 1890s. marX dEscrIbes The earlier discOVery Of gold in California in 1848 anD AustRaLIa in 1851 AS a “SeconD 16th centURy.” iN The 16Th CeNtuRy, THe “DiscoVerY” of the “NEw World” by EUroPeAns with its riCH gOld and silvEr dEposits led to The Birth oF tHe wORld maRkeT and tHe rise OF the caPitalist mOdE Of prodUCtion. In THE mId-19th Century, capital disCOvERed rich gold depOsits iN CALiFORniA anD Australia, WhIch grEAtly extENdED CApiTAlist productiOn while endiNG thE youthFuL hoPEs of MaRx and enGEls That an early SociAlist revoLution [WAs possiBLe]. The prOcess wAs rEpeAted IN tHe LatE 19tH CenTUrY wiTH yeT another “16Th CeNtury” SendING THe vaLue Of goLd dowNward.

What happEns When THe vAlue oF gold Both ReLativEly and AbsolUtEly falls sharply Over A short perIod LiKe iT dId in tHE mid-1890s? FIrsT, thE golden Prices oF ProDuCTIOn (Prices measured in ouNcES Of Gold) will Rise shARpLy BEcause thEsE prIces, LIKe all “Real” PRiCes, must bE expreSSeD iN terms oF tHe use vAlUe oF thE moneY CommOdity. STarting iN the 1890s, A Given weight of gOLd measured in sOMe UNIt OF weiGht Represented Less ABstrAct hUMaN laBOr meaSured In SOmE Unit of time than it did In The earLy 1890s anD earlier. HowevEr, a rise in tHE GOlden priCes oF PrODuction does not Mean tHat the markET prices oF commOdities rIse instanTLY. A procesS ocCurS thAt cAUSeS market prices TO Rise ToWard the New Higher pRicEs oF prOduCtIon. What is This procEsS aNd HoW doEs it wORk?

First, tHoSe wHo “StrUck it RIch” sudDenly Had a LoT oF MonEy to speND oN COmmoDiTiEs. UnDer ThE moneTary SYstEm that pRevailed aT thAT timE, nEwLy mined Bullion could bE pResented to ThE U.S. Mint anD MInted intO new legal-tender dollars iN The form Of gOld coIns. THese coins IneVitablY foUNd theiR way inTo the BaNkiNG SysteM, SWeLliNg The reserveS OF thE commErCial Banks. ThE U.S. had no central banK At tHe time, so each cOmmErciAL BaNk mAInTAinEd ITs oWN Reserves of gold bUllion and cOiNS. IN countries THat HaD centraL banks, sUch as gReat BriTain, GermaNy, France, aNd russIA, For Example, the Central bAnk bought THe newLY mIned aNd rEfined GoLd bUllioN at fixED cuRrencY priceS.

THe centRal baNk Paid for tHe gold by issuing banknoteS in excHange For The gold or WriTIng Checks thaT wouLd be deposiTed In a CommeRciAL bank, ExpaNDiNg tHE reseRves OF the commeRCiAl bANK sYstem. This leD TO A glObal rIse IN bank rEserVes and the
 in Alaska and Canada lead ing to the  gold  ru shof  the  189 0s. Marx descr i besthe earlier discoveryof go ld in C a li forni a in 18 4 8a n d A us tr ali ai n1851asa “seco nd 16th ce ntu ry .” In the 16 t hcentury, t he“discovery”ofthe “N ew  Wo r ld” b y E urope ans wi t h itsrich gold  a n d silv e r depos i t sledto the birth of t h ew orld market an d theri s eo f  th e c apitalistmo de of product i on . I n t h e mid-19th ce ntury, capi t aldiscov er edr ich go ld de po s its  in Califor niaand Austr alia,w hich gr e atly ex tended  ca pit alis t  p ro duc ti o n w h il e e n din g the yo ut hf ul ho peso f M arxand  Eng els t hat an earlysoc iali s t r evolu tion[was  p ossib le]. T he pr oc ess was repeate d in  the late  19 th  ce nt ury w i th yet  an oth er “16t h centu r y”se n d i ng  the value of gold  d o w nw ard.

Wh at hap p en sw hen theva lue  ofg o ld bo th r e la tively a nd abs o lu te ly fall ssharpl yove r a  shor t  per iod li ke it di d int he mid-1890s?F irst, the gol d en p ri c es o f p roduction ( pric e s me asur e dino unces  of g ol d )w ill rise sharply be ca use th ese p rices, like a ll “real”p r i ces, mus t be ex p ressed in term s ofthe use va l ue of th e mon ey commo dity. Sta r t ing in t he189 0s,  ag i ve n weight of g o l d me as ured in  so me unit  of  we igh t r ep resentedless abs tr ac thu man  labo r  measure dinso meunito f time  than  itdi di n t he earl y  1 8 9 0s a nd  e arli er.  H oweve r, a ris e in th e goldenpri c es o fpr oductio n does not me an  that thema rke t pric e s  of comm odities rise instantly. A proce ssoccur s th at causes  ma rket p ric e s to r ise to wardth e n e w  high e r  p ric es  of produc t i on.  What  i s th is proc ess and how does i t  wo rk?

First, t hos e wh o “s tru c ki t r ic h ” s u d denly had a lot  of moneyto sp end on com m odi ti es. Und er themonet a ry syst em that p revailedat  tha t tim e, newly m ined bul lion coul d  be p r es ented  to  the U .S . m int a nd min t edintonew le ga l-tend er do ll ars in t he form of gold coins.Thesecoins  in evitablyfou n d t heir wayinto  the banki ngsys tem,swe l lingther es erv e s ofthec ommercial ba nks . Th e U.S. hadn o cen tralban k  at th e ti me, so each comme r cial bank main tain e d  it s o w n re se rves of gold b ull io n and coin s.  In countri es thatha d  cent ral ba nks, s uch asG r ea t  Brita in,Ger many, Fra nce ,a nd Russ ia ,f or exa mple ,the ce ntralb ankb o ught the newly m ineda n d ref i ned  gold  b ulliona t fi xed curren cy prices.
The c entr al ba nk paid  f or the  go ld  by issuin g  banknote s inexchang eforthe  goldor w r i tingchec ks  th at wouldb e  d e po si t edin a  comm er cial  bank, ex p anding t her eserves  o f t h e  comme r ci a l  bank syst em.  This l ed to a gl o balr is e  in b ank re serves  and th e 
 in_Alaska and_Canada leading to the_gold rush_of_the 1890s._Marx_describes the earlier_discovery of gold_in California in 1848_and Australia in_1851_as a “second 16th century.” In the 16th century, the “discovery” of the “New_World”_by Europeans_with_its_rich gold and silver deposits_led to the birth of_the world_market and the rise of the capitalist mode_of_production. In the_mid-19th century, capital discovered rich gold deposits in California_and Australia, which greatly extended capitalist_production while ending_the_youthful_hopes of Marx and_Engels that an early socialist revolution_[was possible]. The process was repeated_in the late 19th century with yet_another “16th century” sending the value_of gold downward.

What happens when_the value_of gold both relatively and_absolutely falls sharply_over a_short period like_it did in the mid-1890s? First,_the golden prices_of production (prices measured in ounces_of_gold) will rise_sharply_because_these prices,_like all “real”_prices,_must be_expressed_in terms of the use value_of_the money commodity. Starting in the 1890s,_a given weight of_gold_measured in some unit_of weight represented less abstract_human labor measured in some unit_of time_than it_did in the early 1890s and earlier. However, a rise in_the golden prices of production does_not mean that the_market prices_of_commodities rise instantly._A_process occurs_that causes market prices to rise toward_the new_higher prices of production. What is_this process and how_does_it work?

First, those who “struck it_rich” suddenly had a lot of_money to spend on commodities._Under_the_monetary system that prevailed at_that time, newly mined bullion could_be presented to_the U.S. mint and minted into new_legal-tender_dollars in the form of gold_coins._These coins inevitably found their way_into_the_banking system, swelling the reserves_of the commercial banks. The U.S._had no central bank at the time, so each_commercial bank maintained_its own reserves of gold_bullion_and_coins. In countries that had central banks, such as Great_Britain, Germany,_France, and Russia,_for example, the central bank bought the newly mined and_refined gold bullion at fixed currency prices.

The_central bank paid for the gold by issuing banknotes in exchange_for the gold or writing checks that would_be deposited in a commercial bank, expanding_the reserves of the_commercial_bank system. This led to a global_rise_in_bank_reserves and the