Let us take a case where gold is in general use as money, and where for some time there has been no noticeable change in the amount of business, the methods of trade, and the general scale of prices.

What would happen when new gold mines were found that were much easier to operate, and gold began to be produced at a much more rapid rate than formerly?
The amount of gold as compared with other forms of wealth evidently would be increased.

What if all the increase went into the industrial arts?
The value of gold in its industrial uses would fall.

Then a part of the increase must be diverted to monetary uses.

When any man, by reason of the increasing gold supplies, gets a larger stock of money than he had before, the proportion formerly existing between his use for money and his monetary stock is altered.