The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-01-30

well as the attention of brokers AMI merchants Many
theories have been put forth to account Tor The condl-
ton OF the currency, and many plans have been pro-
posel to check The expectation of silver, and cause an
adequate supply OF small coin
In most of the articles have this subject,
disposition has been manifested to view The precious
metals in different light from that in which other
commodities OF use or convenience regarded There
is general tendency to regard money differing es-
sentally from other articles OF traffic and as regulated
in lis movements by peculiar and exclusive laws, This
disposition is at the foundation of most OF the errors
which have prevailed relative 10 commerce and cur
rency.
Toe precious metals obey The laws which con-
troll all other articles OF traffic They have no peculiar
and exclusive laws Gold and silver, like cotton and
wool depend their usefulness for their value and like
cotton and wool, they depend the proportion between
the supply and demand for their price That proportion
is gua ed, great extent, by the cost OF pToducton-
the labor and capital necessary TO produce the sup
ply Gold and silver useful in plate and other manu-
actuIes and that fact alone would give them value and
price the market But manufactures not the CHEF
he precious metals Their great value isderved IRON
tae usefulnes, in promoting exchanges. The baker may
want clothes when the taior does not want bread.
necessity therefore exists for something which the tailor
will receive and wh which he supply his wants
This nece .sily for standard OF value ard circulating
medium has been met by various articles. Among COM
mercial nations gold and silver used, paper
dun based on gold and silver used along with those
metals In some nations gold. and in others silver and
in others both gold and silver, recognised as legal
tender.
In the Uacd S,stes both silver and gold are legal
r,c, rhic I, he
men, 10 fix the relative value of the two metals. This
task was the tina. OF fixing the relative value of
wool and cotton would be- The government undertook
to sly that debt might be discharged by the payment
either Of gold OF silver in the ratio of sixteen one;
other VoIds, that ounce OF gold was worth sixteen
ounces of silver This proportion preIIcaed the
difference in The cost OF producing the two metals and the
relation between the supply of and demand for each
The proportion was perhaps true at the time II was es
tablshed but il be clear that the task which the
government under ook to perform was as arduous as TO
fix the relative value OF wool and cotton, or OF any two
articles of traffic The relative value OF wool and cotton
could Ge ascer,aned al given time bat, inasmuch as
the price of each is constantly changing. because The re-
lation between the demand Tor ani supply OF each
il constantly varying, their relative value must con-
s,anily flc,uae. The case is the same with regard
to gold an silver In the year 1887 ounce OF gold
was worth sixteen ounces OF silver. But II is evident
that the proportion between the demand and supply
which existed in that year continue 10 exist, or the
two metals will not bear the proporionae price in
the market. The govenmen, might have said, in 1887,
that one pound Of wool worth five pounds OF cotton
BAT demand and supply might the law, and say that
oie pound Of wool is worth only pounds OF cotton
In he case OF gold and silver has said that the
proportion OF sixteen to one established in 1897, is not
the RICH, proportion for the year 1851.
Several reasons might be assigned for the change in
the relative value OF the two metals but none OF The
we have yet seen adequate to account for the ex-
port Of silver fro the United States Faa German war,
the recent action Of Holland making silver alone legal
tender and Tue discovery of the gold mines in California,
have all conspred increase the value Of silver as CON.
pared with gold. The German war and the legislation
OF Holland have exien, increased the demand
for silver in those countries. and increased its fea'ive
value 10 the same extent Bat it PLAN that local
demand OF that character would produce supply drawn
from those nations in commercial intercourse with
Germany and Holland When that demand sat
ished might perhaps, leave silverappreciaed in all
commercial natons-an appreciation which would not Of
itself produce export OF silver from the United States
lorna mines has tended depeca,e the value OF gold
compared with silver, not only in the United States,
but in all commercial nations Had the discovery OF the
California mines affected the United States alone the frs,
result would have been rise IN prices. Our markets
would have been good markets cell in but bal markets
to buy in and specie export-gold well as silver
would have been the consequence. As there
mint 10 California and the California adventures
from all nations, the gold Of California has been generally
dfused without having effect on the relative value
OF gold and silver in the United States than else where
The causes which we have enumerated have disturbed
the relation formerly existing between gold and silver
Silver has appreciated three per cent as compared with
gold so that OF gold longer worth sixteen
ounces of silver But change in the relative value OF
the two metals would Of itself export OF sill
yer from the United States The export caused by the
attempt OF the government OF the United States
psh an impossbiiyo fix the relative value Of gold and
silver by legislative enactment Causes which the gov
srnmen, could and ought not TO control have increased
the value OF silver compared with gold while the
government proportion OF sixteen TO one remains unal-
tered The result OF Ibis state Of hnxsis, that every
debtor prefers make his payments in the deprecated
me al he viii pay in gold rather than in silver. The
banks and money dealers viii follow the sne course,
and pay gold TO meet their liabilities. and withhold their
silver IRON circulation because il only circulate &C
c,r,lino "A hxed standardS xiesp to one But that