Staunton vindicator and general advertiser. (Staunton, Augusta County, Va.) 1858-1860, 1858-07-31
nd GEN HIHg AL AHD
THE UNION, BASED UPON THE coNsTlTUTIon.


~ J. N C1e Il WV, IA -
| From, ~ Z. Courier and Enquirer
GOLD AND SILVER.
The great change in the ratio of the pro-
auctions and consequently the stocks Of gold
and silver will undoubtedly alter the relativ G
value Of. these metals The amount of
this change at tie present time and tie prob
able future effect of the yet greater increase
in the production Of gold following the dis
covery of the Frazer River and other new
ly discovered mines, are questions Of great
and general interest. These two metals while
they are the standards of exchange, CIR the
money Of tie world; must always bear a GER
tain relation to each other; and this relation
Of value must be determined by tic relative
stock and by the degree of employment
Of each metal, and cannot be arbitrarily
regulated by mint or government. decress.
We propose to show that the ratio Of the
stocks Of gold and silver has materially
changed in late years, and also that their
relative employment is not TIC same as be-
fore the disc oyery Of the gold mines in Cal
ifornia. 1t being very evident that the ra-
ito of values Of gold and silver is principally
determined by the amounts in existence,
and not by the annual production
The ratio of the value of gold to silver
was up to 1915 approximately as 16 to 1,
and there has not been much variation
since the establishment Of the first English
mint M
The stocks Of gold and silver in use in
1892 are estimated by the best authorities
ncaly as follows: m
Stock. Ratio.
Gold, 500, 600, 900 80 per cent.
Silver, i4o, 900, 900 70 . g
From this time until the year 1903 there
were many changes in the yearly produc-
tons of gold and silver Until the year
1926 but little gold or silver arrived from
America. The receipts Of gold were con
fined 10 small quantities obtained from the
Indians, and it was not until 1915, when
the great silver mine of Potosi was discov-
cred sssd began to effect the stock of silver
From 1 545 to 1911 the silver was obtained
by tie slow process Of smelling. In 1867
the quicksilver mine Of Huanccyaliba, in
Peru, was discovered, and the yield Of
metal from to 80. This was an era in
the prediction Of silver, and increased the
stock of silver which by wear and export
was getting below the amount necessary to
keep the existing ratio between gold and
silver constant. In 1903 there were in use
in Europe and America the following a.
mounts Of gold and silver:
Stock Ratio
Colo, ss1.77o 900 900 IS pcr cent.
SilFsz. 100000, 900 65 (" g
.ftarpcars, therefore, that in these three
hundred as,a eleven years the stock Of each
metal was changed but five per cent.
ri 1913, the year Of the first receipts Of
gold from the mines of California, the
Famounts of gold and silver in Europe and
America were aa follows:
Stock. Ratio.
Gold, So, 500, 100000 Al per cent.
Silver, 1000, GEO, 600 50 - q
i We see by this statement that the amount
Of gold compared with the total stock Of
gold and silver, was in 1902 80 FER
cent, in 1903 it was IS per cent, and
in 1913 it was Al per cent, or an in
crease Of the stock of gold at the rate Of
one per cent. in 81 years, and a correspond
ing decrease in the stock Of silver.
We find, aftsr rll;lsiug the necessary al
lowances fof Woa., export TO India, and
boarding, and by carefully. collating the
statistics Of the production Of California and
Australia, tfat the stocks Of gold and silver
in Europe and America in 1853 were:
Gold, SIS, $40, 900, 90 Al per cent.
Fsilver, 4,1sG,00O,0Oo 50 !.
This shows TINT the stock Of gold has H. Ii;
creased thirds Of one per cent, annual
lily, and Of silver has decreased 5ide same
amount since tie 55ear 1913, compared with
the total amount Of tie two. It IS evident
from this that if the productions do moi
change there will be in 1923 or a little
over four years, an eQual amount of gold
and silver in Europe and America. And
the probabilities are, from, the recent dis
covcrics atsFrazcr River, that the produc-
ton Of gold Of the two will increase more
rapidly. ;....
The important question after a consider
alton of the facts is, if the annual additions
t to gold and silver continue iii their present
proportion, can we keep the values Of gold
CIV ILSli plCnCiiu liCttl
! rs I6 Is f. which has been approximately
the ratio for centuries Let us look at some
of the various auxiliary causes affecting tho
lprices and stocks of gold and silver, and sct
if they will affect the statement. In The
: first place. gold has been adopted as the
sole standard Of exchange by some Of thu
1 Iprincipal commercial coaptr-es-bY Grca
5 Britain and the United States, and practi
; calFy by France This will Of course tenc
to increase the Use Of gold, and Therefore
other THINGS being equal, increase its value
compared With silver, for their present vzfae
depend almost entirely upon their being uset
as money. On the other hand, Holland
China, and India practically admit silvc, alon
as money, SO that the increased Use Of gol'
from these changes is questionable. TIL
absorption by India and China ssthe sink
for precious metals" is confined to silver
Again, it has proven by elaborate statistic
that the loss by wear and manufacture and b
boarding IS four timosgreater With silver thal
with gold. Therefore, taking all these fact
into consideration, it would seem that tn
use of silver is not decreasing. But, o.
the other hand, we find that the annual ne
! increase to the stock Of gold is four pc
J oop+ &c A. 4,4,1' Aft IL 4Lo c,,,,,