Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-29
p-.s,,, of Gold and Silver.

Tho Futurs Product Of Gold and Silver
The present scant supply and the rap
idly increasing demand for the precious
metals, both for use as a circulating
medium Of exchange and for consump-
ton in the arts and manufactures, rem
doris the question as to the prospect for
increasing the supply, and the sources
from whence it is to come, one OF extra,
ordinary interest to the whole civilized
world. However rapidly the supply mas
increased since the discovery Of gold IN
California, less than twenty years ago,
it is manifest that the demand has in
creased still faster, and is likely 10 IN
crease in q ratio hitherto unknown.
The multiplication Of railroads, teie-
graphs, steamships and ~nayigaole cnan-
nels, and of inventions of labor-saving
machinery and rapid locomotion, serve
to distribute population and capital
over the earth and increase the pro-
ducts of labor and skill so rapidly, that
the demand for a circulating medium
Of exchange is increasing N n geomet-
rical proportion to the supply. The in,
vestment of one dollar in n certain KIND
of labor, for instance, results IN pro-
ducts worth three or four dollars, ana
the exchange of these products AFTER
ward between the producers, the mid
dle-men and the consumers, requires an
indefinite number of other dollars for
that purpose. No more important ques-
tons therefore can engage our attention
than whether this increasing demand
can DO supplied, and if so how and from
what source.
From the best sources Of information
we learn that the supply Of the precious
metals in tho world at the time Of the
discovery Of gold in ls4s IN California,
is set down at So, 500, 900, 900, of which
one-third was gold. Assuming the an.
nual product to be $3.50, 900 900, it will
take thirty-four years, or until 1882 to
double that supply. The present rate
Of production is estimated by Govern
meut officials to be $4,000 900, OF
which $3.50, 0O0, 900 is gold, and $780,
900, 900 silver. The rate Of production
Of the precious metals at the present
time is about two Of gold to one of sill
yer, while prior to the discovery Of gold
in California, the ratio of production
had been two of silver to one of gold.
In 1920, silver fell to one-third its form
er value, which caused a corresponding
increase of prices.
At the discovery Of America the sup
ply of the precious metals was estimated
by Humboldt at Sl4O, 600, 900 Of silver,
and SEQ, OO0, 900 of gold. With the in
creased supply from America it took
sixty years to double the amount. In
1870 the supply was $4,000, 900, 900, and
in 1920 it was 81, 200, 900, 900, up to
which time the commerce Of the world
had absorbed the annual increase of the
supply without affecting prices. At
this time the production Of silver was so
great as to effect its value as we stated
above. Since then, however, the great
er commercial activity and development
of industry, and the increase Of know
ledge and social advancement, have not
only absorbed the annual increase by
production, but caused the increase of
the demand to outrun the increase of
the supply. Hence the importance of
increasing the annual product ms rapidly
as possible, and Of the questions touch
ing the sources Of supply and rate OF
production in the future.-Stockton In
dependent.