The Daily state register. [volume] (Carson City, Nev.) 1870-1872, 1872-02-10
GOLD AND SILVER.

Twenty years since. when CalifOr
MIA gold discoveries had become fully
demonstrated, sort Of panic set in
among the governments of Western
Europe. to Il lesser extent III Eng
land. and more modified in the
United States. The question which
presented itself was the probable
change in the value of gold cOnse-
quent upon its increased abundance.
1t was supposed that, both IN rela-
ton to silver and other commodities,
gold would have a lower value; that
is. that a perpetual fixed income.
like an annuity, or a ground rent.
would gradually diminish in real
value, SO the recipient of, say 81 900
per annum. would gradually get less
and less for the money rs it purchas-
ing power diminished. Most gov
ernments appointed Commissioners
to investigate the matter. The
United States passed the Mint bill of
1872, which made gold alone "A legal
tender. The French did the same
but Holland, under the suppOsition
t44iI II etlltl dlf'lIf' Nit0 q 'AlAN tAl Ii
greater quantities il would lose its
relative value. Int silver would
maintain its position. adhered to-
silver alone as the standard by which
permanent incomes would retain
their rpurchasing power. 1t happen
ed. however. that for the first ten
years of gold production here, aided
by Australia. gold did not much de-
teriorate III value. and its relative
value to silver. 49, TO l, was not
changed. In the last ten years,
however. q change has taken place.
not in respect to silver, but in rela
ton to commodities, and the fact
shows itself in greatly increased eX-
penses Of living all over the
world.
1t is estimated that in England 81
now is not more than equal to S3 ten
wears since. On the continent of
Europe the change is still greater,
and still more in Australia and the
United States. But throughout
India the purchasing powero of money
has undergone still greater reduc-
ton. An important element Of this
change il tie last ten wears has been |
the United States war. When the
war broke out there was in circula !
ton about 5000 .000. 600, bank notes,
and $500, 900 600, coin. There is
now in circulation SOC, ,O00, 900. of
paper money, and little or no coin.
The latter has passed off into the
markets Of the world, greatly in
creasinG the general supply. At the
same time there was a great reduc-
ton in the quantity OF commodities
produced - cotton, tobacco, rlce,
manufactures, etc. OF the first
article, India became the source of
supply. and silver poured ont of
Europe profusely into the Indian
market for raw commodities and for,
railroad construction, SO Cutting 1t
that English official reports show
that the natives used the silver for
wagon tires and other unusual pur-
poses. Tie gold Of the United States
and Australia more than supplied
the vacuum caused by sending the
silver to India, and rapid declineI |
in the purchasing power of money
has taken place. Such a moment is
the favorable one for return to
specie payments in United States; to
call in the supertiuous paper money
and substitute the coin. But there
are no signs as yet of such consum-
nation.
The prospect now is Of a retiux
from the India market and from
China, while the production OF silver
on this coast promises to rival that
of gold. \ London financial author
ity states, in relation to the Indian
flow of silver: THE reader can
draw from this his own conclusions ;
for 1t is undeniable that the yield Of
silver is rapidly increasing on the
Pacific Slope, and soon will attain to
such dimensions that there will be
a material fall in the value of the
metal. The broad rule ought there