Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1872-02-07
ao,,n N SILVER.

and gold has already been extracteu
from the Comstockl lode, and q 80 much
more extensive deposit than ever was
known of before Is now fairly de-
veloped or being developed in the
Crown Point and Belcher portion Of
the great lode, to say nothing Of other
mines In this State and the balance Of
the world that tho idea naturally oc-
ours to ones mind that at this rate sill
YER will soon be worth but little more
than other metals. The precious met
ais certainly are less In value than they
were twenty years ago, and their value
Is still lessening. On this subject the
San Francisco Scientific Press has the
following interesting article:
Twenty years since, when California
gold discoveries had become fully dem
onstrated, q sort OF panic set In
among the governments Of Western
Europe, to a lesser extent In England,
and more modified In the United
States. The question which presented
itself was the probable change in the
value Of gold consequent upon Its In
creased abundance. 1t wa supposed
that, both In relation to silver and
other commodities, gold would have
a lower value that Is, that n perpet-
ual fixed income, like an annuity, ora
ground rent, would gradually dimin-
ish In real value, so the recipient OF,
say 81, 900 per annum, would gradu-
ally get less and less for the money as
Its purchasing power diminished.
Most governments appointed Comimis-
sioners to Investigate the matter. The
United States passed the mint bill OF
1859, which made gold alone a legal
tender. The French did the same ;
but Holland. under the suppositlon
that II gold alone was produced In
greater Quantities 1t would lose Its rel
alive value, but that silver would
maintain its position, adhered to silver
alone as the standard by which per-
manent incomes would retain their
purchasing power. 1t happened, now
ever, that for tho first ten years Of
gold production here, aided BY Austria
liza, gold did not much detcrlorate IL!
value, and Its relative value to silver,
l5h to l, was not changed. In the
last ten years, however, a change ha
taken place, not in respect to silver,
but In relation to commodities and the
fact shows itself In greatly increased
expenses of living all over the woriu:
1t Is estimated that in England u
now Is not moro than equal to Is ten
wears since. On the continent OF
Europe the change Is still greater, n
still moro In Australia and the United
States. But throughout India the pur-
chasing power of money has under
gone still greater reduction. An Inn
portant element Of this change In the
last ten years has been the United
States war. When the war broke out
there was In circulation about 1900
600, 900, bank notes, and $500, OOO, OOO,
coin. There Is now In circulation
800, 900. 900 Of paper money, and lit
| tie or no coin. The latter has passed
off into the markets of the world,
greatly increased the general supply.
At the same timo there was a great re-
duction In the quantity Of commodities
produced-cotton, tobacco, rice, man.
~ufactures, etc. OF the first article, In
| dia became the source of supply, and
silver poured out Of Europe profusely
into the India market for raw COM
modities and for railroad construction,
so Cutting 1t that English official re-
ports show that the natives used the
silver for wagon tires and other unu-
sual purposes. The gold Of the United
lNkrolfo moro Than aim
piled the vacuum caused by sending
the silver to India, and a rapid decline
In the purchasing power Of money has
taken place. Such a moment Is the
favorable one for q return to specie
payments In the United States; to call
In the superfiuous paper money and
substitute tho coin. But there are no
signs as yet of such a consummation.
The prospect now Is of q reflux from
the Indian market and from China,
while the production Of silver on this
coast promises to rival that Of gold.
A London financial authority states,in
relation to the Indian flow OF silver
'sThe reader can draw from this his
own conclusions ; for 1t Is ~undeniable
that tile yield of silver Is rapidly in
| ~creasIng on the Pacific slope, and soon
will attain to such dimensions that
there will be a material fall In the
value of the metal. Tho broad rule
ought therefore to DO kept In view that
a fixed income Is less desirable than
an income derived from real estate or
industrial undertakings, for 1t under
goes n diminution In Its purchasing
power through a constant, II slow,
process, which must, however, DO felt
severely at the end Of ten or twelve
years" Without asserting to the full
scope Of this proposition, since there
will no doubt be a restored activity In
the production Of commodities, which
will tend to compensate for the In.
crease Of the precious metals and
maintain an equilibrium, there Is no
doubt but the part California Is to
play In the worlds operations will be
moro important in the future than In
the past.