The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-07-18
THE CIRCULATING MEDIUM.

III OlueI 10 Increase Tue WehltA Vi WA
munity, it is only necessary to multiply az
infnituna paper promises to pay-whlch ever
when kept within the strictest bounds are
only representative Of wealth TO be prod@ced-
if these deluded people would only con-
descend to notes.-the commercial results OF the
varying supply of the precious metals as IL
Illustrated by history, their faith IN the paper
panacea for curing commercial distress "ouid
be considerably shaken, if not alto8ether
destroyed.
An industrious German sta'lStcian mas iate-
" published learned and exhaustive work
upon the production of gold and silver
throughout the world, since the discovery OF
America. From the year 1900 to the end Of
1s49, he estimates that 100000 pounds of
gold, worth nearly thirty-one thousand mil
lions of dollars, and 295, 900, 900 pounds OF
silver, worth six thousand Six hundred and
twenty five millions Of dollars were produced
during that interval Of three centuries and
half Assuming these figures to be as nearly
correct as can be expected, it follows that the
total freight of silver produced during that
period exceeds that of the gold thirty-two
times, whereas its total Ualue was only double
the value of gold during that period being
consequently fifteen times that Of an equal
weight of silver.
As necessary result of the increased pro-
duction of silver during the same period, its
value gradually fell as compared with the
gold standard. Thus, during the first half OF
the sixteenth century, one ounce OF gold
would buy eleven and one-quarter ounces of
silver. hundred years later the gold ounce
was worth twelve and one-half ounces of sill
YER At the end of the last century it took
fifteen ounces Of silver to buy an ounce OF
gold, and in the first half of the present CEN
fury the ratio became one to 1866. In those
$50 years, therefore, the valve of silver as |
compared with gold fell nearly forty per cent |
The discovery and the immense yield of the |
Californian and Australian gold mines then
introduced great change in the relative pro-
portion of the two metals. From 1849 to the
present day, it is estimated that 8, 100000
pounds of gold, representing the value of three
thousand three hundred and fifty millions OF
dollars, have been added to the stock Of gold
existing previously to that period. The pre-
duction of silver during the same period is
estimated at sixty.nine million pounds in
weight and one thousand five hundred and
fifty millions in dollars. Within the last
TIVE nty. five years, therefore, gold represents
sixty eight per cent of the value of the previ-
GUS metals mined throughout the world.
Now mark the result of these changes. Be-
fore the influx of the Californian and Austria
Ian gold the purchasing power of silver was
constantly falling faster than that of the for
mer metal but soon after that momentous
revolution the downward tendency of .gold
began to exceed that of silver. The
rise in the value of silver from 1851
to 1864 was fully one cent to the ,
ounce. Since then, the yield of gold
having decreased, and the marvellous wealth
Of our newly discovered silver mines having
begun to pour in, the upward movement of
silver has been arrested, and the falling
endency of that metal again prevails. In
1866 an ounce of gold was worth Is. Al ounces
If silver. This year it will purchaoe Is. Sc +,
ounces OF the same metal-a decline of seven
Der cent in the value of silver during the
,ast nine years. These facts show conclu-
lively that the only result of increasing the !
otdrltiy of any description of circulating me-
lum is to decrease its purchasing poaoer-in
ther words, that the more gold or silver there =
s in a country the fewer articles of value its ;.
ha IN will |
iven amount of either.
AS the fluctuations in the relative value of :
old and silver are purely owing to natural :,
auses, which can be foreseen and calculated,
nd as besides they operate very slowly and
radually, the commercial revulsions which
esult thererom are paratively limited in
ber intensity, the injury being spread with q
olersble uniformity over the whole civilized 8,
vorld and over extended periods of time. But a,
hen single nation undertakes to supple r.
lent or to correct these inevitable changes in r
lie universally accepted standards of value Il
' the creation of an artificial or representa- Il
We currency, without any restric ton as to W
S amount or future convertibility into gold
silver, the financial equilibrium between oil
lat country and all those with which it has r.
,mmercil intercourse is at once destroyed, es
I'D frequent and violent mercantile "crises " I
% the inevitable resultsto be ultimately fol- fr
wed by national bankruptcy and general bl
pudiation of the once highly priced "rag %,
oney." &C
If the people of the United States, with ca
g significant examples before them of the III
To Of the French aSSignats and Of our own
ontinen al and Confederate paper money ii;
ould lie childish enough to renew the ia al Sc
pertinent it will not take many years TO i'm eli
less the most obtuse voter that the ignorant th
offenders who assure him that the shortest La
ad to national and individual wealth is thu til
ultiplichion of paper promises to pay are de
1t a whit wiser than the chap who killed the tn
'ose that laid the golden eggs. The only at
suit of the inf ltion policy vould be ia 80