Pioche daily record. [volume] (Pioche, Nev.) 1872-1876, 1875-11-21
DECLINE IN VALUES.


1t is the present opinion Of all lead
ing political economists. both in this
country and in Europe. that the value oil
gold and silver is derrecisting. BY the
valne may be stated the purchasing
power. 'Twould seem that there are
many causes at work TO produce tEis
effect. Among them may be reckoned--
first, the increased and increasing supply;
second, the lessening demand for use
of the precious metals in the arts and
for ornamental purposes; and thirdly,
the substitution of other things as the
medium Of exchange and the general de-
mands of traffic. From the most anthem
tic sources it has been estimated that
the present amount of gold in the world
excepting, of course, what is as yet
undiscovered-maybe set down at fifteen
thousand million dollars. For the last
twenty eight years there has been q
gradual but steady rise in all the neces-
saries and many OF the Injuries Of life.
| The rise in prices represents cores
ponding decrease in tho purchasing
| power. The fact OF the rise in the prices
OF the various articles of general utility
and necessity has long been noted. and
as decline in prices was observed ex'
tending from the commencement OF the
present century to nearly the middle, il
may be safely assumed that the cause o.
such advance Is in the increased produc
ton of gold and silver in the last twenty
six years. 1t is OF like probability tina
the lessening demand in the semi-bar
barrie countries has also marked infu
ence on the relative value Of gold ant
silver. From time immemorial fabulou
stories have been related OF the extraor
binary magniGcence Of the temples an
public buildings OF China. Japan
India, and that vast extent c
Eastern territory washed by the Chin
sen, Arabian gulf and Bosphorus. 1t ha
been advanced by commercial writer
as an argument worthy of credence thu
the great bullion drain to the East is n
cessary in the reciprocal relations
trade and that tho worlds prosperity d
: pended largely on it. 1t may at 9
events be set down as an undeDiable ia
= that vast proportion OF the world
% wealth finds its way to the Orient ar
. stays there in crude shape and barbar
o ornament. The last reason advances
= viz, the substitution OF other and lei
cumbersome modes of exchange, is by I
% means the least important. Time W
u when the transfer Of real or assume
y value was wearisomo work, now the !
" creasing demads Of trade has built up
" enormous system Of negotiable pape
. notes. bills of exchange, clearing hou
certificates, ETC.. that while doing aw
with the necessity of actually transient
Al the amount Of gold and silver represer
~ ing 30 much wealth also tends in
" marked degree to lower the value Of
" precious metals. If the New Yo
: Clearing House Association or the LIZ
. don Bank clerks clearing house issued
~ order tomorrow that the actual trans
20 of values must be made in gold and
~ yer, gold would be LIS in Wall street
- next day As gold and silver acoumul
y and the demand ceases, as we hi
~ shown, they must necessarily deterior
in value. In such cases amount is
,Nr ways in indirect proportion to value.
~ iron was scarce 'twould be high, for il
: we must have, being plenty It's low {
:, the same rule holds good in relation
" gold. The consequences Of such decl
sion of value are various. Among th
m may be mentioned loss to the posi-
tbo sors and gain to the worlds COVE
ad. ments. The subject is most intert
on ing one and deserving of more extern
the notice at the hands Of those with abb
ere and leisure.