The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1876-09-02

The value Of silver az measured by the gold stan.
dard has fallen In London 10 46ld per ounce. (,sie-
grams since report an advance 10 54ldl q Squire. un-
precedented in financial history. For many years
its value was about Goa per ounce. and less than a
year ago II was 17d per ounce, and this was the pre-
vailing price last year. The cause OF this rapid APP
parent depreciation in silver, says the clncinnail
Commercial, does not seem 10 be generally under.
stood. We say apparent depreciation because II 10
by no means certain that silver has deprecated 90
the extent which the quotations show, for there are
good reasons for Believing that the phenomenon Is
not 80 much a fhll In the yalce Of silver AZ a rise In
the value Of gold. Everything has declined during
the last few years, a. measured by the gold standard
real estate. wages, and In general merchandise all
articles from peanuts to diamonds. This Of itself Ia
priHa Jacia evidence Of an appreciation In the value
Of gold. Itty
But let US 90 back and see what influences have
been at work TO affect the value Of gold. The worlds
production Of gold varies largely from year 10 year,
and attained lie largest Development In 1862. whom
Il reached the total Of S1e4 .000. 900. Since then 81
has fallen of heavily, and in 1876 II was only s97.-
O00, 1000. The business and commerce Of The world
has steadily increased meantime, 20 that II gold was
the only medium Of exchange the worlds annual
production would not be equal 10 the necessities OF
its increased traffic. For ten years preceding pas.
annual production Of gold did mot exceed on the
average that Of 1876. There has consequently been
q steady appreciation In the value Of gold. The er-
changeable value Of commodines has NOT altered en-.
cept as they are affected by local causes, but their
value as measured In gold has largely deprecated
not only in this country but In the whole OF Europe.
as the natural and inevitable effect Of the increase In
trade and commerce In excess Of the increase In the
substance used as a measure Of value. Had silver
kept its former place % q measure Of value this APP
probation in gold could not have occurred, or nj
least it would not have been 90 great, but by the de-
termination OF Germany after the Franco-Prussisn
of value and coinage from silver 10 gold, q revolution
was inaugurated Ia Its monetary system, which IA
far-reaching In its effect, and which II is by no
means certain will be successful In the end, for IL
has encountered the opposition OF contiguous coun-
tries which preserve the double standard, viz
France, Italy, Belgium and Switzerland, which have
formed q coalition 10 resist the monetary Enterprise
Of Germany. and to this end they have treaties, the
substance Of which IL that they will admit no silver
for free coinage until the year 1878, "a being under
stood that they have q supply on hand-obtaiBed,
probably, before Germany began TO cell lie silver
sufficient to meet the requirements OF their mints
until that time Thus, Germany having withdrawn
from the markets a. q consumer OF silver, and be-
come a seller Of vast sums, and the countries which
use a silver coinage bling no longer open TO lite free
coinage the demand Tor silver became restricted 10
India and China, and at q time when the balance OF
trade between those countries and Europe was 20
small as to require q comparatively small sum 10
liquidate II, go that when Germany attempts TO sell
her unused silver IL comes upon q market where
there are few purchasers, and the more urgent her
demand to sell, the more rapid Is the decline. Great
Britain having only gold a. a legal tender has little
use for silver, and Austria and Russia being con
dsmned to q chronic state Of paper currency can not
afford any relief by Acquiring the silver on the mar
kets. Germany can not get rid Of her silver there
fore except at an immense sacrifice, while on the
other hand she has already bought about all Of the
gold she can obtain, and Il is her efforts TO buy more
which have supplemented the natural tendency Of
gold to appreciate, and by thus a~rrhcially enhancing
It's value, she is entaiIing an enormous loss upon her
The countries in the coalition against the Ger
man monetary enterprises Are doing all which t.sy
can TO keep her from acquiring the gold she wants.
and thus assisting in the appreciation o. the value Of
gold. Where this thing will end End what will be
the consequence Is the problem. Of the boar. Some
think that IL Germany %. sists in forcing her silver
On the market. and demanding more ebid than she
can obtain J. win precipitate a crisis Ia Great Britain
md on the Continent. while II she gives mp her pro-
such o calamity win be avoided. The rapid de-
cline In silver would seem TO indicate that the crisis
or the change can not be long delayed.