New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-03-25
The Silver Question.

UoAI0 DIN u0Ul0 u80 yl0lU0O mOI0 Gu0U
$275, ,OO0, 900 of silver, has disturbed the
markets of Europe and Asia, driven San
Francisco dealers to refuse silver in psy-
ment for goods, placed the United States
treasury in 80 singular predicament that
the Secretary frankly calls upon Congress
for formal direction before proceeding to
enforce law, and so confused the heads of
sound bulljOnists that, though they etOutly
maintain that gold will always flow where
it is wanted, they fear that the substitution
of exportable silver for q nOn-expOrtable
ter.
That the silver problem puzzles many
men of sound opinions on the money qnes-
ton is not strange. For centuries the rela
tive value of silver and gold has cons: autiy
varied, but never before has it changed
so greatly within SO short time. Four
years ago in Februar.: silver was worth
81 Is pence per ounce in London; in FEB.
ruary, 1876, it was worth only 54is. and
during the current month it has fallen as
low as 52ss pence per ounce. The decline.
Sls pence, is l3 $40 per cent. Though the
decline has been quite steady since Fsbru-
ary. 1872, the price only sank to 53a4 in De-
cemb Der Of that year, and to So l-l6 in De-
cember, 1878, and to STA in December,
1874 SO that during three years the decline
was only 3as pence, but during the fifteen
nc cnths since December, 1874, it has
been SIS pence. This extraordinary
decline in the value of silver has
impressed economists and statisticians the
more strongly because it was not at all un-
accountable. Germany, Holland, Sweden,
Norway and Japan are demonetiziDg ell
yer: the demand from Asia, hitherto prac.
ticaily Unsuitable, has been checked by the
condition of British trade with India: and
meanwhile the most productive mines the
world has ever known have begun to pour
forth the treasures of bonanzas which
seem inexhausttbie. 1t is not strange If,
under such circumstances, students who
had supposed that their theories respecting
the utility of the precious metals as the
measure Of values were founded on q rock,
and could never be shaken, begin to doubt
whether it may not be necessary to except
silver, and hencefOrth to recognize gold
alone a. the most steady measure attain.
able Perhaps they do not perceive that
the same reasonings would have driven
them to reject gold as measure of values,
if, after the discovery of the mines of Cali.
fornia. several commercial nati0ns had
united in an effort to demonetize gold.
Neither of the precious metals ever has
been, and probably neither ever will be, the
sole measure of value. The reason is that
the retail price of very many articles OF
general use in all civilized countries ID
smaller than the smallest gold coin that
can be conveniently handled. Any form Of
small currency other than coin rapidly
wears out, gets torn, or destroyed. and thus
| involves q considerable loss to those who
use it. Hence, in spite Of all efforts to de-
monetize silver. it remains the favorite
coin for change in retail dealings. and fol
| the wages and hoardings of the poor. and
| where civilization has not yet supplied &C.
| ceptable banks for deposits, vast quantieiee
| of silver are boarded, and the drain of silver
| to such countries has meyer yet been inter
| ,upted for long. As the London Econon''s
| recently remarked: "There is, therefore
| in the end q certain market for the silver
| displaced from Europe; it will ultimately
20, as the rest has gone, to the East, where
| It is the ancient and the best attainabl'
| paying medium"
As icng as the wages of labor il those
| lands and the prices Of necessaries OF lit
are relatively low, so long the use OF silve
as the favorite medium will continue, an<
| the demand for it can be only for time in
terrupted by the condition OF exchanges
| with Western countries. Nor is there an!
reason for believing that, among the civil
lied peoples of the West. any substitute
will supplant silver as the fav0rite medium
of the poorer laborirg class, or for chang
iu retail dealings. In spite OF the vas
| production of the precious metale, which Il
not counteracted would naturally cause
rise Of prices, the general tendency 0
prices of all manufactured articles has to
centuries been downward, owing to tn
vast increase in the productiveness OF la
| Dor through inventions and the use OF ma
chinery. As long as prices tend down ward
40 long gold will become relatively les
available for retail dealings and the uses
the poor.
Being thus used in preference by the vas
majority of consumers, in those very trans
actions by which the prices of articles t
consumers are finally fixed. silver share
with gold the power of measuring values
1t ia not merely because, as the Londo
Economist observes, "there certainly ls no
gold enough for all the world" the powe
Of silver as q measure depends far NOR
largely we believe, upon the fact tina
prices are finally fixed in q large degree b.
retail transactions, for which silver ls tn
more convenient medium. Neither meta
by itself suttices. Silver is too bulky TO
the payment of the mere balances IN tn
enormous wholesale transactions Of moder
commerce. But gold is also too costly to
convenient usa in the small purchases
the large majority of consumers. Thu
prices are regulated in the long run by bot
metals Jointly; relative deficiency Of gol
will tend to push gold downward, zinc
there is lees of the metal in proportion I
quantities of other commodities to be e.
changed; but at the same time the relatlv
supera bundance Of silver will tend to pus
them upward, because that metal is chief
used in retail dealings, by which prices al
largely influenced. Thus any excess
| either tends to correct itself.
We are even now witnessing event
which may help to restore the shaken fals
of believers in bullion. The price OF silve
of gold or of anything else, is governed
| the last resort by the cost of production
For some years eiiver has been produced
| such quantities that, the demand also beiu
checked, the price fell rapidly. The natur
consequence already appears; the produ
} ton of silver, at the present cost OF lab0
machinery and chemica!e, has become a
remunerative at many mines. aud has ther
, fore been arrested. Already the seneitiN
markets Of the world feel that the botto
has been reached, and the price Of silver
London, which was only fifty-two and fiv,
| eiqhths pence q few days ago, is now q lit
above ffty.four. Those who fancy th'
: eilver can be perfectly demonetized BY me
| human laws will soon be taught their erro
But the United States has now an oppc
tunity, which is not likely soon to retur
; to retire its wasteful fractional curren'
without paying any premium for silver.
J the change could be made at once Il
| gradul appreciation in the value OF slVe
which seems already to have begun, W
tend strongly to bring retail prices in tn
country more nearly to level with tho
in other lands. We export gold because
will buy less here than in other countrle
But when retail prices are fixed IN SHY
, currency of gradually increasing val'
| American gold ought eoon to find come
at home.-Ee,c York Tribune.
> Governor Hendricks succeeded IN dod
| ing the reporters almost entirely during
, | visit to New Orleans. A correspondent
the Vicksburg Herald worried few
| marks of out Of him. however, JUST oe1o
.ha Governor started for nome. ne GO