The teller. [volume] (Lewiston, North Idaho) 1876-1878, 1876-12-16
GOLD AND SILVER.



Brief Review r s5s siitsr Market for -Four
The following review Of the silver market
for several centuries, We have collated af-
ter some research, from several modern
historians, especially Draper. at,..-
Adam Smith, in his WealA Of Notions,
shows that the value Of silver had remained
stationary for long previously to the mid
die Of the fourteenth century, but from
that time to the beginning of the sixteenth,
it exhibited an extraordinary rise. Its pur.
chasing power, as measured by the price Of
| wheat, fully doubled. This enhancement
continued until about 1870. Several caus-
Is were probably concerned in producing
1t. The extensive commerce Of Upper Italy
with Asiatic countries occasioned an un-
ceasing drain. As far back - the time of
the 6rst CGsars 1t had been recognised
that the silver Of Europe. steadily found ito
way to India. Moreover, the interior com.
| mercial activity, which was beginning to
pervade all Europe, required = large ..
mount of coin. .o1 t
But the same author shows that in the
next seventy years (l57o-l640), q very
important change occurred. The value Of
silver declined to about one-third or one.
fourth, the minimum being reached about
1896. There can be no doubt that this
was due to the large supplies furnished by
the North and South American mines
From that time there was again witnessed
another rise, which continued we'll marked
throughout the following century. These
Conclusions, though for the most part de-
Quoted from English history, hold good,
there is reason to suppose, for Europe
generally. .....3e,. .g.
The American yield Of silver was, At
this time, greater than that of gold. Be.
fore the discovery Of America, the value Of
fine gold to 6ue silver was regulated in
the different mints of Europe in the proper
ton Of one to 10 or IL. Gradually the pro-
portion changed, and In the seventeenth
century, it was 40 one to Is. The relative
value of silver was therefore decreasing.
The annual importations Of silver into
Spain and Portugal, we're in the middle OF
the last century, somewhat over q million
pounds weight; of gold it was about fifty
thousand pounds weight. However, it ID
to be remarked, that data have not yet been
adduced for the determination Of those esti.
mater with certainty. Humbolt supp0sed
that from the conquest Of Mexico III 1891
until 1903, the total value Of the silve,
thus produced, was about two thousand
millions of dollars( 81, 900 200, ,000), but thi.
is probably an under estimate.
These oscillations in the relative valus
of silver and gold still continue. It has
been affirmed that California and Anstralis
yielded more gold 10 ten years than all th,
rest Of the world from 1892 to l84S, that /.
ia 356 years. The effect of this excessiv.
gold production, has been to change il
many countries the relation ofthe two met
ais. Thus ir France, up to 1850, gold wa
merchasdise and silver currency; shel
, gold, became currency and silver merchan
= disc. In Holland, Belgium and Spain
. gold has been demonetized. Probably an
other reversal Of the relative position o
the two mstslsn will shortly occur, whe1
. the great silver deposits of the Unite
= States are vigorously worked, The silve
: mines Of Mexico, which had given an annu
al yield of twenty millions up 70 1907. ha
increased their supply to forty millions i
= 1856. Such variations in the intrinsi
value Of gold ought to be steadily borne i
mind by American statesmen, in view {
I the condition under which large porto
of the nstional deht 4 toccssioned by the ci,
il war, was contracted. The purcbasin
'' power Of gold is undergoing decline
s. r. Stock Exeh0nse.