The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1876-09-13

/ Increase 10 manufactured products 80
From these data by processes which we
have not time to follow NJ. Lavasseur reached
the conclusion that the increase in price Of all
commodities, or decrease in gold value was 25
per cent. This IS proven BY carefully pre-
pared table of English articles during the
same period This fall in gold is about the
same as the recent one in silver, though 1t has
been yelled and only known 10y the marking
up the pieces Of all commodities.
The estimated value Of silver ia the world ia
1879 was sd,G25.Oo0OOO, the amount since
taken out is set down at 81, 100000, so that
willis, The amount Of gold has doubled since 1919,
its fan Eaugcd by the marking mp of commodities
has been bat > per cent whilst silver, which has in
creased ony about fourth its quantity has also
fallen . per cent This is undoubtedly due to the
fact that gold is The standard most countries by
which the value Of commodities is regulated, and
for which il is paid in unlimited amounts, whilst
silver nearly double In amount, only be offered
in payment in comparatively small amounts but al
though only a comparatively small amount is re
qured as currency still as it is ordinarily diteen
aud half times cheaper than gold, large quantities
are used in the manufactures.
The ofAcs. and chief use Of gold is for curreney,
being too precious and costly for manufactures aud
ss there is nothing more costly aud precious suit
able for currency, its fluctuations rise aud fall,
produced by its excess or scarcity is shown by the
marking up or down OF commodities, when these
are generally low, it shows gold 10 be high, when
they are high it shows gold to be lower. The value
Of silver is rated by gold it is only used as an aux
lary in currency its largest being in manufac-
lures and amy excess OF coinage beyond the necess-
ity Of the countries using it as currency, for this
purpose, brings it into the market as bullion for
manufacturing purposes, and subjects any such ex-
cessive issues TO the same law Of supply and de
nand TO which all commodities subject, thus the
pesos and soils and late Mexican coinage have been
deprecated by excessive issues Perhaps also by
Light weight,
The standard currency Of Great Britain and the
United States is gold silver only being subsidiary
aud limited to small amounts whilst France Bel
GUM, Switzerland Italy and some other countries
have double standard Of both gold and silver, all
commodities and all debts in any amount being
paid for in either silver gold Dr. Linderman di-
rector Of the L. 5 mint and the highest authority in
the L. 5 in speaking Of the rapid decline OF silver
says:
1T has now reached the point where France, Bel
gium, Switzerland and Italy must either shoulder
the German surplus Of silver or prepare to abandon
the double standard and adopt a purely gold cur
rency. The reason is, that silver is more valuable
IN those countries where Il is used currency than
where it has been demOuetized, and it will If
resstibly dow to those where il commands the
the highest price Should the United States at this
time return 10 the double standard, il would be
placed 10 the same embarrassing position which
France now holds. II the nations which still main
taiu the double standard continue 10 adhere 10 II,
the gold they have now in circulation will disap-
pesr aud be thrown in large quantities upon the
English and other markets, including the United
States. This would tend strongly 10 restore equai-
" between the TWO metals throughout Europe II
the United States adheres TO lis present policy, the
great decline in the value Of silver may by causing
an accumulation Of gold 10 England and this CUuu-
try, make il easier than il otherwise would have
been for the United States to resume specie pay
ments on the lst Of January, 1879, At some sub
sequent date not far in the future
The conclusion of much discussion is that gold
has fallen p per cent since 1919 and that silver has
lost 25 per cent of its purchasing power in compa-
rison with gold. Legislation is considered st this
time both by Great Britain and France positively
dangerous Our standard since 1872 has been the
American half dollar, the recent bill changes it to
the L. 5 gold coin, still leaving silver legal tend
er in sums so large as it is to be hoped will not de-
range our business. These amounts may be lessen
ed hereafter gradually if in our experience it shall
be found best. The change from silver TO gold as
our standard I think meets the appreciation Of
business men generally, butt think it would have
been well to commit the authority to abridge the
amount Of silver which may be rendered in pay
meut, TO the Privy Council, as circumstances may
call for it. In the preparation of this article hsve
been indebted for most Of my facts to the san Fran
cisco Weekly Bulletin, and l have taken too the
same view of the fluctuations in gold aud silver as
S taken By the writer in the Bulletin.
S. y. CASTLE.