The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-03-13
Gold and silver.

~ certainly Is a remarkable circum-
Itance that, within only one quarter of
keentury, the commerce Of the world
Azs been changed by changes in the
standards of commercial values, gold
and silver. These changes in the pre-
siaus metals have arisen entirely from
satural causes, affecting both their act
Aal and relative quantities. These
causes were the discoveries Of gold made
LRGalifornia and Australia, and more
recently of silver In Nevada.
When these discoveries were made
and the supplies were found to be SO
immense, public economists united in
the conclusion that the relative value of
gold and silver would be materially
changed by the rapid fall of the value OF
gold as compared with silver. But the
result has shown the faliacy of this con-
clusion by showing a state Of facts ex-
actly to thereverse. Not only what the
economists had predicted has not hap
pened, but the very contrary of it has
happened. The value Of silver as COM
pared with gold In 1850 was as 1 to 1871;
now it 10 as to Ill.
These discoveries OF gold and the
quantity of circulating medium in
creased therefrom vastly augmented the
operations Of the worlds commerce.
The successful application Of steam TO
ocean navigation occurring about the
same period; and the wondrous increase
Of railroad communication also super
yening, served to swell this volume OF
commerce to unheard Of proportions, as
we'll az to carry it to unheard of regions
This vast augmentation Of the worlds
commerce and the largeness OF It's trans
actions, of necessity demanded q more
valuable medium for effecting CONNER
ciaI exchanges than the minor transac'
Siens OF previous times had required. In
transactions involving such immense
amounts, the counting and transporta
tI0n Of silver as the medium of exchange
hscame 10 the highest degree trouble
some and burdensome to business itself
There was imperative need OF medium
ar exchange Of greater value, bulk fol
bulk, than. silver could afford. This II
was that disappointed the economists
and led to the almost universal use OIL
gold as the currency OF the world to the
comparative exclusion OF silver. F.,
Indeed, silver, SO far from keeping
pace with gold as TO their relative none.
tzxy values, has become almost demon
ssized among commercial nations. Eng.
land uses silver but sparingly in minor
transactions, and not at all In her larger
commercial exchanges. Germany has
of!late entered upon the same line o.
policy as to her currency, and is buying
esld, and selling OF her accumulationt
Of silver. At the same time the prod
ncts OF the silver mines are abundant
bsyoua all precedent. The result is
that silver is now cheaper than has ever
before been known. 1t il ss we showed
afew days since, that with gold kere at
l4per cent. above greenbacks, the green.
backs were worth about 3'per cent. more
than silver; and yet everybody woult
he glad to get the silver at par for green
hacks.
xmong poorer nations with smallel
trade. silver makes sufficient medium
sfexehange, because Of the comparative
Enallnsss Of their commercial transac
tans, And one-quarter OF a century age
Awas used as Of necessity among the
richer nations, because there was moi
ffen gold enough obtainable TO consti
tute of itself q universal medium Of ex
eRange. Consequently, silver was EN-
pipyed as Its necessary auxiliary ant
aRpplement, But now that the golt
supply Of the world has been 80 i'm
mensely increased, by reason OF tn
great discoveries mentioned. 1t ha
tsther haugh1ly spurned this supple
ppentary aid formerly contributed b,
sifyer; and silver consequently cease
70 be money, and Is reduced from 1t
rank az q precious metal to the condi
tioa Of metal useful In the arts, lik
IRON, lead, and tin. But, with all this
miilions in this country would WELDON