New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-03-21
TIE SILVER Question:.

TIE SILVER QUESTION.
When COmstock discovered an argentiferous
ledge among the hills of Nevada IN 1859, he
had little idea what trouble he was causing
for rulers of the world, and what worry and
justification for able writers and students.
But the ledge which bears his name has
yielded more than $275,0O0,OO0 of silver has
disturbed the markets of Europe and ASIA,
driven San Francisco dealers to refuse silver
in payment for goods, placed the United States
Treasury in so singular predicament that the
Secretary frankly calls upon Congress for
formal direction before proceeding to enforce
a law and so confused the heads OF sound
bullionists that, though they stolltly maintain
that gold will always flow where it is wanted,
they fear that the substitution of exportable
silver for nOn-eXportab!e fractional currency
may lead to dire disaster.
That the silver problem puzzles many men
of sound opinions on the money question Is
not strange. For centuries the relative value OF
silver ard gold has constantly varied, but
never before has it changed so greatly within
so short time. Four years ago in February,
silver was worth 61ls pence per ounce III Lon
don; in February, 1876, it was worth only
54ls, and during the current month 1t has
fallen as low as 525s pence per ounce. The
decline Si2 pence, is l3 30 per cent. Though
the decline has been quite steady since Febru-
airy, 1872, the prce only sank to 1854 III
December of that year, and to 80 ll6 in De
cember, 1878, and to 5724 in December, 1874,
so that during three years the decline was only
33s pence, but during the fifteen months since
| December, 1874, it has been 5ls pence. This
extraordinary decline in the value of silver has
impressed economists and stati5tlcians the more
strongly because it was not at all unaccounta-
bic. Germany, Holland, Sweden, Norway, and
Japan are demonetizing silver the demand
from ASIA hitherto practically Unsuitable, has
been checked by the condition of British trade
with India; and meanwhile the most pro-
ductiye mines the world has ever known have
begun to pour forth the treasures of bonanzas
which seem inexhaustible. Ii is not strange
it. under such circumstances, students who
had supposed that their theories respecting
the utility of the precious metals az the
measure of values were founded on rock,
and could never be shaken, begin to doubt
whether it may not DC necessary to except
silver, and hencefOrth to recognize gold alone
as the most steady measure attanable. Per
4
reasonings would have driven them to reject
gold as a measure of values, if, after the dis
coyery of the mines of California, several
commercial nations 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 re-
tail price of very many articles of general use
in all civilized countries is smaller than tho
smallest gold coin that can be conveniently
handled. Any form Of small currency other
than coin rapidly wears out gets torn, or de-
stroyed and thus involves a considerable loss
to those who use it. Hence, in spite OF all cf-
forts to demOnetize silver, it remains the ia
yoritc coin for change in retail dealings, and
for the wages and hOardings OF the poor.
Especially in lands where tho great majority
of the inhabitants are poor, and where cIvlll-
cation has not yet supplied acceptable banks
for deposits, vast quantities OF silver are
boarded and the drain of silver to such cOun-
tres has never yet been interrupted for long.
| As Tile London Economist recently remarked,
"There is, therefore, in the end a certain mar
"ket for the silver displaced from Europe; 1t
twill ultimately 90, as the rest has gone,
I" and the best attainable paying medium"
| AS long az the wages of labor Ill those lands
and the prices of neceSsarics of life arc rela-
| lively low, so long the use of silver as the
favorite medium will continue, and the de-
mand for it can be only for time inter
mpted by the condition of exchanges with
Western countries Nor is there any reason
for believing that, among the civilized peoples
of the West, any substitute will supplant sill
yer as the favOlitc medium OF the poorer and
laboring class, or for change III retail dealings
In spite of the vast production of the precious
metals, which if not counteracted would natu-
rally cause rise of prices. the general ten
dency of prices of all manufactured articles
has for centuries been downward, owing to
| the vast increase in the productiycness of labor
through inventions and the use of machinery.
! As long as prices tend downward, so long gold
will become relatively less available for retail
dealings and the uses of the poor.
! Being thus used in preference, by the vast