New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-08-12

RELATIONS OF GOLD AND SllN Eh'
VALUE OF SILVER NOT SHOWN BY ENGLISH MAR
KFIs--orHER MARKETS OF TIE wORLD-AN IN
CLsAsED VALUE or GOLD NOT A DECLINE IN
SILVER.
TO the Editor Of The Tribune.
SIR; Ny friend ~. l.. W." will surely see
that he Dcs the only question at Issue between us re-
spe,ting the decline OF silver" claimed that silver
had net lost purchasing power IN those countries in
which used exclusively but that gold had gained
in purchasing power wherever it was the measure OF
values In reply, az L. W" attempts ~ prove that sill
yer has fallen by quoting the declining prices Jf 40
standard articles at Manchester, England. If lie had
uua,.y reasoned in this way, b. l.. W" would
not have gained his weldeserved reputation strong
writer.
Prices IN England, maintained, do not prove any
thing whatever TO the purchasing power OF silver,
because there gold is the chief measure. | am aware
that this position may bo conroverted perhaps suecess
fully Bat ii cannot be disproved by assuming that it is
false and quoting English prices to prove its falsity
English prices have dcclined-whether per cent or
more is not material in my view. Writing immediately
upon perusa of tie letter Of ~. L. W., and without
present opportunity 10 consult records Will only re-
mark that think he VIII ind that the decline since 1873.
according 20 the estimates OF writers Of high authority
has been more than s. and az least II per cent. Com
parsons of prices are exceedingly apt TO islcad unless
made WITH great care and statistical knowledge Of the
relative importance OF different articles But rs to silver
the decline ne If greater or less proves nothing ~ H.
W. says that proves - three things l. that the
purchasing power Of gold has increased 2, that the
actual value Of commodities has decreased since 1873
or g. that both of these propositions are true" TINS
clrary q ogc? error. The decline might prove thCt
either OF these things Lad occurred, o. l. tat S0d ANA
commodities lad ihincreatct purchasing power
in the English market bat that gold had increased IN the
greater ratio. Tnat there has been considerable ld-
vance the cost OF commodtics generally IN England,
as cOnpared with other countries, is Indicated Oy the
great decline OF British exports and tho signal advan,
other couniCt To thcso facts refer oniy 10 STOW that
changes Of price England prove nothing whatever as
maintain that T. l. W." : entirely in error III Seloetng
as OF purchasing power Of silver, single mar
let from an the rnlrketa Of world and that
which ailytr has been longer and more completely
dsmonctizod tIlan in others
Tho markets IF tho world include the markets Of
those dense.y populated regions in VIII III more 5han hall
OF the hum.n FAMILY n;e silver a tAor currency now
IN supposing TINT the purchasing power Of silver III the
domestic sactions between the people WHO !nhab
those vast Of the East has no; ,teiay dnin-
ishcd." Very well then ID the markets or ne world
upon which half OF its inhabitants depend silver haSn not
1gain, the markets OF the world" iuclude those of
France and other countries in which silver though not
exclusively used, IS tho chief medium OF exchange
There, D. l. W" virtually admits, the purchasing
power OF silver has not apparently declined rs II mas III
England but in those countries he thinks, At mas ' an
accidental value Once more he uncCnsc o9sy bcgs tue
question II g0ld has risel eh me tHecl OF the codge
acts OF Franco has been TO make God appear cheaper
than It really Is That ehllnaLp Is qSe i, i.al
sbe IS 20 say that The coinage acts nave hae SILVER a
pear valuable than 1t really L. II space permitted
should mere speak OF TIE peculiar tHt e. OF the U.s. on
silver IN retail transactions. Al sta ieut know That II
il a most important element in the problem.
Putting aside tleI as equally liable either Of two
interpretations lie apparent relation between silver ana
gold in France, and such other countries as Use OOth
metals there remain only those few Gnd narrow markets
in which gold is the legal measure OF values. There
prices measured III gold have fallen But in tho greater
markets. upon which half Ihe population OF the earth
depends prices measured in silver have not so fallen
these do indicate that the changed relation
OF the metals to increase in the purchasing
power OF gold rather tnan decrease in the
ing power OF silver am unable to reason correctly
Nelo-I York, Aug ., 1876 g.