Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1877-12-08

Der 10th in the present year.
Now, associate the following chro-
biological statement Of events with
the above table:
Gold discovered in
Gold discovered in Australia 1854
Maximum produce of Gold 1856
Germany demonetiZes GOld.....................lS57
American Silver mines open.....-...........-lS6l
Germany demonetiZes Silver and remon-
Europe demonetizes Silver, thence toll 1913
Rapid fall in to 1876
Lastly, repeate from last weeks
article, in the interval between 1856
and 1875:
Gold product decreased 81 9, 446,S SO
Silver product increased. S44, 335 600
Now, the striking fact derived
from contemplating these state
ments is that until the demonetiza-
ton of silver by Germany the
change in the relative value of the
metals was only very slightly af-
fected by the excess of the supply
of one metal and the defect in that
of the other. Thus for three years
before 1871 the market ratio stood at
1850, which had been the coinage
ratio in most of the nations of Eu-
rope at the commencement of the
present century. After 1871, when
all the silver previously current in
Germany had been driven from cir
culation and began to appear in the
worlds markets in indefinite guam
titles, the fall in its price became
much more appreciable, and when
the rejection of it as currency ex-
tended to the rest of Europe as well
as the United States the fall was
precipitate, amounting in the Sum-
mer of 1876 to 114 per cent. below
what had been its par value as esti-
mated in gold for two centuries be-
fore. An investigation of the caus-
es of these phenomena cannot but
be instructive to those who need
light on what has now become one
of the most practical questions of
the day. Why is it, then, that an
unprecedented supply of silver
while that of gold was falling off
failed to appreciably affect the rela-
tive value of the two metals?
CAUSES OF AN UNCHANGED RELA-
TION.
Two causes seem to have contrib
uted towards this effect:
First-The immense amount of
the precious metals previously in
circulation.
SecOnd-The conservative influ-
ence of the double standard.
First, then, immense as the sup
ply seems to us when separately
considered, it is very small cOmpar-
ed with the mass of gold and silver
which has accumulated and circu-
lated in past ages. Now, when the
mass of newly produced metal is
added to the whole mass of the
worlds stock it makes but little diff
ference which metal predominates
in the new supply on account of the
vast proportions of that to which it
is added. If a stream of fresh wa
ter should be directed into a small
pool Of salt water, or the reverse,
the chemical character of the pool
would soon be materially changed;
but if such a stream flowed into the
ocean, il would produce no appreci-
able effect on the sea water, but
would be lost i'm the great ocean,
the latter remaining unchanged. So
with the gold and silver product; if
the new supplies were all confined
to one nation which had previously
small metallic currency, it would
make an immense difference in the
relations of its constituent metals,
according az gold or silver predom-
mated in the addition. But no
commodity can be so confined in
these days of constant commercial
intercourse all over the world; and
especially two such coveted COM
mOdities as gold and silver; they
are at once absorbed into the gener-
al stock of the whole world and lost
there, the relative predominance of
the one or the other producing but
slight changes upon the mass.
Secondly-The circulation ofthese
metals side by side as the medium
of exchange for all nations has an
influence in steadying their relative
values. So long as each is equally
legal tender in a proportion de-
fined by the governments OF the
world, there is an irresistible ten
dencv in the minds of men to estl
x~o lRra ACCORDING