Mexico weekly ledger., 1878-11-21
GOLD VS.. SILVER.

oAAt(
been unusuaI fluctuations in the re-
|~lative values of gold and silver. In
England gold will perchase more, and
silver less comparatively. than form
erly. In 1873 it required % II
pence to purchase an ounce of silver.
In 1875 the same amount of silver
was worth but 56 7-8 pence, and IN
1877 81 1916 pence. At present
so IL pence will buy an ounce. Inc
variation noticed between the relative
values of these two metals is about II
per cent.
From extensive Investigations and
minute comparisons which 1t is not
necessary to repeat, it has been con-
cluded that during the period allud-
ed to, that is between 1878 and 1879
the value of gold has advanced Z per
cent. and that of silver declined 10
per cent.
The consequence of such fuctua-
lions of values in the currency of
Great Britain, which is based on
gold, and that IF her colonies, especi-
ally of India, where silver predomi-
mates, is great commercial and finan-
disturbance in the British empire.
From the comparisons that have
been made of metal-values it is evident
that Great Britain has been approx
mating its present condition for some
time, and Americans cannot employ
themselves better just now than in in
vestigating the causes that have led
to it. We are constantly told by
those endeavoring to introduce mo-
n~o-metallism in this country that the
crisis in England is occasioned by
stagnation of business and that it in
turn is due to over-production
though machinery. But why not
search for other causes! Most prob
ably they can be found. When was
it that wide spread calamity did not
have many and varied roots! To
say in this instance 1t arises wholly
from trade sounds like placing the
cart before the horse.
At first many supposed the bank
failures in Scotland produced the ex-
isting English panic, but now the
prevailing sentiment Is that they were
the victims of a crisis.
In our opinion the advance in the
value of gold is the natural outgrowth
OF the political condition of Europe
and America. In Europe expensive
governments, gigantic armies and
foreign wars aie intimately connected
with it, and in the United States ex-
travagant and priviledged legislation
and boarding of gold in the national
treasury is as closely related to it.
Suitable as paper money is to the
peaceful development of domestic in
du-try, it is not adequate to the ext
gencies of armies. Russian and
Turkish promises to pay did not suf-
fee to procure arms and ammunition
in America, and far less did paper
rubles procure cossack supplies at the
seat of var south of the Danube.
Whatever else European war ac-
complishes its uniform legacy is en-
tail of debt. England pioneered the
road to consols and coupons. In
1856 at the commencement of the
Austrian successian war, England
owed $137, 000. GOO. Seven years
afterwards her debt was 800, 900. 900.
In 1898 it amounted to $1,000, 000,-
900 in consequence of her American,
French end Spanish difficulties. In
1903 after the peace of Amiens it was
SO, 100, 600, 600. After the battle of
Waterloo it rose to $4,425, 600, 900.
At present it is in the neighboorhcod
of So, 745, 900, 900. 1t is unnecessary
to detail the debts of France, Austria,
Holland, Germany, Denmark, Rus
STA and the United States, which
are constantly increasing. 1t is suf-
ficient to state that they cannot be
be fioated at moderate interest, except
by prompt payment of it in gold.
AS England led the way to funded
debt, SO that country was first to
adopt an exclusive gold standard.
One after another the ambitious ma
tons of Europe have been forced to
follow British example. France ac-
cumulated immense gold reserves,
but Germany first deprived that Ia
ton of its treasures and then adopted
the most expensive mono-metallic
standard to facilitate negotiations for
loans, should renewal Of war render
them necessary.
The vastness of the sums of gold
required annually for the liquidation
of interest is proportionate to the
enormous character of national in
debtedness. In the meantime the
production of gold is diminishing.
S52, 500. 900 less gold was mined yaaf
1875 than in 1855. WaEd not all
~e4lGlsntbje Sufficient to raise its value.
To increase demand for it and
render gold still moro valuable the
United States entered into competi-
ton with mono-metal countries for
its possession. We have secured vast
sums for which VIZ have paid hand
some premiums, and on which we are
incurr;ng daily heavy loss of interest.