The times. [volume] (Richmond, Va.) 1890-1903, 1892-05-18

depreciation. Monetizati0n, though II cou."
not check. did not. OF course cause uepieo,a-
ton. What then did IL was evluenty u%,ns
r,a,aIlurgv tbrew unon the market. and by
rendering ID leHs scarce rendered. IL 1883 'e' 10
bic At first silver, without the reach Oh tne
poor, had been excessively Vaiueu' "'s I'M
reach ot the poor. 1t became comm ining" -
therefore. lost estimation or value ana none,
tizgtiou in the face Of Increased supply couiu
by no means prevent. however IL might re-
tard depreciation. "
About the time Of the discovery OF America
the ratio was one of gold for ten OF SILVER;
Thereafter both gold aGd silver were poured
into Europe. but silVeI 80 nn'ey ~
rated it could not hold It's own and nnaiy de-
clined 10 the ratio of one OF gold TO
fifteen and one half of silver. The mines
of Potosi. in Bolivia. Were so enormously
productive they supplied the word WIN 81
$50 900 900 of silver from 1913 10 1900. and. the
mines of Mexico supplied GOeut 7ZOOO,OJO,uJO
for the three centuries succeeding 1871 Dur
ing these centuries silver was nowhere De.
mOnetized and yet az stated, IL deprecated
till So ounces Of silver were required 10 pur-
chase ounce of gold. Monetlzation could
not save silver. because the world would only
receive Is ounces Of silver AS tue egulYaleDt
of ounce Of gold. and legislation siDlpy
recogn zed this fact when 1t made TINS ratio
legal.
Silver appreciated after the discovery Of
cold in California and Australia, and but for
Tie exhaustion Of their mines, tie world
might now be witness OF the ratio. 50 long
prevalent. Of ten for one.
In 1859 the silver mines Of the nted
States were discovered and IN thirty years TO
dato they have produced about AS much silver
as POtOsi did IN three centuries, aud 1t IS not
surprising that the depreciatory effects OF the
Colorado silver floods We're similar % the
effects Of the silver floods of PotOsi and
llffl4 tr-n. D. lna1 Fl
mouetzatiln or decentralization.
10 Is claimed. however. that the silver neces-
sites OF our yastly-increased populations
would but for characterization have prevented
material depreciation Let us see. Popua-
ton IN $500 WAS mucn greater than IN 1900 YET
the greater needs of 1900 did not prevent de-
probation from lO IN 1900 to lJ-s IN lSlU ana
II the needs of increa sed population IN 1900
did not prevent depreciation, neither should
the needs Of increased population IN 1880,
especially IN the face OF increased supply pre-
sent and prospective. prevent depreciation.
As civilization advances there Is relatively
lessinstead of more need of metallic currency
Among haTbarous and semi-ciyilzed people
money must be real whether cattle. skips.
metals or what not. for there is no credit and
no faith in promises 70 pay, and even IN
many civilized countries at this late day paper
money meets with poor acceptance. people
require the actual coins. But IN
Great Britain and its ofshoots all forms Of
promises 10 pay. acceptauces, bills OF eX-
change and bank notes sre 50 popular that
metallic currency Is comparatively little
needed and little used. This means that COM
pared with former times little metallic money
is needed. and that. therefore, smaller re.a-
tive supply OF silver now must exert similar
depreciating effect as larger relative supply
formerly.
From past experience il would seem that
the value of gold and silver depends almost
wholly on supply and demand and little
upon mOnetzatiOn and decentralization. Sill
yer and gold are used tor coins for their beau
tiful and valuable qualities and not because
they are lie gally mOnetzed. Monetization IL
simply recognition OF "A Notwithstanding
fact and would both be used though ever SO
much demOuetzed, hence il is that none
tizat.on has 80 little effect upon the value OF
coinage.
All tho clamor and anxiety about monetiza-
ton and characterization are therefore mostly
vain. frutle,s and hurtluL The world desires
and needs both gold and silver coins and Will
have them though all eartls parllaments
should anatAematze them. but will have
them at us arm r0'U0tiOu amt not az av aiJI-
t0iV ic0iN0fire y0lutO0-a valuation not
simply recognizing existing fact, but pre-
scrlbed mainly by selfish If not sOrdld con-
sderatiOns.
When legislation can regulate the flow Of
the tides It can regulate the flow of values.
As common sense has prevented il from at
tempting the first, common sense should pre-
vent It from attempting the latter. and only
when legislation realizes its impOtency will
the evils now enyirOElng metallic currency
disappear.