The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1892-05-14

being $1.316 an ounce in 1850 and
| $1.328 in 1870.
If an increased production Of
gold which amounted to an excess
of $94, 100000 annually was pow
erless to affect the legal and com
mercial ratio of silver and gold be-
tween 1850 and 1870 why should it
be assumed that the excess of pro-
duction noted by our contemporary,
which is ridiculously small by COM
parison, has had a disturbing effect.
Our contemporary is apparently
ignorant of the fact that the pres
ent production is really not extra
ordinary. Between 100 and 1850
the worlds production of silver
amounted, according to Soetbeer,
to 81, 200, 600, 600, while the output
of gold was only 81, ,165, 100000. A
simple calculation will show that
the average annual excess of pro-
duction over gold during the $50
years referred to was nearly $17,-
00O, 900, and yet at the expiration
of the period the ratio, as shown
by the commercial quotations, was
1880 to l as compared with 15.4l
to / at the beginning.
There is not the remotest proba-
bility that the enormous yield of
the period between 1900 and 1850
will ever be equaled again. At the
present rate of production it would
take nearly fifty years to add as
much silver to the worlds stock.
But who believes that any such
yield can be depended upon for so
long a period? Nobody. Certainly
not the men who were instrumental
in demonetizing silver, for they
have a much better knowledge of
the real situation than the men who
are fighting their battles in the press
and who make statements which
are absolutely devoid of truth and
logic.
The plain historical fact is silver
was not demonetized, that is de-
prived of the privilege of free coin
age, because statesmen feared over
production. The act was inspired
by the desire to make money dear
er, which could be best accom-
plished by depriving one of the
metals which from time immemo-
rial had been used as money of its
legal tender quality. When this
outrage was perpetrated silver was
actually at premium over gold in
this country, measured by the ratio
of 16 to l. That is to say it was
worth about 81 33 an ounce, while
its value as fixed by law was only
81 1929 an ounce. AS soon as the
conspirators succeeded in passing
the law silver as measured by gold,
began to decline, until now an ounce
of it can be bought for IS cents
worth of gold.
But it would be an egregious
blunder to assume because IS cents
worth of gold will buy an ounce of
silver now that silver has fallen in
value. That is not the case. The
simple fact is gold is dearer. If
you doubt it look at any table of
prices. If you do you will see
that IS cents worth of gold will
buy as much wheat now as dol
lars worth would in 1878; it will
buy more cotton, more iron, more
steel, more Of every commodity the
production of which can easily be
increased by man. If this does not
show that gold has increased in
value while silver has remained
stationary, or nearly SO, there is no
truth in figures.
And the end is not yet. India,
which has long been the prop to sus-
tain silver, is being sorely pressed,
and the Government is urging as
measure of relief the adoption
of the gold standard. Between
1871 and 1891 the Indian Govern
ment has suffered loss of over
$33O, 600, 600, being the difference
in exchange resulting from the sell.
ing of council bills in London. The
council now proposes that the free
coinage of silver shall be stopped
by the British India mints in the
hope of bettering the finances of
the country. The effect of such a
change would be tremendous. The
fall of prices already witnessed
would be a trifle by comparison.
Gold, which has increased its pur-
chasing power over IS per cent since
demonstration in 1873, would be-
come still more valuable and the
of affairs witnessed in the
middle ages, when over 800 pounds
of wheat could be bought for 4
and other things in pro-
portion, would be parallel.
There is probability, however,
which IA hoinu Olonno;lu contono.