The times. [volume] (Richmond, Va.) 1890-1903, 1893-10-17
THE "GoLD APPRECIATION" MYTH.


which contains a great deal that bears
strongly on the question whether gold
fas appreciated in value, and we shall
use such OF his suggestions as suit our
present purpose without further crediting
him with them The demand for the free
coinage Of silver. unless under an interna-
tional agreement, is not based upon any ra-
tional theory. IL no doubt finds most OF It's
support in a widespread idea that gold
has appreciated in value within the past
thirty years and that there is not gold
enough to answer the demands Of money.
But an intelligent examination Of the facts
will show very clearly that neither Of
these propositions is well founded.
The great proportion Of the worlds popu-
lation is not sufficiently advanced in
civilization and knowledge to care for
gold as the medium of exchange. As
people are wanting In enlightenment and
free institutions the laborer approaches
the condition Of slavery. and as slavery is
approached, wages diminish. II wages are
very low gold will not do as the money
metal. It cannot be subdivided so as to an
swer the demand for it. The pieces would
be too small for serviceable use. What
then do we find as the consequence? We
find all the people Of the United States so
far advanced that wages are high enough
for gold to be used and the same is the
case in England and France. II is mea-
surably so in other parts Of Europe
Russia and Turkey excepted but 1t is
not suited to the state Of society in all
the East. We have then, perhaps, two hun
bred millions of the people Of the earth
suited TO the use of gold as the medium
Of exchange with some eight hundred
millions very much preferring the use
Of silver because it suits their condition
and civilization Cor barbarism, If you
choose. It is very plain then that COM
partiyely small part Of the worlds popu-
lation wants gold for use at all, and, in
France, Germany, Austria, Italy, and
Portugal, a very large part Of the popu
lation is in a condition to find silver more
satisfactory for their uses than gold. And
even in England and the United States,
a great proportion Of the actual none
tary transactions are effected through
the use Of the subsidiary coinage which,
from the nature of the case, is and must
remain silver. When we come to think
Of It, therefore, there is no very great
body Of the worlds population TO draw
on gold and there need not, therefore, be
any very great quantity Of It to meet
their demand.
But when we consider the case more
narrowly we find the demand upon gold
TO fall to still smaller propositions. Actual
experiment has proved beyond all posi-
bility Of question that the quick methods
Of transportation, exchange, and trans
mission OF Intelligence have reduced the
business transactions that are effected
by an actual exchange OF money to all
most nothing. They are certainly not five
per cent. Of the whole Everything.
nearly, is now done by checks and notes
and transfer of credits in one form or
another.
We find, then, that but a small proper
ton Of mankind want gold for currency
at all, and even these do their business by
transfer of credits and not by exchang-
ing cash. But the new supplies Of
gold are very great and steadily on
the increase. The average yearly
produce Of gold in the world for
fba 0ffenp ..aarg 1c-9 to7 ...oe efo9 ooy
OO while for the five years 1921
It was Su9,s3S,OO0. and for 1892 1t was
A3O.d6O0O. 1t is true a very large part of
this goes into the arts But a very large
part Of II goes also into coinage, and all
OF 1t would 20 there if coinage demanded
It, 1t is stated on very high authority
that the coinage OF gold in the world for
the three years 1SS9-'91 was Sl2O, 900. 900 each
year, or three per cent each year Of the
estimated stock of gold IL the world in
1891. It would seem. therefore. that there
is no sort OF danger of gold famine I'm
the comparatively small part of the
worlds population that has a need for
gold
IT is impossible to consider the fixed
and established facts Of the case and
deny that the gradual and blessed fall
ing Of prices that has taken place in
the past thirty years in many Of the
things necessary to the comfort Of mans
daily life, is due to his increased and in
creasing control over the forces Of nature.
whereby cost Of production was decreas-
ed, and not TO the appreciation Of gold.
In the srst place. as we have more than
once pointed out, II gold had apprecia-
ted In value wages would have fallen,
because labor is more bought and sold
than any other commodity whatever.
But, instead Of failing. while so many
other things were going down. wages
for labor In the last thirty years have
been steadily advancing How could this
be so If gold were approaching? In this
connection we quote the following from
Mr.. Wells article
There IL, furthermore. no foundation
for the assertion that there has been
anything like a simultaneous decline in
prices due TO the appreciation ol so4d.
and no one can name any two commod-
tiles whose price experiences during the
period OF decline have harmonized either
In respect 70 time or degree. The prices
of some staple commodities fen rapidly
after the alleged characterization OF sill
yer IN 1873; while the prices OF others,
although subjected TO the same gold
scarcity influence. exhibited for a long
time comparatively little or no disturb
ance and such results are exactly what
miRnt have haari a4r,acfad from "A -.