The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-07-21
INTRINSIC AND MONEY VALUES.

| 1t is sometimes claimed, when the in
trinsic value of the two metals gold and
silver is compared, that they have no in
trinsic value, that their value is regu-
lated entirely by legislation. That is not
exactly correct. Both gold and silver as
well as all other metals have an intrinsic
or essential value, because of the uses to
which they can be put. The demand for
any article coupled with its scarcity raises
its market value.
Itmay be said that under certain circum-
stances a pound OF bread may be worth
more than ton of gold, and that the for
mer would have an intrinsic value and the
latter none. But these are exceptional
conditions and the matter must be con-
sidered in its general aspect and not in
some special view or extraordinary Cir
cumstance. If anything has an intrin
sic value silver has, and so with gold and
other metals.
But it is fact that gold and silver have
and apart from their intrinsic value. And
yet it is because OF their intrinsic value
that they have been chosen as money.
They meet the requirements for that pur
pose better and more completely than any
other things that have intrinsic worth.
Silver as we'll as gold possesses the
qualities needed in standard of values,
and when it receives the government
stamp, as dollar, for instance, it is
equal with the gold dollar as money
wherever it circulates. 1t will buy as
much in the market. Ii it is made by
legislation legal tender for all debts and
dues it Will answer every purpose to
which dollar can be put. That is be-
canse the government is behind it and
the government guaranty makes it good
for its face value, whatever may be its
intrinsic value or it's market price.
1t is part of the policy OF both the great
political parties to maintain the parity Of
the two metals and make every dollar
coined in gold, or silver, or issued in paper
form equal as money. A parity between
gold and silver uncoined could not be
maintained. One would draw apart from
the other and the value of each would
fiuctuate as do the values of any two mere
commodities.
j But parity can be maintained between
the two metals, as money, by government
guarantees, and this could be done even i
the intrinsic values of the two metals were
to vary. But the experience of the worlc
shows that when both are used and rec.
ognized by legislation as money, theil
relative market value remains practically
unchanged. When either metal is dropped
|
declines, or rather the value OF the Other
appreciates, and the effect is virtually the
same.
A weak government might not be able
to maintain parity in the face of a great
intrinsic disparity, but a government
like ours is abundantly able to do so
However, it would be much easier tc
maintain that parity if the margin Of
market difference was small. That is one
reason why the more moderate advocates
of the white metal as money talk of ac-
cepting a change of ratio in the silver
dollar as compared with gold.
The European ratio is as 15]s to /. The
American ratio is 16 to /; that is, sixteen
times as much silver as gold to make 6
dollar in each equal. But since the
market value of the two metals has drawn
apart and gold has appreciated through the
great financial blunder of 1873, it is con.
sidered wise, in order to silence the
clamor about cheap dollar to make the
ratio 20 to l. That would not be the
precise relative market value OF the two
pieces OF metal, but 1t would be such
trelatiOn as would draw together the twf
extremes, and there is not the slightest
doubt that by the restoration of silver a!
money in its full sense it's market value
would rise at once.
1t is possible that it would soon appre-
ciate SO that the ratio would have to bt
changed again, and therefore the advo.
Gates of 16 to stand by their demand fol
the old ratio, contending that as soon a,
silver is made money on parity will
gold, its market value will rapidly adj
vance till it stands where it did befor,
1873.
What the country is most concerned
about at this crisis in its affairs is the res
toration OF silver coinage. If that can b.
effected, even at the advanced ratio ex
planned, immense relief will be expert
enced, and the most extreme advocates o
recommendation, except the greedy golt
spectators, will hail the change witt
gladness and become ardent supporters o
the bimetallic system.
A Point sor You.