The Indianapolis journal., 1895-01-14
HAS GOLD RISEN?

Louis A. Garnett has contributed the most
informing paper in regard to the money
controversy that has been printed since
the discussion has been going on 1t an
pears in the Forum for January, under the
caption, 1.-THE Crux of the Money Contro-
versy-Has Gold Risen? Mr.. Garnett has
right to speak on this subject He became
an officer of the United States mint in San
Francisco in 1850, where he remained ten
years He managed the San Francisco as
saying and Refining works for ten years
previous to 1876. While in these employ
ments he had exceptional opportunities of
becoming familiar with all the technical
and economic questions relating to the pro-
duction and treatment of the precious met
ais. He is a resident of San Fran
cisco.
So much is said by way of preface to
prove that Mr. Garnett is entitled to the
confidence of those who are seeking facts
In connection with this important topic Has
gold, in recent years, acquired a greatly
increased purchasing power over commodi-
ties? YES is Mr.. Garnett's answer. "A
man would be insane to deny it," says he;
but he continues, 'that this increased
purchase power has been the result of any
change in economic or industrial conditions,
operating directly upon the metal mass
itself. no one will admit who has investi-
gated the subject with the single purpose
OF aseertaining the facts underlying the
phenomenon"
The fact that he presents is that since
1865, the year when prices attained their
highest point in the world, there was for a
time decline of 10 per cent in the gold
output compared with the phenomenal out
put for fifteen years following it's discov-
cry in California and Australia, but there
increase of 100 per cent. in silver
during the same period, and a combined
increase of both metals of 16 per cent. Yet,
it was during this increased production of
precious metals that prices fell to the lowest
point up TO 1878. Mr.. Garnett's next state
ment is more important. About 1878 the
output of gold increased so that during the
past eight years the average product has
been nearly equal to the maximum product
for the fifteen years from 1851 to 1865; that
during the past three years the output of
gold has been 81, 100000 per annum in ex-
cess of the average maximum product of
1916; that as compared with that period.
the output of silver has increased 300 per
cent. and of both metals 20 per cent, and
for the past three years 100 per cent.
Mr.. Garnett, accepting the statistics of
DIR. Soctbeer, the highest authority and
those of the Director of the United States
Mints since 1879, makes this striking state
ment: From 1866 to 1S93 twenty-eight years,
the period of the so-called currency contrac-
tion and OF falling values, the worlds prod
uct OF gold exceeded 1926 1000 or sl16 Oo0,-
900 more than the product of the world
from the discovery of America until 1851
35S years. During the same period the
ouput of silver $3,063 900, 900, making a
joint output of se. .S39 100000. or an excess of
50, ,781, 100000 or over $50 per cent, compared
with the joint output of gold and silver of
the period 1876. From the authorities re-
ferred to Mr.. Garnett presentsthe following