The Madisonian. (Virginia City, Mont.) 1873-1915, 1895-08-17
the MONEY QUESTION.
Why Gold Has Appreciated In
Value.

GOLD, SILVER, BONDS AND PRICES.
Relations Of Demand and Supply to the
Value of Gold as Money-Bond Buyers
and the Rights Of the Government-Sen-
ator Jones ON the Gold Standard.
It is asserted by the advocates Of the
gold standard that there is no INSULT
cheney of that metal for the purpose Of
money. If before the decentralization of
silver there was only enough of both
metals combined, how can men Justify
the assertion that there is now enough
Of n Of them alone to answer all de-
mands without rendering necessary a
fall of prices Of commodities? It will be
conceded that value depends Oh the re-
lation OF demand to supply. No reason
has ever been q car be given why
money is not subject to that law. What,
then, was the demand for gold in 1871
at the time Germany resolved to 90 to
the gold standard? There were but three
countries Of Europe that We're then
formally on the gold standard-Great
Britain, Portugal and Turkey-and of
those Turkey was making no demand
for coin, but conducting its business
with irredeemable paper.
Six Of the other countries of Europe
had nominally the bimetallic standard
namely, France, Italy. Belgium,
Switzerland, Greece and Spain. But Of
these only two-Belgium and Switzer-
1and-were actually using coin, all the
others, by reason of wars then but re-
Gently concluded, using inconvertible pa
per and making no demand for coin Of
either metal. The countries then formal
" on the silver standard were Germany,
Austria, Russia, Sweden and Norway,
Denmark and Holland. OF those Aus
tria and Russia were without coin and
~transacting their business on inconvert.
ible paper money. The people Of. the
United States, as is we'll known, were
also at the time transacting their bust
ness with paper money. Placing the
several countries in separate categories,
according TO their actual condition in
1871, we have the following results:
Countries making demand for gold
alone-Great Britain and Portugal.
Countries making demand for gold or
silver NEUTRALITY-SUSPICIOUS. and Swift
zerland.
Countries making demand for silver
alone-Germany, Sweden and Norway,
Denmark and Holland.
Countries making no demand for coin
Of either metal, but using inconvertible
paper money-Austria, Russia, Turkey,
France, Italy, Greece, Spain and the
United StAtes.
In Belgium and Switzerland, both of
which were ON the bimetallic standard,
silver money was as useful and as vel
come as gold, SO that those countries
made no demand that was imperative
for either Of the metals in preference to
the other.
In Germany, Holland. Sweden and
Norway there was no demand for gold
as money. All the other countries named,
with the exception Of Great Britain and
Portugal, We're at that time, as matter
of fact, upon the paper standard and
made no demand for gold. The popula-
ton of those two countries therefore
(being in 1870 respectively 81, 900, 900
and 1000, 900, or in all less than &c.
O0O, 000) comprised the entire popula-
ton Of Europe and America that made
an imperative demand on gold for none
tary purposes. Let us compare that de-
mand with the demand Of today.
What are the countries of Europe and
America now demanding gold, strug-
Cling for it, and endeavoring to conduct
their business with it? Those actually on
the gold standard are the following:
Great Britain, with a population of
38, 900, 600; Germany, SO, coo, 900: Aus
tria, 40, 900, 900; Turkey, 33, 600, 600;
Scandinavian union Norway, Sweden,
Denmark), 5000, 900; Egypt, 7,000,-
600.
As u bonds have always been paid
in gold, we must add to this group our
own country with it's G., 900, 600 popu-
lation. Inasmuch al Holland and the
countries Of the Latin union have closed
their minis to the unrestricted coinage
Of silver, and although not On the gold
standard have entered upon the struggle
for gold III order to make international
payments, we must also add the 49,
600, 600 comprising the combined popu-
lations Of Holland, France, Italy, Swift
zerland, Belgium and Greece, resulting
in q colossal struggle for gold partici-
pated in by $50, 600, 900 people, and
this Notwithstanding the admission of
Mr.. Giffen that substantially none of
tho gold yielded annually from the
mines becomes or If mintad remains