The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-07-10
RELATIVE COST OF THE PRODUC-
TION OF GOLD AND SILVER.

The question "What makes gold more
valuable than silver?" has been often ask
ed during this monetary discussion, but
never satisfactorily answered by any one
espousing the gold standard theory. II
we are to base the value Of the metals
upon their intrinsic worth, then Of course
the matter is reduced to a practical form
and can be very easily demonstrated.
1t is well known that during the twelve
months preceding June LIST, 1895, the pro-
duct Of gold throughout the world
amounted to $172, 900, 900, while the prod
uct Of silver reached about $214 ZOO, 900.
Given the opportunity the question as to
which costs the most to produce dollars
worth of gold, or a dollars worth of silver,
based on the ratio of 81 to 49," II practical
Bile and easy of demonstration.
Mr.. F. w. Hendricks, a we'll known
miner of Colorado, whose home il In Den
yer, submitted to an interview in the
Washington Star, a few days ago while In
the Capital City and in the course Of his
remarks had the following to say about
this identical question:
"Now, if that is any argument, 1t may
surprise great many gold champions to
know that the cost Of producing one dollar,
coinage value, in gold, as taken from re-
liable data, is much below the figures
named above. Since the first of this year
it has cost to obtain one dollar in gold at
the Independence mine only 4 cents; for
the past two years at Victor mine, 20 1-3
cents; the Portland mine, for nine months,
including heavy development work and
new machinery 30 cents: the Isabella
mine for 1894, 311a cents. Other gold
mines throughout Colorado will about ar-
erage with these figures, and am stating
only absolute facts when say that gold Is
taken from all over heavy producing
mines at much less cost on the dollar than
silver, from any mine that was ever oper-
ated in the state"
1t will thus be seen that when consider
ed from can intrinsic-value-stand
the chances are little more than even
that it costs more to produce a doNar's
worth Of silver, than dollor's worth Of
gold. This being true, is not here COM
plete answer to the arguments Of the
gold standard advocates, that "overpro-
duction has so cheapened silver that 1t is
/, no longer available as money!" Does not
this statement of Mr. Hendricks complete
ly, absolutely and thoroughly demonstrate
the fact that if the nations of the world
were backing silver by the same laws
which relate to gold as money, silver
would he worth as much at least az
gold?
| Certainly there are many business men
living today who can easily remember the
fact that great hurrah was made among
| the money loaners and money brokers Of
the world in about 1856, touching the pro-
| priety of the decentralization of gold.'
| Why? Simply because the product Of
gold from 1850 to 1856 had increased from
| 1854 900, 900 for the decade prior to 1850 to
| $685., 100000, while the product of silver
had remained practically stationary.
These men who believed that the prod
uct of the metal would be all powerful in
| the regulation of the value without regard
| to legalization as money, at once jumped
to the conclusion that If gold were not de-
monetized, silver-"the money Of the peo-
| ple''-would be driven from the country
or locked up. Silver was really worth q
slight premium in the market, but never
enough to do any harm.
/ Fortunately for the country no demone-
tization of gold was had, and 1t only re-
| quired few years of experience to demon-
strate the fact that so long as both metals
were treated alike from the standpoint OF
law, each would take care Of itself for al
practical use.