The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1895-08-01
Coins Financial School.

w. II. HARVEY.

OF the two metals Tor the whole world,
Mr.. Sauerbeek, an Euehsh statistician,
has prepared table showing the value
Of silver as measured 10 guild for 9 years
Subsequent to 1873. The table ex.
Iresses it in index numbers. IL is Lon
don quotations.
II have these tables printed said
CoIS, "an / will cause them to be dis
tributed among you"
Little boys then went through the
school aud gave every one copy of the
table.
Corr waited till the tables were dis
;ributed and then looking straight at
Mr. Gage, he said:
"Yon will see from this table that
during the 10 years prior to 1873, while
free coinage was the law in the nations
have named, the commercial value of
silver in the London market--in gold
standard England did not vary either
way more than . per CENTS Of | per
cent under was the least, and per cent
ever was the greatest. The average for
The 10 years shows premium on silver
over geld, which il explained by the
disturbance created by the difference in
ratios in France and the United States
IF tho same ratio had existed i'll all
these countries, then the only difference
would have been the exchange difference
che cost of freight in the movement of
bullion when unevonly distributed as be-
tween silver aud gold when needed at
different points.
"Nor did the varying quantities Of
silver and gold iD the world, during this
period from 1854 to 1872, hav, the
least effect ou the relative commercial
value of the two metals,
"Mr Mulhall, the Loadon Statisticiau,
has compiled statistics sho wing the rva'
tive quantity of silver and gold in the
world at different periods, and his figures
are substantia;ed 10y the official reports
of the governments Of the world from
which they were taken.
"lle gives the relative quantity in
iSlS. 1880 and 1890, but dees not give
itat any other date between these periods
Bu, taking the dates he does give, we
find that in lsiS there we're 81 tons OF
silver to | ton of gold in the world In
1880, Is ton, Of SILVER to ton of gold.
10, 1890, Is tons of silver to ton Of
gold
"Now as the relative supply of silver
TO gold was decreasing from lS4S tC
1889. then this decrease was in progres,
between 1854 aRd 1872, aud yet during
this period il had 10 effect on the rela'
tive value of the two metals.
"lf Mr.. Sauerbeck's table was ex'
tended back to lS4S or to 1892, the
variation in it would be no greater thar
existed between 1854 to 1872.
sand yet we find that there were 81
tons of silver in lS4S to ton of gold
a large over>production Of silver as ccm
pared with gold. Using the official fg
ures given by Mr.. MulhaIl, aud esti
mating from them, the proportion in lS7.
was 10 tons of silver to ! of gold. Th
production of silver had become msteri
ally less as from 1913 to 1872, there wa
no difference in the commercial value o.
the two metals that would not be ac
counted for by the French ratio dis
turbance and the cost of exchanging tn
two metals.
During the period between 1919 al,
1854 the gold mines of California adde,
largely to the worlds stock of GOLD S
much so that men Of Mr.. Cages view
as to supply Ofthe two metals varying
started propagaudA for the demone
tizstiOu of gold.
And yet with all that gold output
we hud that it had no effect on the res
tive commercial values Of the two metal,
The reason why it could have had n
effect was because the demand for eithC
was Unlimited. Both enjoyed the sam
advantage In that respect.
The attempt that was then made t
dem0nesize gold had not gone far, wbe
to the surprise of those that were eu
gagged in it, gold maintained It's CON
lsercial value. They realized then
the practical workings of free coinage
the two metals, their error ani abar
doned the effurt.
"Had specie payments been ia oper,
ton in 1873, no doubt silver ney,
would have been demOnetizsl, Near
every one would have been alive to Il
interest of our metallic money aud
would have been dailv asserting its ow