The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-08-17
SHERMAN ON THE RATIO.

| In his speech at Columbus. O. Satur-
/ day night. Senator Sherman devoted
himself exclusively to a discussion of
the money question. Whatever he says
upon that question is always to be
given respectful consideration. for he
/ has been secretary of the treasury of
the United States and is a recognized
authority upon an financial questions.
But Notwithstanding all this, his utter
ances upon the money issue are not ITO
be taken as ex cathedra by cny means.
In his speech Saturday night he first
devoted himself to the question Of the
ratio between gold and silver. Speak
ing Of the relative values of gold and
silver, he said:
Gold and silver coins are recognized
by all commercial nations of the world
as the best standard of value, as the
measure of every article of de-
sire. of everything that is bought or
sold. These two measures not only
measure all other things. but they
measure each other Their relative
value constantly changes. Twenty
three years ago, sixteen ounces of silver
were worth more than one ounce of
gold. Now thirty-one ounces of silver
can be bought by one ounce of gold.
This fiuctuation of value cannot be pre-
vented by law 1t is beyond the reach
of legislation. It is caused by the chang
ed demand for and increasing supply of
these metals from the mines
In 1892. silver and gold We're made
the common standards Of value in the
United States at the ratio Of Is to /,
but this was because the actual market
value of fifteen ounces of silver was
equal to the actual market value of
one ounce of gold.
The statement that in 1892 the actual
market value of fifteen ounces of silver
was equal to the value of one ounce of
gold is not correct The ratio in. that
year was 1517 to 1.
The senator says that twenty-three
years ago sixteen ounces of silver were
worth more than one ounce of gold.
True, but worth only very little more,
the ratio for that year being 1892 to 1.
Just before making this statement the
senator had said that the relative val
ues of gold and silver were constantly
changing, conveying the idea that there
was great 1uctuation, intending that
this idea should be conveyed. because
he says: Now. thirty-one ounces of
silver can be bought by one ounce
Of gold
Let US look at some of the market
ratios and see what the fluctuations
have been, and if Senator Sherman has
not given out very false impression. In
1851, the ratio was 1894 to l. In 1859
it arose to 1902 Then it fell slightly
below Is in 1881. In 1925 it went to 1902
IN 1899 and 100 it was again slightly
below Is. 1t remained about 10 from
17o1 until 1929, when it fell to IA 90 From
174a, when the ratio was 1880, till 1852,
the ratio was just under 10, it reaching
1927 in the latter year From that year
until 1890 it remained just under Is,
reaching 1904 in the latter year. In
1892, the year that the United States
mint was established and our first coin
age law passed. the ratio was 1917.
During the period from 1892 TO 1873 1T
never fell below 10, while only three
times did it reach 16; that was in 1908,
when it was 1908; 1872, when it was
1911; and 1873 when it was 1925. In
1873 Ill was 1892.
From this it is plain that there was
no such f1uctuation as Senator Sher-
man would have people believe, chat is,
from 1892, the year Of our first coinage
law. to 1873, the year silver was de-
monetized. Since 1873 the fiuctuation
has been as great as he inhimates. From
1878 to 1894 the commercial ratio has in
creased from 1917 to $685. And yet it
is asserted by the advocates of the gold
standard that this increase has not
been in any way connected with the
decentralization of silver. Why did not
silver fall in price as rapidly before
the act Of 1873 as it did after? When
the gold men, including the Distinguish
ed senator from Ohio. answer that
question satisfactorily they will have
begun to lay the foundation upon which
to build an argument in behalf of the
maintenance of the single gold stand
ard and against the reconciliation of
silver