The San Francisco call., 1896-09-21
LETTERS FROM THE PEOPLE.
THE DECLINE OF SILVER.

SOME OF THE CAUSES WHICH HAVE CAUSED THE
DEPRECIATION IN THE WHITE METAL.
To the Editor Of the San Francisco CdL-SIR:
That the decline of silver is due principally to
natural forces, the following reflections will
show:
First-The cost of production has greatly de-
clined. In the absence of increased de-
mand this reduction will ultimately tell.
Freight to and from the mine, machinery,
powder, acids, chemicals, mercury. lumber,
interest on loans, drilling, hoisting, pumping,
| amalgamating, concentrating, smelling, power
electric and otherwise-all are more than 100
per cent cheaper, while machinery and labor
are vastly more productive. This lessened
cost is permanent. Mr.. Bryan's defamation
will affect the situation in no wise.
Second-The demand for silver as money has
declined.
Before 1s49, gold being comparatively
scarce and vicious systems of money existing
in many countries silver was used in great
commercial countries as money of large pay
ment, shi pment bank reserves and standard
But after 1S49 an abundance of gold was fur
nished the commercial world by California,
Australia and Siberia. These countries and q
few others produced more gold in twenty-six
years-from 1851 to 1875 than had been pro-
duced in 357 years before. AT the same period
the application OF steam to railroads, ships,
machinery ana OF electricity to telegraph
the growth and expansion OF individual and
national credit go quiekened commerce that
contracts calling for the payment of sums of
unheard-of magnitude became common, and
the rate of profits and of interest greatly
declined below the old rates.
The new scale of profits and interest could
| no longer bear the fluctuations of silver. For
more than 100 years silver bullion had huctu-
| ated daily in the open market and on an aver
| age more than per cent per year. The large
contracts, low profits and interest could no
| longer bear the risk as standard money of
| metal whose daily, weekly or monthly hue-
| tuations might wipe out a material part of the
| profit and interest in few days or weeks, or
during the ordinary trip of commercial
| steamer.
The commercial world, therefore, at once
| seized upon the new. abundant gold, whose
value never during short periods, such as the
life of ordinary contracts, changed its value to
any degree which could be commercially
| measured, and for like reason let go their
silver. Gold then became the only money of
large payment. shipment, reserves and stand
| ard. Silver lost this market and lost it for
| ever
Such nations, therefore, elected the silver
| which had hitherto been used for above uses.
But silver fell only slowly, because India ab-
sorbed what said nations elected, and con-
| tinued SO TO absorb the cast-out silver till
| about 1867. In this year it became univers-
/ ally apparent that the uses of the metals had
| changed forever. The international confer
| ence of 1867 was called. The changes which
| had taken place in the practice of the CONNER
| cial world were declared to be natural and
evolutionary-the loss OF said market to silver
| was seen to be permanent and gold was recon-
| mended to the nations as the only metal
| adapted to said uses.
| In 1871 Germany accepted this report and
| threw her old, surplus silver coins on the bull
lion market, Fastening thereby the foreseen
| and inevitable fall Of silver.
| The Scandinavian Union followed in 1872,
| the United States in 1878. the Latin Union in
1876. Silvers day as money of large
payment, shipment; reserve and standard was
| gone forever. The fall which started in 1859
was steady and downward downward The
Bland act and Sherman act were powerless to
| stay the forces-the old uses could not be re-
stored to silver. In the nature OF things silver
must continue to fuctuate day by day, as in
| the old bimetsllic days. 1t will, therefore
never for centuries to come serve again for
| above uses.
second force has made the retirement of
! silver for said uses permanent TO wit, the
check and deposit currency, complemented
through the clearance-house. This currency
| has practically done away with the use of gold
itself in large payments, over 80 per cent
currency has been such as to render the stock
OF gold in the world four times more effective
| than heretofore. The money-work done has
been the same as if the stock of gold had ac-
tually been quadrupled. "Silver has, there
fore, never been missed" and gold has been
rendered abundant. 1t may be clearly per
celved that silver is displaced forever for above
uses and can never be restored thereto.
OF what avail is the belief of the s'boy ora
| tor against such tremendous, evolutionary
Iorces?''
Third-The production of silver has been
| excessive since 1873. While this element has
not been the controlling one it has operated
too. A single example will suffice. From 1893
| to 1884, in about 400 years, there was pro
duced Of silver (mint valuation) S1OOI8 6SI,-
| 900. Now observe that from 1873 to 1894 the
production was $2,74S, 1896, 900. The produc-
1 ton in said twenty-one years, only about 5
inendous total of about 81 per cent of the
whole 400 years production of the whole
sum produced since America was discovered.
| This should show the most skeptical that sill
| ver's production has been excessive. (See the
| tables in the report of the Director of the
| Mint 1895, pages 24S and 249)
1t is, therefore, submitted TO all fair, unpas-
stoned. candid minds that silver has fallen
| from natural causes. 1t can never again be
made q standard money. Its cause would be
better served II the standard fight would be
given up and silver would be given the right
of way as token money for ali moderate pay
ments and the Government and other paper
money OF small denominations in all coun-
tries Withdrawn in silver's favor. This in
creased demand would tend to keep it at
reasonable and productive price.