The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-05-22
IF GOLD WERE DEMoNETIzED.


torial yesterday morning asks, on
postal, what, in our judgment, would
be the result in the event gold was
also demonetized.
The question is too far reaching TO
permit of an answer in a brief editorial,
even were we equal TO the task. SO
we will simply make a statement or
two. the truthfulnesS Of which ought
to be comprehended by any man.
| First, silver, only in a limited sense,
has been demonetized by the great
powers of Europe and by the United
States. Its complete demonstration
would leave il worth less per ounce
than it now commands under its lin
tied money function. Secondly, the
commercial ratio, or the bullion values
Of gold and silver respectively, are
fixed by their relative volume, which
involves their respective and relative
costs of production. That ratio OF
value has been, from time immemorial,
about Is to l, that is the cost of the
been about sixteen times greater than
the cost of an ounce of silver, meas
ured by labor, hence their commercial
ratio of value, hence, also, their money
ratio of value up to the time silver
was partially robbed of its monetary
value or function. Thirdly, if the
world, or the great powers, should
Jointly or concUrrently demOnetize both
that the commercial values of these
two metals would readily adjust them
selves to a ratio, that is to the ratio of
the difference of the cost Of an ounce
Of gold and an ounce of silver, as meas
ured by the labor which it took to pro-
duce them. Their relative worth or
ratio of value all hinges upon their
volumes and the relative cost of their
production. As it cost about sixteen
times as much to produce the present
volume of gold in the world that it did
to produce the worlds volume of sill
yer, were the two metals both demone-
tized, one would be worth about Six
teen times as much as the other. per
ounce. Upon this statement of admit
ted facts the silver men claim that
were silver given the same recognition
-or legal money function that is accord,
ed gold the metal in the present silver
dollar, of 41211a grains, would be worth
just as much as the metal in a gold
dollar, there being 16 times as much
metal in one as in the other.
In this connection our querist must
not forget that every value is fixed or
estimated by the labor that is expended
in producing it. Could diamonds be
sEoveled up, they would not be worth
a nickel quart Did the mines Of the
world with the same approximate 'ex-
penditure of labor, or cost, furnish
twice the number of pounds or of tons
of gold than Of silver, then silver would
be worth just twice as much per ounce
as gold. Their supposed respective
intrinsic values cut no figure, for sill
yer is intrinsically worth more than
gold, it being more durable. Intrin-
sically pint of mud, Of productive soil,
is worth more than a pint of either gold
or silver. Could copper be transmitted
into gold by either chemical or mechan-
ical processes then gold would be worth
DO mere than copper, plus the cost of
chemicals and labor involved in the
transmitting process. Gold and sill
Yer are precious metals not because
of their intrinsic value or their COM
parative or relative scarcity, but be |
cause of the labor which must be ex-
pended to produce them, for gold and
silver, though precious metals are
universal, existing even
in solution in the waters Of the ocean.
The goldbug simply seeks to make a
ciousness or function as money metal !
by RELOCATING it to mechanical uses, to |
the realm of copper. tin and iron, and |
50 limit and restrict the worlds volume |
If final redemption value to gold alone. |
Briefly and succinctly, therefore, we |
conclude that should gold be demone- |
tied its present purchasing power, as |
bullion, compared with the units of |
other values, would be largely depre- |
GATED. yet that the decentralization of |
both gold and silver would not destroy |
their mediumiStic worth as measures |
or standards of value in the exchanges |
Of the world