The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-10-15
ISSUES Or The DAY
An Examination Of the POI
pocratic Claim That Gold
Has Appreciated.
NATIONAL DEMOCRATIC ANSWER
Startling Figures as to the
Worlds Production Of the
Yellow Metal.
POPULATION VERSUS COINAGE
Increase in Silver and Paper Cur
rency . Labor the True
Standard Of yalus.
Has gold appreciated?

Thu advocates of the free coinage of
silver say that it has. Like the man
who thinks hts own train in motion pe-
cause the one alongside Is moving In an
opposite direction, the silver men insist
that instead of all other prices lncina-
ing that of silver having fallen, the price
of gold has really risen, and the price
of everything else has stood still. They
assert that there has been a steady
change In the ratio of a dollar in gold
to a given quantity of grain, cotton,
clothing. food and silver. and argue that
since one dollar In gold will buy more
of all commodities in the markets of
the world today thar it did in 1873, gold
has advanced 81 value, wnile the value Of
other articles has stood still. Hence
their constant assertion that gold has
Appreciated
Let US see. To appreciate means to in
crease in value. Anything which In
ereases in value, does SO either because
It has grown relatively scarce, or be-
cause each Individual needs more of it
for his daily use.
Now has this happened about gold?
Fifty years ago the world had a billion
people in round numbers; now it has q
billion and a half. The population has
increased fifty per cent. in fifty years.
Has the gold of the world increased at
the same ate as the popuiation2 If SO,
have we any right to assume that gold
has appreciated? If it appears that it
has increased more rapidly than The pop
~uiation, would 1t not rather depreciate
than appreciate?
GOLD PRODUCTION INCREASED.
Let US examine the figures, from the
best authorities Of the world, Soetbeer,
Mulhall, Preston and others. Muihall
indicates that the amount of gold in the
world, coined and uncoined, fifty years
ago amounted to less than $3.50, 0O0. 600.
Taking his figures for 1890 and adding
the production since that date. the gold
in the world today, coined and uncoined.
is shown to be over s., 900, 900, 600. Thus
ii will be seen that the world apparently
has about three times as much gold today
as it had fifty years ago.
If there had been no Increase in popu-
lation in the meantime there would thus
be three times as much gold for each
person now as there was a half century
Ago.. But the population has Increased
90 per CENT SO there is apparently twice
as much gold in the world for each in
aiviq eoLb 5 d seSSS SSs Il fSe tast t|HRf;
BUT THIS not all. Fifty years ago only
80 Der cent. of the gold of the world
was coined into money. Now Sc per cent.
the per capita of gold has been doubled.
the proportion of that gold which IS
turned into coin has also doubled.
This means that there is four times as
much gold coin for each Individual in
the world today as there was fifty years
ago.
Does this look as though there was a
scarcity Of gold? If gold coin is four
times as plentiful for each Individual to-
day as it was fifty years ago, is it reason
able 10 assume that the legitimate need
for more of it as a medium of exchange
is greater now than 1t was then? If not,
how can it be shown that it has "appre-
ciated?'
There is another way Of looking at it.
OF the total money Of the world fifty
nearly So per cent. of the money of the
world is geld. Had the demand for money
increased more rapidly than the gold in
proport;onate growth Of the other kinds
of money, either silver or paper or both,
for both are plentiful and are constantly
used for currency everywhere. But their
proportion has decreased while the pro-
portion Of gold has increased.
But" say the friends of silver. t'the
mere fact that gold money has increased
meet the wants Of business. because since
the crime of 1873 in this country and
similar crimes about the same date In
other countries, the quantity of silver
SILVER AND PAPER MONEY.
Let us see about that. Preston. the
director Of the United States Mint, estl-
1873 was sl.8ii.eoo,ao. He estimates the
worlds silver money today to be 5000
100000, of which amount So, 40, 700. GOO is fun
legal tender. Thus the silver money of
4 thu world ~ hoe rs Inn AZ tlx-. -o1,- 49,
doubled since 1873. This shows the utter
fallacy of the argument of the silver
people that silver money has been re-
duced since 1873. 1t is interesting in this
money of the world has trebled in the
past half century, having been in 1913.
according to Mulhall, $500, 900, 900, and in
There is still another light in which
this currency question: should be con-
sidered. If the value or a house zap
precdates' the rent increases proper
rent falls. This rule applies equally to
the rent of money, usually termed inter-
est. This test ought 70 determine the
1t is scarce or plentiful. In the past
fifty years rates Of interest have fallen
from one-feurth to one-half, according
to the locality. thus indicating that there
is less scarcity OF money to meet bust
neses demands than was the case fifty
years age
The increase in the gold of the world
has been something enormous In the past
half century. Prior to 1916 the average
production seldom exceeded ten millions a
year. Since that time II has been from
100 to 200 millions a year. Thus the rate
of production increased ten-fold, and In
some years twenty-fold, and had in fifty
years trebled the amount Of gold in the
world and quadrupled the amount of gold
coined for. each individual.
NEEDS OF BUSINESS.
But, says somebody, "the business
of the world has increased enormously
meantime. at a much greater rate than
the gold has increased. and since the
amount Of gold has failed to keep pace
with business. gold has naturally appre-
ciated.s
Let us examine that subject. It is true
that the business of the world has IN
creased enormously. The value of the
industries Of the globe is today. Accord
Ing to Mulhall, three times what il was
fifty years ago. and the commerce OF the
world IS six times as great as 1t was at
that time; In that salne period gold has
only trebled.
This would seem to give color to the
claim that the increase in gold had not
kept pace with the demands Of Commerce.
NEW BUSINESS METHODS.
But aPother and very important factor
comes into the problem just at this point.
The factor IL the matter Of bankinu "a
ci1fties and the u9e Of the medfum AZ exz
chang which passes between them and
Their custo11srs and takes the place 81