Greenbrier independent. [volume] (Lewisburg, Va. [W. Va.]) 1859-1980, 1896-10-01

easily affected, than the value of any
one thing. 1t certainly seems more
reasonable to believe that the change
has been produced by some cause
peculiarly affecting the one thing
gold-than by cause affecting the
many things, namely, the commodi-
ties.
Let us then consider briefly what
has occurred during the last twenty
five years, the tendency of which
would be to peculiarly affect COM
modities, gold and silver, respec-
lively.
First, commodities.
The advocates of the gold stand
ard attribute the great fall of prices
to increased production. The weak
ness Of this claim lies in the absence
OF proof to sustain it. The theory
which underlies it is that the year
1873, in which the great decline of
prices began, was the beginning of
an industrial revolution. That pre-
Vious production was carried on by
the most primitive methods, while
subsequent years have witnessed the
most startling improvements in me-
chanical cOntrivances, with the re-
suit Of an immense increase of pro-
duction and consequent cheapening.
The theory is plausible, but the foun-
dation is lacking. Every middle
aged man and every well-read young
one knows that the great industrial
revolution-the era of extraordinary
inventions-was between 1910 and
1870. Since the latter year many i'm
provements have been made, of
course, but nothing has occurred in
that line of an extraordinary charac-
ter.
Moreover, improvements in me-
chanical processes will only chea pen
products by increasing the guam ity.
1t Is not a question of facility Of pro-
duction, but one of quantity.
The best attainable records show
that the increase of production was
very much greater during the earlier
period than during the latter. AS
has been more than once stated in
these columns, from 1850 to 1870 the
annual increase of production was q
per cent. During the latter only a
little over l per cent. Still, between
1850 and 1870 average prices rose
some Is or 20 per cent, while since
then the decline has been more than
40 per cent. Such change is nothing
less than astounding, unless we can
find some cause for it outside of any
mere question of production. Con-
sidering that alone, prices should
have risen. We must look farther
for the cause.
Let us glance now at the status of
gold and see if anything extraordin-
ary has occurred with reference to
that.
Up to the year 1871 there were just
two nations of any Importance using
gold exclusively as standard money.
These were England and Portugal,
with total population of about
100000 In that year Germany,
having demonetized gold in 1857, re-
sumed its coinage, and suspended
the coinage Of the larger silver
pieces. This action had but little
effect, either upon gold or silver.
The mints of the Latin Union and
the United States, as we'll as those of
some smaller countries remaining
open, the silver which Germany
would otherwise have coined, was
readily absorbed, and gold went to
that country in lieu Of silver.
But early in 1878 the United States
practically demonetized silver by
abolishing the standard dollar. A
little later Germany formally pro-
claimed the gold standard. Still
little later the Latin Union limited
the coinage Of silver and finally
stopped it entirely. Sweden and
Norway did the same. The effect of
this was to concentrate the principal
money demand Of all these countries
upon gold. The 10000, 900 people of
England and Portugal were supple
mented by fully 160, 900, 900 more.
AT the present time there are not
less than 200, ,000,0 of people who
formerly devided their demand be-
tween gold and silver demanding
gold alone. AS there has been no
corresponding increase of gold pro-
duction, rise in the value of that
metal was inevitable, unless it is to
be claimed that for some incompre-
hensible reason gold is independent
of the great law Of "supply and de-
mand." No intelligent person, who
thinks just little, will ever urge
anything 80 preposterous as that.
Thus, we see that while nothing
has occurred with reference to COM
modities that tended to lower their
value, something of a most unusual
character has happened peculiarly
affecting gold. That is to say, the de-
mand for it has greatly increased.
This Is quite sufficient to account for
the decline in gold pieces, and it is
obvious that the changed relations
between gold and goods have been
produced by causes affecting the
gold.
From whst has been said, it should
be clear that the so-called cheapness
of silver is in reality a dearness of
gold. In the absolute sense it cannot
fairly be said that silver is any cheap
er than 1t formerly was. In silver
standard countries prices have re-
NAMED substantially as they were.
In gold standard countries silver bull
lion land commodities have moved
on nearly parallel lines and exchange
for each other In about the same pro-
portions as they did twenty-five
years ago. Although some 200, ,000,-
900 of people formerly coming silver
freely have stopped doing so, never
theless the employment of the metal
In the arts and the larger demands of
silver-standard countries have been
sufficient to keep it on "parity "
with other kinds of property. al
though 1t Is deprecated by COMPARE
II ax. ILL., o.alI iharaEaEn Gax-