The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1896-10-17
THE PRICE OF GOLD.
Some Facts Regarding the Fluctuation of
Money Values.

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The advocates of the free coinage of
silver say that II has. Like the man who
thinks his own train in motion because
the one alongside is moving in an OPP
posite direction, the silver men insist
that instead of all other prices (includ-
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 dollar in gold
to 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 to-day than it did in 1873,
gold has advanced in'value, while the
value of other articles has stood still.
Hence their constant assertion that
gold has appreciated"
Let us see. To appreciate means to
increase in value. Anything which APP
preciates in value, does so either be-
cause it has grown relatively scarce, or
because 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
billion and half. The population has
increased so per cent. in so years.
Has the gold in the world increased
at the same rate as the population?
II so, have we any right to assume that
gold has appreciated? If it appears
that it has increased more rapidly than
the population, would it not rather de-
preciate than appreciate?
Let us examine the figures from the
best authorities of the world, Soctbeer,
Mulhall. Preston and others. Mulhall
indicates that the amount of gold in the
world, coined and uncoined, so years
ago amounted to So SOC, 100000. Taking
his figures for 1890 and adding the pro-
duction since that date, the gold in the
world to-day, coined and uncoined, is
shown to be over 81 900 100000 Thus il
will be seen that the world apparently
has about three times as much gold to-
day as it had so 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 half a century
ago. But the population has increased so
per cent. so there is apparently twice
as much gold in the world for each in
dividual as there was at that time.
But that is not all. Fifty years ago
only 33 per cent. of the gold of the
world was coined into money Now &C
per cent. of it is coined. So it appears
that, while the per capita of gold has
been doubled, the proportion of that
gold which is turned into coin has also
been doubled.
This means that there is four times as
the world to-day as there was so 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 so years ago, it is rea-
sonable to assume that the Legitimate
need for more of it as a medium of ex-
change is greater than it was then? If
not, how can it be shown that it has
"appreciated?"
There is another way of looking at
it. Of the total money Of the world
80 Years ago only 20 per -centr-,vas gold.
Now nearly rs per cent. of the money
Of the world is gold. Had the demand
for money increased more rapidly than
the gold increased there would have
been greater proportionate growth Of
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 proportion of gold
has Increased.
But" say the friends of silver, 1.-THE
mere fact that gold money has in
creased does not prove that it is suffi-
cient to meet the wants of business, be-
cause since the crime of 1873 in this
country and similar crimes about the
same date in other countries, the guam
tity of silver money has decreased"
Let us see about that. Preston, the
director of the United States mint, esti-
mates that the worlds silver money in
1873 was $1,S17, 100000. He estimates
the worlds silver money to-day to be
s4,070, 900, of which amount So, no.
aOO,uUu 10 iull itSul tcHueT. nus the
silver money of the world has apparent
ly more than doubled since 1873. This
shows the utter fallacy of the argu-
ment Of the silver people that silver
money has been reduced since 1873. It
is interesting in this connection also to
note that the paper money of the world
has trebled in the past half century,
having been in 1s4S, according to Null
hall, $1,000, 100000 and In 1890, $685.
100000.
There is still another light IN which
this currency question should be con-
sidered. If the value I, house zap
preciates" the rent increases proper
tionately. If il depreciates in value, the
rent falls. This rule applies equally to
the rent of money, usually termed in
terest. This test ought to determine
the actual value of money and show
whether it is scarce or plentiful. In
the past so years rates of interest have
fallen from one-fourth to one-half, ac-
cording to the locality, thus Indicating
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