The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1896-10-29
Silver Inferior to Gold.

Silver is inferior to gold as a stand
ard for measuring value. and it has
become in the last twenty years much
less fitted for the purpose than 1t was
before on account Of a decrease in the
cost of producing it. and a correspond
ing increase in the amount produced,
with consequent fluctuations in its val
lie which have constantly tended down
ward. This can be shown by the ac-
cepted results of DR.. Soetbeer's studies
down to 1885, and the reports Of the di-
rector of the United States mint tor
the recent years.
There is really no fixed relation be-
tween the ratio of production and the
ratio of value for the two metals, be-
cause there are other elements besides
supply to determine the value of each,
the most important being the demand
for other uses than coinage. A much
larger and much more variable propOr-
ton of silver is now used in the arts,
and of two valuable articles that
which Is obtainable in the smaller
mount and at the greater cost is less
subject to variation in value, all the
more so when the supply of it is more
steady. However much truth there
may be in the claim that gold itself
varies in relation to other products, it
is certain that silver varies more, and
that in the last twenty years the di-
vergence from the old relation has been
mainly, if not wholly, a depreciation
In si,<er. 1t should be kept in mind
in making these comparisons that the
most important of all qualities in a
standard Of value is stability of value
in its W substance.
The average annual production of
gold in the world during the thirty
years after the discovery of America
was less than 100000 ounces. valued
at about $4,000 OO. During the same
period the average annual production
of silver was about 100000 ounces.
with a coinage value of about $1,000
900. The ratio of production by weight
was IL gold to 80 silver, and by value
GA gold to 1876 silver, and the ratio at
market value of the two metals was
about 1915 to l for the same weight.
The average annual production OF gold
increased steadily and almost regu-
larly from 1911 to 1910, and for the de-
cade ending with the last named year
had reached only 632,291 ounces. val
ued at $13,4o4 900. The supply of sill
yer had increased with much less
regularity and in considerably larger
proportion, and the average from 1880
to 1910 was 10, l75,S61 ounces valued
at $24, 100, 900. The ratio of produc-
ton had varied between A gold To 92.6
silver, and IL gold to 9S.3 silver in
weight, and between 55.9 gold 10 HI
silver. and 22 gold to rs silver in value.
The ratio of II metal to the other III
market value for the same weight bad
gradually changed from 1915 to | in
1920 to 1925 to / in 1920, II to l in 1910,
and Is to | in 1860. The t~uctuation
from that time to 1910 had been be-
tween the lines of 14.14 to l and 1925
to New York Times.
An object Lesson in Silver.
There is an American silver dollar.
There are two Mexican dollars. There
Is more silver in each Of them thar in
the American dollar. l bought both of
them for that. What is the reason? The
sole reason is that our dollar is a limit
od coinaop hackpd nv gold 'Fhprp is