The National tribune. [volume] (Washington, D.C.) 1877-1917, 1896-09-03
Production of Gold and Silver.

EDITOR NATIONAL TRIBUNE: Under the
above heading, in your Issue OF Aug. 3,
"W. II. F." inquiries in regard to relative
production of gold and silver, and you have
fairly answered his question. But there is
one sentence in "W. H. F's." query that
convinces me that he and others misunder-
stand the true relations of gold and silver as
money. wv. II. F." says: "The Silverites
are claiming that gold has increased in as
great proposition"
The meaning is, of course, that the pro-
duction of gold has kept pace with the pro-
ductlon of silver, and that, therefore, the
parity of the metals as money ought to be
maintained, and would be maintained if the
two were admitted to free coinage. And
right here is one of the blocks over which
many are stumbling. AS you have Stated,
the production of gold has not kept pace
with the production of silver; but, for the
sake of the argument, let us suppose it had.
4 hat would be the result? Would equal
relative production insure the old relative
values as money? Most certainly it would
not, and could not, and for the very plain
and simple reason that the two metals are
not OF equal convenience as money. No per-
son, / apprehend, will deny that if there
were an abundance of gold for all demands
as money, the gold would be preferred to
silver, even by those who are now known as
Silyerites. If that is true, then it follows
that the nearer we approach to the point of
having all abundance of gold, the less de-
mand there will be for silver as money
therefore, a large increase Of the gold pro-
duct must have the same effect on the
relative value of silver as would result from
an increase of the silver product, while the
production Of gold remained stationary.
That is to say, an increased supply of gold,
the more convenient and more serviceable
metal, reduces the demand for silver, the
less convenient and less serviceable metal.
AS far as market price is concerned, a falling
off in demand is equivalent to increasing
the supply.
If the two metals were of equal conven-
fence and service as money, this law would
not operate; but, under the circumstances,
the large increase in gold production in late
years has had much to do in separating the
price of the metals in the markets, weight
for weight-has had more to do with it, in
my opinion, than the decentralization OF
silver.
A little reflection must convince every
candid mind, il seems to me, that the above
proposition is true Take homely example.
Two kinds of grain are good for human
food-one is wholesome, palatable, and nour-
ishing, and is comparatively, abundant, an
excellent grain for general consumption.
There is another grain, little more whole
some, more palatable, less bulky, but more
nourishing-in every way desirable for gen.
eral consumption, but the limited supply
makes the market price higher than the
more abundant grain. Now, if it should
happen that the more desirable of the two
grains can be, and is, supplied in greater
abundance, it will 60 into more general use
and occupy the place formerly occupied by
the poorer and cheaper grain. Should it
also happen that the production of the
poorer grain increases even faster than the
better grain, there must soon be slump"
in the market price of the former, because
the demand diminishes while the supply in
creases. And that is exactly what has oc-
Cured in regard to gold and silver. The
silver candle has been burning at both ends.
j. w. R., Iowa City, Iowa.