White Oaks eagle. (White Oaks, N.M.) 189?-190?, 1896-09-17
THE VALUE OF GOLD.

The value of silver has not gone
down, say the Popocrats. 1t is the in
crease in the value of the gold dollar
that is causing all our financial woes.
The gold dollar is worth a great deal
more than a bundled cents, and that is
why the price OF farm products have
declined. If silver were fully remone-
tized, its value would rise, and the
value of gold would fall, until the two
were exactly at par at the ratio of 16 to
l. Thus argue the Juvenile Declaimer
and his followers.
But let us see about it. If gold has
risen in value, why has it risen? Such
matters are regulated by the law OF
supply and demand. When the de.
mand for any commodity exceeds the
supply, the price, which is the market
value, rises. When the supply exceeds
the demand, the price falls. How is it
with gold? The supply is ample. The
annual production of tue metal, both in
this country and the world at large is
steadily increasing. New mines are
being opened, new processes invented.
Coogardie and the Rand are enorm-
ously swelling the output. In 1886 the
worlds production of gold was, in round
numbers, SlO0, 100000. In 1889 it was
Sl27,050OO0 10 1892 it was 8llG, 207GO0
In 1891 it was Sl79,0G5,600 There is
no cause for increase Of market value
in such figures,
v ell, they say, but so much Of the
gold is used in the arts that little is
left for use as money, and the demone-
tization Of silver has therefore caused
contraction of the currency, and that
has forced up the value Of the gold
dollar.
Lot us see about that, too. In 1860,
before the issuing Of greonbacks was
begun, the amount of money in circu-
la'ion wns el3 50 for every person. In
1865, with the enormous flood Of paper
that had been issued, the per capita
amount was S20j7, In 1873, when the
Treasury was preparing TO resume
specie payments, it was el532. In 1888
it rose 10 S229l. 1856 it was down "a
&2l.S2. In 1890 1t was S22S2, in 1892 il
was s2lli, and in 1894 1t was S2i30
In other words, there has been in late
years a much larger volume OF currency
in circulation on gold basis, than there
ever was before on a gold aud silver
or on paper basis. II the people coult
get along on Sl3sj apiece, in gold au(
silver. in 1869, surely they should b,
able to do so now on S2i in gold, o
currency redeemable in gold. And II I
gold dollar was worth only one hundrec
cents when there was less than fourteen
dollars OF all kinds FOR each person il
the country. why should it bo wortl
more than q hundred ceuts when Their
are tvcuiy.iour gold dollars, or dollar
as good as gold, for each rorsop? Doe
increasing the supply increneo tho price
e II So. IL certainly is not contraction, bu
! rather initiation % the currency that ha
, ut the value of the dollar up and th
, prices ot produce down.
TIC simple fact II, all this chatte
D about the iisc 10 tho value Ut tho Rol
y dollar h. ubppt ~ illogical and self con
/, Trajectory ua anything could be- 1t
at par With the clam n farmer wh'
: mensurng up a0) bushels Of potatoe
from ap Hcrt of ground one year. Hn
d, ouy 100 buehels from tho came acre N
- next wear. should say that the bushi
u m'apnre bad increased in bizt.-Ne
u York n Juac.