Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1896-10-01
.INTRINsIc. VALUE.
The Truth AbO nc tho Position OF Col
and silver.

=
The Truth AbOl the Position OF Gold
and silver.
The intrinsic" value of anything Is
that which it actually costs in produc-
tion-the ''real" value, and not the
fictitious and constantly fuctuating
value, which every commodity has.
varying according to the demand and
supply. The circulating" value is that
for which an article will exchange. A
gold eagle will buy ten dollars, or 1000
| cents worth of property, anywhere in
| the territorial limits of the nation
| which stamps that piece of gold as an
eagle, and authorizes its circulation for
ten dollars. The same would be true of
stem silver dollars" or ten dollars in
paper money''-provided always that
both We're issued by the supreme au-
thority of the land.
1t ought to be apparent, then, that
there is a vast difference between the
intrinsic value" or ''cost" of the arti-
Gle itself, and that for which it is made
to do duty as money. The moment that
we go outside of money, and deal exclu-
sively with commodities, that moment
we have no trouble in understanding
NdluG. do d
rule are placed upon the market at n
slight advance over what they actual
~ cost in production" If it costs ten
cents a yard to place cotton sheeting
upon the counter the merchant would
naturally charge 1919 cents for his
profit, cost of handling, shrinlxage in
value, etc. Then, again, the next time
that he bought cotton cloth the actual
cost of production may have varied for
dozen reasons, and the price would
necessarily be lowered. Whereas
money" purchases in the country
where it is issued its full face value
without reference to its actual cost of
production, or intrinsic" value.
What, then, do we mean by "the in
trinsic value of gold?" Simply what it
actually costs the owner to produce it
when delivered at the minis for coinage.
OF course, the cost of production of
metals varies according to the condi-
tons and circumstances. Gold taken
from the sands under the placer proc
ess" is often produced for an almost
infinitesimal sum. Yet, when taken to
the minis for coinage or sold by weight,
1872 grains are equivalent to 100 cents,
or one dollar, the established unit of
measure. When the miner takes his
gold out of the earth, by what is called
''the free milling process" as rule,
the cost of production increases, and
when he comes to take itfrom the quartz
veins in the solid rock the highest cost
of production is reached.
In the Cariboo country 1925 worth of
gold, when minted, is obtained for an
expenditure of $1.25 of labor and ma
terial. This makes the intrinsic" value
81 cents on the dollar in production.
In the Cripple Creek country the larger
production of gold has reduced its
"cost" ia the mint to about IS cents on
the dollar, and it was from this country
that we took our illustration. IT often
occurs that a man will go into a gold
bearing country, open a mine and pro-
duce therefrom $4,000 in gold in five
years. This is a very moderate esti-
mate, but this would be at the rate of
$4,000 a year, or $50 day, and allow
ing the highest wages, the actual cost
to the man who ultimately receives it
would not exceed II cents on the dol
lar.
All that has been said concerning the
intrinsic value" of gold or the ''cost
of production is equally true of silver
and other metals. 1t so happens by a
uniform custom among eight or ten
leading nations of the world that gold
is treated as money by weight, as well
as its face value in all; while silver, hav-
ing been demonetized in all these coun-
tries, is not regarded as money out
side of the nation which uses it, but
treated as a commodity, quoting it on
the stock exchange precisely as grain
is quoted.
Under these circumstances, there
fore, silver will only bring its COM
modify price, which is largely deter
mined by the cost of production and the
demand therefor, while gold is main
tanned at its ''face value" without re-
gard to its increased production and
lessened cost of production, or ''intrin'
sic" value.-Seattle Times.