The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-08-15
PIERRE HUMBERT, JR.

would say not unless the md is OF
enormous and sufficient Importance. In
1S49 gold was discovered in California,
and in 1852 in Australia. The supply of
! gold money was then about 81, 500, 900, :
900. and in about Is years this amount
was doubled to 5000, 600 900, and prices
rose only a little over 20 per cent, but
prosperity and industry were increased
many fold. In fact, this period is
known as the golden era. Then silver
and gold were money, functioning at a
fixed par of exchange.
Conditions are more complex today
than in 1S49. in that silver is demone-
tiZed and the parity of exchange be-
tween gold and silver destroyed. If you
mean by your questions to draw from
it's answer what degree of change will
result. would say that every increase
Of gold to the worlds stock is of ines
Unable value and tends, other things
being equal, to proportionately reduce
it's value in exchange for other things
Unfortunately other things are not
equal-they grow faster than the sup
ply of gold. At present the stock of
gold is approximately 81, 500, 100000. If
doubling this amount would have the
same effect as it had in the SOS, the
sooner we begin the better.
Every supply that is sufficient to de-
crease the value of gold should be ac-
lively exploited as move in the right
direction The task of doubling the
present volume of money in Is years is
impossible, unless $500, 900. 900 and $780,
coo, 600 now used in the arts. or $780,
600, 900 is annually produced. The hope
OF raising prices 20 per cent under the
gold standard is, in my opinion. ply
steal impossibility, judging from any
present development of the mines.
The more sensible view to take is.
that as the doubling of the annual pro-
duction from S100, zoo. 900 to 2OO.O00.000 in
recent years has not increased prices,
but has rather allowed them to still
further decline, the consumption of and
demand of gold is increasing more rap
idly than the supply.
As long as this condition prevails gold
must continue to increase in value and
the silver question will demand solution
owing to the dishonesty and burden of
an approaching g l. I'd.
Relief from the e. r incree Ging pur-
chasing power of golc must be had. and
perhaps this very condition rries its
own remedy. Every increase in the
value of gold measured in the decline
of general prices increases the profit of
gold mining. and decreases the profit
of producing other things, and it may
be that the production of other COM
modities will remain in partial suspen-
sion throughout the world until the
output of gold has grown to a sufficient
amount to prevent further decline in
prices. This would entail a
tremendous migration of capital AID
la Dor from existing industries into min
ing.
AS this condition has never prevailed
in the history of the world for any
long period of time. j. e., gold mining
has always been periodical, as it were. |
while general production of commodi-
ties has only been suspended for brief |
periods. il is pretty safe to conclude |
that it viii not prevail in the future.
cold has always, by reason of its in
adequate supply. exhibited a tendency /
to increase in value. If it should fail TO |
continue it's past course in future. and !
take the opposite tack. its value would /
decline relatively to silver. Silver and /
gold would come nearer to their former
par, and perhaps in time cross one an
other. This is hypothetical case of a
highly improbable character. and 1
therefore consider the money question
an open one until bimetallism has been /
re-established by reopening the minis
to silver.