The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-08-22
Silver and Prices.

Nashville American: Speaking of the
relation between th'rprice of silver and
that Of various commodities, there is
one articss of commerce in which this
connection is universally admitted. This
is ginseng, q weed indigenous to certain
sections of Tennessee and gathered in
its wild state in considerable quanti-
ties and shipped to China.
The only ultimate market for ginseng
is China, and, therefore, the controll-
ing price is silver. No matter how much
European exchange may fiuctuate IN
China, the price of ginseng is 50 many
silver taels. Therefore, when the price
of silver goes down the price of gin
seng goes with it. The coincidence of
the fall has been noticeable in the mar
ket quotations recently
The law of supply and demand would,
Of course, prove effective in the gin
seng market. A great falling off in
shipments would probably increase the
price in China but without this great
increase the same old silver price will
continue to control in China and the
gold price in this country will fuctu-
ate accordingly.
The price of commodities like wheat
and cotton that have the world for a
market is fixed ultimately in London.
1t has no such fixed relation as the
price of ginseng to the price of silver
The price of a bushel of wheat in Lon
don now is equivalent to the price of
the bullion in two silver dollars; that
is, if we measured our money in this
country by the silver standard, as they
do in China, wheat would sell now
for about 81 per bushel. The nominally
higher sum, however, would be no in
crease in value. The difference is she
same as the commercial ratio of silver
to gold. i The gold price and the silver
price would buy the same in other COM
modities.
In short, in the open markets of the
world, money, of whatever make, is but
a medium of exchange and commodi-
ties like wheat and cotton are apt to
bring their value as fixed by the law
of supply and demand, allowing for the
some times temporary influence of the
spectators. Two dollars in silver bull
lion and IS cents in gold are about the
same now in value, and would possess
the same purchasing power in the
hands of the man who should exchange
his wheat or cotton for either.
These are simple commercial facts
that are apparent to any one capable
Of applying common sense principles,
but they do not affect the logical con-
tention of the bimetallist This con-
IeAllOn - I1ltl lIlOIS lIlOlGy anu CnGd per
money would produce better CONNER
cial conditions, that these conditions
would produce a greater consumption
of agricultural products and naturally
a better demand.
1t is logical to believe that if silver
were everywhere used as money, as
was very generally the case uD to a
quarter of a century ago, and if gold
didnt enjoy a monopoly of that priv
ilege, that the price of silver would be
higher and the price of gold lower.
There has been great deal of alb
surd talk in the papers recently about
the fact that wheat was going up and
silver down. and some hystertcal gold
standard advocates contend that it de-
stroys the cause of bimetallism 1t
doesn't really affect any sensible con-
tention that would in any way pertain
to the currency issue.