New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-08-01
SILVER IND GOLD.


Some British Journals are still repeating the
sntiOuated statement that since a vast increase
in the production Of gold must cause prices of
commodities TO rise. or. in other words. gold 10
deprcciate with reference 10 commodities, so
silver must rise in value with reference TO gold,
being a commodity. This would be logical rea-
soning but for one fatal error. Silver is not n
commodity only but in large parts of the world
is still used as money and 10 some extent as
a measure of value In far as 1t still has
such Use il obviously cannot be affected exactly
as commodities may be by any increase in the
supply of gold on the contrary. the influence
Of an increasing gold supply would be just in
the opposite direction with respect TO the value
of another money metal 1t is not possible to
say how far the price of silver in recent years
has been affected by its partial use as money.
nor n what extent it's value is different from
that which the metal would obtain in the
worlds markets If il were a commodity only.
Widely as opinions may differ on that point,
prohobIv no competent man on either side Of
the monetary discussion will deny that 1t Is
practically impossible 10 judge TO what extent
the continuing use Of silver in many countries
still affects its purchasing power.
II silver were used as money only. and. in
metallic basis for all the monetary circulation
of the world then II is obvious that any vast
increase in the supply of either metal. by rem
derjng the other less necessary. would have a
tendency to lower its price, II the price were
by such increase affected at all But 1t is an
omen question and one not readily TO be decided
ON purely theoreic grounds whether an increase
In the monetary supply IN these later years can
oil off as
less did in early years The reason Is found in
the fact that the world now does by far the
greater part Of It's buying with representative
Instruments and not with metallic money. The
use OF various forms OF credit currency-paper
reieemable IN metal or not redeemable at all.
checks and drafts redeemablc at banks and
through clearing hOuses-has entirely changed
the relation Of the worlds commerce 10 the
metallic measure OF value. This is not the place
10 philos0Iph!zc deeply on such n question, but
scarcely any sober disputant will deny that the
substitution throughout the civilized world Of
representative forms of money. in more than
nine-tenths OF the actual transactions In place
Of the metallic money formerly employed has
rendered tic quantity % such metallic money
far less important than Il formerly was and
any change IN that quantity altogether less If
!ectve as respects prices of commodities II
need not here be asserted tina, increase CT de-
crease az the metallic basis does or does not at
times affect prices; IL Is enough 70 observe thai;
the effect II there 5e one. and whatever Il may
be- must be distinctly less than In earlier years.
when the metallic basis constituted Il great part
OF tho money n actual use
Nor is II 20 be overlooked tina, silver, even in
the countries where It Is now largely employed
as money no longer holds quite It's former posi-
ton as n measure Of value. Although received
IL payments. the prices Of commodities and the
purchasing power Of the silver are 10 a consil-
srabie extent de'Qfnlined even IN h8sc countries
By The purchasing power OF gold. Silver has
lost 10 some extent. even in India, its function
~ a measure Of value and yet II retains there
and In other sver-using countries some value