The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-19
COST OF PRODUCTION.
Market Quotations Show That 1t is
Not 16 to 1.

To the Editor of the Globe.
After reading Mr.. Nash's communication
and the editors reply thereto, 1t seemed to
me further word would not be out of place.
The proposition of Mr.. Nash is that cost Of
production absolutely fixes value, and then
he proceeds to inform us that the cost OF
producing sixteen ounces of silver is as
great as the cost of producing one ounce OF
god. therefore the real value of sixteen
ounces of silver is not less than the value
of one ounce Of god. The reply substantially
AYERS that Mr.. Nash does not know what the
relative cost of producing the metals is
that his assertion is mere guess work, and
that there are other things beside cost of pro-
duction which have more or less influence in
irrefutabe. But when the G o b proceeds
to say, mo human being can tell at the
present time whether the same amount of
human effort will or will not produce, on an
average sixteen times much silver as it
will gold,'' l cannot yield my assent. l am
very sure that | know the a4me amount OF
human effort will produce far more than six
teen times as much silver as gold, and |
do not think 1 have any monopoly of that kind
of knowledge.
While fully agreeing with the G o e that
cost of production does not solely determine
value price, yet L fully believe it is the
main factor in the long run Human whims,
caprices, rrejudices and desires may tempo
rarily affect prices materially, and at all
times to some extent, yet [ am fully con-
WINGED that as to the great bulk of exchanges
the cost of production is the great controlling
force in fixing both value and price. AT any
rate, Mr. Nash cannot gainsay my position
except to claim that it is the sole and only
force, and this is so absurd that | do not
think he would attempt to maintain his po
sition on second thought
Assuming, then, that cost Of production is
the main sole determiner of value and
price, where does it leave Mr.. Nash and the
unreasoning horde who think they think as
he thinks he thinks in this matter? The
producers Of gold and silver may fairly be
assumed to be equal in skill, industry and
Intelligence. In fact frequently the same
men produce both metals. The producers of
both metals must sell their products in the
open markets. Today the man who produces
silver can get about 80 for sixteen ounces,
while the producer of gold can get about
500. Ga for ar ounce of his product. l am
sure that no intelligent man, unless his mind
be somewhat unbalanced by the silver craze,
could for a moment believe that thousands
of men will keep on, year after year, produc-
according to Mr.. Nash, would bring them
far more than twice as much if put into
producing gold. The Nash proposition is that
men are such infinite fools that they will go
amount of labor put into producing gold
would bring $40 GA. l can understand that
such a thing might happen for a short time,
until men could readjust their affairs, but
that this would go year after year is so
absurd that it makes one feel silly to refute
it. Cold is more largely distributed
the surface Of the earth than is silver, so
that there is less chance of monopoliZing the
ground and rocks and sands in which it is
found. To my mind the fact that men go on
year after year producing silver when they
have to sell from 80 to 35 ounces of it to
get much as they are paid for one ounce
of gold is the most conclusive proof that the
cost of producing one ounce of gold is equal
to the cost of producing from 80 to 80 ounces
of silver and that the ratio of value Is not
less than 1 to 80 e. J. H.