The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-07

rogative. If bimetallism we're restored
they might cause one panic, but the
power to manipulate the finances OF the
people would depart from them The
seareer the money-in proportion to
the demands Of trade-the greater the
power Of the money trust.
But what is there in the free coinage
Of gold and silver at the ratio of 1 TO
Is to appreciate the value of gold, as
the Enquirer insists it would nave
done. That ratio means that one ounce
of gold would equal iHSfvalue sixteen
ounces Of silver. If under a DimetaIlic
standard. the price Of gold should reach
S2.27 in this country where would sill
yer be? What is the contention Of the
Enquirer. anyhow?
9 Q o
The increased value Of gold is caused
by the demand OF gold standard coun-
tries. or those which are trying to get
on gold basis, for the metal If gold
were simply a commodity like iron or
copper, its increase would be Of little
consequence. When these metals il
crease in value it compels those who
wish to buy the ore or articles made
from it, to pay a little more than they
did before. If gold were only a COM
modify an advance in its market price
would only affect the people when they
wished to purchase the metal or arti-
cles manufactured of gold. But when
gold is made the measure of values its
value affects everything that is bought
or sold. If gold increases in value, its
purchasing power is enhanced. It buys
more products and property than it
did before. For a given quantity Of
gold the owner of it can exact more
products and property than he could
have taken before the increase in its
value. It means that the people, the
producers. the owners Of property.
must sell at a less price.
9 9 9
For hundreds of years the total
amounts Of gold and silver coin in the
world have been about equal. What
is the logical, the inevitable effect of
the decentralization of one Of these
metals mon the value Of the other
and upon values in general? When by
legislation the value of one, as a pri-
mary money. is destroyed, of a neces-
sity the burdens of the monetary sys-
tenn, of business requirements, are
shifted upon the other. This includes
all the burden of commerce and credit,
which is transferred from both metals
to one. Thus the demand for that one
metal is doubled And any one who I'M
derstands the law Of supply and de-
mand understands what it means to
increase the demand for a money
metal. It means q corresponding in
crease in its value.
g 9 g
Now, the increase in the value OF
gold cannot be measured by dollars and
cents, because it is the unit of meas
urement. And when it is stated that
the value of gold in Argentina is 227,
it means that it takes 81 q worth of
money il Argentina to set a dollars
worth Of gold. The increase in the val
ue Of gold can only be estimated by its
purchasing power. It buys 81. q worth
Of commodities and property in Ar
gentina The only way 20 discover
whether or not gold has appreciated il
value, or has increased its purchasing
power is to note how mueh more a
gold dollar will buy now than for
merly.
An eminent statistician of England
has been keeping a fabl.s Of the Drice
Of the principal commodities used by
man. He selected those which were
freest from the cheapening effects OF
invention The Liverpool market was
taken as his guide and year by year
they have shown that with the APP
probation Of gold, or rather with the
increased demand for gold, these prod
ucts haye been gradually shrinking If
value. whether shipped from Argentina
or elsewhere. Famines, corners and
wars cause fluctuations. to be sure, but
the tendency has been for prices il
I general to fall as the demand for gold
increased Economists are generally
agreed that the decentralization of sill
yer has caused the advance in the value
Of Old
No sane goldbug will maintain thai
a division Of the burden now borne by
gold alone would increase the demand
or the value OF it. Yet that is exactly
the point the Enquirer is trying tC
make in defense Of the monetary policy
OF the administration.