The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-04-17
Worlds Gold
Production

ago. worlds production gold The production
in Australia alone last year was $85oooOoO.
With such increase in the production OF gold
possible by actual experience and free from the political and
other benesse which they involved of the monetary
theories that expressed and conOveed during the wonderful
campaign OF 1896 when Bryan against Mckinley for the first time
In that campaign the contention OF the esver that the
demonstration of silver threw upon gold alone all the functions Of
primary money that with the of the world
there enough gold the world carry all these functions
AS result claimed that the competition for gold would
nance its value measured all other commodities to reduce the
price other commodities Thus debtor
individual nation would be compelled give and Of
the results of his productive effort these debts Hence that
adopt the gold standard to aen milestone around the neck OF
the debtor
The replies gold
varied wing the gold advocates denied the mutaby OF
the value gold insisted that value fixed and chang
ing and that therefore especially desirable OF other
The whole argument sides the assumption that
the production gold would aab what had been for half
The gold standard victorious and other
tries form another followed the lead The latest adopt the
gold standard has been Mexico where that standard effect
Following closely potcoeconomc controversy Presi
dental campaign of 1886 the discovery gold the Kondke
less notable discoveries in other parts OF the world and wonderful
stimulation OF gold production in practically gold field the
world The result far gold production is concerned is the in
noted in the beginning OF this article.
But what has the effect the economic theories advanced
concerned? 1t certain that the disasters predicted by the free
sveen have not followed 1t IS also almost as certain that the basic
principle contended for by Republicans who believed the
monetzaton OF silver has been indicated that is that with scarcity
OF metallic or primary money the tendency OF prices OF other cood-
ties downward and with abundance OF metallic primary
the tendency of the prices of other commodities upward In other
words the unexpected and phenomenal increase in the world produc-
ton of gold has increased the supply OF metallic primary
that the decreasing commodities predicted by the silver
has taken place and in there has been increase due
to the abundance OF primary money.
According "Sauebeck prices during 1904 per above
the average of those Of the decade 894I9o3 and below
the average OF the years 1887 If this be the of the tide
the value gold measured in Of other commodities tend
ing towards depreciation instead OF appreciation as has been the
for long period p
The Sydney Morning Herald discussing this phase subject
says: N1
frequently drawn the that Australia
with other debtor countries has suffered the past through
of gold The Commonwealth millions e-
ing chiefly creditors abroad respect of its public debt
other large that have from time to time been privately Dor
Nomnay we borrow gold interest gold
redemption date repay the principal in gold Actually how
ever borrow goodmpo pay both interest and pn-
good-expors 1t thus be clearly how important
effect any Aucaon prices might have ability
engagements During the last half century circumstances
have against The gradual fall in prices caused through the