Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-07
GOLD. SILVER AND PRICES.

thN t1ouSe on wednesday DH RSprcSen
tative Hull of Tennessee. 1t provide.
for a, joint committee of seven mem
beiS OF the House and five members
of the Senate to investigate conditions
and report what remedies may be ef-
fected through legislation
Secretary Wilson. too. has ordered a
sweeping inquiry into the cause OF
the Increasing cost of living In
the United States. II realize.
said Secretary Wilson, "That we
have undertaken a big contract.
but we can carry it out We have the
men and we have the money. The
work will be done thoroughly Much
work will be done by inspectors of
the bureau OF animal industry, but
other divisions of the department will
assist" Tho entire country has
been awaiting with interest some
such move as this.
There can be little doubt that the
rise in prices is general. 1t embraces
almost everything grown or manu-
featured. and the Increased cost Is so
striking that the underlying cause of
it all is being sought by almost every
reflective person.
One cause is, no doubt, the increas-
ed gold production. Economists have
always taught that there is a direct
relation between average, current
prices and the quantity of the money
metals in circulation. When the pro-
duction OF the metal that Is the basis
of value increases. prices rise. When
this production falls short of the
average. prices fall.
Now, II is given out that the total
gold production of the world in 1896
tas approximately s2O2. 2.251.60O. In
9os 1t was s435. .000.0 900. an increase
more than 100 por cent in thirteen
years. 1t is confidently predicted that
by the end of the first decade of this
new century the annual production
VIII approximate s5Oo,OOO.0oo.
Though the gold supply is growing.
the food supply is short. The great
volume of gold in circulation has help
ed to- raise the prices OF commodities
in general
The rise in prices in the United
States has been continuous since 1896.
According to recent statistics, it ap-
pears that the increase for several
great staples has been as follows:
Corn. an increase OF 113 per cent.
Wheat, an increase of "a per cent Po-
tatoes, an increase OF 100 per cent
notwithstanding the advent of tho
automobile, horses and mules show
an increase in value of more than
crease in value of 80 per cent sheep
100 per cent. and swine 100 per cent.
Standard sheeting, shows an increase
in value of so per cent; print cloths,
64s. an increase Of 65 per cent; while
the price of cotton today is higher
than for many years past.
Ohio fleece wool In the Eastern mar
lset shows an increase of 119 per cent
over the price OF 1896.
Lard has gone up 226 per cent. in
the same period. of which 43 per cent
was the increase during the past year.
Pork is 210 per cent higher In the
single year from 1908 to 1903 1t
SNVi ~ dh Ubf aiIS VI per cent
Is not much of this increase due TO
the depreciation. of gold? Mining ex-
perts say that the production OF gold
cnce matter of infinite search and
great hazard. the dream of the adj
venturcr and the argonaut, has be-
come matter OF almost exact dc.
monstration by the engineer and tho
chemist Improved machinery, enlarg
ed knowledge and use of chemical
processes for treating refractory ore.
and. above all, improved transporta-
ton facilities. have made mining prop
critics that without them would be
worthless the richest and most de-
pendable gold producers in the world.
1t Is estimated that the total worlds
production of gold from 1892 to 1909
was 100000. When II is re-
mcmbered that some OF tho gold, per-
hapS most of 1t, that was carried I'm
the caravels by Columbus Is still in
use. 1T is clear that the annual mo-
ductlon is just so much added to the
accumulated supply OF the past.
The varying production of gold
creates a condition OF rising OF falline
prices One money metal Will fuctuato
more than two such metals. and when
only one metal is the basis of money
value. the purchasing power of money
will fiuctuate more than IL there ia
q double OF multiple standard OF
value.
1t is very likely that II silver had
been left undIsturbed as a MONEY
metal. tho variation in prices would
have been much less than IL ACTUALLY
is today. And when we remember that
every visible indication points to a
continued increase in the production
of gold and that. In the opinion OF
the most profound students OF
geology the development of mines and
the production o: geld is in jts in.
fancy. we can readily perceive thar
prices are likely 10 go still higher
Perhaps 1t Will be found necessary
to remonctze silver in order to STAY
further advances in the average price
OF commodities.
The worlds production of gold in
1908 showed an increase of sa1-
$4,000. according to the estimate NJ
the Director of the Mint The nro-
ductlon OF silver increased nearly $40
100000. Our own gold product increas-
ed by four millions. but siIve. fell Off
nearly as much.
This shows that silver and gold to-
gether would have equalizcd the pro-