The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-08-15
GOLD PRODUCTION AND PRICES.

Although the falacy of what is known the quantive
theory of money has been the constant increase
the worlds production of gold continues to be cited
of the controlling of the high of living. The guam
tative theory has highly respectable ancestry the New
York Journal of Commerce First put forward by certain
French economists toward the close Of the sixteenth century
lit was adopted by England clear thinker John Locke
and Montesquieu reduced it to something like mathematical
formula That u.s. comparing the worlds stock of precious
metals with the existing Of saabe merchandise he held
lit certain that every particle commodity compar
liable given portion of the total accumulation OF gold and
siyer AS the sum the of the other part
one must part Of the other Accordingly if since the dis
covery of America gold and silver had increased in Europe
lin the proportion Of to twenty the price of articles Of daily
use ought to in the ratio but the quantity
o this merchandise had increased in proportion of to two
1.-THE price due the increased stock Of the precious metals
would be in half and would bear the proportion Of only
Ito en &c. ALSO David Houme said in 1852 Increase the
lstoc of merchandise and prices fall increase the stock OF
money and prices RISE The older Mill accepted the quaint
tave theory which John Stuart Mill expanded by adding
factor of the problem the rapdy of circulation In own
thine and country General Walker held that the quanttave
Theory deduction from the law Of supply and demand and
WAS consequently above dispute And recently 1906
distinguished French economist addressing audience of
economists affirmed that the merchandise existing in given
country equals always the amount Of money existing in the
same countryota against total fraction against fraction
lin other Words there has been tenacious faacy
lpoco economic discussion than that prices is the relation
which exists between all forms Of merchandise and the existing
lamount of money.
The fact is remarkable it has long been evident
that the placed the theory by recorded experience
Twas altogether For example, has been shown
with incompatible cearness and orougness by Yves Guyo
the total production of gold from 1893 to 1870 inclusive reach
led value of somewhat $436O0OO000 From 1893 to
1850 the value Of the gold produced in the world $7
at
i$ 100000 that in these IS years there produced
than in the preceding three hundred and yeght
From 1913 to 1875 the total production thus 100000
But from 1876 to 1910 the total production reached the OF
E that in these IS years the total production of
god equal to all that preceded in the years intervening
!between the discovery Of America and 1875 If divide the
perod by 35S have an annual production OF &c.
100000 But the % years following gave annual average
production Of $3 100000 while the nex5 years showed
average of $5560oOO and the 10 years 190l19lo showed
ls higher average of $393000000 1t may be added that
according to the report of the director of the mint the total
gold production for 1910 was $5 O390O while the estimated
figure for last year 4733S3543 Were the number 100
be taken the index of the volume OF gold production be-
tween 1893 and 1880 should have 400 to represent the
scae of it's products the next % years. 1868 the index
for 25 years following and Al IS for the 10 years 190190
Without going far back and coming within the of
corded index numbers of the recorded index numbers of the
prices of commodities begin by placing 100 to repre-
the volume of gold produced between 1926 and 1850 That
would have be followed by the number 5S1 for the following
years. 6 for the IS years ending with 1900 and by 1888
for the 10 years 90190 OF there has been such
advance in the price of commodities AS matter Of fact
coee grain tea sugar. flax and hemp pig ron lead copper
and oil lower price than they between 1925 and
1850 No possible connection be established between the
changes in the index numbers Of the Economist which
mark the changes OF AZ OF the Chief articles OF common
luse, and the production of gold.
On the contrary the index number has fallen in years IN
which the production of gold went decreasing and has risen
in fact of decreased yield of the yellow metal For example
the index number which reached 1859 July 1857 fell on
January 1885, to 1861 and January 1859 to 1885, Mean
while the production of gold had increased from $13 to
900 for the year. The rise the price of commodities
resumed in 1859 not because of any rapid expansion of
gold product but because of the in Italy, and became
still accumulated between 1861 and 1865 because of
Civil and the replacement Of gold by paper money here
AS matter Of fact the entire value of the production
of gold at the existing high level is less than the differ
ence between good and bad grain harvest throughout the
world To explain the rise in the price of wool is only