Silver Has Depreciated

In another column appears a communication frora an esteemed correspondent in which the writer attempts toprove that the unparalleled divergence in the relative values of the so called precious metáis in the last quarter of a century is due not to the depreciation of silver but to the appreciation of gold. He starts with the assumption that the advocates of the opposite view hold that "gold has held a fixed value since it parted company with silver at the 15 to i ratio." This assumption is not warranted by the facts, however. They not onlv do not make any such assumption, but they unequivocally assert that gold like every other commodity is subject to changes of value. That the value of gold, for lnstance, was lowered by the new gold finds about 1853 is unquestioned. Indeed it was the fall in the value of gold at this time that aggravated into a serious evi the movement which under the 16 to 1 ratio of 1834, was slowly substituting gold for silver. Nor is it denied that the enlarged function of gold as a money metal since 1870 may not in some degree have enhanced its purchasing power over commodities of general consumption What the advocates of the opposing view do allege is that a careful study of all the causes operating to change the relative values of the two metáis, furnishes conclusive proof of the fact that the divergence is due chiefly if not wholly to the depreciation of silver. The claim set up by our corres pondent, and the advocates of free silver generally, that the unprecedented low prices of wheat,cotton, cattle, sheep and various other agricultural products, is attributable to the so called demonetization of silver is utterly unsound. As well attribute the low price of wheat to the fall in the price or copper, which in the past few years depreciated from twenty-five to eight or nine cents a pound. It should be remembered in this connection that when the socalled demonetization of silver occurred in this country, prices were not normal. All values were inflated as a result of our having a depreciated currency. As we approached the date of resumption prices naturally tended downward, and when it became an accomplished fact, on January i, 1879, all values had very materially shrunken. The demonetization of silver had absolutely nothing to do with these changes. The fact is that silver was practically demonetized in 1853, and from that time on had cut a very small figure in the monetary affairs of the country. Since the time of resumption there have been other causes operating that fully account for the lower values of the commodities noted. Quicker and cheaper methods of transportation, cheaper production resulting from improved machinery, enabling producers to dispense with much human labor, the vastly increasing volume of products from Russia, India, Australia, Egypt and South America, produced by the cheapest labor in the world and brought into direct competition with our own through the improved methods of transportation, are all causes of falling prices, and fully account for present conditions without regard to the currency. The argument that these things have had nothing to do with the fall of prices, and that the depreciation of values is attributable to the demonetization of silver instead, is far fetched. The claim also that prices of agricultural staples have kept pace in their downward trend with the fall in the value of silver is more ful than real. That they have shrunken in valué d uring the same time silver has is true, but the same is true of copper. But who would think of charging the decline of cotton values to the cheapening of copper ? Yet the decline in the price of our staple exports has probably kept as close pace with the decline of copper as with silver. It is a mistake to suppose that there has been any "even pace" between the decline of agricultural staples and silver throughout the years of the decline of that metal. To establish the truth of this assertion, it is only necessary to go back to 1872, when the marked fall in the valué of that metal began. As is well known, London is the chief silver market of the world, as it is of agricultura! staples. The statistics of this market as to the fall of silver in comparison with the movementof prices of other commodities (twenty-two articles as taken from the London Economist's figures) will throw some light upon the question at issue. According to this authority the price of silver early in 1872 was 6od per ounce: In November of that year it began to decline and continued to fall steadily and rapidly until July, 1876, when it reached i,(yá, equivalent to a ratio of 1 to 20.17. And trie prices of the other commodities mentioned were as high in 1876 and 1877 as they were in 1875 and higher than from 1868 to 187 1. This proves so far as prices teil the story that during this period gold had not appreciated. But silver had depreciated in the meantime not only relatively to gold but with reference to all other commodities as well, from óod per ounce to ífoyá, or more than twenty-two per cent. Since 1877 the depreciation of silver except for certain brief upward tendencies, has been even more marked. Valué is not an inherent property of any commodity. Nor does the quality of a thing give it valué, or yet the labor cost, except in an indirect manner; but rather the desires and fashions and necessities of humanity. These things are always factors entering into and modifying the law of supply and demand. As the moods and fashions and necessities of humanity change, values will vary. As a resultant of these influences a decided change in the use of the precious metols has taken place. The enormous expansión of commerce in recent years and the consequent necessity of making large payment in wholesale transactions has not only developed the various banking devices, whereby the risks attendant upon the transportation of large amounts of coin have been minimized, but has created a preference or prejudice for gold over silver. This is due in large measure perhaps to the smaller bulk and greater convenience in handling of the more valuable metal. The large increase in the world's supply of gold from 1850 to 1875, taken in connection with the larger use of checks, drafts and bilis of exchange, whereby the demand :or metallic money has been largely essened, enabled this preference for gold to be gratified. The result has been that the leading com mercial nations increased their use of gold and the demand for silver as a medium of exchange feil off. These facts no doubt account in arge measure for the fall in the value of silver. The narrowing of ts sphere and the lessening of demand for it has operated to deprecíate its value as is the case with all other articles under like circumstances. It follows the same laws of appreciation and depreciation hat are applicable to all other commodities and is no more a barometer of the values of other things han they are of it. And whatever ts friends may think of it as a money metal, the commercial naions of the world have décreed heir preference for the other metal or reasons which to them have eemed in keeping with the progress of the times, and may it not be that his step is in the line of monetary rogress as well. The people of the Eimpire state ïave already learned that all they accomplished by their ballots last all was to change a bad democratie boss for a worse republican boss. The idea of reforming New York politics through the agency of Tom Platt is enough to make a horse laugh. Vet he is the man who is in absolute command of the reform movement at Albany and he is the real power behind the throne in New York City. Hamilton Fish, who has been elected speaker, is a spoilsman second in rank only to Platt hiruself. They have been enemies hut are now friends for the profits there are in it. They have both been Tammany dealers for years and are of the same ilk as the bosses of that organization. Their leadership is a menace to the continuance of republican control. The people, especially while in their present temper, will not long submit to the leadership of such corruption ists no matter what party label they ! wear. A resolution has been introduced into the legislature calling for the submission to the people of an amendment to the constitution do ing away with the per diem pay of members and substituting therefor a fixed salary for the term. The Argus believes this is a move in the right direction. It would undoubtedly shorten the legislative session by causing the members as a matter of economy to themselves to attend more closely to their legislative duties. It would probably abolish the weekly vacation extending from Friday evening until the following Tuesday. It would minimize the free pass evil, and be good public policy generally. But the Argus does not believe the amount of salary should be a constitutional provisión. The fixing of the salaries of members of the legislature as well as of all state officers should be by statutory enactment. It is alleged that Emperor William on the occasion of the first reading of the anti-socialistic bill in the Germán richstag was a secret listener to the speeches from the recesses of a box in the gallery. That he sensed the impropriety of such action is evidenced by his efforts at concealment. It has been the practice for several centuries for emperors, kings and presidents, to keep away from the place of sitting of the representatives of the people in order that they may be absoletely fearless in the exercise of their functions. Any other course is regarded as an effort to influence legislation improperly. William might read with profit the page in English history whereon is written the account of the visit of Charles 1 to the house of commons.