THE PURCHASING POWER OF SILVER IN 1873 AND 1889.

If I can show that for a period of seventeen years, since its

demonetization in 1873, silver has lost none of its purchasing power,

none of its command over commodities; that is to say, if I can show

that 412-1/2 grains of silver to-day, uncoined, and shorn by hostile

legislation of its principal element of value--the money use--will buy

as much as would 412-1/2 grains of silver in 1873 (when our silver

dollar bore a premium over gold) of all the articles that enter into the

daily consumption of the people, it must be manifest that silver has not

fallen in value.

I present a table which I shall ask to have inserted in the RECORD as

part of my remarks, showing the purchasing power of 412-1/2 grains of

silver, nine-tenths fine, in 1873 and 1890, respectively, so far as

concerns several leading articles of daily consumption.

The table is as follows:

_Comparative purchasing power of 412-1/2 grains silver,

nine-tenths fine, in 1873 and 1890, respectively._

-----------------------------------+-------+-------

412-1/2 grains silver would buy-- | 1873. | 1890.

-----------------------------------+-------+-------

Wheat bushels | 0.87 | 0.88

Corn do | 1.84 | 1.97

Cotton pounds | 5.32 | 6.71

Beef, mess barrels | 0.05 | 0.05

Pork, mess do | 0.07 | 0.06

Lard pounds | 12.89 | 11.75

Butter do | 5.40 | 4.63

Cheese do | 8.69 | 6.94

Sugar do | 9.80 | 10.34

Eggs dozen | 4.27 | 5.38

-----------------------------------+-------+-------

From this table it conclusively appears that while in 1873 the standard

silver dollar of 412-1/2 grains, which then bore a premium over the gold

dollar, would purchase four-fifths of a bushel of wheat; to-day the same

quantity of silver, without the advantage of coinage and merely as

bullion, will also buy four-fifths of a bushel of wheat--the only

difference between the figures for the two years being that at the

present time 412-1/2 grains of silver bullion, as will be seen by the

table, will buy a fraction of a bushel more than would 412-1/2 grains of

coined silver in 1873.

If, then, silver has fallen, it is manifestly not in its relation to

wheat.

By the same table it is shown that the silver dollar of 1873, containing

412-1/2 grains of silver, nine-tenths fine, would purchase one and

eight-tenths bushels of corn; in 1890, a like number of grains of

silver, uncoined and estimated at its gold value, will purchase one and

nine-tenths bushels of corn. Here again the advantage is slightly in

favor of the 412-1/2 grains of silver bullion of 1890. This shows

conclusively that silver has not fallen in its relation to corn.

The figures of the same table show that in 1873 a coined silver dollar

of 412-1/2 grains would buy 5-1/3 pounds of cotton; to-day 412-1/2

grains of uncoined silver will buy 6-3/4 pounds of cotton. From this it

appears that silver has not fallen relatively to cotton, the great

staple of universal use, but that, on the contrary, it has advanced

somewhat in its purchasing power when compared with that article.

In order to present the question from another point of view I submit

another table showing the number of grains of silver that are required

in 1890 and the number which were required in 1873 to buy a bushel of

wheat, a bushel of corn, &c., by which it will even more clearly appear

that silver has not fallen in value in respect to commodities.

_Comparative purchasing power of silver bullion, in grains nine-tenths

fine, in 1873 and 1890, respectively._

----------------------------+-----------+-----------

| 1873. | 1890.

Articles. | Legal | Commodity.

| tender. |

----------------------------+-----------+-----------

| _Grains | _Grains

| silver._ | silver._

Wheat per bushel | 474.3 | 468

Corn do | 223.9 | 209.25

Cotton per pound | 77.55 | 61.42

Beef, mess per barrel | 8,662.5 | 7,560

Pork, mess do | 5,465.62 | 6,750

Lard per pound | 31.97 | 35.1

Butter do | 76.31 | 89.1

Cheese do | 47.44 | 59.4

Sugar, refined do | 42.07 | 39.82

Eggs per dozen | 96.52 | 76.68

----------------------------+-----------+-----------

From this table it will be seen that in 1873 it required 474 grains of

standard silver, in the form of coined dollars, to buy one bushel of

wheat; in 1890, only 468 grains of standard silver (and that merely in

bullion form, or in other words, at its market value) are required to

buy a bushel of wheat. This does not show that silver has fallen in

value, in its relation to wheat, but, on the contrary, that it has risen

in value.

In 1873 it required 224 grains of silver to buy a bushel of corn; to-day

only 209 grains of silver are required to buy the same quantity. These

figures fail to prove that silver has fallen in value, in its relation

to corn. On the contrary, again, it has risen.

In 1873 a pound of cotton could not be had for less than 77-1/2 grains

of silver; to-day the same pound of cotton can be bought for 61 grains

of silver. Silver, therefore, has not fallen, but risen in value in its

relation to cotton.

In 1873 96 grains of silver were required to buy one dozen eggs; to-day

only 76 grains of silver are required to buy the same quantity of eggs.

Silver therefore has not fallen but risen in value, in its relation to

eggs.

These comparisons might be continued with the same results as to a great

majority of the articles entering into general use.

These figures demonstrate that in its relation to all commodities that

enter into the daily consumption, silver has not fallen in value, but,

as is clearly seen, while holding a remarkably steady ratio to

commodities, has slightly increased in value, as is shown by the fact

that a less number of grains of the metal are to-day required to

purchase the same quantity of the commodities mentioned than were

required in 1873.

In relation to what, then, is it that silver has fallen? As it has not

fallen in relation to commodities, there remains but one thing in

relation to which it can be said to have fallen, and that one thing is

gold. The phrase "the fall of silver" is the ingenious and cunning

invention by which it is sought to cast on that metal the discredit of

depreciation rather than subject gold to the suspicion of any change

whatever. The term to correctly describe what has taken place would be

"the rise of gold;" but that term is scrupulously avoided, as implying

that gold does not remain immovably fixed. That gold has risen, however,

admits of no doubt, except to those who willfully shut their eyes to

facts of common observation. The true test of the increasing or

decreasing value of any one thing is not to compare it with any other

one thing, but with a large range of commodities generally dealt in. It

is not of so much importance to know how much gold can be bought with a

given amount of silver, as it is to know how much bread, how much meat,

and how much clothing can be bought, and how much of all the things that

are necessary to the comfort and well-being of the people can be bought

with that amount of silver.

Money: Speech of Hon. John P. Jones, of Nevada, on the Free Coinage of Silver; in the United States Senate, May 12 and 13, 1890 · 第 39 / 165 题