NEW Haven Paper - The History of the Relative Values of Gold and Silver

As I have attempted briefly to show you, gentlemen, the present position of the mining and metallurgical industries of this country offers in several respects most important indications of radical change. This is an epoch for more than one branch of these industries. We are commencing again to export copper; we have shifted the main production of lead from the Mississippi Valley to the far West, besides developing a new production of that metal in Missouri; we have seen the price of quicksilver go up, and the price of iron go down to such an extent as to affect profoundly, on the one hand, the great business of extracting silver by amalgamation, through the Washoe process in this country and the patio process in Mexico, and, on the other hand, the various manufactures employing iron as a raw material; above all, the manufacture of steel. But the epoch which has occurred in the relative value of gold and silver, in consequence of causes which I shall attempt to explain, and among which the extraordinary increase in the silver product of Nevada is not the least; this epoch is, perhaps, the most striking feature in the review of our situation. Since my official duties in connection with the mining industry of the Pacific slope and the Great Interior Basin have led me to pay particular attention to this subject, I have thought it not inappropriate to lay before you a somewhat extended account of its history. It is a topic of peculiar interest, because of the general use of these two metals as standards of value in the exchange of commodities. Neither of them is suitable to be, for the political economist, a real standard of value. That standard is rather to be sought in some more universal product of labor, such as wheat—the relation