The Ashburton Guardian. Magna est Veritas et Prevalebit. SATURDAY, NOVEMBER 27, 1886. THE DEPRECIATION OF SILVER.

Ashburton Guardian, Volume V, Issue 1418, 27 November 1886, Page 2

The Ashburton Guardian. Magna est Veritas et Prevalebit. SATURDAY, NOVEMBER 27, 1886. THE DEPRECIATION OF SILVER.

In an article which appeared in our columns in a recent issue on the subject of Mr Duffus’ pamphlet on “ The Financial Depression—its cause and remedy,” we drew attention to the writer’s argument that India and Russia had largely benefited through the demonetisation of silver in other countries. The depreciation of silver and appreciation of gold are unmistakable facts, but the whole question as to whether the relative change of value is in favor of the country using a silver standard appears to us to turn upon the issue as to whethei or not the purchasing power of silver in such country has or has not been affected. Mr Dnffus quotes Professor Fawcett for the statement that, notwithstanding the appre ciation of gold and the depreciation of silver, the purchasing power of silver has not declined so far as India is concerned, but we have a suspicion that the statement of the Professor to that effect which is thus relied upon was made some years ago, and can scarcely think it possible that the purchasing power o silver has since then remained, and will continue to remain, unaffected. Upon that point we should like fuller and the most recent information. That the price of silver has been steadily falling year by year, since 1871 is proved by a tabular statement published in the Pall Mall Gazette , which shows that while in 1871 the average price was 5s per ounce, and oz were of the equivalent value of one ounce of gold, in 1876 the pried had had fallen to 4s per oz, and ozs were required to equal the value of the ounce of gold. Year by year the same thing has gone on until, at the present date, the value of the ounce of silver is only 3s 6d and the ounce of gold is the equivalent in value of 22 ounces of the inferior metal. With this rapidly increasing disproportion it is, we repeat, difficult to believe that even in India the local purchasing power of silver can continue unaltered, but even if Mr Duffus be right in saying that so far, at anyrate it has been unaffected, certainly not all classes in India benefit by the change in the relative values of the precious metals. For as the Gazette goes on to show “an income of 10,000 rupees, when converted at the price of the silver contained in a rupee, is now but two-thirds of wheat it was ; and an annuitant receiving that sum has only to spend, instead of nearly And in view of the fact that, whereas “before the German demonetisation, 15*4 units of silver could be exchanged for 1 of gold, now the more precious metal obtains fully 22 times its own weight in silver, ” we can well understand that the question— ‘ Where will the depreciation and ? ’ is now “ an anxious one for recipients of incomes paid in rupees, and for those who are selling cotton goods for rupees and taels in the East.”

ENGLAND’S LATEST ANNEXATION.

Somehow or other, although Britishers consider themselves an unaggressive people, we are always extending the Empire and taking here a little and there a little. Nowand then, it is true, we give up an island or two, sometimes a whole group, as for example the lonian Isles, but on the whole we grab a good deal more than we give away, and the borders of the Empire are ever widening and extending. The latest, though probably not by any means the last, annexation is Socotra, an island situated in the Indian Ocean, isodeg east of Cape Guardafui, the eastern extremity ol Africa, and commanding the entrance of the Gulf of Aden—hence probably its acquisition. Anent this newlymade British territory, a contemporary supplies the following information : “It belonged to Keshin, a petty state of Arabia, about 240 miles distant. Tamarida, Us capital, on the north-east coast of the i land, is in latitude xadeg 39mm N., longitude 54deg xmin E. The island is 70 miles long from E. to W., and its greatest breadth is 20 miles. The area is estimated at 1000 square miles, and the population at from 4000 to 5000, mostly Bedouins, with some settled Arabs, negroes, and Portuguese. Its centre is a chain of granite and limestone mountains rising to 5000 ft in elevation, around which a belt of low land from two to four miles across skirts the sea. In its fertility it presents in some parts a favorable contrast to the adjacent mainland. The climate is more temperate than cb the African continent. The products comprise aloes of the finest quality, dragon’s blood and other gums, tamarinds, tobacco, dates, and a kind of millet and ghee. Domestic animals are oxen, sheep, goats, camels, and civet cats. The trade is mostly with Muskat, whence most provisions are imported.”

Remember that a little Hop Bitters save big doctor’s s, and cures when all else fails. Don’t take unless Anerioap r '~ makes Bead