APPENDIX B. RELATIVE VALUES OF GOLD AND SILVER. From statements by Pliny it appears that in the Roman coins the value of gold to silver was as 5,760 to 336, or as 174 to 1; but this was not the relative value in bullion, which appears to have been as 1413 to 1. This ratio did not long continue. About 189 B. C. the Romans coincided with the Greeks in estimating the value of gold compared with silver as 10 to 1. Upon Cæser's return to Rome with the spoils of war, gold became so abundant that its value, compared with silver, fell to the ratio of 750 to 100, or 7 to 1. This, however, was a transient depression in the value of gold, for, in the time of Claudius, about a century later, the value of gold had advanced so that its ratio to silver became as 12 to 1. This ratio appears to have been preserved through the reigns of Nero and Galba, and during the interval between Galba and Alexander Severus, or more than 150 years. Under Constantine the Great the value of gold had receded, as compared with silver, to the ratio of 10 to 1; but 60 years after Constantine the value had increased to 142 to 1. In a statement by Herodotus of the revenues of Darius, the son of Hystaspes, he proceeds upon the supposition that the value of gold to silver was as 13 to 1. It is supposed that the value of gold did not long continue to be so high in Greece, for Plato, 50 years after Herodotus, asserted the ratio to be as 12 to 1. Gold had at that time a lower value in Persia than in Greece. The ratio in Persia appears to have been as 112 to 1. Gold afterwards became so plentiful in Greece that its value was estimated, compared with silver, as 10 to 1. This was about 341 years B. C. It is supposed that the value of gold, compared with silver, continued to be as 10 to 1 for 170 years after the death of Alexander. When guineas were first coined in 1663 the value of fine gold, compared with that of fine silver, was rated in the English mint at 14321 to 1. Guineas were then coined as 20 shilling pieces, but were afterwards made current as 21 shilling pieces. In 1805 the relative value of fine gold to fine silver was as 15,25 to 1, and in mints of several other countries it was rated still higher.' 2859 1 Vide "A Treatise on the Coins of the Realm," in a letter to the King. By Charles, Earl of Liverpool: Oxford, 1805. 4to. The following tabular statements show the ratio or value of gold to silver at different periods down to the present time: RELATIVE VALUES OF GOLD AND SILVER AT DIFFERENT PERIODS. Henry III.-41st year .. Period. Gold. Silver. 9,51 to 1 25403 Edward III.-18th year, commencement of gold coinage. 12 to 1 Edward III.-18th year, July 9... Edward III.—20th year....... Edward III.-27th year....... 11.175 to 1 25403 Henry VIII... Elizabeth, (old standard). 220 Elizabeth, (new standard). James I.-2d and 3d years, (old standard) James I.-9th year . James I.-9th year.. James I.-17th year.. James I.-17th year. 128 876 Hunt's Merchants' Magazine for August, 1863, contains the following table, which covers a portion of the period given above, and shows the relative value of gold to silver at various periods from 1344 to 1863, as indicated by the prices paid by the mint in London: Mr. E. B. Elliott, of Washington city, has kindly furnished the following data on this interesting subject to Commissioner Browne. The annexed tabular statement has been prepared by him with great care, and differs in some respects from that of the Merchants' Magazine: Ratios of the market value of gold to silver, in London, for the 70 years from 1760 to 1829, inclusive, and the 26 years from 1841 to 1866, inclusive—in all, 96 years. Simplest, and probably most convenient, mint ratio of gold to silver, 15 to 1; present United States mint ratio of gold to fractional silver, 14.88 to 1; United States mint ratio of gold to silver dollar, (circulation limited because overvalued,) 16 to 1; British mint ratio of gold to silver, 14.28 to 1; French mint ratio of gold to silver 5-franc piece, (circulation limited because undervalued,) 15.5 to 1; French mint ratio, gold to debased smaller silver coinage, 14.38 to 1. The ratios since 1859 were deduced from the semi-monthly quotations of the price per ounce of silver bars in London, published from time to time in the journal of the Statistical Society of London. From 1841 to 1848 the values adopted were computed from data furnished by Mr. William Newmarch in a valuable paper read by him before the London Statistical Society and published in the journal of that society. From 1760 to 1829, inclusive, the values were taken from the funding system of Mr. Jonathan Elliott, which forms part of the executive documents of the second session of the 28th Congress. For the 11 years, 1830 to 1840, inclusive, there is a lapse in the information furnished; but it is deemed safe to assume the ratio for this period as 15.8, the ratio of the periods just prior and subsequent to the interval. It will be observed that with the discovery and working of the California and Australian gold fields the relative value of gold to silver fell from an average of 157 for the eight years 1841-48, just prior to this event, to an average of 153 for the 14 years 1853-66, which followed the transition period of four years 1849-152. Manufacturers of silverware may obtain an alloy of silver of any desired fineness in melting fine silver with silver of an inferior quality by observing the following rule:1 Obtain the difference between the two higher finenesses, and divide by the difference between the two lower; the quotient indicates the number of ounces of the silver to be raised in fineness, which are required to be added to one ounce of fine silver. Example.-Required to raise a quantity of silver of the fineness of 867 to 900 by the mixture with it of fine silver at 999 1000 1000 1000 1000 1000 Difference between the two higher finenesses 88 Difference between the two lower finenesses 33 9933=3. From this it appears that one ounce of fine silver at 222 will raise the fineness of three ounces of so that the compound will consist of four ounces at 900 silver at 867 1000 1000 MODE OF VALUATION. 1000. According to law, the standard gold of the United States consists in 1000 parts by weight, of 900 of pure gold and 100 of an alloy composed of copper and silver. Three hundred and eighty-seven ounces of pure gold are worth $8,000, and 99 ounces of pure silver are worth $128. These relations furnish the following proportions, from which are readily derived the subjoined rules: 3879 For gold.-As 1000: 8000, or as 99,000: 128:: the given weight multiplied by its particular fineness in thousandths: the value of said weight. For silver.-As 1000: 128, or as 387: 8:: the given weight multiplied by its particular fineness in thousandths: the value of said weight. 997 RULES. To find the value in United States money of any number of troy ounces of gold or silver, the weight and fineness being given: For gold.-Multiply the given weight by the fineness and by 8, and divide the product by 387. For silver.-Multiply the given weight by the fineness and by 128, and divide the product by 99,000. This and the following rules are extracted by special permission from the "Bullion Dealers' Guide," by George W. Edelman, which contains many valuable tables useful to dealers in the precious metals. SHORT METHODS OF CALCULATION. FOR GOLD. 1. TO CONVERT WEIGHT INTO VALUE. Multiply the weight by double the fineness, add to the product thereof, plus of the, the answer will be in cents. Example.-What is the value of 1,258 ounces at 774 thousandths? 1258 × 1548=19473.84 By this rule the value of one ounce of gold, of any fineness, may be readily determined. Example.-What is the value of 1 ounce at 658 thousandths? The division by 129 being somewhat difficult, it will be found sufficiently accurate, in most cases, to divide by 130. 2. TO CONVERT VALUE INTO STANDARD WEIGHT. Divide the value in dollars by 20, this quotient by 20, and the second quotient by 2, add the three quotients together; the answer will be in standard ounces. Example.-What is the weight in standard ounces of $154,686 56? 20) 154686.56 1. TO CONVERT WEIGHT INTO DOLLAR VALUE. Add to the weight in standard ounces thereof, plus the of the the answer will be in dollars. Example.-What is the value of 1268.30 standard ounces! |