1 86 



Mr. Faraday on 



Table showing the appreciation iii the wheat-lniying power of gohi 

 a7id silver respectively at the prices in March, iSg^, as compared 

 7vith the tvheat-buying potver of each metal in the undermen- 

 tioned years and periods. 



It will be seen from the above table that the increase in 

 the buying power of gold is to-day very much greater 

 than the increase in the buying power of silver. As I have 

 previously pointed out, an increase in the buying power of the 

 precious metals was to be expected, if only because of the 

 increase of facilities for moving commodities great distances, 

 and the consequent lowering of transport charges, the per- 

 centage effect of which on price would of course be greater 

 in proportion to the bulkiness and low value of the com- 

 modity. Thus, if we take 1875 as a normal year for wheat, 

 which, in consequence of the Franco-German War and 

 other disturbing influences, was abnormally dear in 1871, 

 then a cheapening of wheat in terms of silver to the extent 

 of 17 per cent, since that year may be explained as a con- 

 sequence of the opening of the Suez Canal, the extension of 

 railways in India and the United States, and improvements 

 in marine engines, the cheapening influences of which would, 

 of course, be more apparent in the price of a bulky and 

 cheap commodity like wheat than in that of a precious 



