The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-08-09


pews of the capital, you will never imagine what il
vas; for the price Of bread, which remain ID the
same during almost O century, appeared to ~ in
habitants Of st. Petersburg as being beyond the
possibility of change. 1t was like true principle
real dogma, which it is forbidden to touch
Many an iDhabitant of the capital would rather
have admitted the cathedral Of Isaac to change its
shape than to admit the possibility of paying two
tour kopeks for his small white bread which at all
times he got for three kopeks; which to say it in
passing, bad not prevented the above mentioned
small bread from constantly undergoing the most
singular changes in its forms and dimensions. But
nothing in this world is lasting, and this mmoveabe
principle that to say, had received the consecra
ton of centuries is about TO disappear. The fixed
prices are to give place to the prices resulting from
the relation between supply and demand. :,
BY seriously examining the matter it must be al.
lowed that notwithstanding the small importance OF
the fact in question in the eyes OF the European
public, in comparison with the great reforms which
are being carried out amongst for some years,
this event has great Specification IL is certain
indication Of the more and more predominatiDg au-
thority which sound economical ideas are acquiring
amongst u.s.
deeply rooted habits. The example of other
tries proves it to sufficiently. The French and
Belgian economists will admit with us that the dues
raised at the city gates is vicious contribution, AZ
far as it causes the whole burden OF the taxes to
weigh upon the poor and inferior classes. Now. not
withstandng this conviction, Paris and Brussels have
stil their town dues, because they existed at all
times because they became habit, and because
nobody thinks dares to attack consecrated GUS
tom. Habit is the most mortal enemy OF all eco
eomical and financial theories.
At this point OF view, every new triumph OF an
economical idea or over-antquated custom deserves
TO be sgnalized in public attention.
1t is fact that the prices of things are the natu
raj result of two factors viz the cost of production
and the relation between supply and demand Be
You'd that, there are neither natural price nor
commerce possible. How can the legislator
at his pleasure change those conditions which are
natural lawsi One of two cases will happen: either
the legal price will be on level with the natural
one, or it will deviate from it, In the first case it
becomes useless in the second it becomes impossi-
be- for it will be eluded If the legal price be above
the natural one, instead of protecting the consumer
it will only aggravate his position; it, on the con-
trary. it be below the level of the natural price,
then evidently, it will he euded; or ii this is i'm
possible, all commerce will cease, no one naturally
being willing to work for Others.
But what is still more curious taxes always attain
an end utterly opposed to that which they propose
to themselves to attain. Limiting the freedom of
commerce, they diminish competition, and by this
very fact maintain prices at a very elevated rate.
This fact is very clearly shown by the pre-
of fixed prices. 1t results from preceding events
that, Notwithstanding the continual complaints
of the bakers against fixed prices the legal
price Of bread never ceased to rise. Thus the
ests of The consumers the latter paid more and more
dearly for their bread, and at the same time the
trade Of baker, notwithstanding the general COM
plants, became one OF the most lucrative. This is
an evdt mt proof that the fixed price of bread IL less
onerous the producers than to the consumers, to
say nothing Of the fact that all bakers find the
of making discount OF ten per cent to their
constant customers, which Is custom generally
established at st. Petersburg. Furthermore, that
the number Of bakers in the capital increased from
2l7 in the year ls4S to 800 in 1867 and lastly that
the trade Of baker is OF the most lucrative at
this moment-always Notwithstanding the existence
The principal circumstances above all bring about
the fact that fixed prices never be either equ-
table or conformable to the natural conditions Of
traffic.
First All raw materials and all other costs of
production, (rent, light, &c) cannot be valued at
fixed prices.
Secondly. The value of all those articles Is essen
tally variable, according to epochs and places Thus
these prices may not only change from one day to
the other, but also at the same instant and in the
same city; they may and must differ in two distinct
localities. A baker will evidently pay higher rent
in one Of the more fashionable parts of the city than
Therefore, in their last result, fixed prices without
being able to protect the interests Of the consumers
only served to with the cloak of legality the
excessive profits of the bakers.
Nevertheless in certain isolated cases they caused
injustice, and provoked well founded complaints on
the part Of the producers
All these considerations prevailed with the Minis
ter of Interior to propose the abolition Of fixed
prices the much more as the rapidly increasing
number of bakers in st. Petersburg promises TO bring
about fall Of the prices an effect of competition
with much more certainty than taxes would have
done. Besides, recent example may be invoked in
favor of all these considerations.
For a number OF years we had fixed prices 70
fuel Last year the prices for fuel were excessive
decision was taken TO abolish fixed prices. Not
withstanding the apprehensons of great number
Of persons the price Of fuel instead Of rising, went
down.
Finally, we must yet add that the Minister Of
80 ho1,x A..
tend this reform only TO the bread Of superior quail
ty, cay to bread Of wheat flour, leaving in ex-
istence for some time the price for rye bread. The
Minister founded this difference upon the censidera
ton that the economical ideas which the
basis of the project can be understood only by the
enlightened public, II would perhaps be well done not
TO proceed too rashy in matters OF this kind, people
being accustomed u see the price OF their bread
fixed by government, and introduce that latter re.
form only when the results Of the Hr<-viz; the
abolition Of fixed price for white brcad-should
have proved TO all the wholesome influence Of the
measure.
ton o the project, accepted the conclusion, pro-
nouncing itself only against the restriction Just
pointed to by me. In Its opinion fixed prices ought
TO be Immediately and entirely ahplished Che much
ne rye bread, considering its great consump-
ton aud the facility Of its preparation, viii have the
most TO gain by the establishment Of free competi
ton.
cannot refrain from quoting one Of the last SEN
fences of the preamble OF the commission
Tho cersn indications Of contemporary science and The
examples Of other couutrea do not admit Of any doubt
10 the fart thai free and petition offer the
best and surest Of protesting the interests Of the
consumer by preventing nos oay IN normal tines, but
nj extraordinary epochs, excessive rising In the
prices Of fool.
Few corporations in France would decide them
selves 10 proclaim similar principle, and still hess
TO carry II into execution.
Fixedsprice for fuel was abolished amongst M last
year; that for bread will be abolished very soon;
and amongst other things II Is talked OF the aboli
ton of fixed prices for meat.
RUSSIA AND FRANCE-THE EMPIRE OF THE
WORLD.
Translated from The Courier du asvrc, July 10, for the
NEW YoRK HssAID
A st. Petersburg correspondent sends to the
Bulliers agency sore interesting remarks in rea-
ton 10 the great changes intervening in the policy
Of Cars
Since the rcirn of Peter the Great savs the