Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-15
from the following comparison Of quotations
| In Naur Ycrk.

Wheat, white Michigan. bush. 81 s. 81 30
| Oats. State. bush. s. 461
! Corn, Odd Western. bush. % W
| Hay, shipping ......... 100 Ms. W
| Pork, old mess. .......... DBL - ~ %
Beef, PLAIN mess.. ....-....b1l W W w.,
Lard. .;.;..::.................S ossK % 10y
Butter, State. q ~
Cheese. ......................b. l3x 1av
Iallow...... ~ W1
These are the main articles Of agricul-
tural produce, and it win be seen, continues
the Bulletin, that, reducing their current
currency quotations to gold, they range, on
an average, at about the same value as
twelve years ago. Wool, a very important
staple, is about so per cent. higher than in
1860; but this difference is due to excep-
tional causes which have been in operation
only within the last six months. Now,
with this close correspondence between The
present values of products and those of
1860, what basis is there for the higher
value of farms compared with that period
which at present exists? 1t is impos-
sible that, even were the costs of cul-
tivation as low as twelve years ago
which they are not-farming can yield
a fair return upon the present market value
of lands in the improved districts of the
country. The value Of improved lands is
also subject to deterioration from the ex-
tensive building of railroads having opened
up new fertile lands obtainable at nominal
prices. The new roads not only carry pop
ulation to the cheap lands of the West, but
also bring the products of their industry to
the markets on terms which enable them to
compete with the produce of the older
lands, thereby keeping down the prices of
the agricultural staples.
Not only do the lower prices of the pro-
ducts of the field tend to bring down the
value of farming lands to near its former
normal level, but, indirectly, this decline
operates in favor of fall in the price Of all
other real estate. With reduction in the
cost of the main staples of subsistence,
there ensues a decline in the wages Of
labor-a result which has not yet generally
appeared, but which must follow, with all
the certainty of natural law. And with a
decline in wages, comes a moderation of
the cost of building materials and building;
and when a new building can be put up for
a less price than old ones are held at, the
effect upon the value of the latter is ap-
parent.
This tendency toward lower prices Of
commodities and wages, moreover, does not
arise merely from the condition Of the ag
ricultural markets. We find the same
course of things in nearly every branch of
manufacture. During the past year, the
increase of the supply of foreign articles OF
food and in the leading raw materials of
manufacture has been most remarkable.
The worlds supply of cotton, and the
British and American impOrtations of wool,
fax and hemp, show an increase on those
of 1860, much surprising the growth of
population during the interval. The same
may be said of tea, sugar, coffee and hides,
and, in fact, of nearly every
one of the great staples of COM
merce which contribute to the wants of
sustenance, clothing and comfort. In this
increase of supplieS-the natural conse-
quences of high prices-we have the basis
of an inevitable general decline in prices to
oho,,t +ba old t;r,a etoudord rluc q dino OIL
lowance for the premium on gold. The fact
that we have not yet reached that level, ex-
cept upon home agricultural products, is
due perhaps mainly to the circumstances
that .ate prices have induced large expan-
sion of manufacturing establishments which,
for the time being, stimulate the demand
for labor and raw materials and help to sus-
tain the prices of both. This state Of things,
however, is causing an accumulation of
stocks of goods on every hand-the only
condition necessary to general yielding of
prices that remains to be fully realized.
For these reasons, it appears to us that
we are upon the eve of a general decline in
commercial values to the normal standard.
We have already shown how the cheaper
ing of agricultural products lays the basis
for cheapening building; it only remains to
be added that a decline in all commodities
would carry this tendency still further. 1t
may be that a general cheapness Of com
modities would never bring back wages
quite to the level of 1860; but it is certain
that, with general prices the same as then
we cannot have wages twice as high, which
they now are. Considering that the fall il
prices involves general falling off in money
incomes, it results that those who rem
houses could no longer afford to pay the
present charges of landlords, and the in
come from house property being thus re-
| duced, the value of houses must decline il
proportion. We present these views rathe
as foreshadowing what is gradually com
ing upon us, than to convey the idei
that any sudden or immediate fall in rea
estate is impending, and for the purpose o
dispelling a delusion to which most pro
perty owners cling with no little tenacitl
that the present artificial value of thei
houses and lands will be maintained for
ever.