New-York tribune., 1885-01-08
PRICES 90 PER CENT BELOW 1860.

About the 18th of December the markets for
products probably touched the lowest level or
prices ever reached in this country since
records of prices began. The range OF prices
was little lower at that time than it was
earlier In tho month. and since Saturday,
December 13, there has been an advance OF
more. than 7 cents in wheat cents in oats,
and some advance in corn, eggs, hay, potatoes,
beef, poultry, pork and cotton-all products OF
considerable relative Importance. The detailed
comparison of prices each week, with compu-
tation of the relative Importance of the articles
compared, shows that there has been recovery
amounting to about 2 per cent of the general
cost of all products. Thus far, therefore,
December 13, 1881, must be regarded as the
period Of lowest prices yet reached IN this
country.
It was thought in August, after the crops had
been fairly secured, and the dulness which
usually accompanies an exciting Presidential
campaign had begun, that prices had gone
about rs low as they were likely to go. In
several important branches of trade, n recovery
appeared about September |, but it did not last.
After each little ad vance, for many months, the
markets have sought and found in the lowest
depths n deeper still" until we have in Deem
Der the lowest recorded average of prices.
Since August, the decline has averaged about
4la per cent on all classes Of articles, exclusive
of securities and real estate.
In making comparisons OF prices ut different
dates. allowance must be made for the relative
Importance of the articles considered, which
may be done with either OF two distinct points
Of view: the quantities of products entering into
the commerce and trade of the country may be
considered. without Iegard to the actual con-
sumption of the people, or the quantities con-
sumed within the country may be considered,
without regard to tho exports. For example,
the q'antity OF wheat, of cotton, or OF oil which
,oes into commerce i more than double the
quantity which goes into consumption. Con-
sidering for theprescnt only the quantities con-
sumed in ths country IL is found that the range
of prices Is now below that of October 1873,
which was then the lowest reached for many
years. The difference is such that 800 would
have bought. December 13. about as much as
SlOi Gl in August last, and about as much as
SiO5 I'm October 1873. At the latter date, the
country was plcparing for the resumption or
specie payments; for eighteen years the value
of commodities had not been measured in gold.
When the depreciation of paper currency van
~,
Is per cent below the specie level of 1850, the
last preceding year in which prices had been
made in gold. But now, comparing the prices
of December - with those OF the last OF
August, 1860, which was nearly the lowest
point in that year, we find that 800 In Decem-
ber would buy as much rs 1926 0i would have
bought of the same products in August, 1850.
Ii may be interesting to note the proportion
of decline in different classes of products, or
different branches of the cost of living. With
n fall In the aggregate of 20 per cent since 1850,
the decline in the cost of breadstutfs was
almost 80 per cent in sugar. tea and coffee,
25 per cent in clothing, 20 per cent; IN
metals, Al per cent In coal and oil, 40 per
cent; in lumber, only per cent; and in
miscellaneous articles, including building
materials, glass, paints, drngs paper, soap and
chemicals, % per cent. On the other hand,
sill comparing the lowest prices OF December,
1884 with those of August 1860, there
appears an increase in liquor and tobacco ut
wholesale of more than so per cent, on account
of the taxes an increase of l per cent i'll
meats; and of per cent in dairy and garden
products. Manufactured articles generally, it
will be observed, have declined i'll price more
than the average of all products.
These are wholesale prices, and are not
accurately reflected, of course, in tho retail
prices which consumers pay. But there Is no
reason to doubt that the cost OF living has
materially diminished since 1860, if the con-
sumption be supposed not to have increased.
The fact IL that the people are able to consume
and do consume much more than they did
twenty-four years ago, and their yearly
earnings are much larger.