New-York tribune., 1885-09-21
LOW PRICES AND TRANSPORTATION

StTNSlo uutlSlpdlc'
LOW PRICES AND TRANSFORMATIONS
II hns become the fashion of late, not only i'll
this country but in Europe, and not only
among those who suffer their prciudices to
manufacture their opinions, but with many who
study carefully and think profoundly, to attrib-
ute tho prevailing low prices to monetary
change, namely TO the partial disuse OF silver.
That low prices do prevail, not in one country
only, but in Europe also and elsewhere Is
acknowledged. Prices arc far below the lever
which ten or fifteen years ago was conSldeieu
normal, and they so Ieman aud show no ten
dency to rise. For many articles, and especially
for some of the great staples OF commerce, the
lowest prices known for more than century
have been made within twelve months. Hence,
many reason, only cause of worldwide
potency can be philosophically assigned for
such n change; only n cause, moreover, which
has been persistent in its operation for ten
wears past. and which is still operating; and
only cause which was not operating ten or
fifteen Yeas ago. Such cause. 1t Is sald' Is
the attempted demonetization of silver, and no
other that fits the facts can be named.
1t is possible that this reasoning is not so
philosophical rs it seems. Certainly 1t IS worth
while to inquire whether there Is not another
and far more potent cause in operation which
has visihly 'flectcd prices all over the civilized
world. Within twelve or fifteen years there
has been a wonderful revolution in the cost OF
transportation. People are III the habit oi sup
rosins that this change has been confined to
their immediate range of vision, but the truth
is that il has been worldwide. Rates have
been changed both by sea and by land. both in
Europe and in tins country, and III lar distant
and uncyilized regions. The enormous multi
plication of steam vessels. and particularly OF
iron or steel prOpellers equipped with improved
engines by which the cost of transportation by
sea has been wonderfully reduced, has eilectcd
a change in the prices of many important pro-
ducts The Sucz Canal has done much in the
same direction. Telegraph lines have done far
moIe, by making it possible to buy and sell in
distant lands, on known markets and with
known freight rates. The reduction in charges
for ocean freight has been the inevitable con-
sequence of the multiplication of freight
carrying vessels, and the supply of means by
which such vessels can bc instantly summoned
from any part of the world wherever there may
be a demand for them, aud of the remarkable
change in the cost of running them. IL is stated
that the steamer Persia consumed l4,5OO
pounds of coal to each ton of cargo in 1880,
while the Arizona consumed only 400 pounds
in 1882. about thirty second part as much.
On land the changes have been more gcncr-
ally appreciated. The building of railroads, os
all know, has multiplied the means of trans
portation and reduced the cost. Since 1872,
the mileage of railway in operation IN this
country has more than doubled. Railroads in
Europe and especially railroads in India, have
played an important part in changing the cost
of products. 1t is not a matter of inference,
but of absolute certainty, that this great rcvo-
luton in the cost of raEsportation has in fact
affected prices. The actual rates charged for
the transportation Of wheat about twelve years
ago, before silver was demonetizcd, were 40
cents in summer per 90 pounds from Chicago
10 New-Y0rk by rail- and 81 cents by lake and
rail. and 1878 cents per blshel by steam from
New-York to Liverpool. But during the past
SIMMER, by far the greater part Ot the grain
transported has been moved from Chicago to
| New York for ID cents per 100 pounds, or
even less o c,nts per bushel against 27
while the rates charged by steam from New
| York to Liverpool are sven now only 5i2 cents
per bushel, against 1873 cents. Thus there il
q difference OF 253s cents per bushcl in the cost
Of transporting wheat from Chicago to Liver
pool alone, besides a relatively greater change
| in the cost Of transportation to Chicago from
the distant farms. Is it then to be inferred that
the change in the price of wheat which cost in
! 1873 at Liverpool II shillings 3 pence, and
now costs shillings 10 pence, is due more
largely to any monetary change than to this
visible and uuquestionably most potent cause,
the reduction in frcights by rail and by seaP
But changes of the sans character have been
| going on all over the world. The prices of all
sorts of products have bsen affected in like
manner and no one can tell how much. 1t ia
therefore worth while to consider whether it is
philosophical TO ignore cause which has GER
tainly produced great decline in the cost Of
many important products to the CONSUMERS, and
! to attribute the whole or the greater part of the
change in prces which has been realized to the
questionable influence of an alteration in the
worlds supply OF coined money. 1t is easy to
see that the vastly increased use of substitutes
for coin may have taken the place Of the silver
disused far that the monetary change may
have had no effect whatever upon prices But
1t is absolutely certain that the wonderful revO.
luton in the cost of transportation, the whole
| world over. has had effect, and a very i'm