Smyrna times., 1886-12-22
Peace and Low Prices.

There IS hardly another fact within
common knowledge about which so
many divergent and at the same time
plausible views are held as about the
depreciation Of silver viewed in con-
nection with the great decline in prices
III the last quarter Of a century. Mr..
Childers, who was chancellor Of tho
eXchequer in Mr.. GladstOne's penulti-
mate cabinet, in recent address to the
scotch Institute Of Brokers added an
other to the number of explanations
competing for acceptance. Mr.. Childers
does not think that the depreciation Of
silver and the fall in prices OF other
commodities are in the relation of cause
and effect. His theory, in brief. is that
to the long peace which has followed
the FrancO-German war, with the ac-
companying development Of industrial
facilities and the enormous increase OF
production, is to be attributed the an
probation of gold, or the fall in prices
measured by gold. The history Of
prices shows that wars raise prices and
long peace lowers them. After the
peace Of 1915 till 1S4S prices fell bv
reason of the increased productive
ness of industry" Under the influence
OF the revolutions of lS4S and the fol-
lowing years, of the Crimean war. and
of the Indian mutiny, prices rose again
till, at the end of 1857. thev reached n
maximum. They then fell again for
Two years, but were raised in part, per
hapss, by the wars in Italy, but mainly
by the war between the Southern Con-
tederacy and the United States, until
they reached a second maximum in
1861. AT the close of the latter war
prices fell continuously for five or six
years-being but little affected by the
brief struggle in 1866 between Austria
and Prussia-until the desOlating Fran
co-German war of 1870, which raised
them to third maximum. The un-
broken peace of Is years and 6 months
since that conflict has had the usual
effect on the prices of all commodities.
From 1868 to 1870, however, the fall in
prices was 20 per cent, a heavier rate
OF fall than in any FIVE years since the
depreciation of silver. This fall adj
vanced, it must be observed, with more
rapid strides in 1S64-5, when the dem
onetlZatiOn of German silver coin and
the Nevada mines were unheard Of.
than in 1919, after these alleged causes
OF the depreciation of silver had begun
to operate. The fall in the prices Of
commodities other than silver is not.
therefore, to be attributed to the de-
probation of the white metal, as bimet-
allists are fond Of asserting. The two
things are no doubt associated, but they
do not stand in the relation of cause
and effect. As the arts of peace i'm
prove 1t Is to De expected that prices
will continue to fall, whether measured
bv single or by q double standard.
Nor is it thing to be regretted, having
regard to the interests of consumers.
As inventions multiply and science
addresses itself to the improvement Of
all sorts of processes, production must
and ought to cheaper, bringing the
luxuries of former days within reach of
the poorest. What is painful in the
progress toward lower ranges of prices
IS the inability of unwaTy producers to
keep pace with the general movement.
When once they make up their minds
fully TO the fact that, as a general rule.
everything but the standard of values
tends to lower figures, little will occur
to mar their serenity. For the incau-
tions or unfortunate producer who falls
INTO debt, lower prices will of course
always be ObiectiOnable.-Bu SIM.