New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-01-04
PRICES IN 1885.
THE LOWEST AVERAGE YET RECORDED.
METHODS OF COMPARISON EXPLAINED AND c IN
TRASTFD.

METHODS OF COMPARISON EXPLAINED AND c IN
TRAsTFD.
To the Editor Of The Trtbune.
SIR: Tie comparison of exchanges and other owl
dences Of the volume of business, measured IN
amounts sold or received. with which the journals
are filled at the close of n year. talk to US ID uh-
known tongues and require an Interpreter. " tx
ports are declining" says the amount OF sales
to other countries in eleven months of the year
WAS 9 6 Der cent less than IN 1854" But what II
the range OF prices was than per cent lower
Would it not then appear that this country hac
sold n larger quantity of goods Ill tie aggregate
though obliged, in order to retain command OF
markets 60 sell at the lower range OF prices prevail
ing through the Western wOrdi Again. men say,
@the exchanges are an automatic record OF the
volume of business transacted. Outside oi New
York they indicate with general correctness tue
volume of legitimate trade, as distinguished from
speculation in stocks and products But the OK
changes have been smaller than in previous years.
Here are some mistaken assumptions. for there is
stock SPECULATION at Boston and Philadelphia and
some speculation in grain at Chicago and some in
oil at Pttsburg and in cotton at NewOrleans.
There is also possibility that the exchanges ont
side Of New-York may yet prove to have. been
greater in 1885 than IN 1884. 50 large have been
the recent gains. But what would the comparison
mean if it were known that the range of prices in
1855 had been . per cent lower than in | ssh
Clearly it would prove that larger quantities of
products havo been bought and sold that pFoduc-
ton in the ggregate has not diminished as men I'M
agine. and that consumption in the aggregate has
not been restricted in this country by the poverty
of the people.
Ii is the fact that the average Of prices in $50
was lower than in 1884. not 10y pei cent or Z per
cent only, but by S.24 per cent In January prices
were but little above the lowest point of 1884.
which was about November 81. Speculation i'll
wheat based on prospects OF foreign war; ana other
speculatous equally we'll grounded. raised the aver
age during the first half Of tho year, though while
some things went ZIP others went down and at the
hi CHEST point, reached about May g. tho general
level was scarcely / per cent higher than that OF
January l. Fut the result was increasing stagna-
ton in trade prostration in manufactures, and
growing disheartcumcnt Then came severe fa.l
in priccS eliminating about August %. The fall
between May and August % in the general
range of prices was moro than Gig per cent. This
decline was the substantial basis Oh which gen
eral revival of business was made possible, and IL
better times have and come to stay. this TALL
in prices though considered a calamity in com
mercal circles at the time will have proved indeed
a blessing in Disguise From August % to the end
of October efforts to advance prices succeeded but
mite. Dut SiNcc NONcuibti i 'h'tN bdH 'u'H Nii
advance of about per cent, in part because OF
changes incident to the of the year. 70 the
growing scarcity OF summer products. aad to
changes in transportation, but in part to substan-
tal increase in tine demapd for products. Tho
closing prices of the year the whole the best
since July though abont IL per cent below the
level of January l.
The lowest average OF prices yet known is that OF
the year 1850 For the first time. the general level
of prices FOR year has fallen than 20 per cent
below that of May. $50. Last year, low as prices
we're about November u, the higher range early Iva
the year made the general average si.jJ compared
with 100 in 1851. In 1873, prior to this year tine
average was about 81 compared with 100 in 1850
But at the beginning of 1850 the average was only
80 SO against 100 in $50. though in the early part
of the year il rose to about SO.22. By August -
il had dropped 10 1896, and after two months of
SLOW recovery at the end of October was only 1888
compared with 100 in 1860. At the close in Dccem-
ber the average IL 1853 Thus the general average
of weekly quotations for the yoAr has been only
743 against 100 III 1860. THIS statement will
have a peculiar interest t. those who are just now
discussing problems of currency or tariff. Of internal
taxation or OF wages OF labor and is 50 important
that brief description of the method Of comparison
seems necessary.
Not very long agOit was thought sufficient in COM
pairing the prices of several articles at different
times. TO simply add the usual quotations OF those
articles after the following fashion: