New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-01-04


between labor and capital, and 1T seems to me 10
be second only to paper depreciation and restora-
ton in influence upon nominal prices.
One searches statistics in vain for evidence that
tarids or war taxes have ntolerably increased the
cost of living In the presence of decline OF more
than 20 per cent in the cost of the same quantities
of the same articles since 1862 il is difficult TO be-
lieye that the tariff has so enhanced the cost OF
products as free-traders contend. lndisputaDie
proof can be found that internal taxes nave en-
HANGED the cost of spirits, tobacco and beer. but
similar proof of the enhancement OF general prices
by the tariff is sought In vain. Prior to the enact
ment of the Resumption act in1S75, the eHects OF
tariffs aud taxation had been comparatively hidden
by the influence OF a deprecated currency, which,
as the table shows, had constantly caused an en-
hancement of prices above the gold level from o
to 20 per cent since the ApprehenslYe
Of loss in consequence OF change IN the price VI
gold deglers insnred themselves by charging per-
centage possible loss. Subjected to consid
cradle expense and burden by reason Of the fluctu-
ating value Of currency they constantly remuner-
ated themselves so far as they could by higher
charges But when the country began to go toward
the specie level with fixed purpose then 1t became
more clear every day that the previous enhance
ment of prices had been due rather to the condition
of the currency than to the tariff or the taxes.
The discovery that phenomena which had been
attributed to the tariff were fact due mainly to
n different cause has had much to do with tie
opinion of at least ono person on the tariff quos-
ton.
While prices we're lower in 1885 than ever before,
controversies between labor and capital regarding
the rate of wages have been unusually frequent.
A determination OF the purchasing power OF money
at different periods casts much light on these con-
troversles fit is true. in many localities work
men claim it is that retail prices are so high that
they cannot live on wages which were ample
wears ago then it il evdent that e1sher he charges
of retail dealers have unduly increased, or the
wants Of workmcn have expanded faster than the
means of supplying wants by the creation OF
wealth. If tho trouble is with retail dealers,
the customers have only themselves to thank, so
long as they do not supply n remedy. When they
learn that 1t Is fOllyto support three times as many
rel all dealers as are Lry. and that they can
secure lower prices by concentrating their custom
upon those who sell most cbelply aud honestly,
they will find chat wages will appear a great deal
higher than they now are. Bat in many cases
tail dealings are not in fault. 1t is the truth that
severe competition in later years, and the ex-
tremoiy low prices received for products. have
caused wages OF some laborer5 to be unduly de-
pressed. 1t should help both the honest workman
in striving to get what is right, and the honest en-
ploycr in striving to do what Is rigAt, to have
clearly defined tho purchasing power of the dollar
in commodities generally at different periods.
Nothing has been said Of tho influence of partial
of silver upon prices. There are
some of COURSE who Will assume that the entire
change in tho urc1asing power of other money has
been due to thls Influence These Will ignore
L. The powerful tendency toward lower prices
which follows a collapse Of paper imitation as night
follows day.
@ The potency of all the agencies employed to in
sure success in resumption OF specie payments.
3. The great changes in prices Winch are demon
strably due to reduction in cost OF transportation.
4. he improvements IN processes and in machn-
cry. which reduced the cost of steel rails from
SlO2 30 TO %27. and the cost Of cotton sheeting
from 10 cents to cents, and the cost of paper from
1919 cents 10 la cents, and the cost Of refined pc
troeum from 23i2 cents u cents, with other
changes by the score OF like nature.
That kind of reasoning does not seem TO me to
promote the cause vi truth. Bat neither can | 90
with those entirely ignore the subtle influence
of a change in the com suDp,y Of the world upon
those credits which constitute great part Of the
OF purchase and exchange IN modern
times. How far rho existence and the purchasing
power Of those credits has been affected how far a
commerce built upon them has been made moro in
secure by narrowing of the monetary basis. are
which should be carefully examined
" hen international agreement On tho coinage be-
comes possible. But examination OF them is not
necessary 90 show that this country cannot afford
10 continue silver coinage beyond the needs OF the
people, aud without accord with othornatons, and
moreover, they too large to be discussed at the
eud OF a letter already long. Truly.
W. NJ. GRosvENoR
Ne,c- York. Jan. 2, 1886