Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1890-10-11
DIGEST or POLITICAL ECONOMY.

not member, by invitation | attended |
and among subjects under discussion |
upon that occasion the question of Agri- |
cultural depression. cause and remedy, |
was presented for future meeting, and |
/ was requested to present my views
upon the subject. In the investigation |
of the subject, taking as basis of said |
investigation, used first the Agricultur
al reports covering period of about ten |
years, did not find in single one the
opinion as expressed by our professional
politicians, the fact that the markets of
the world fixed the price of our farm
products on the contrary, every one of
them expresses the opinion that exporta-
ton is governed entirely upon the home
price, and hence fixing the amount ex-
ported to large extent upon that basis.
And while expressing my opinion upon
the subject, will call attention to the fact
that the question of supply and demand
is not as important a factor in the estab-
fishing values as some are claiming and
base my conclusions upon the follow
ing points, presenting themselves in my
investigation. We will take the period
of Mr.. Cleveland S administration and
find that upon the article of wheat the
loss in price to our farmers as compared
with the period of four years preceding
his, was over $500, 900, 900, and on corn
$3.50, 000,0 900, say nothing about other
products of the farm. Now l will con-
trast the supply of wheat during his ad-
ministration, for three years of the time
it run nearly Sc, 900, 900 bushels annually
below the average of the 10 years of 1880
to 1889 inclusive, and the same three
years, viz, 1885, $50, and 81, the crop of
wheat in continental Europe was go, 000,-
900 short, which shows an annual short
age of wheat of 23,000000 bushels as
compared with the eight preceding years.
The shortage of an average crop in the
two countries combined is about So ,000,-
900 bushels annually. Now there is no
record that l can find to make up the
deficit in bushels of wheat, while it is
natural to expect the consumption by
bread rates to increase as well as increas-
ed wants in other lines. Now would not
this condition of affairs naturally increase
a demand for wheat and an advance in
price. The question presents itself,aver-
aging the three years named, 29a. cts.
per bushel lower than they did from
1876 TO 1885 corn for the same period
II cts. per bushel lower. | think this dis
poses of the theory of supply and de-
mand controlling values. [ next took
up the Secretary of Treasury's report to
investigate what / could CLEAN from it,
and upon consulting it was forcibly re-
minded of Mr.. Cleveland S famous silver
letter, written in Feb. 1885, prior to his
inaugural as President. In my investi-
cations in it l see by the recommends
tons of Mr.. Fairchild in 1888, under the
head of suggestions on page 433, in which
his recommendations advise the destruc
ton or elimination of the Greenback
currency. 1t is unnecessary to quote
him but the remarks establish one point
that is, Mr.. Cleveland's and Mr.. Fair
child s views run in parallel lines on the
finance question, which is Wall Streets
great interest, and find upon farther in
vestigation that the actual circulation of
the National Banks, Sept. 80, 1889, was
S131 ,225, 172, and that the decrease of
their circulation in six years was S20l,-
OIL ,o22, Now what | want to impress
you with is that these distinguished rep
resentatives of the Democratic Party are
in sympathy with the great interests that
get their wealth by accumulation and
not by production. Their recommends
tons upon the silver question and Green
backs and the retaining of this great
volume of National Bank circulation oc-
curing in conjunction with the low
prices of the products of the farm, demon
strates to my mind that their practice
and theories run in parallel lines with
the low prices prevailing at that period,
Now is it not natural to suppose these
distinguished characters speak for the
party. l would naturally conclude that
they do. They were its representatives
at that time. | will not attempt to
delineate the object of the Banks con-
tracing their circulation ; it is enough to
know that low prices accompany the act
and contend that contraction is a more
potent factor in depreciating values of
products of Industries than supply and
demand theories. presented my views
in regard to the effect of contraction as
controlling values. the product of indus
trial pursuits. The illustration as given
in regard to farm products holds good in
all other engagements of industrial enter
prise. Now l will contrast the effect
during the same period with United
States Bonds and in consulting the records
find that they range the two per cents
about cents higher, the premium from "a
TO 70 per cent. So you see that contrac-
ton does not effect such classes of invest
ments. We will also note that contrac-
ton does not affect the salaries of the
politician holding office, except that it
being stationary enables him to buy
much greater amount of the products of
the producing classes with a less amount
of his salary, and enables him to express
his theories whether tangible or intangi-
BILE and have greater surplus as re-
serve fund and in support of this point
offer the argument of the gold standard
advocates at the French Monetary COM
mission of 1869, in which they presented
the following point in speaking of the
depreciation of silver. 1t is difficult to
estimate exactly what the diminution is,
but whatever it may be it demands the
attention of governments, because IL ef- |
Jects unJdUordbty all that portion of the
population UtoSe income, remaining 3loRi-
ndtty the same luldergOeS q yearly diminlt-
ton of purchasing pOiCeF. | have pre- |
sented this clause to show what views
are entertained by economists. Can it be |
that our representatives when once in
position to receive the stated salaries that
political position gives them. cannot
solve the problem that volume of
money sufficient to transact business on
cash basis would be more healthy for
the wealth producers. The reviews of
the gold men certainly can be taken as an
index that the volume is the controlling
point, and if the point as claimed in the
interest of the gold be true, then l CON
tend the amount of $50 per capita issued
by the government and kept apace in the |
increase of the volume with the increase |
of the population would be panacea, as
the amount would be stable. hence no
uncertainties by contraction or initiation |
to make business unstable. The point
advanced by some of our politicians that
the Agricultural exports of the United .
States were in 1889 $3.50, 600 900, is not in
my opinion fully covering the point, rs
$130, 900 of the amount is freight for
transportation to export points thus
leaving S400, 000,0 600 as the true amount
at farm prices. We find at the same
time that the report says that we import
ed SS56,000, 900 of agricultural products
If tho railroads charge in the same pro.
portion for the distributing the imported
products that was charged for conveying
TO export points our products then we
can add $3.50, 100000 as freight charges
for distributing to the interior. So in
stead of having balance sheet in our