Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-05-13
SUPPLY AND DEMAND.


short Chapter on the Fallacies of Such
DOctrlne-ApOlIoable to Both Money and
Produce.
There is an old-fashioned, hea-bitten,
toothless saying that supply and de-
mand regulate the price of everything"
1t Is true only when applied to both
sides of the question. 1 have wheat,
and want pork. Wheat Is very plenti-
full and there is not much demand for
1t. VIII have to trade q large amount
Of wheat for a small amount of pork9
That depends upon the supply and de-
mand for pork. If there is a large
amount of pork and not much demand
the exchange will be even. Now, sup
pose Iwish to trade wheat for pork and
find that 1 will have to give large
amount Of wheat for small quantity
Of pork, would be right In asserting
that there Is too much wheat in the
country? May be so; but, on the other
hand. NAV be it is because there is not
enough pork In the countryl we gen.
orally exchange our produce for money.
Those who so blatantly assert that
supply and demand regulate the
price always wind up by saying
that tho low prices are due to there
being too much produced-"over-pro
duotion." Was it over-production of
wheat or scarcity of pork? Is it over
production of produce or scarcity of
money! The surest way of answering
the questions correctly is by comparing
the amount of wheat and the amount of
money in the country during the time
of low prices, with the amount OF
wheat and money In the times Of high
prices. AS we have not before Us any
reports later than 1888, we will com-
pare 'ss with go, period of twenty
years. In 1858 the country produced
and imported together seven and one
half bushels Of wheat to every person
In 1t, and the amount of money in cir
oulation was S21. AZ to every person; the
price Of wheat was 81. Az q busheL
In 1888 the wheat produced and Import
ed together amounted to less than sever
bushels per head, and look at the price,
81 cents bushel Was the low price of
1888 due to too much wheat, or to too lit
tie money? Not only does this apply
to wheat, but to every other crop. This
year money Is still soapoe, but corn and
oats are scarce, too; hence they bring
better prices than when they were
plenty; but let wheat, corn, pork and
beef get scarce and high, and the same
scarcity of money to buy them con-
tinue, and we may expect distress and
trouble of the worst kind. OF course If
there was scarcity of all things which
money buys, and like scarcity of
money, the price would not change, but
a scarcity of bread and meat only Will
raise the price of them, and unless there
is plenty of money in circulation, the
poor must suffer. For instance, short
crop of grain and meat will not raise
the price of metals, wood or earthen-
ware; hence the millions of work
ingmen in factories will not get
higher wages, yet It will cost
them more to feed themselves and
families. We have now seen that the
amount of money in circulation has as
much to do with prices as the amount
of the produce of labor. As we have
seen that money represents the produce
of labor, 1t is only natural and reason
able for this to follow. Go back to our
first test and put all of the money in
one pile and the produce in another. If
you add to the produce only, prices will
fall If you take away from the money
pile only, prices will fall If you take
away from the produce pile only, prices
will rise. If you add to one pile you
must add the same to the other; If you
take from one pile you must take from
the other. The claws of supply and de-
mand must be applied to both sides
allke.-J. Brad Beverley, in Peters
bur0h (Va-) Alliance Farmer.