The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-10-13

Failacies," He first considers the assertion
that the comparatively recent and eontinu-
ous decline in prices has been due to an
appreciation in the value or purchasing
price OF gold. owing 20 its limited and in
sufficient supply; also that this decline
followed the demonstration Of SILVER in
some countries and the closing Of the
minis In other countries 70 its coinage.
Dir. Wells grants that the decline in the
average price Of staple commodities from
isST to 1895 vas about 81 per cent
Since 1896 this decline has been continu-
Gus. In Great Britain for the two years
1850 to ls9i il was about los per cent.
Since 1881 cotton, wheat, iron. copper,
wool, leather and petroleum have touched
the lowest general prices Of the century.
This decline has been due to decreased
cost of production and distribution or to
changes in supply and demand. Within
the last forty years man has attained such
greater control over the forces Of nature
that he has been able TO do far more work
product measured by quantity in ratio to
given amount of labor than ever before.
The average saving in the worlds work of
production and distribution is not less
than 40 per cent, and in some great in
dustries IL has amounted TO 20 or 80 per
cent. This is natural, all-sufficient and
indisputabie cause of the remarkable de-
cline Of prices and also of its continuance.
Aluminium in 1856 sold for 500 a pound;
In 1887 for s.. and in 1850 tor 81 Its pres
ent market price is about 50 cents. Copper
tea kettles, which sold in 1850 for s.. 20,
can now be bought for IS cents, illustrat-
Ing the great decline in the price of cop
per since 1850 from 3 cents to and 10
cents pound. a decline wholly due to the
extraordinary productiveness OF American
mines and new metho.s Of smelling and
mining. Pig iron sold for $50 a ton in
1873; for 81 in 1880, and as good grade
can be bought today for $13 The increase
in the worlds production of pig iron from
1s77sto 1892 was 9i.6 per cent. and for the
United States 3i3 per cent. Wheat has
declined continuously since 1885. In 1881
the worlds production of wheat was lo0-
100000 bushels greater than ever before,
and this year its visible supply has been
larger than ever before known in the his
tory of wheat speculation. Cotton was
worth 20 cents q pound in the paper cur
rency of 1873, but sells today for from to
81 cents. Between 1878 and 1856 the IN
crease in the supply OF cotton was so per
cent. and in 1880 and 1891. when the
worlds demand for American cotton was
but Il. 000. 600 bales the United States pro-
duced Is. 0o0. 900, and, of course, the price
OF cotton everywhere declined. The de-
cline in wool Is due to the fact that in
Australia, which affords the largest sup
ply of the worlds wool, the number of
sheep has increased more than so per cent.
in the short space of six years.
The oversupply OF iron, wheat, cotton
and wool has caused the decline in the
cost of bread and breadstuffs, cotton and
wooden fabrics, of nearly all tools, ma
chinery. ships, cars and buildings.
Furthermore. the decline in the price OF
commodities is due to the great reductions
in recent years In their cost of transporta-
.on and distribution.
In the United States most of our rail
roads within the last fifteen years have
reduced their rates from 10 10 50 per cent.
The reduction in the cost of transporting
wheat from Chicago to New York which
has taken place since 1870 would alone
make q difference of about 20 cents a
bushel in its cost at the latter point.
while reductions IN ocean freights have
further augmented this difference in the
worlds markets.
If the appreciation OF gold had been the
cause OF this decline in prices everything
for sale or exehangeable for money ought
10 have declined with correspondence in
time and degree in price movements. but
the decline in prices has not embraced all
commodities, nor been simultaneously
manifested. II has been confined mainly
20 those commodities whose production
and distribution have been cheapened bv
new inventions and discoveries, and has
been largest in those like the mining and
smelling and working of metals, IN which
new discoveries and Inventions have been
most numerous and successful.
On the other hand. oil products which
are exclusively or largely the result OF
handiorafts which are not capable of rapid
multiplication or do not admit of increased
economy in production. have as a rule ex-
hibited no tendency TO decline.
Finally Mr.. Wells points out that sin
respect 10 the one thing tha, is every.
where purchased and sold for money 70 A
greater extent than any other, namely
labor. there can he no question that IL.
price measured in gold has increased in a
marked degree everywhere in the civilized
world during the last quarter OF q century.
Had the purchasing power of gold In.
creased during this period given amour,
would have bought more labor and fan
in wages would have been inevitable. And
If wages under such circumstances have
risen the cheapening OF commodities could
not have been due 90 scarcity Of gold.
Measured by the price Of labor, therefore
gold has unqaeSuonsbly deprecated, and
can anybody suggest a better measure for
testing the issue %
Nor has there been anything like
simultaneous decline IN prices that can be
ascrhei 20 the asserted appreciation Of
gold. The prices OF some staple commodi-
ties fell raeid!y after the alleged demone-
;izaIion Of silver I'm 1873. while the prices
Of others exhibited for long time CON-
parstiveiy little or no disturbance: DIFF
ference OF results explAined BY varv{ag