The sun., 1894-03-04

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demands and lessened yields. until isso-si.
After the harvest Of 1884 the sccumulstions
exceeded $4,000. 900 bushels. When the last
Of this great store vanished. after the har-
vesting of a deficient world-crop in 1890.
and there seemed 10 be fair prospect that
prices would again advance TO a permanent
ly remunerative level. consumers and pro-
ducers were astounded by the abundance
Rarnered from the American fields. This
enormous crop being supplemented by one
nearly as large in 1892. dealers. consumers.
and the tyros who evolve so much OF cur
rent market comment, have come to believe
that there can never again be price-maklng
scarcity. or higher prices for farm products.
forgetting that in 1sse-9O the prices for
| corn and swine. In the farm markets, were
, as much below those now current as the
| price for wheat ls now below the prices Of
eight and ten years ago; that the prices for
both corn and swine speedily rose from the
lowest level upon a change in the relations
OF supply and demand: and that the price
for wheat Is subject to the law which gov
erns prices for corn and swine.
Present prices for wheat relate directly to
the ploughing OF too many acres in the
Mississippi and Missouri valleys between
1870 and 1885. as did the 1ss9-so prices for
corn and swine; but the corn lands were
6rst completely occupied. and the corn
fields have contracted more than those de-
voted to wheat.
The reversal OF conditions, resulting from
q too rapid expansion OF the cultivated area,
by great increase Of population and an
enforced cessation OF acreage increase.
which has already obtained. will. within
one, two, or three years at most, probably
cause the price for wheat to rise as much
above the present level as prices for corn
and swine sfe now above those OF four
years ago. In both cases the low price re-
suited from the same cause; and the ad-
vance In the price for wheat will be due to
just such changes In the relations Of supply
and demand as have advanced prices for
corn and pork. To-day pig feeding is the
most lucrative branch OF husbandry. unless
It be the making OF the better qualities OF
dairy products. for which the demand ex-
ceeds the supply.
Cotton. like wheat, is low in price because
OF redundant supplies; not because the
world uses any less cotton. The crops har-
vested In 1890. 1891. and 1892 exceeded those
Of the preceding three years by some
100000 bales. or 10 per cent. while three
years increase Of consumption did not ex-
ceed. II 1t equalled. per cent. Result:
great Increase Of reserves and much lower
prices. This. In turn. destroyed q great part
OF the power Of the cotton grower to pur-
chase cotton goods and other commodities;
and this again. by affording less employ
ment. lessened the purchasing power Of the
mill operative for the products OF his own la
Dor and thelabor OF others. Thus the vicious
circle OF decreasing employment. reduced
revenues: and consequent loss Of rurchas-
ing power constantly widened. These con-
ditions have been intensified first. by
money stringency. partly IL not wholly due
to the same causes; and. later. by a hesi-
fancy on the part Of manufacturers and
dealers to accumulate stocks while Con-
gress was debating fscal policies that
might disturb the values Of all manufac-
lures and imports.
Whatever auxiliary causes may have been
In operation. the impulse was given to an
economic movement that has been directly
productive OF these results. when acres in
excess Of the current or approximate re-
Quirements OF the world were put under
cultivation between 1870 and 1856: 80 per
cent. OF such acreage additions being in
the United States.
The causes resulting In the fall OF the |
price for silver are less obvious. and are |
obscured by fscal and political conditions |
the operation Of which remain and may |
still remain q matter OF controversy.
The practical disuse OF silver money by |
SO many Western nations has largely |
diminished the demand for the metal |
for coinage; yet 1t Is fact that |
the East has absorbed increasing guam
titles since 1873 The notable thing, |
however. about silver's fall in price. one |
about which there can be no question, |
Is that the production OF the metal has, since |
1851. increased more than six times as fast |
as have the populations using silver money |
In any form: and 1t Is not improbable that |
this disproportionate increase OF silver and |
Of the users OF silver has had much to do |
with the metals loss Of purchasing power.
Much stress is laid upon the decline in |
the prices for iron and steel. and there Is no
doubt that this decline has been both un-
comfortably and unconformably rapid. for
other conditions have not been such as to
leave those engaged In production. in either
q contented or q prosperous condition. The
rapidity OF this fall. and probably much of
Its measure. is traceable directly TO that
period when the yearly reduction OF ten
million new acres to cultivation gave an
exhilarating stimulus to railway and town
building and all related industries. This
resulted In the development Of great num-
bers OF coal and iron mines. and the con-
struction Of Industrial plants capable OF
supplying the enormous demand for manu-
faetures OF wool. metals. and fibre. that
from the remunerative employ
ment OF great masses OF labor and capt-
tai in building and in Industrial and
agricultural enterprises. These plants
such immense productive pow
ers that only the continuation OF railway
and town building. and the construction
Of Industrial plants. and the opening OF new
farms upon like or increasing scale. could
afford full employment for those already In
existence. When railway construction was