The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1894-05-03
ailment of both production and
q - f,.,l,.

fcaraGle, not ollly th"' '"0
in nrices would have been greater
,Lan It has been, had the ordinary
rate Of supply been maintained, ' ut
also that the decline is likely to be
ncrnetuatcd after production has re-
tnrned to its normal volume; it. m
decd. It does not then descend to a
still lower level. -.
It is to be considered too that TINS
fall in prices is not due soley. not
even principally, to tie effect OF last
vear's silver panic AMI the ant'cina-
};on Of = reduction in tariff duties.
Those influences have had their share
Of effect: but much more potent
: though less recognized case mas
arisen from worldwide excess OF
production over consumpiive capac-
;tv. Tie improvements i'll mach'n
erv, the universal Introduction OF
labor saving appliances, Tie cheap
en;nr ocean and inland transporta-
ton and tho widcned use of the tel
esraph, have created glnt OF mcr-
cIaudise in every market among
both civilized and barbaric popu!"-
tons; and this condition OF over sup
p]v explains the last three years par
alysis of European industry, the c'-
fects Of which are now rcactinS upon
our own markets. The common IL
dustrial arrangement thus prodHce''
admits Of but one possible adjust
mcnt. If industry resumes IT'S oI
measure of production, the supply o!
products can be absorbed by con.
sumption only at such e.'uced rae
Of prices as consumers can afford to
pay. at a price, the world can take
all the merchandise its factories az
mines are prepared to turn cut !Nt
experience has painfully enough &c
monstratcd that that price must
range very materially below any past
level. If the logic Of the universal
situation has any meaning, it is
nothing short Of tIis-that the world
is now entering upon All era OF per
manently lower average Of co!amcr-
cial values.
In this country, we haze special
cause enforcing the reduction Of
prices For the last generation, The
prices OF all products, except ogricuI-
tural, have been &rtiticially enhanc-
ed through the tariff The enact
lncnt of the Wilson Bill will largely
diminish this fictitious element Of
value; and thus, added to the Inliycr-
sal causes of decline, we have hcrc
our own special cause Of drift to-
wards lower Valuations. Moreover.
in proportion as the rapid growth OF
our industries compa!s Us to seek
foreign markets for a steadily in
crcasing surplus, we Shall find it nee
cssary to conform our prices to those
current in competing countries.
This is not situation which IS
to be regarded as affecting employees
alone. 1t equally concerns labor,
and employees must calculate upon
certain ultimate peaAtic, if they
seek to cvalc their shave in the in
cvitabo rea,Iinstment. Il is a mat
ter Of very simple arithmetic. If
products have to accept lover prices,
they must be able to effect a CORES
ponling reduction in tho price of ra;v
material and labor. /, labor with
holds the necessary concession OF It's
quota, tie manufacturer must either
incur bankruptcy or close his works.
Assuming that labor sees III tiis 10
question Of fairness, it may still be
prudent for the wage carrier to asE
himself where he is likely to come
out in such case. 10 strike can
only mean first idlcnc,s, next suffer
ing, and finally acceptance Of the
terms necessary to yield an average
return to capital.
If the unions acknowledged any
other principal than that Of getting
all they can without regard to far
ness or consequence: it might be
worth while to ask whether it i, just
to demand the advantages Of lover
prices for all articles Of consumption
while yielding no equivalent in the
form Of lower wages Walking dele
gates. however, are not accustomed
to trouble themselves with ethical
considerations, and it appears likely
that one Of the most imperative re-
adjustments Of tho times-the con
formation Of wages to a great fall in
priccs-will have to be settled
through the species Of social war wil..
which tie unions have made lis ia
miliar
1t is to the last degree unfortunate
that this issue should arise in the
present dep esscd condition Of bust
ness. Just at the moment when We
are on the verge Of a resumption Of
lons-snspcn'!ed production, the class
who should be the first to hal! such
revival throw everything into fresh
confusion by the assertion Of demands
wholly incompatible with rcsump
ton Of operation. If, however, indas
trialists have been able to stand en-
forced idlenoss for the last twelve