The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1894-10-15
THE FALL In PRICES.
Why Is Cotton Selling for Only Five
Cents Per Pound.

Cents Per Pounds.
A more serious question could not be pro-
pounded nor one in which more people are
interested Cotton is the great product Of
the south. The prosperity--in fact, the
very existence-of twenty millions of peo-
is practically dependent on the cotton crop.
During the present year. after the expen-
diture of great industry and the practice of
the most rigid economy. these people find
their great crop will not, st the price at
which it Is being sold, pay the cost of pro-
ducton.
Could anything be more disastrous or
alarming than such q condition?
Yet, great journals are teeming daily
with learned editorials, trying to convince
these people that such condition Is nothing
at which to be surprised. They appeal to
the law Of supply and demand to demon
strate that the whole trouble is caused by
too much cotton being raised.
The supply is greater than the
demand. There may be some truth.
but there is no comfort. in
this. for the millions of people who must
necessarily want for bread by reason of this
condition. We will not deny mat this
law may in some degree account for five
Is. that II is not the sole cause, nor tho
principal cause. Behind that there is an
ether cause, anu that cause has not only
reduced the price of cotton to a point where
what it fetches viii not return to tue pro-
ducers the cost of production. but the price
OF all products of mine field and factory
has likewise fallen. until there is scarcely
a single product of our people which will
sell on the market for price sufficient to
pay the cost of production. Not only are
the people of the south interested in the
falling prices, but the corn-raisers. wheat
growers, the manufacturers, the miners.
in fact, every industry in this country. are
struggling with the same difficulty-the price
OF their products in the markets of the
world will not repay the cost OF produc-
ton. OF course. the same
ply is made: 1.-THE supply is greater
than the demand Prices are regulated
by the natural law" We would like to
know of some OF these learned economists
what has become of the demand. The sup
ply Of everything is abundant. but there
is no demand for anything, II the price de-
termines it,
We have great faith In the law by which
these learned gentlemen seek 10 satisfy
starving millions. but they fail to make the
application of it a. the right place the law
is all right. hut they do not know how TO
apply it. Applied as they apply it, it does
not explain the difficulty. The consumers
of cotton. corn. wheat iron, cloth. etc,
have not been diminished. but they have
ircreased with the same steady growth as
production. Yet prices keep on
falling, and this is what needs explanation.
This Is the important point in tho discus
sion which they 40 not undertake TO handle
and IL is this to which we wish to invite
the attention Of the people. In one word
undertake 10 explain the whole trouble,
here and eVerywh ere else, for falling prices
are universal. Money IS too valuable. The
only measure Of values nov known to the
commercial world is gold. The value of all
products is asceTtained by comparison
with it. Sold is tine only real money recOg
nized by the commercial would. All other
money which is current is iedeemable in it.
Therefore the value of other money is the
value OF gold, for which il is exchangeapie.
This condition is the result OF that natural
lGw by which they have been trying tc evS
lam. -o--. --~---- '"e '"w - supply ana
demand.
AhoUt twenty years ago all The
commercial countries, Including the United
states, BY policy which. If not joint. was
simultaneously adopted demonctized silver
Al this time silver constituted one-half Of
The real money or the world. That law
about which they have SO much 10 saE no"
in explaining scent cotton aid what These
countries having destroyed one-half of the
real money without lsssening the demand,
doubled the value OF the other haif ana
gold became twice as valuable as u was
when silver constituted half the real money
OF the world This being 50, II other pro
duets remained at the same value 81 i'm gold
ought now to buy twice as much OF any
Product as il would twenty years ago. Is
net such the case The price Of cotton is
: cents, wheat - cents per bushei--less than
ore-half OF what it was twenty years ago.
The price OF everything else has fallen the
same way This is the real secret OF scent
cation ana the cause OF the great hnancia!
depression yvhiC., il crushing the life out or
eyerv known Industry. We anticipate the
reply 10 bs made 10 this position, and 1t
is: There is more money IN circulation 'aah
ever before To prove this assertion
they appeal 10 the report Of the secretary
of the treasurer We 60 not Wish 10 puea-
tion the treasUrer's report deny that il
may show more money in existence than
M auy other period. BuL We 90 wish 70
6pnv The inference drawn by these gentle
men. Ii is evidence OF the amount OF
money in circulation. We Will assert that
in sptte OF the treasuTc-'s report. there is
not today nor has there been for years
half as much money par capita IN circuia-
ton as twenty years ago. Fne truth o.
this we can demonstrate. The amount of
money in circulation ia fixed by the price
OF commodities which the people Sell. lhis
may he a new method Of ascertaining an
economic fact but we offer 1t as & method
that is absolutely correct ana universal.
The price of the ,niugs which the peopis
sell determines the quantity of money in
circula ton We do not care how much
money there may be I'm existence, the price
o. the Things sold will ti& tbs volume in
circulation. Therefore, ii the price is great
IL reduced, the circulation is greatly less
sencd All must know this is true. The
south will make, say 100000 balts OF cot
ton this year. AT cents per pound it will
nut in ci!aulnt ton $225 0O0 CO..; at 10 cents S5c-
OAe coo OF twice as much. So with every other
thing sold. II the price is increased, the
volume of cirt ulation is increased: If the
price is lessened, the volume Of circulation
is reduced Therefora, say the volume
o. money in circulation today is less than,
ever before because whatever is sold is
sold for less price. Not only IS there less
in circulation than ever before, but it will
never increase in volume until prices be
higher; prices will never be higher until
money becomes less valuable; money will
,.at.e,. NO Iare vaiuable as long aS gold ;S