The midland journal. (Rising Sun, Md.) 1885-1947, 1894-10-05
Falling Prices and False Prophets.

ord OF the market, trade and prices, from
the great trade centers, taken up and
re-echoed by the country press, without
question as to the reason why wheat
and corn should decline, while i'll the
same paragraph making this announce
ment, appears the encouraging promise
that a large number of buyers at the
wholesale makets and better demand
for funds to engage i'll new enterprises or
to enlarge those already established all
point to a fairly promising situation in
the world of commerce. With these sup
posed evidences of returning prosperity
why should wheat and corn decline in
the face of short crop? There is an
evident contradiction here which senti-
nels on the watch towers of future events
fail to explain, and their predictions of
returning prosperity should be taken
with many grains of doubt and careful
inquiry.
The same herald continues the reas-
surfing cry of all is we'll to the people in
the street who rush along, too busy to
question the message their hopes accept
as true. '"The number of furnaces i'll
blast to-day and the production of lion is
the largest i'll more than year and indi-
Gates gratifying return to nomally active
conditions. Bank clearings were per
cent greater than the previous week and
nearly per cent more than in the cor
responding week last year, though of
course they have not yet recovered to the
level of two years ago"
But why ''of course? No reason is
named for their not recovering but the
reason is stated nevertheless, to be plainly
read between the lines by the careful
student of events. All this promised
revival is merely spasmodic. The pro-
duce in many lines has been used up and
temporary supply must be provided.
Orders to supply an immediate want are
given and when these orders are filled
there will be another wait for further
orders, which will be grudgingly given
with a lower line of prices. Prices are
not at the bottom of anything except,
perhaps, farm products. These are the
first always to fall when a diminishing
volume in the worlds supply of money
takes place The products of the soil are
the root of all wealth. They are the very
breath and blood of the people. AS they
decline in price all else produced by labor
must decline also. The products of the
soil are the first to be consumed. The
worlds supply of money gauges their
price and the price of all else produced by
labor must conform to them. The farm
products are still lower in price than every
other product.
In the mean time the volume of the
worlds money is diminishing Even il
it does not grow numerically less it is
decreased in the ratio to increasing pop
ulation and theproducts of labor. Almost
everything labor produces is sold fol
money and bought with money before il
reaches the consumer. If the number o.
consumers increases and the quantity O.
products increases while the volume o.
money remains the same, prices mus
fall, because that stationary volume has
more to pay for and each article mus
suffice to exchange for lower price.
But there is also all actual diminutior
in the amount of money in the entire
world, and especially in this country, and
that decrease is growing yearly since the
demonstration of silver. Gold is insult
fcient to furnish the supply, and all debt.
and interest are being measured by, anG
calculated on, gold basis, and the for
tunate few who hold the debts and com
mand the gold fix the price of all property
Silver is no longer coined by the great
nations of America and Europe except ii
small quantities to keep up the supply o.
change for the retail trade.
All business requiring large amounts Of
capital has to be established and run or
bank credit which is the dearest none,
i'll the world. 1t is interest drawing from
the word go and that interest is governed
by the banks which supply this phantom
money. This leech of interest eats III
any enterprise it fastens itself on. The
produce of all productive business mus
be paid for by the users of cash, and a
scarcity of cash causes low prices. Farm
produce is the first of all to go to the
consumer and is the first to feel the effect
OF scarce money and low prices. 1t is
now the lowest of all products of industry
and to this level all else must come before
business assumes a normal condition; but
how much want, how much misery, pri.
walton, hunger, famine, almost if not
altogether pestilence, Nust be suffered
and passed through before reaching that
lower level which will exchange a days
labor for dime. If present conditions
remain we must reach it. There is nc
escape from it. The history of dead civ
ilizations attest it. The civilization OF
China proclaims it. Our multiplication
of wealth by machinery must stop and
hand labor exc out meager existence.
Without an increased supply of money we
cannot go forward and mount higher
toward the Elysian fields of a grander
civilization. With stationary supply we
must slow up. With diminishing supply
we must sink downward and slowly per-
hans but steadily towards ,nan,s ,r;,,,-