The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-02
pELrsrons 1Rorr srLrER.
Does rs Abuss-res or Scarcity AGeet
Prieest

| Priees,
From time out Of mind the masters OF social
science have held that supply as related to
demand, determined the Price OF articles OF
common use, especially neeessaries but there
have always been dissentients, now typiGed
by the ropullst who believe that the auantita-
tive character OF money determines the ex-
changable value alike o. the most essential
necessary and article Of pure luxury. Econ
omists OF this school find In Condolences
abundant proof that the law Of supply and de-
mand is no longer effective; that as has
shrunken the market price OF one metal so
have fallen prices for all the great staples. and
thoy gravely adduce as proof OF deficient
currency the fact that as declined the pur-
chasing power OF silver. 90 have fallen the
prices for wheat. corn. cattle, swine, and cot
ton and the products OF forge and loom. With
these masters OF economic science coinc-
dence or assumed coincidence. takes the
place Of proof. and no amount Of numerical
data; no marshallinG Of facts that convince
those without n theory to support; no demon
strntlon that labor has steadily advanced in
price while silver was falling no exhibition OF
the ratios existing between production OF a
given article and population prior to, at and
subsequent to the time when silver was de-
monetized, nor yet any lncOntrovertibe state
ment OF the wide and frequent fluctuations
obtaining at various times in tho exchange
able value OF all the great staples will
sufficc to convince the currency and free
coinage doctrlnaires of the fallacious charac-
ter OF statements that are intended to show
that prices have declined either because OF tho
scant supply OF currency. or because Of a de-
cline in the relative value Of silver. Nor can
these sef-deluded people be convinced that the
quantity OF money In circulation in the United
States has continuously increased, both abso-
lutcly and relatively. since 1873
There are, however, great mum bers who have
been led to believe these iallacies because OF
the confidence. often born OF Ignorance, with
which they are repeated by those who will
neither investigate the relations OF supply and
demand since 1873. nor consider the facts
brought out By the Investigations OF others.
That prices have not declined because Of an
insufficient supply Of currency. nor yet be-
cause OF the decentralization OF silver. Is easily
dcmonstrable so far as the great staples are
concerned, by plain recital OF incontostablo
facts showing that supply, relatively to the do
mand, has. in the case OF each price fuctua-
ton. been the direct and obvious cause of
the price variation. and that tho law OF supply
and demand has been Just as potent since
1873 as prior to that Hateful year.
That all complications growing out OF
hypothetical and controverted effects OF tariffs
the cost OF production and foreign competition
shall be eliminated from the equation. wo shall.
for the present deal only with the course Of
prices for q few such articles OF general use as
are neither imported nor exported in such
quantities as to appreciably affect the price
Among necessaries OF this character are boef
and corn. the price for each being wholly de-
tcrmined by the supply as related to the home
demand. hence variations in their exchange
value necessarily follow from domestic con-
ditions alone and will best show what. II any,
has been the price-making effect of quantita-
tive fluctuations In the currency or the decline
In the purchasing power OF silver.
II prices are the result Of supply as related |
to demand, then they are but expressions OF |
ratios; but such ratios may change. do change, |
as change standards OF living. although |
changes OF such standards arc usually 50
slow that their progress is rarely perceptible. |
and so far as available In illustrating price, |
making conditions. may be treated as con-
slant. SO constant have they been since 1870. |
and so we'll established the requirements, that |
we are warranted In saving that whoa title |
are In greater ratio than II to each loo people |
the price Is rarely such as to remunerate tho |
producer. and that whom the ratio exceeds 50 to |
100 individuals. production entails continuous
loss. and is accompanied by the insolvency OF
many OF those engaged exclusively are the
owners OF range cattle'-in beef production.
On the other hand. whenever the ratio falls
below ~ to 100 people the price advances
sharply. grazer and breeder become excep-
tionally prosperous. and thoroughbred ami
mails bring such fancy prices that a single
COW has been sold Tor more than $4,000.
That the effect upon prices Of supply. as re-
lated to demand, may bs readily seen. and to
show that price is but an expression oil ratio.
tho following table Is subIoined:
~ =