The daily herald. [volume] (Brownsville, Tex.) 1892-1897, 1895-07-04

H-NNA1ktA NRt'AAt bE A1sAANlAANL ~ INLN ~
the risk taken on account of the fiuctua-
lions by receiving a less price for his cot
ton, wheat. beef and other articles.
Tn farnfars and planters do no5 export
their own products, but they sell them at
home to somebody else who sends them
abroad, and if the exchange is steady and
the money in which lie is TO pay for the
products has a fixed value relatively to the
money in Use in the country where he ex-
poets to sell them, the purchaser here can
afford TO pay the highest price that would
leave him a reasonable margin of profit in
view Of the conditions existing in the mar
ket abroad. In other wOrGs, he has to in
cur but one risk-the possible fall in the
price Of the products ab-oad-but if the cur
rency here is deprecated and huctuating,
IL our money has no fixed and certain val
Tie relatively TO the money In use abroad
where he expects to sell the products, there
IS an additional risk TO be incurred which
will have great influence III determining
the price he can afford topay the producer.
The Producer Must Pay.
In addition to the risk of n fall in the
price of the products abroad, he must
incur the risk of a rise in the price
OF silver between the time Of his pllr-
chase and the time when he receives the
proceeds of his sale, for if silver rises in the
meantime lie may not get back rs many
dollars as he paid ont. The producer must
pay for both Of these risks by receiving "a
smaller price for his commodities. and
hence his prices will never increase in pro-
portion to the actual depreciation OF the
money in which they are paid.
To Illustrate my meaning, when silver
= v~A-AL - aav~- - -.. a. .Fng--
contained in a silver dollar is worth 46.4
cents, but if the price of silver should adj
vance 10 g. cents per ounce the value Of
the bullion contained in a silver dollar
would be y cents, an increase Of over 3
per cent. Now. the price of cotton or wheat
viii not rise N proportion to the dcprccia-
ton Of the dollar IN which It Is to be paid
that IS, the purChaser for export will not
pay for it az the rate Of 46 40 cents for
each dollar when silver IS worth 60 cents
an ounce, because he knows that silver
may rise to 81 or 60 cents per ounce before
he can sell the product abroad and get his
money for il, and lie knows that Il this
happens the gold he receives abroad cannot
be exchanged for as many silver dollars rs
he paid the producer here. He will not
take all this risk upoa himself, but viii
compel the producer to bear it by receiving
a less price for his cotton or wheat, and
this argument applies with equal force 10
all other articles. IL Is impossible to csti-
mate accurately the amount Of loss which
this would infict upon the American pro-
ducers of exportahic products, but it world
undoubtedly DO very great, a. the value OF
our exports Of domestic merchandise is
nearly $50, GOO, 900 per annun, and a
small percentage upon this large sum
would very materially affect the incomes
OF GUT produces.
il j. argued that the existing standard
of value Cu-ht go lie abandoned brcausc
since 1873 Prices 81 commodities have fall
en- n VIII continue 10 fall. II the stand
ard Is maintained, 50 That It has been,
and VIII continue 20 be, mOreaud more
difficult cIch succeeding year 20 Pay dcbts;
tnnt this fall IL the prices of all cOmmod-
tiles is attributable TO the appreciation OF
gold, thai the appreciation in the value
VI gold has been caused ty the alleged do
monctiZa.ion Of silver in Germany ia fe1
and 1873, the omission OF the standard sill.
yer dollar from the coinage OF the United
States in $50, and the suspension OF the
coinage Of s.lvC- lr Franco In 1876. II Is
tsuc that the prices of many things have
fallen since 1873, but it is tTGC. also. that
the prices OF many things had fallen lone
before thet date. TIE assertion that Tie
fall in prices since 1873 Is due to TIE H1-
probation Of gold alonc based urcu the
assumption that tie r,,l. ions yt.a
supp and demand Lave Dos changed that
there has been uoGjm;Gu aEo OF tao cost of
production a@d distribution, tina; the in
ciitics for ctl,ctiag financial exchanges
have nos been Improved, aud, in bric;.
that tire word las mace 70 progress iu
the conduct OF lis india trial and common
cial operations Ior moro than 20 years.
Eject OF Labor Saving Machinery.
This assumption is so Inconsistent with
well known economic ard historical facts
that it seems scarcely worth while u eivs
if "A serious consideration. Reductions in
the prices Of commodities ARE generally
due To- 80 may different CAUSES that il is
scarcely ever possible To ascertain the cN-
tent Of their separate influences. ! pre-
sumo, however. that even the iaoSt ardent
advocate OF free coinage would hc willing
q admit that the invention ard use cf ia
Dor saving machinery, the extension Of our
railroad systems, the Improvement of our
waterways Hui the great reductions in thc
rates for carr ing freight. the employment
w T'HtNAT.AA EF NtF' at' NA hl-i tNAh- tfAaHfl fAl
the land and undrgth the sea, the application
OF electricity in the production Of light.
heat and power, the utilization Of by prod
ucts which were formerly wasted, tho in
reduction Of more economical methods in
the processes Of production, the wonderful
advance made by our lahorers in skill and
efficiency, the greatly reduced rates of in
tcru-t paid for the Use OF capital, and many
other things which IL would require much
time 10 cnumc-atc and explain. have affect
ed prices in some measure, at least, and
yet they ignore all these great Influences in
ehcir argument upon the subject and at
tribute the lower prices Of commodities To
"A single alleged and Inadequate cause
the appreciation Of gold. l presume. also,
that our free coinage friends win admit
that If the change in prices has been caused
entirely by The appreciation Of gold, the
reduction would have affected all things
alike, because it c4nuut be Ccuicd TINT. III
the absence Of other influences, gold must
bear the samo relation to the price Of one
article that it bears 10 tho price of another.
But we do not find that the prices Of all
things have been reduced in the samo pro
portion, nor 10 We find that The prices of
all things have In fact been reduced.