The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1895-01-09
Excessive Production and Low
Prices.

Those persons WHO, i'll their al,
| vocacy of. a silver standard for
money, claim that the low prices
of wheat and. cotton are caused,
not by an excessive supply Of those
products, but by the low price OF
silver, should inform themselves as
to the overproduetion of those sta.
pies.
While the American cotton crop
has been steadily. growing larger
for years past, the growing of cot.
ton in other countries has been
also rapidly pushed until there is
more cotton than the world needs,
aud the result is that the prices
are low in proportion.
The people in any country, and
by the same rule in all countries,
have just a given amount of their
incomes to pay for each necessary
of life. There is so much for house
rent, so much for clothes, so much
for food, and so much for other
necessaries. Thus the incomes are
parceled out, aud if there be any
surplus, that. is laid by, or some of
it may be spent for luxuries.
Some such calculation may be
made for the people Of all COM
mercial countries. Thus it is that
/ when some article of necessity
grows scarcer, and, therefore,
higher in price, there must be a
saving all around to enable the
consumers to secure it. When on
the other hand, prices are cheaper,
the consumer may enjoy q larger
supply, OF he may save money for
some other purpose.
When cotton declines from III
! to 5 cents a pound, the consumers
will be able to enjoy more gener.
GUS supplies Of clothing, or they
can save money for other impor.
tant uses. The same is true when
wheat declines from 100 to 80 cents
busLcl. If the decline in the
prices of these staples were due to
the decline in the value of silver
two things would have to take
place. One of them would be q
similar decline in all commercial
prices, and the other would be
that silver would have become the
: standard Of money value in the
country.
These conditions are not facts
as is plainly seen, for all CONNER
cial values have not declined Will
those of wheat and cotton, ant
the silver dollars have not follow
ed the decreasing value Of silver
since the Government maintain.
them at the same standard Will
gold dollars.
The simple fact il that the stead
lily decreasing prices of cotton ant
wheat are due to excessive crops
In connection with this them'
some interesting facts are coming
out with regard to wheat produc
tion in the Argentine Republic
> in the Southern Hemisphere. l
is an ideal country for wheat, ant
the yield is enormous. In 1882
Argentina only exported 100 ton
of wheat. Since then the expor
of that article has steadily an,
, RAPIDLY grown until, in 1893, TIL
exports of wheat reached NOR
than 100000 tons; while for tn
, first six months Of 1894, Argent
ma exported more than for the yea
1893. 1t is said that that the cos
Of growing and marketing whea
in that Country is not greater thai
% or 30 cents Il bushel, and, at s.
f cents, there is very CONSIDERABLE
= profit.
y The simple truth is that, through
the introduction of labor. savin,
g machinery and the opening OF ney
Z territory by means of railroads
the production of important sta
piles is being constantly increased
and by consequence, the prices ar
lowered. People who refuse t.
see the facts endeavor to accoun
for the declining prices by all sort
of wild theories about the effect
of speculation, the failing ve!a,, o
:: silver and the like: but no arp1
ment upon such theories can stand
Speculation fiuctuat.s up an,