The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-12
CAUSE Of FALLING PRICES.


SOOHtAHueU from F1rSt fa&G.)
the value of all commodities as we'll
as that Of silver. TITS absurd to try
to show the value of anything by
measuring it by itself, as people do
when they say a gold dollar is never
more or less than a dollar. Hence the
value Of the learned scientific work
performed by Professor Sauerbeck.
Thus we find that disorganization OF
trade, resulting from the long-contin-
ued fall of prices, is owing to the rise
in the value Of gold, and we see no
remedy for that but in the remonetiz-
alton of silver, SO that the two metals
can resume business at the old stand
in the same way as before 1873. In
the final analysis. labor is the measure
OF values: it takes twice as much pro-
duce, therefore twice as much labor,
to pay a debt as it did before 1873.
We have been asked this question:
If the decentralization of silver is the
prime cause of falling prices, how was
it that prices were so low during the
period between 1915 and 1S49? We
have, in a later part Of this report.
noted the effect of the abundant
stream Of the precious metals which
for several hundred years poured from
the mines Of the Spanish Colonies Of
oOoOh VI
the precious metals led to %profousion
in their use. Kings, queens, lords and
the wealthy in general used them for
Ornamentation in a thousand ways,
while cathedrals ,and ministers had
their saints and patrons sc%ulptured in
gold and silver. The revolt of the
Spanish Colonies, one after another,
which occurred after the example Of
the United States, continued through
a large part of the first half OF this
century. The struggles were long
continued and bitter. The mines
were neglected, the fructifying stream
ceased to flow, and the profusion al
ludedS 90 could not be halted at once.
The precious metals became scarce
and prices fell, or the precious metals
rose, as you choose to put it. In 1913
gold was discovered in California, and
shortly after in Australia. Then
prosperity again appeared, prices be-
gan rising. The farmers heart was
made glad, for when he settled up aft
er selling his crops he had money to
buy clothes for his children and send
them to school.
The highway of liberty passes
through the school house. If our peo-
pie ever get so poor that their chill
dren cannot go to school you may bid
ROOu-Dy TO Uno
Divide tn volume of money and
double the debt"
Pause and consider what that
meant to this people with all the
debts of the great Civil wal resting on
them as they did in 1873.
We are asked this question: How
does the present law differ from the
law which prevailed before 1873.
We answer this question from the
annual report of the Secretary Of the
Treasury of the United States, Hon.
Daniel Manning, for the gear 1885,
which shows that gold was rated to
silver, not silver to gold, j. e., if the
two money metals diverged gold was
taken from or added to the dollar so
as to keep it equal in value to to the
silver dollar, and we might add that
this was the general custom of the
nations in by-gone ages, as Adam
Smith, by his researches, has shown
and for the simple reason that it was
the easiest way of maintaining parity.
There are many people who think
that when we sell a thing for half
price, but get money Of double value,
the thing is squared. And so it would
T be if there were no debts and if every
thing was adjusted to this new meas
ure that has double value. But this
is far from being the case. IT'S a
physical law that any force extending
itself does SO on 1.-THE line of the least
resistance" Labor resists violently.
All salaried men are more or less dis
posed to do the same thing, conse-
Quently this adjustment, although we
have been at it for over twenty years,
is far from being accomplished. The
produce of the farmer, the merchan-
disc of the merchant and the product
of the manufacturer cannot resist,
and so they are the first to be
slaughtered. When these are lcveled
down, does any rational mai see how
wages and salaries can escape?
Should recommendation survive, the
adjustment of prices will only be COM
plete when everything shall be re-
duccd to one-half what they would be
and were with bimetallism. And this
process of leveling will last far into
the next century and will cause un-
told suffering, misery and crime. for
extreme poverty is the hisnrOad to
<barbarism. 1t must be remembered
that for thousands Of years since
civilization began, prices have been
adjusting themselves to gold and sill
YER as money of final redemption.
And although, in the nature of things
it is easier to pull down than to build
up, still the pulling down and read
fjusting of the worlds commercial
Z structure cannot be done in a day, nor
can anyone tell how long, except that
it would probably take much over one
hundred years. Adam Smith says
that after the discovery of the preci.
Gus metals, consequent to the dis
covery of America by Columbus, prices
of commodities had an advancing ten.
dency for two hundred years, every
where adding to the comfort and
wealth of the people, enabling them
to educate their children and finally
dispelling the cloud of poverty and
misery which gave to the preceding
centuries the name "the Dark Ages
We may we'll question the wisdom of
legislation that reverses this picture
and makes the addition to our preci.
Jus metals d curse instead Of a bless.
ing. 1t should be remembered that
it was the merchants of the world and
not the kingly governments that es.
tablished the first minis, and that
the true function of the mint was TIC
assay and weigh the metals ana
stamp them. Their relative values
were establighed by merchandising
When governments go beyond this
they interfere with legitimate mer.
chandising, destroying prices, enrich
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