Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1895-12-06


preston In 1856 the Queen of Eng
land appointed Il commission to inves-
tigate the situation, and after the most
exhaustive search the commission
made its report, in which it was shown
that nearly every industry III the
United Kingdom was in a most griev-
ously depressed and unhealthy con.
dtion; that vast numbers OF workmen
were unemployed, and that the prices
OF nearly all the staple products OF the
country had so fallen that there was
almost no profit in business. 1t was
also observed as significant facts that
this depression had set in about the
year 1873 and that it existed in all
the leading commercial nations, differ
ing only i'll degree. The United
States Commissioner OF Labor in his
annual report for the year QSSG) adj
verted to the same state of facts, and
laid stress upon the circumstance that
while England had been the greatest
sufferer, this country stood second on
! the list in the order and extent of the
depression. The most conspicuous
feature OF this strange condition was
the circumstance (denied by nobody
that nearly all of the great staples Of
commerce had lost about one-third Of
their money value. This decline has
continued until now and the wholesale
prices OF commodities in genera. .are
from 40 to 30 per cent. below those OF
1878. 1t surely requires no argument
to show that business depression must
inevitably follow steady and general
fall of prices. Theorists may talk
airilv about the beauty of cheapness,
but no practical business man ever
yet gathered comfort from fall in the
price of the goods in his hands. Nor
has any producer ever been benefited
by n cheapening OF his product. \
fall of prices means reduced profits.
Reduced profits mean curtailing of
expenses. This III turn means dis
charge of employees, a cutting OF wages,
and retrenchment in every possible
way. Discharged employees and those
who have suffered reduction OF
wages, must themselves ecOnomize'
and in some cases they became an ac-
/ tual burden upon others. So the ef-
fects spread from one individual to an
other and from one industry to an
other until the whole community
feels the blight. Sooner or later con-
stantly falling prices are certain to
produce financial crash. All debts
must be ultimately paid out of pro-
ducts, and if the prices fall too much
the debts simply cannot be paid
When the crash does come it is bound
to be severe one, because it strikes
people at II time when their ability tC
pay has already been crippled by the
low prices OF what they have to sell
When the storm finally clears away il
is found that multitudes of struggling
debtors have been ruined, that tens o
thousands of small estates have beer
wrecked, while Il few gigantic fortunes
have been built up at the money cen
ters, which always protect themselves
at the expense OF everybody else.
1t is worthy of note in this connec
ton that the period from 1850 to 1871
was one OF almost universal progres
and prosperity. During that perio'
prices, upon an average, rose about y
per cent. But since then the who'll
) aspect of affairs has been changed
Instead of continuing to rise, or evel
remaining stationary, the trend ha
, been ever downward, the fall amount
ing to more than 40 per cent.
Now, it is clear that about the yea
1873 something took place that a
fected values and business in an e1
traordinary way.
, 1t is equally clear that it must hav
been something OF very general chal
+ acter to affect so many different M
p. tions and peoples so far removed fror
| each other. What was it? Was TIL
= industrial system OF the world revolt
r lionized by the invention OF machir
. ery2 Certainly not. Everybody VIII
e can read ought to know that inve,
# tions and improvements in machineT
& had been going on with great activit
# for more than half century befol
= that date, and that the improvement
j. have been no greater since.
V Were methods Of transportation ;
e changed as to produce any marked e
If feet? The answer must again he, NJ
J. Even then we had nearly $4,000 mill
o of railroad in the country, and Il
e ocean was briJged by lines of steamer
is The most rigid scrutiny will bril-
A. to light just one thing that occurr'
in 1873 which was calculated to m
20 terially affect the general busine
,e and finances of the world.
v, The standard of value was chang
by the demonetization of silver.
D. No amount of fine-spun theori,
as special pleading or juggling wi
il words will dispose of the cold histoI
is fact that in 1873 the United Stat
,g and Germany both demonetized silv
is, and adopted the gold standard. Tn
,g such action on the part OF these t'
n nations largely increased the dema
er for gold and correspondingly enhanc
IN its value must be obvious to any ID